"The growth and impact of Cooperative Societies in Botswana : the case of Sametsi Savings and Credit Society"

Abstract

This study focused on the growth and impact of Savings and Credit Cooperative Societies in Botswana. It assessed the measures taken to promote cooperative societies, the mechanism used to monitor and evaluate their performance, the socioeconomic benefits accruing to the membership, and the major challenges facing cooperatives societies today. Data were collected from a sample of 55 respondents using self-administered questionnaires and supplemented with in-depth interviews conducted with three key informants. The 55 interviewees were selected through a two stage sampling process combining non-probability and probability sampling techniques. The first stage utilized purposive sampling to select the Gaborone branch of Sametsi SACCO as the focus of the study while in the second stage systematic random sampling was utilized to select the 55 individual members of the SACCO interviewed for the study. The results revealed that cooperative societies are becoming a major player in Botswana's economy and in uplifting the socio-economic welfare of the populace. As such, the Government was actively involved in the promotion of their growth and development. In particular, the Government had passed the Cooperatives Societies Act (1989) and the National Policy for Cooperatives Development (2008) to serve as the legal and policy pillars in the growth of the sector. In addition, it has established a Department of Cooperative Development in the Ministry of Trade and Industry to provide the necessary coordination, leadership, and regulation of the sector. The study showed that the Department has committed itself to excellent service delivery and is determined to take SACCOS in Botswana to new heights. To do so, it conducts periodic management performance audits; carries out spot checks on internal controls; regularly inspects cooperative societies; and constantly monitors the growth trends and the investment portfolios of SACCOS, among others. Based on the results of this study, SACCOS impacted positively on the lives of their members by availing to them a wide variety of socio-economic benefits such as increased sense of belonging to a group, development of good conduct and good working relationship with others, acquisition of leadership skills, easy access to credit at reasonable interest rates, financial discipline, and increased participation of members in the financial sector. However, despite the favorable reviews

cooperative societies received from the interviewees and the initiatives of Government and its cognate institutions, the study found that the societies in Botswana were facing a variety of challenges related to performance, governance, and membership. Based on the results of the study, it was concluded that Botswana had put in place the broad legal and policy structures necessary for the promotion of the growth and development of cooperative societies in the country as well as evolved the institutional framework - the Department of Cooperative Development - for the monitoring and evaluation of their performance. It was also concluded that there existed great potential for the growth and development of cooperative societies in Botswana and but a lot still remains to be done to overcome the challenges facing cooperative societies today. To address the challenges facing cooperative societies in Botswana today, it was recommended that the societies should introduce fully developed computer systems to ensure regularly updated information on the financial operations of cooperative societies, attract and retain qualified staff, adopt strategic planning and budgeting, increase the empowerment of the membership, and ensure the constant and regular flow of information to members.