The sustainability of village savings and loan associations in Tanzania: the case study of Kisarawe district (Coast region)

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University of Dar es Salaam
The main objective of the study was to assess the sustainability of Village Savings and Loan Associations (VSLAs) in Tanzania Kisarawe district being a case study. Specifically, the study aimed to identify the determinants of sustainability of VSLAs, identify challenges faced by VSLAs and find out how those challenges hinder the sustainability of VSLAs. The methodology used to conduct this study was a case study design. The study involved a sample size of 100 members of VSLAs in Kisarawe district. The study used various data collection tools such as, self-administered questionnaires and interviews. The study used primary data collection methods. These were; observation, interviews and questionnaires. The study also used secondary data collection methods to collect data. The data collected was analysed qualitatively and quantitatively by frequencies and percentages. The findings of the study reveal that VSLAs in Kisarawe district are to large extent sustainable. The study found that the key determinants of sustainability of VSLAs are, average size of loans offered to members, loan repayment rate, use of loans for intended purposes and lending methodology. The study found out that there are challenges facing VSLAs. This challenges include non-repayment of loans, high interest rates and poor governance. To improve the sustainability of VSLAs in Kisarawe district, it is recommended that VSLAs should ensure that they do not charge high interest rates and that all loans issued by the VSLAs are repaid in time. Also, VSLAs should strengthening their level of governance in order to expand outreach. Strengthen the governance structure will help VSLAs to achieve its sustainability.
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Savings and loan associations, Loans, Kisarawe district, Coastal region, Tanzania
Mwemtsi, Y (2012) The sustainability of village savings and loan associations in Tanzania: the case study of Kisarawe district (Coast region), Master dissertation, University of Dar es Salaam. (Available at