The Contribution of Village Savings and Loan Associations to Households Welfare in Rwanda
This study is an attempt to analyze the contribution of Village Saving and Loan Association (VSLA), implemented in Ruhuha Sector of Bugesera District by Plan International (2012-2017) for poverty reduction. The general objective of this study is to assess the contribution of VSLAs to household welfare improvement in Bugesera District. A 80 respondents sample were proportionately and randomly selected from 300 former beneficiaries, while other 5 stakeholders’ category members responded to research questions all in a census. The questionnaire and an interview guide were used to collect primary data and were analyzed using Statistical Package for Social sciences (SPSS), descriptive and inferential statistics were adopted as research approach. Qualitative data was treated through sound content analysis. Although with local document gap, education reports, scholarly articles, books and existing relevant documents have provided secondary data. The findings shown that VSLA has been positively impacting household welfare in Ruhuha sector. The deep change depicted in tables, are observable from members of the VSLA such as improvement in diet (73%), home assets provision increased at 12%, purchasing power, financial education (100% members),medical insurance provision increased at 53%, newly built or rehabilitated house (87%), education expenses between 20,001-35,000Frw (increased at 24%), etc., which are among others household welfare indicators. It therefore proposed that VSLAs groups should be promoted in different areas of the country. It is recommended to encourage VSLA in rural village for financial stability and household welfare in and outside rural villages.
