EFFECT OF VILLAGE SAVINGS AND LOANS ASSOCIATIONS ON RURAL WOMEN’S LIVELIHOODS IN THE KASSENA NANKANA MUNICIPALITY
Abstract
Purpose of the Study: To explore the effect of Village Savings and Loans Associations (VSLAs) on rural women’s livelihoods in Kassena Nankana Municipal. The study sought to determine the modalities of VSLAs, assess the level of support women groups receive from VSLAs, and describe how village savings and loan activities impact the livelihoods of women.
Statement of the Problem: Fighting poverty has been a major agenda of many institutions in Ghana to improve the welfare of the people. Several interventions have been implemented to reduce or eradicate poverty and improve the livelihoods of the rural populace. One such program is Village Savings and Loans Associations (VSLAs). Despite their potential benefits, there is a need for a deeper understanding of how VSLAs specifically impact rural women’s livelihoods, the level of support they provide, and the overall effectiveness of these groups in improving socio-economic conditions.
Methodology: The study employed a descriptive research design and utilized a mixed research approach, combining both quantitative and qualitative methods. A sample of 120 respondents was selected using simple random sampling for VSLAs communities and groups. Data were collected through questionnaires, interviews, and focus group discussions. The data were processed using IBM SPSS software version 20 and analyzed using descriptive and inferential statistics, with results presented in percentages, graphs, charts, and tabulations.
Findings: The study revealed that VSLAs had an average membership of 25, bringing community members together and empowering them. VSLAs, composed of small groups of 15-50 members, mobilize savings, provide loans, and maintain a small insurance fund for emergencies. The management of VSLAs includes a well-structured committee with elected positions. VSLAs significantly improved rural women’s livelihoods by providing access to social capital, human capital, and physical assets. However, challenges such as the need for stronger linkages with key stakeholders and support from district assemblies were identified.
Recommendations: To enhance the performance of VSLAs, the study recommends the need for strong linkages between VSLA members and key stakeholders, district assemblies to consider creating new VSLAs and support existing ones, and committing resources to monitor, evaluate, and learn from the activities of VSLAs. These measures aim to improve the socio-economic conditions of rural women in the Kassena Nankana Municipality by ensuring effective and sustainable operations of VSLAs
Keywords: Village Savings and Loans Associations, Livelihoods, Effect, Human Capital, Physical Assets, Social Capital.
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