The role of SACCOs in the economic welfare of women in the rural areas of Uganda

Abstract

This study investigated the role of the savings and credit cooperative organizations (SACCOs) in promoting economic welfare of the women in rural areas of Uganda. A case study of the Buwama subcounty regions was used. The main objective of this study was to analyze the role of the savings and credit cooperative organizations (SACCOs)in the economic welfare of the women in rural areas of Uganda. The paper analyzes the impact of SACCOs on women's financial inclusion, access to credit, savings, and socio-economic empowerment. Using a mixed-method both qualitative and quantitative approach, primary data was collected from a sample of five SACCOs and their members in five rural areas in Buwama subcounty using a 15 questionnaires and interview guide plus 15 key informant interviews. Data cleaning and analysis was done using STATA, SPSS and R software. The study results reveal that majority of the respondents were married (56.6%), while only (9.627%) were widowed. They also reveal that majority of the respondents (59.3%) attained primary and secondary education, while (12%) did not attain any level of education. Majority of the respondents were subsistence farmers (53.4%) which was their source of income, (21.4%) were students and (25.2%) were unemployed.(96.1%) of the respondents had information about the existence of the SACCOs in their areas and that they helped them in fighting hunger and poverty as they got loans and bought farm machinery that later increased the farm yields whereas (12.4%) repudiated joining SACCOs due to their side effects like selling off ones property in failure to pay the loan in the suggested time period. The results reveal that SACCOs have positively impacted women's economic welfare by providing them with access to financial services and creating opportunities for them to engage in income-generating activities. Furthermore, the study found that SACCOs have enhanced women's social networks and improved their status within their households and communities. The study concludes that SACCOs have the potential to promote economic development and poverty reduction among women in rural areas of Uganda and calls for policy interventions to support their growth and sustainability.