Perceived contribution of village saving and loan associations to economic empowerment of women in Kabende Sub County, Kabarole District

Abstract

The purpose of the study was to understand the perceived contribution village savings and loans associations to the economic empowerment of women in Kabende Sub County in Kabarole district. The study sought to find out the contributions of VSLAs in enhancing women’s participation in decision making at the household level in Kabende Sub County, to explore the benefits of women’s engagement in VSLAs on household income and to find out the challenges VSLAs encounter in their operations.

I employed a purely qualitative approach using a purposive sampling strategy. The study participants were women who are members of different VSLAs in Kabende subcounty. The study incorporated a total of 10 participants. I also interview a total of 5 key informants members from BRAC and 3 leaders of VSLAs in the sub county.

Data was collected through in-depth interviews the VSLA group members and focus group discussion with some of the women who were not captured in the in-depth interviews. Key informant interviews with group leaders and members from BRAC. Data were analyzed through thematic analysis method.

In interviews and focus group discussion participants mentioned there are a number of contribution of VSLAs towards enhancing decision making at household level. During the interviews the women cited empowerment through access to resources, self-sufficiency, as well as better incomes and livelihoods as some of the contributions of VSLAs in enhancing women’s participation in decision making at household level. Safe and easy access to low interest loans, involvement in income generating activities as well as supporting children’s education were some of the benefits derived from the engagement in VSLAs. However, there are challenges in faced in the operations of VSLAs including unsupportive partners who discourage women from participating, failure to repay loans as well as lack of external funding.

The study recommended the need credit unions. Since to link VSLAs participants with formal financial institutions or VSLAs depend on members’ limited savings capacity to provide lo an, yet the loan demand of some VSLA members can outpace available resources, it is therefore important for government and other stakeholders to link the VSLA members with registered microfinance institutions. This linkage will have a double fold effect. On one hand, the members in different groups will be able to access extra loans to expand their small businesses. On the other hand, the participant, in addition to the VSLA, will get an extra convenient spot to save more money in small amount for future use.