The global credit union movement has experienced remarkable growth over the past decade, with total assets exceeding $3.7 trillion by the end of 2023. According to the World Council of Credit Unions (WOCCU), global membership in credit cooperatives reached 411 million across 104 countries, marking an 89% increase from 2014 to 2023. This trend underscores the growing popularity of credit unions as more people turn to cooperative models for affordable financial services.
However, global membership saw a modest increase of just 2% between 2022 and 2023. Factors such as the lingering effects of the COVID-19 pandemic, climate change, and global conflicts have contributed to this slowdown. Despite these challenges, Africa has emerged as a standout performer, with membership surging by 116% over the decade.
Africa’s Credit Union Growth and Impact
African credit unions, known as SACCOs (Savings and Credit Cooperative Organizations), are pivotal in the continent’s economic development. By the end of 2023, Africa hosted 24,674 SACCOs with over 17 million members. These cooperatives held a combined savings portfolio of $10.48 billion and total assets worth $8.62 billion.
SACCOs have made significant strides in financial inclusion and wealth accumulation. With an economic penetration rate of 11.5%, these cooperatives provide affordable credit, mobilize savings for development, and create employment opportunities. By December 2023, African member states had accumulated a wealth reserve of nearly $354 billion.
Kenya leads Africa’s SACCO sector in asset size, with 13,511 SACCOs serving 6.8 million members. Kenyan SACCOs manage a savings portfolio of $4.36 billion and assets totaling $6.20 billion, achieving a penetration rate of 20.7%. Ethiopia, Ghana, Cameroon, and Tanzania also rank among the top SACCO industries in Africa, collectively driving financial inclusion and economic growth.
SACCOs in Kenya: Driving Development
Kenya’s SACCO sector plays a vital role in advancing the country’s economic agenda. It contributes to the BeTA economic blueprint, the Vision 2030 Fourth Medium Term Plan (2023–2027), and the United Nations Sustainable Development Goals (SDGs). By offering affordable credit to households and small businesses, SACCOs bolster national development efforts and enhance financial inclusion.
In 2023, demand for SACCO credit services surged, with gross loans rising by 11.5% to Ksh 758.57 billion from Ksh 680.35 billion in 2022. This growth highlights the reliance on SACCOs as a primary source of affordable financing. Beyond credit, SACCOs mobilize savings for development projects and create sustainable employment opportunities.
Global Credit Union Trends
Globally, credit unions have grown steadily, with cooperative penetration reaching 13.5% in WOCCU member states. North America leads the sector with an asset base of $2.71 trillion and a penetration rate of 60.4%. Asia, Latin America, Europe, the Caribbean, and Oceania follow, while Africa ranks lowest in total assets.
Despite this disparity, Africa’s credit union sector shows significant potential. With a relatively low asset base of $8.62 billion, there is substantial room for growth and development.
WOCCU’s Role in Inclusive Growth
WOCCU, the global apex body for credit unions, is committed to sustainable development and expanding access to affordable financial services. The organization collaborates with national governments to improve legislation and regulatory frameworks, ensuring better conditions for underserved populations.
WOCCU’s Director of Member Services, Thomas Belekevich, reaffirmed the commitment to inclusivity: “WOCCU will continue to work to ensure credit unions are improving conditions to reach more vulnerable populations. We will strive to reach a billion members, with half of them being women.”
Through technical assistance programs, WOCCU helps credit unions strengthen financial performance and enhance outreach. By adopting innovative tools and technologies, credit unions can better serve their members and expand their impact globally.
