Abstract:
A number of Micro-Financial Institutions (MFIs) and Village Community Banks
(VICOBA) have been working in Rorya District in providing financial services to support
people’s efforts to improve their livelihoods. However, the level of livelihood outcomes in
terms of income, food security and housing is still low. Therefore, the study on which this
dissertation is based was done with the main objective to determine the influence of
Village Community Banks (VICOBA) on livelihood outcomes (income, food security and
housing quality) in the district. The specific objectives were to evaluate services provided
by VICOBA; to determine outcomes of activities undertaken by VICOBA members in
terms of income, food security and housing quality; and analyse linkages between
VICOBA delivered services and livelihood outcomes of VICOBA members. A cross
sectional research design was used, and probability and non-probability sampling methods
were used to select wards, villages, Focus Group Discussants (FGDs), Key informants and
respondents in six villages which had VICOBA groups. The sample size was 200
VICOBA members. In data collection, a questionnaire-based survey, key informant
interviews and focus group discussions were used. The questionnaire based data were
analysed using IBM SPSS Statistics Version 20 whereby descriptive analysis was done,
and multiple linear regression was used to analyse the influence of VICOBA delivered
services on livelihood outcomes among VICOBA members. The results showed that credit
received, as a VICOBA service, had positive significant influence on household income (β
= 0.390, p < 0.001) and on food security p < 0.01). Education of household head (p ≤
0.001) and household size (p ≤ 0.01) had significant influence on the chances of owning a
house roofed with an iron sheets roof. Conclusively, increased access to VICOBA services
can boost livelihood outcomes in terms of household income, food security and housing quality. Therefore, it is recommended that various actors should make more efforts in
supporting VICOBA for the well-being of rural communities in Rorya District.
