Financial product development and members’ voluntary saving behavior in saving and credit cooperatives in Tigray: A case study in Endamohoni Woreda

Figures & data

Figure 1. Geographical locations for Endamehoni Woreda, Tigray.

Table 1. Total number of SACCO members and the number of sample for each studied SACCO

No.	Name of SACCO	Total number of members	Sample members
1	Millennium	585	20
2	Tsion	183	6
3	Embeba Haya	1,444	49
4	Gedam	615	21
Total population		2,827	96

Figure 2. Conceptual framework of the study.

Table 2. Status of respondents saving habits

Status of respondents saving habits	Frequency	Percent
Have saving habits	58	60.42
Have no saving habits	38	39.58
Total	96	100.00

Source: Own survey.

Figure 3. The amount of money saved voluntarily by the respondents in SACCOs.

Source: Own survey.

Table 3. Child savings in each SACCO (2012–2014)

S.No.	Name of SACCOs	Sex		Total	Saving amounts	Percent
		M	F
1	Haftamnesh	20	68	88	14,800	4.30
2	Embeba haya	107	93	200	133,452.05	38.78
3	Meserete birhan	30	30	60	2,853	0.83
4	Lemlem sale	33	19	52	117,056	34.01
5	Birhan tsibet	2	0	2	298	0.09
6	Tsion	2	1	3	970	0.28
7	Hiwot lemlem	2	5	7	820	0.24
8	Gedam	9	7	16	5,706	1.66
9	Gereb ayni	41	39	80	8,272	2.4
10	Genet	4	2	6	1,445	0.42
11	Fereweyni	28	24	52	45,125	13.1
12	Felamit senay	9	15	24	2,179	0.63
13	Amdi jema	40	39	79	4,728	1.37
14	Birhan alem	9	6	15	1,330	0.39
15	Tinsa’e	3	9	12	1,080	0.31
16	Teklibebzewa	0	2	2	118	0.03
17	Shewit	42	34	76	3,895	1.13
Total		381	393	774	344,127.05	100.00

Source: Annual reports data of the survey (2015).

Table 4. Types of financial products of the respondents

Reponses on the types of financial products	Frequency	Percent
Voluntary and compulsory savings	1	1.04
Voluntary, compulsory, saving insurance, time savings, child savings, and loans	5	5.21
Voluntary, compulsory, time savings, saving insurance, and loans	6	6.25
Voluntary, compulsory, time savings, and loans	11	11.46
Voluntary, compulsory, saving insurance, child savings, and loans	11	11.46
Voluntary, compulsory, saving insurance, and loan	19	19.79
Voluntary, compulsory, and loans	13	13.79
Compulsory savings	2	2.08
Compulsory savings, time savings, and loans	3	3.13
Compulsory savings and saving insurance	1	1.04
Compulsory, saving insurance, child savings, and loans	1	1.04
Compulsory, saving insurance, and loans	6	6.25
Compulsory savings and loans	17	17.71
Total	96	100.00

Source: Own survey.

Figure 4. The main problems faced in demanding loans.

Source: Own survey.

Table 5. Summary of descriptive statistics of the main variables included in the study

Variables	Number of Observations	Mean value	Standard deviation	Minimum value	Maximum value
Age	96	35.76	8.88	22	62
Gender	96	0.48	0.50	0	1
Level of education	96	4.58	1.31	1	6
Marital status	96	2.03	0.44	1	3
Number of dependents	96	2.32	1.36	0	5
Household size	96	4.53	1.75	1	10
Access to training	96	0.41	0.49	0	1
Safety(security)	96	1.05	0.22	1	2
Distance to SACCOs	96	1.92	0.26	1	2
Membership year	96	3.06	1.06	1	4
Participation	96	1.04	0.20	1	2

Source: Own survey.

Table 6. Summary of the variables included in the model

Variables	Type	Codes	Values
Age	Continuous	X1	Age of the respondents is in number of years
Gender	Dummy	X2	“1” if household head is male and “0” otherwise
Marital status	Dummy	X5	“1” for single, “2” for married and “3” for divorced
Level of education	Dummy	X3	“1” for illiterate, “2” for able to read and write, “3” for 1st–6th grade complete, “4” for 7th−8th grade complete, “5” for 9th–12th grade, and “6” for above 12th grade
Number of dependents	Continuous	X4	“1” for having one dependents, “2” for two, “3” for three, “4” for four, and “5” for more than four
Household size	Continuous	X6	Household size of respondents is in numbers
Access to training	Dummy	X7	“0” if the household has access to training and “1” otherwise
Safety (security)	Dummy	X8	“1” for those who said secured and “2” otherwise
Distance to SACCOs	Dummy	X9	“1” if yes(far) and “2” for no (not far)
Years of membership	Continuous	X10	“1” if the respondent stay for one year, “2” for two years, “3” for three years and “4” for more four years
Participation	Dummy	X11	“1” for those who say yes and “2” for not

Source: Own survey.

Table 7. Results of the regression on the determinants of voluntary savings of SACCO members

Independent variables	Coefficient	Standard errors	Z value	P > |z|
Constant	−2.3597	1.1627	−2.03	0.042**
Age	−1.1143	0.0476	−2.40	0.016**
Gender	−1.1615	0.8211	−1.05	0.293
Dummy 1 = single	2.5465	2.1983	1.16	0.247
Dummy 2 = married	2.6709	1.5224	1.75	0.079***
Dummy 2 = able to read and write	0.2748	1.1851	1.08	0.282
Dummy 3 = 1st–6th grade	2.9626	1.0511	1.87	0.062***
Dummy 4 = 7th–8th grade	0.9003	1.9049	0.99	0.320
Dummy 5 = 9th–12th grade	1.9672	0.8258	2.38	0.082***
Number of dependents	−1.1707	0.6215	−1.88	0.060***
Household size	−1.8127	0.8480	−2.14	0.033**
Access to training	1.4819	0.6843	2.17	0.030**
Safety (security)	0.3136	0.1195	2.62	0.009*
Distance to SACCOs	−1.1035	0.1060	−1.00	0.318
Years of membership	0.7881	0.4527	1.74	0.082***
Participation	2.7128	1.7669	1.54	0.125

Source: Own survey.

* Significance levels at 1%.

** Significance levels at 5%.

*** Significance levels at 10%.

Table 8. Correlation matrix of voluntary savings and financial products

		Financial products	Voluntary savings
Financial products	Pearson correlation	1	0.7297
	N	96	96
Voluntary savings	Pearson correlation	0.7279	1
	N	96	96

Source: Survey data (2015).