Volume 26 • Issue 1 • Year 2026
Applied Econometrics and International Development
Research Article

Evaluation of Technical Efficiency of SACCOs in Eswatini

Pages: 22-29

Authors

Sanderson Abel1,*, Farai Kwenda2 Leward Jeke3 Henry Muleya4

Author Affiliations

  • 1Botswana University of Agriculture and Natural Resources, Botswana, Nelson Mandela University, South Africa
  • 2University of Eswatini, Eswatini
  • 3Nelson Mandela University, South Africa
  • 4Lupane State University, Zimbabwe

DOI

https://doi.org/10.64067/2660-7409.26.i1.03

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Abstract

Savings and Credit Cooperatives (SACCOs) are pivotal for enhancing financial inclusion and mobilizing domestic savings in Eswatini, particularly for populations underserved by traditional banking. However, their impact is contingent upon operational efficiency. This study evaluates the technical efficiency of 35 SACCOs in Eswatini using an unbalanced panel of quarterly data from 2020 to 2024 and Data Envelopment Analysis (DEA). The results reveal strong and significant technical efficiency, averaging approximately 90%. This efficiency is driven by interest rates, profitability, size and capital adequacy. This implies that the efficiency of these institutions are driven more from within (i.e. microeconomic factors) rather that external or macroeconomic factors except interest rates.

Keywords

  • Savings and Credit Cooperatives
  • Data Envelopment Analysis
  • Eswatini
  • Tobit Regression
  • Technical efficiency

How to Cite

Sanderson Abel, Farai Kwenda, Leward Jeke and Henry Muleya. (2026). Evaluation of Technical Efficiency of SACCOs in Eswatini. Applied Econometrics and International Development, 26(1), 22-29. https://doi.org/10.64067/2660-7409.26.i1.03

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Applied Econometrics and International Development

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Sanderson Abel*
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© 2026 Sanderson Abel et al.
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This is an open-access article published in Applied Econometrics and International Development and distributed under the terms of the Creative Commons Attribution License (CC BY 4.0). This license permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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