The contribution of Village Savings and Loan Associations (VSLA) approach of poverty reduction: a case of Rulindo District, Rwanda

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
Kampala International University; College of Economics and management
This study explored into the contribution of Village Savings and Loan Association to the reduction of poverty among the rural community members in Rulindo District, Rwanda. The study was guided by the following specific objectives: examine the contribution of VSLA towards transforming the livelihoods of community members; examine the level of participation of community members in VSLA programmes in Rulindo District; examine the challenges encountered by VSLA members in their day to day activities and examine the income levels of VSLA members before and after joining VSLA. The descriptive, analytical and survey research designs were adopted as guiding principles to the entire study. Three Hundred Fifty One (351) respondents were selected with the aid of simple random and purposive sampling techniques. A close ended research instruments was used for data collection. Frequency tables and percentage distributions and means were used for statistical treatment of data. Majority of the VSLA respondents were female (58.5%) of age 34-42 years old. VSLA have contributed positively towards transforming the lives of the rural poor as living conditions have improved; helps members start up small income generating projects; loans acquired from VSLA helps meet school fees; helps in meeting health related needs among others. Levels of community participation is moderately good as membership in VSLA is open; community members make and take decisions; community members get involved in VSLA activities; community members are involved in the implementation phase; community members are involved in monitoring and evaluation. The challenges confronting VSLA members include: lack of funders; failure of members to pay back loans; low/poor saving culture; lack of government support; lack of support from financial institutions. VSLA member's income levels improved when taking part in the local saving schemes. To improve VSLA activities, there is an urgent need on the part of male spouses to actively get involved in these activities; management of village savings and loan associations should encourage their members to do undertake short and medium term projects such as poultry farming, bee-keeping, cattle keeping, bricklaying projects capable of providing a sustainable income to members in the future.
A dissertation submitted in partial fulfillment of the requirements for the Award of the Degree of a Master of Public Administration and Management of Kampala International University
Poverty reduction