Socio-economic impact of village saving and loan associations among women of Arua District

Abstract

Women empowerment remains a key global agenda 10 as every effort is geared towards reducing gender inequality among the 17 SDGs. Besides no poverty, gender, zero hunger, clean water, decent work, and economic growth among others are directed towards transforming society with women at the lead. All the attempts by the various financial institutions have failed to yield a tangible solution for financial inclusion for the rural poor as their products seem not to adequately address the rural financial needs. However, this gave rise to “self-help groups” some referred to as Rotating Savings and Credit Association (ROSCA) Village Saving and Loans Association (VSLA) or SACCOs. These “self-help groups” have received a global warm welcome among development partners and governments as the key financial remedy and this model has been implemented in at least 73 countries in Africa, Asia, and Latin America. This study entitled “Socioeconomic impact of VSLA among 177 rural women of Arua” was aimed at evaluating the short term and intermediate impact of VSLA in terms of change in livelihood, food security, agricultural production, and social empowerments. Results: Economically at least83.89% of women who never had Bank Accounts were able to save money within these VSLAs and 74.01% were able to access cheap credit from the pool of savings made hence addressing the financial inclusion gap. The research further revealed significant achievements in terms of assets, boosting business, food /agricultural production as well as solving household emergencies like school fees, medical bills, etc. Socially, VSLAs improved social networks and offered a good platform for 75.71% to self-expression and improved mental health as they shared personal matters in the weekly meetings. Besides that, 68.57% reported being involved in their household decisions making process which also showed high 70.06% reproduction in Gender-Based Violence against participating women. Conclusion: Given the tremendous impacts of this VSAL among the participating women, it is there for prudent that this model provides the perfect solution for financial inclusion and a cheaper avenue for creating a money economy. In addition to addressing management, financial security, and long-term sustainability, developing partners, Government should provide financial links, offer financial literacy and leadership training, Community mobilizations, and empowerment programs linked to VSLA.