Abstract:
This study investigated the determinants affecting financial sustainability of SACCO’s in Amhara
region. A fixed effect regression model was used in the investigation. Sixteen SACCO’s were
taken as a sample. The researcher used a purposive sampling technique. The data covered from
the period 2017-2022 were used for analysis. The data was collected from Amhara National
Regional state of cooperative promotion Agency Bureau. A Balanced longitudinal/panel
secondary data set were used in this study. To realize the stated objective quantitative approach
and explanatory design were employed. The analysis revealed that SACCO’s in Amhara region
are financially sustainable. The fixed effect model result shows that deposit mobilization, number
of active borrowers, and loans intensity has a statistically significant and positive effect on the
financial sustainability of SACCO’s, while leverage, size of Sacco’s and management efficiency
has a statistically significant and negative effect on SACCO’s financial sustainability. Finally,
the study suggests that SACCO’s in Amhara region should perform their conventional activities
such as saving mobilization and credit provision properly to be financially healthy.