The Impact of Women Village Financial Savings Groups on Household Economic Welfare in Munyumbwe Area, Gwembe District, Southern Province, Zambia

Author

ANTHONY PATRICK GOLOMBE,DR. T VELMURUGAN


Abstract

  Women in rural Zambia continue to face significant barriers to financial inclusion, including limited access to formal banking services, inadequate collateral for borrowing, low household incomes, and restricted opportunities for entrepreneurship. Village Financial Savings Groups (VFSGs), also known as Village Savings and Loan Associations (VSLAs), have increasingly become an alternative community-based financial model aimed at improving women's socio-economic wellbeing through savings mobilization and access to affordable credit. This study examined the impact of Women Village Financial Savings Groups on household economic welfare in Munyumbwe Area of Gwembe District, Southern Province, Zambia. Specifically, the study assessed the economic benefits women derive from participation in village savings groups, identified challenges affecting the effectiveness of the groups, and explored strategies for strengthening their contribution to women's economic welfare. A mixed-methods research design was employed involving 90 respondents selected using simple random sampling, while key informants were purposively selected. Quantitative data were analysed using descriptive statistics, whereas qualitative data were analysed thematically. The findings revealed that participation in Women Village Financial Savings Groups significantly improved household income, business development, savings behaviour, access to healthcare, children's education, food security, and household asset accumulation. The study further established that the groups enhanced women's financial independence and decision-making within households. However, challenges including loan default, inadequate financial literacy, poor record keeping, short repayment periods, and limited capital constrained the effectiveness of the savings groups. The study concludes that Women Village Financial Savings Groups remain an effective community-based financial inclusion strategy capable of reducing rural poverty and improving household livelihoods. The study recommends strengthening financial literacy programmes, increasing business development support, improving monitoring systems, and enhancing partnerships between government, financial institutions, and non-governmental organizations to ensure the long-term sustainability of village financial savings groups.


Keywords

Village Financial Savings Groups, Women's Economic Welfare, Financial Inclusion, Rural Livelihoods, Women's Empowerment, Gwembe District, Zambia



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