The role of women’s savings and credit groups in the alleviation of poverty in Eastern part of Arumeru district, Tanzania
Loading...
Date
2005
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Sokoine University of Agriculture
Abstract
This study presents the role of women’s savings and credit groups in the alleviation of
poverty in eastern part of Arumeru District. The overall objective was to assess the extent
to which women’s savings and credit groups contribute to alleviating poverty at the
household level. The specific objectives were; to identify women’s savings and credit
groups, compare the level of well being among members and non members of women’s
savings and credit groups, identify socio-economic and socio-cultural constraints
encountered by women’s savings and credit groups in their efforts towards alleviating
poverty, determine whether the activities performed by women’s savings and credit groups
are sustainable. Cross-sectional research design was adopted by using open and closed
ended questionnaires from a sample size of 100 respondents (50 women’s savings and
credit group members and 50 non group members). Other information on savings and
credit were gathered from selected key informers. Data analysis was done using Statistical
Package for Social Sciences (SPSS).
Study results revealed that women who were
members of savings and credit groups had a higher income which implied that the
effectiveness of credit on poverty alleviation is higher among the women’s savings and
credit group members compared to non members. Impact of credit on poverty alleviation
was positive among all the recipients of credit: assets, income and savings increased.
About (92%) of members respondents were confident that their activities would be
sustainable even if lending to them stopped since their capital had grown and they had
some savings and entrepreneurial skills. All these together have -confirmed the
improvement of individual members productivity and hence improving the livelihood of
group’s members. The study recommends that formal, semi-formal, informal micro finance
institutions and an individual moneylender to continue lending credits to poor women but
while controlling various lenders, activities and borrowers related factors that may reduce
credit effectiveness among borrowers. For more effectiveness of the role played by women
credit recipients on poverty alleviation, credit providers are urged to review from time to
time their policies for credit provision with more attention to amounts of credit provided,
interest rates charged, and grace periods allowed for various activities.
Description
Dissertation
Keywords
Women’s savings, Credit groups, Poverty, Eastern part, Arumeru District