Village savings associations and household welfare in Kamuli district: A cross-sectional survey study.
DOI:
https://doi.org/10.70572/agp.v3i8.30Keywords:
Village savings associations, Household welfare, Kamuli districtAbstract
Background:
The Ugandan government has implemented various poverty alleviation programs, including National Agricultural Advisory Services, Youth Livelihood Programme, Operation Wealth Creation, Social Assistance Grants for Empowerment, Uganda Women Entrepreneurship Programme, Emyoga, Skilling Uganda, and Parish Development Model, among others, in response to the vice. This study examined the impact of Village Savings Associations on household welfare in Kamuli District.
Methodology:
A cross-sectional survey design was applied to collect data from randomly and purposively selected samples from a population of 150 VSLA members. Additionally, interviews were conducted with key informants, including 4 trainers and 4 local leaders. Data was collected using questionnaires and interview guides. Quantitative data were analysed using descriptive statistics and inferential statistics, while qualitative data were analysed using content analysis.
Results:
Overall, most respondents were females, 69%, whilst males were 31%. Also, 34% were aged between 35-44 years, 21% were aged 25-34 years, 17% were aged 55 years and above, 16% were 45-54 years, and 12% were aged 18-24 years. Findings indicated a moderate but significant positive contribution of savings to household welfare. The study found that savings don’t enhance financial security and stability; however, a one-unit increase in savings will lead to a 0.168-unit increase in poverty reduction. Findings further showed that Members are not willing to save with VSLA, and that saving alone may not necessarily foster financial literacy and independence. In addition, saving alone may not consistently facilitate investment in income-generating ventures. However, it increases household income, aids education expenditure, and health expenses.
Conclusion:
Most respondents expressed scepticism regarding the capacity of savings to enhance financial security, stability, and independence.
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