Saving and Credit Cooperatives (SACCOs) are the main financial solution of the people who are poor and in most time, cannot comply the requirement of banks. Researcher of this project has conducted Community needs assessment on 2015, by case study on Gamba development SACOSS, in north Unguja Zanzibar Tanzania with sample size of fifty respondent (50) of which thirty(30) were group member and twenty (20)were other beneficiaries. Researcher observe that, SACCOS member have low income level, resulting from lack of correct knowledge of income generating activates, which is associated with existence of different challenges such as low educational level of it member, prolonged drought, insufficient production technology and entrepreneurship skills, he suggested that, by providing member driven services, appropriate training, education, and participating other stakeholders in the community, these could be a solution. Researcher uses cross sectional descriptive research, primary and secondary data were collected and analyzed by computer program SPSS, descriptive statistical methods of analyzing data used, he recommended that, in order to have good contribution of SACCOS on poverty reduction SACCOS’s must Have regular capacity building of its member financially and non financially capacity, otherwise SACCOS’s will fail to give fair contribution on poverty alleviation
