Savings and Credit Cooperatives (SACCOs) play a crucial role in improving livelihoods and promoting financial inclusion among underserved communities. This study employed a cross-sectional research design in three towns of the Wolaita Zone, Southern Ethiopia, involving a representative sample of 364 households drawn from nine randomly selected wards. Data were collected from both SACCO participants and non-participants using a structured interview schedule. To assess the effect of SACCO participation on household economic livelihood outcomes, the study applied the Propensity Score Matching (PSM) technique. The findings revealed five statistically significant factors influencing SACCO service utilization. Land size, market access, credit access, and access to ICT positively influenced SACCO participation, whereas greater distance from SACCO offices had a negative impact on utilization. The PSM analysis confirmed that SACCO participation significantly improved household economic outcomes. Specifically, member households reported higher annual incomes, greater total consumption expenditures, and increased annual savings compared to matched non-members. The study recommends expanding SACCO coverage in remote areas, enhancing credit and market access, improving ICT infrastructure, and strengthening financial literacy initiatives. Integrating SACCOs into Ethiopia’s broader financial inclusion and cooperative development policies is essential to maximize their long-term impact. SACCOs should be recognized as vital instruments for poverty reduction and economic empowerment in rural and peri-urban communities.
Jokka et al. (Fri,) studied this question.