Assessing the Role of Village Savings and Loan Associations on Income-Generating Activities of Women in Cocoa Growing Communities in Awutu Senya District.

Abstract

The study was conducted to ascertain the realities of Village Savings and Loans Associations (VSLAs) programme among women in cocoa growing communities in the Awutu Senya District of the Central Region of Ghana. The main objective of the study was to explore the effects and limitations of VSLAs on income-generating activities (IGAs) of women in the study area. The study utilized a triangulation design of mixed methods approach, drawing on samples of 60 VSLA members and 60 non-VSLA members for the quantitative data and focus group discussions with women VSLA executives for the qualitative data. Findings from the study revealed that women who were involved in VSLAs have improved savings culture and access to loan than non-members. This has enhanced their ability to engage in income generating activities, support household food and education expenditure and improved women involvement in decision making in their homes on the uses of household finances. Though the use of loans to meet social needs and household consumption was noted as major challenges for loan repayment among some VSLA members, their risk of indebtedness was comparatively lower. Accordingly, it is suggested that based on the observed impact of VSLAs on women’s economic empowerment, it is a viable alternative tool for ensuring financial inclusion in rural communities. Complementary financial literacy and business management skills training can help to reduce the associated risks of business and use of loans to avoid repayment challenges among women in VSLAs.