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In recent years, the growth and expansion of saving and credit cooperatives is playing its significant contribution to poverty reduction strategy of developing countries including Ethiopia in solving the financial problem of urban and rural dwellers.The main objective of the study was to identify the determinant factors for the development of SACCOs in Gondar town. The study area was selected purposively, due the presence of long established SACCOs.To analyze qualitative and quantitative data descriptive statistics, correlation and World Council of Credit Union (WOCCU) financial standard tools were employed. The recommendations should get the attention of SACCOs, development workers and policy makers to improve the current situation. These measures will ultimately provide SACCOs not only to the advantage of members but also for the development of financial market at community level.