MOTIVES AND DETERMINANTS OF SAVINGS IN SUB-URBAN TANZANIA: A CASE STUDY OF MBEYA CITY COUNCIL

Ramadhani Khalid Mndeme; Hamis Mohamed Sinde

Ramadhani Khalid Mndeme
Hamis Mohamed Sinde

Abstract

Purpose – The study has analysed the influence of demographic and social-economic attributes on individuals’ saving behaviour, particularly in Tanzania sub-urban area; a case study of Mbeya City Council.

Research methodology – A survey approach has been used to collect data from a sample of 400 respondents. Then, descriptive analysis and binary logit regression were used to analyse data through SPSS.

Findings – The results show that different dispositions of gender, education, number of dependants, membership to social-economic groups and age have different impact on individuals’ saving behaviour. Also, precautionary motive is observed to be the predominant reason for people to save across different dispositions of the attributes.

Implications –For improved outcomes, financial inclusion initiatives should consider individuals’ attributes concurrent with stimulating individuals towards saving for investment related motives.

Originality/Value – This study provide additional insight by associating saving motives with individual attributes and it considers dispositions of individual attributes on evaluating saving behaviour.

Keywords: Demographic and Social-Economic Attributes, Logit Model, Motives and Saving