Technical Efficiency of the Rural Savings and Credits Cooperative Societies in Tanzania: A DEA Approach

Author(s)

Dr. Joseph Magali , Dickson Pastory ,

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Volume 2 - December 2013 (12)

Abstract

This study employed Data Envelopment Analysis approach to assess the technical efficiency of rural SACCOS in Tanzania. The study found out that the technical efficiency of SACCOS varies across and within the regions where the efficiency scores for Morogoro, Dodoma and Kilimanjaro regions were 0.61999, 0.6028724 and 0.4649 respectively. We also noted that higher costs of operations for rural SACCOS attributed to low efficiency. Based on the findings of this study, we recommend that rural SACCOS in Tanzania should improve their efficiencies by utilizing savings, deposits and expenses effectively. 

Keywords

Technical Efficiency, Rural Savings and Credits Cooperative Societies, DEA, Tanzania.

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