The Strengthening of Savings and Credit Cooperative Societies’ Supervisory Function at the Ministry of Agriculture, Food Security and Cooperatives (MAFC) project was WOCCU’s first development program in Tanzania.
WOCCU worked closely with MAFC’s Cooperative Development Department (CDD), headed by the Registrar of Cooperatives, and the Bank of Tanzania Microfinance Team, to modernize the savings and credit cooperative societies (SACCOS) regulatory framework and strengthen supervision of the SACCO system. The initial focus of the program was to strengthen the capacity of CDD and its regional and district officers to license, inspect and supervise SACCOS. The underpinning goal was to secure a safe and sound SACCO system that minimizes risk and provides diversified financial services to SACCO members in mainland Tanzania.
WOCCU staff trained regulators from MAFC’s CDD on risk-based supervision and regulatory systems and policies, as well as effective operational and financial standards for SACCOS. WOCCU helped develop a framework to facilitate communications among the Bank of Tanzania, CDD and SACCOS on monitoring and performance issues. WOCCU also helped to create an early warning system, develop policies for intervention and provide guidance on helping SACCOS improve their financial structure and operations.