The World Council of Credit Unions (WOCCU) 2023 Statistical Report shows that the global credit union movement continues to grow. As of December 2023, membership in credit unions worldwide exceeded 411 million across 104 countries, reflecting an impressive 89% increase from 2014 to 2023. Additionally, the total assets of credit unions surpassed $3.7 trillion, according to the WOCCU Statistical Report 2023.
Credit unions have become increasingly attractive to individuals seeking affordable financial services through cooperative models. However, despite this strong growth trend, global membership experienced a modest increase of only 2% between 2022 and 2023. Key factors contributing to the slowdown in membership growth over the past year include the aftershocks of the COVID-19 pandemic, climate change, and escalating global conflicts.
The report highlights Africa as a standout performer, with membership surging by 116% over the past decade. In Africa, these credit unions are known locally as SACCOs (Savings and Credit Cooperative Organizations) and have played a crucial role in economic development across the continent. By the end of 2023, Africa was home to 24,674 regulated SACCOs, serving over 17 million people. These cooperatives manage a combined savings and shares portfolio totalling $10.48 billion and possess total assets worth $8.62 billion.
SACCOs promote financial inclusion and wealth accumulation within Africa’s financial landscape. With an overall economic penetration rate of 11.5%, they make a tangible impact on communities by providing access to affordable credit, mobilizing savings for development, and creating employment opportunities.
Kenya stands out as the largest SACCO industry in Africa based on asset size, boasting 13,511 SACCOs that cater to over 6.8 million members. Kenya’s regulated SACCOs hold a combined savings and shares portfolio of $4.36 billion and have accumulated total assets of $6.20 billion. According to the statistical report, the penetration rate of SACCOs in Kenya is notably high at 20.7%.
The SACCO sector in Kenya continues to play a pivotal role in the country’s economic agenda, contributing to the realization of national and international development goals. SACCOs are actively involved in advancing Kenya’s economic blueprint, BeTA, along with the Vision 2030 Fourth Medium Term Plan (2023-2027) and the United Nations Sustainable Development Goals (SDGs). By providing affordable credit to households and small businesses, SACCOs support national development efforts and promote financial inclusion for the majority of Kenyans.
In 2023, the demand for credit services from SACCOs in Kenya surged, with gross loans growing by 11.5% to Ksh 758.57 billion, up from Ksh 680.35 billion in 2022. This increase demonstrates the growing reliance on SACCOs as a key source of affordable financing for many Kenyans. In addition to providing credit, SACCOs also play a critical role in mobilizing savings for national development projects and creating sustainable employment opportunities.
“
Global Credit Union Membership Surges to Over 411 Million, With Africa’s SACCOs Leading Growth
The report also highlights Ethiopia, Ghana, Cameroon, and Tanzania as significant players in Africa’s SACCO (Savings and Credit Cooperative Organization) movement, making up the top five largest SACCO industries on the continent. The overall growth of SACCOs in these countries has been crucial in promoting financial inclusion and driving sustainable economic growth.
Globally, North America leads the credit union sector, with an impressive asset base of $2.71 trillion and an economic penetration rate of 60.4%, which far exceeds other regions. Following North America are Asia, Latin America, Europe, the Caribbean, and Oceania, with Africa ranking lowest in terms of total assets.
Nonetheless, Africa’s credit union sector shows tremendous promise and potential for future growth. The continent currently has a relatively low asset base of $8.62 billion, indicating significant opportunities for further expansion and development in the coming years.
In 2023, several countries experienced growth rates that exceeded the global average, including Dominica (33 per cent), Nepal (18 per cent), Brazil (12 per cent), and the UK (10 per cent).
“Brazil has consistently grown its membership year after year. At Sicredi, our direct member organization, this growth is largely attributed to the efficiencies and inclusion made possible through our shared service model,” said Thomas Belekevich, WOCCU’s director of member services.
This Statistical Report was produced in partnership with WOCCU’s member network, which encompasses national and regional credit union associations in over 80 countries. This network accounts for 70 per cent of all credit unions, credit union members, and credit union assets worldwide.
