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In recent years, economists, international organizations, and governments in developing countries have placed increasing emphasis on the mobilization of deposits, not only to increase domestic savings to achieve sustained economic growth and development, but also to strengthen domestic financial intermediaries (Admass and Vogel, 1986; Besley, 1995). Germany was the first country in the world to apply the principle of cooperation in the field of saving and credit. The cooperative saving and credit movement was started in Germany in the middle of the 19th century. At that time, the economic condition of German was extremely deplorable and the peasants and artisans felt crushed under the heavy weight of indebtedness. Jews rule over the market and the poor laborers and farmers had no way out to buy articles of their requirement from them and sell their product to them. Hence, German laborers and peasants were passing such bad time. Raiffeisen tries to reduce the suffering of the people who are living in rural areas while Schulze adopted the new measures for giving relief to the people in the urban areas (John, 1986). SACCOs are promoted not only for money; they contribute to the promotion of total human development. SACCOs develop people's minds by providing motivation, creating initiative, promoting self-development and self-reliance and providing leadership. They also develop material well-being by raising the living standards of members, making possible regular savings and wise use of money, providing loans at low interest rate and by making possible economic emancipation of members (Dejene, 1993).
3 The first SACCO Society, in Africa, was introduced in Ghana in 1959. The SACCO was intended to assist villagers improve their economic conditions (Ng'ombe & Mikwamba, 2004). English speaking nations were the first to adopt SACCOs. The first entrants into SACCO community include Ghana, Uganda, Nigeria, Tanzania, and Kenya. Most of the Non-English speaking nations in Africa started appreciating SACCOs in 1960s, with major influx into SACCO community in 1970s (Mwakajumilo, 2011). According to Sweden International Development Association (1996), Cooperative as a legal institution first came into being in Ethiopia in 1960s/1953 E.C by cooperative proclamation number 44/1961/1953E.C. The first saving and credit co-operative in Ethiopia was established in 1964 by employees of Ethiopian Airlines. During the same period, one SACCO was established by employees of the Ethiopian Road Authority and the Telecommunication Agency. Different proclamation numbers have been provided to the National Bank of Ethiopia by the Derg regime and the current government to promote and organize saving and credit cooperatives. But the rooted problems of cooperatives are continued. Collecting and distributing available savings, credit and other services are performed traditionally. The aim of promoting these SACCOs in developing countries like Ethiopia, there are low levels of saving culture owing to poor, underdeveloped stock