The Mbao Savings and Credit Co-operative Society (SACCOS), the SACCOS for the employees of Sao Hill, was restarted during the autumn of 2006 after an initiative by Green Resources. SACCOS are an important part of Tanzanian micro-finance and can play an important role in advancing the welfare of the members. Typically, the SACCOS provide financing for the members to purchase plots, farm implements, seeds and fertilizer, finance home industries and trading operations and is as a lender of last resort.

Green Resources has been mobilising its employees to develop the habit of saving and borrowing through Mbao Savings and Credit Cooperative Society (Mbao Saccos) at Sao Hill, Mufindi District, Tanzania. SACCOS is a “savings-bank” and the back-bone of Tanzanian micro-finance.

The history of Mbao Saccos goes back to 1980’s when it was performing well. However, it became dormant in 2001 when the SACCOS treasurer made away with the SACCOS money hence dramatically reducing the capacity of SACCOS to provide credits to its members.

Green Resources  took the initiative to revive the activities of Mbao SACCOS in 2006 by mobilizing various seminars for employees concerning the importance of the SACCOS. After these seminars, the member conducted a successful election and by so doing employees’ faith was won back.

Green Resources initially bought 200 shares worth TSh 2m with the aim of increasing the SACCOS capacity to give loans to the entitled members, and it committed to further investments when it becomes clear that the SACCOS is operating well. This transaction had a positive impact because the cash flow improved and the number of members increased from 41 in 2005 to 141 by end of March 2006. The loans to members also increased dramatically from TSh 2m in 2005 to over TSh 15m by March 2007.