Professionalizing the SACCO to provide better services to its members, which enables growth

RSTGA SACCO has been established in 2008 and has 2,133 members, 1 office and 1 branch. RSTGA SACCO was established as a result of the efforts of Rungwe Smallholders Tea Development Trust Fund which operates under Rungwe Smallholder Tea Growers Association, being the agent for development of the tea growers in the region. Before the SACCO was formalized the development trust fund facilitated farmers in the formation of savings and credit groups. After having facilitated these groups for 3 years the amount of farmers reached the stage that a more professional organization was needed for serving the financial needs of tea growers in Rungwe, and in 2008 RSTGA SACCO was founded and registered. RSTGA SACCO is currently providing savings and credit services to its members. Savings services are mostly used by members in order to be able to comply with the conditions for getting a loan. Most loans are agricultural production loans, most of them related to farmer inputs e.g. seeds and fertilizer and occasionally working capital. Targets set by RSTGA SACCO when it was formalised in 2008 were very ambitious. The aim was to reach 15,000 members of RSTGA tea producers within 5 years and have 8 branches all over Rungwe. Now, after 4 years this target appears to be too ambitious and the expectations have been tampered even though serious growth and reaching 10,000 members, of which the majority are small holder tea farmers, in the coming 5 years may not be beyond the horizon. The SACCO foresees a big growth in membership in the coming 2 years. The demand for loans is currently higher than what the SACCO can offer, the loan size does not allow for bigger investments. With the SACCOs growth ambitions the demand for credit will even increase. RSTGA SACCO seeks to expand it outreach to members and wants to provide them with more savings and credit services.