Global Journal of Commerce & Management Perspective
Open Access

Abstract

Impacts of Corporate Governance on Efficiency and Sustainability of the Best Rural Saccos in Tanzania

Joseph John Magali and Joel Kiprotich Lang’at

This paper assesses the influence of the corporate governance on the efficiency and sustainability of the rural SACCOS which have relatively good financial performance in Tanzania. The paper compares the three best rural SACCOS, their efficiency and sustainability in order to obtain the best overall performer and outline reasons for the overall best performance. The paper applies the descriptive and qualitative analysis styles. The findings from the analysis reveal that the SACCOS in Morogoro outperformed the Dodoma and Kilimanjaro best rural SACCOS because it has enough experience in conducting the SACCOS business, was committed in loans screening, processing and recovery, it adhered to good leadership and corporate governance principles, possessed the loyal staff and its management has proper credits risk mitigation techniques. This paper recommends that the least performers rural SACCOS should apply the corporate governance principles and imitate some strategies of the overall best rural SACCOS to improve their efficiencies and promote their sustainability and should not rely on external funding and grants.