IMPACT OF VILLAGE SAVINGS AND LOANS ASSOCIATIONS (VSLAs) ON LIVELIHOOD OF WOMEN IN RURAL COMMUNITIES: THE CASE OF ASIKUMA ODOBEN BRAKWA DISTRICT OF GHANA

Abstract

The Ghanaian economy, like most developing economies, has about 52 percent of its population being women and mostly found in the rural areas (Asiama and Osei, 2007). Increasing women’s financial inclusion is significant as women disproportionately experience poverty, stemming from unequal division of labour and a lack of control over economic resources. The objective of this research was to assess the impact of Village Savings and Loans Associations (VSLA) on the livelihood of women in rural communities within Asikuma Odoben Brakwa District. The study obtained information from ninety-seven (97) respondents mainly through questionnaires. The impact of VSL groups on rural women livelihoods outcomes was analyzed by the use of a regression model. The results showed that VSL groups in the Asikuma Odoben Brakwa District depend on strategies such as training of members, low tolerance of arrears, savings mobilization and high level of transparency which help in building trust among members. Evidence showed that access to savings and loans in the VSLAs has a positive and significant impact on the livelihood of rural women. It was realized that the scheme is faced with some challenges which include lack of enough money to save, late repayment of loans and members accessing small loans. Despite these challenges, it was realized that to ensure the survival of VSLA in the Asikuma Odoben Brakwa District, there is the need to maintain the low interest of VSLA as it will attract and help maintain existing members, strengthening rules and regulations, there must be regular training and financial advice and the leaders must be strict and firm to ensure the sustainability of the groups.