Exploring best practices in the management of SACCOs to promote financial inclusion in rural areas: a case study of EBO SACCO in Mbarara district, Western Uganda.

Abstract

This research explored the operational challenges, governance structures, and financial literacy strategies of Savings and Credit Cooperative Organizations (SACCOs) in Mbarara District, with a case study of EBO SACCO. SACCOs play a pivotal role in providing financial services to low-income earners, especially in areas underserved by traditional banking. This study sought to evaluate the operational efficiency of SACCOs, assess governance frameworks, and analyze the role of financial literacy in ensuring sustainable economic growth among members. The research adopted a descriptive design, using both quantitative and qualitative methods to gather data from SACCO management and members. Key indicators such as loan disbursement processes, governance practices, financial literacy initiatives, and overall member satisfaction were evaluated. Preliminary findings suggested that while SACCOs contribute significantly to financial inclusion, operational inefficiencies and governance gaps remain major obstacles. Additionally, a lack of comprehensive financial literacy programs has limited the ability of members to fully benefit from available financial services. The study aimed at contributing to a deeper understanding of how operational improvements, robust governance, and enhanced financial literacy have strengthened SACCO performance. Recommendations focused on addressing these challenges, promoting better management practices, and improving financial literacy programs. These insights are valuable for policymakers, SACCO leaders, and development organizations focused on financial empowerment and sustainable development in rural Uganda.