| dc.description.abstract | The majority of the world’s poor live in rural areas with little access to financial institutions.
Setting up village savings and loan associations has become an increasingly wide spread
intervention aimed at improving local financial intermediation. Using a cluster randomized trial
we investigate the impact of VSLA in Panyangara sub-county, we find evidence of positive and
significant intention to treat effect on several outcomes, including the number of meals per day,
household expenditure as measured by the USAID poverty assessment tool, and the number of
rooms in the dwelling.
The study employed survey research design particularly descriptive survey. The study was
conducted in one VSLA group of panyangara sub county, Kotido district with a sample size of
32 members. Questionnaire was the main instrument of data collection in addition to interview
guide and document review. The data was analyzed using descriptive statistics. The results of the
study was presented in frequency tables and percentages. The data generated from open-ended
items was analyzed by comparing and combining the responses from interview guide and
questionnaire. Content analysis was also applied for the interview guide.
The major finding of the study was the impact of savings mobilization is linked to an increase in
savings and credit obtained through VSLAs which has increased agricultural investment and
income from small business. Other findings include; the monthly propensity to consume out of
the family income basically reduces after joining the self-help groups because members have to
save compulsorily, the rate of school dropout is significantly lower in the families of group
members than families who do not belong to self-help groups people who accumulate large sums
of money react to interest rates than people who accumulate small sums of money. Deriving
from evidence and conclusion of the study, the following recommendations followed; encourage
the development of VSLA, embark on community sensitization to enhance savings mobilization,
integration of agricultural activities and linkage of VSLA to formal financial institutions. | en_US |
