An Assessment of the Inherent Weaknesses in the Development of the Financial Institutions in Zimbabwe
Journal Title:Journal of Economics and Finance
This study sought to assess the inherent weaknesses in the development of financial institutions in Zimbabwe with references to Savings and Credit Cooperative (SACCOs) in Harare. The researcher used the descriptive survey method where questionnaires and interviews were used in the collection of data. Secondary data was collected by use of archival research where the institution’s records and reports, journals and websites were perused. The total population was 688 comprising of 680 members of the SACCOs, 4 Ministry of Youth Officials and 4 National Association of Credit Savings and Cooperatives Union of Zimbabwe (NACSCUZ) officials from which a sample of 40 was drawn. Stratified sampling and the purposive sampling methods were used to obtain the sample size. Major findings include that, over indebtedness of the SACCOs, poor appraisal of loan credit and subsequent poor loan monitoring mechanisms led to high default rates hence depletion of institutional funds.