Contribution Of Village Savings And Loan Association To Economic Empowerment Of Women: A Case Study Of Stromme Foundation Supported Groups In Terekeka County, South Sudan

Abstract

This study set out to assess the contribution of Village Saving and Loan Association to economic empowerment of women in Terekeka County, South Sudan. The overall objective of the study was to investigate the contribution of village savings and loans association toward the economic empowerment of women in Terekeka County. The specific objectives sought to examine VSLA empowerment of women towards increase in business income; to assess VSLA empowerment of women in decision-making process at household and community level; to find out VSLA empowerment of women towards assets ownership at household level; and to identify gaps in relation to the VSLA program in the supported groups in Terekeka County. This study was guided by two theories, the VSLA model which states that microfinance whose objective encompasses the provision of financial services, including loans, savings and insurance, to low-income clients who generally lack access to more formal banking services and the three pillars to economic empowerment. The study focused on the VSLA members under the support of Stromme Foundation, thus the study site selection was chosen based on the intervention area of SF. A sample determination formula was used to establish a sample size of 300 respondents but actual one reached was 297. The study findings indicate that through VSLAs, 93.9% of the women were able to increase their business income, 97.6% of the women experience improvement in decision making at household and community level, while 99.3% of the women own assets either alone or together with husband. The findings also identified gaps related to the VSLA operations including lack of training opportunities, limited supervision from the project staff, insecurity, high taxation and high commodity prices. The study concludes that through VSLA, women were able to increase their income, participate actively in decision making at household and community levels and confer ability to own assets. However, purchase and ownership of productive assets such as cattle and machinery are still minimal. The study, therefore, recommends that Stromme foundation should also introduce a wide range of financial services apart from savings and credit which could increase women’s ability to generate and control income. The study also recommends that the government should invest in time-saving infrastructure and enhance women’s ability to access input and output markets as well as increase women’s access to resources, technology and information.