Wazalendo Savings and Credit Cooperative Loans and Welfare of Soldiers in Uganda:
Loading...
Date
2014-03
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala international University college of economics and management
Abstract
Title: Wazalendo Saving And Credit Cooperative Loans And Welfare Of Soldiers In
Uganda.
Background: Since WSACCO loans are used to supplement a soldier’s salary in Uganda, it is
necessary to find out if loans make a difference in soldiers’ lives. In the past, loans were given by
loan sharks, commercial banks but currently WSACCO; a microfinance institution. Objectives:
To establish factors determining access to WSACCO Loans and their relationship to
standard of living, possession of property, personal business and satisfaction. Methods: After
multi-stage sampling, soldiers in ten barracks were interviewed for loan usage, property and
documents inspected and evaluated in a cross-sectional prospective study by Chi-square and
Fisher’s tests in a logistic regression model. Results: WSACCO loans are accessed by 61.7 % of
soldiers. A higher rank increases a soldier’s access to WSACCO loans; p-value 0.04339.
Soldiers’ families have an average of seven members. WSACCO loans were associated with an
increase in the number of soldiers with furniture, personal house, iron roofed house, mobile
telephone, personal business, satisfaction with achievement and those satisfied with WSACCO at
p-values of 0.0419, 0.0500, 0.0321, 0.0069, 0.0019, 0.0001 and 0.0001 respectively even after
controlling for rank, education, employment of spouse and family size. WSACCO loans were not
associated with an increase in the number of soldiers with mattresses, ceiling, brick-walled
house, cemented floor, running water, electric equipment, electricity, land and four or more
cows; p-values 0.3413, 0.7606, 0.4995, 01313, 0.1053, 08410, 0.4381, 0.1753 and 0.1141
respectively. Discussion: Private soldiers were farther than other ranks from headquarters and
had smaller savings. Male and Married soldiers take more loans due to relatively higher
responsibility. Uneducated people and very highly educated people see the logic of saving and
taking loans more than the semi-elites. Soldiers have a higher family burden than an average
Ugandan. Possession of furniture is dependent on WSACCO loans but is probably affected by
ability to keep the furniture, whether the loan makes a difference in ability to purchase furniture
and whether they do not have a very big family burden. Since a lot of lump-sum money needs to
be used to purchase iron sheets, personal house and a mobile telephone, possession of these was
associated with having taken a loan. As expected, satisfaction is greatly dependent on WSACCO.
Conclusion: Access to WSACCO loans is 61.7 % in UPDF. Male soldiers took loans at a two
fold higher rate than female counterparts. Married soldiers take WSACCO loans more than
unmarried soldiers at a 55 0,4) higher rate. Education increased access to WSACCO loans at a
higher level but reduced at a middle level. Soldiers have an average of seven family members.
Mattresses were essential and did not have to depend on loans to be bought when required.
Taking WSACCO loans significantly helped soldiers acquire personal houses except among
those that are privates or uneducated. Soldiers who had taken WSACCO loans were not
associated with possession of a ceiling, a brick walled house, cemented floor, electricity,
electrical equipment and running water as they were not practical in the villages. WSACCO
loans are associated with improved standard of living, acquisition of property and personal
gratification and satisfaction with WSACCO. Recommendations: Conditions to improve access
to loans by lower ranks need to be put in place. Semi-elites need to be educated more about
WSACCO loan advantages. Soldiers need to be encouraged to have smaller families. WSACCO
loans should be carried on as they are proven to support soldier’s welfare. Another study to show
the effect of loans after follow up should be conducted.
Description
A Thesis Submitted to the College of Higher Degrees And Research In partial Fulfillment of the Requirement ~ For the Award of a Master’s Degree in Business Administration of Kampala International University.
Keywords
WSACCO, Microfinance,, SACCO, UPDF,, Wazalendo, welfare.