The contribution of savings and internal lending communities (SILC) to poverty reduction in Misungwi district – Mwanza region

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Date
2009
Journal Title
Journal ISSN
Volume Title
Publisher
University of Dar es Salaam
Abstract
The purpose of this research was to investigate the extent to which SILC contribute to poverty reduction in Misungwi District in Mwanza region. It assessed how savings contributions, loan portfolio, empowerment of people and SILC activities namely farming, fishing, small businesses and animal husbandry at Misungwi district contributes to poverty reduction. The research methodology consisted of questionnaire survey to 160 actual members of SILC groups in Misungwi District. The Chi-squire method and Pearson correlation model was used in the analysis of data. The former was used to judge the variation of observed variables in explaining the latent variable while the latter giving the conclusion for the stated hypotheses. Analysis of moment structure (AMOS) modeling was used to test the reliability and validity of data. The results suggest that there is positive relationship between savings and the growth of SILC activities, there is a positive relationship between internal lending and SILC activities, there is a positive relationship between empowerment of people in decision making as well as governance and SILC activities, and lastly, there is a positive relationship between SILC activities and poverty reduction in Misungwi District. The role of other researchers and other business firms is to further investigate on the sustainability of other microfinance institutions in areas where SILC groups have a relatively adequate establishment. The research aimed at contributing to theoretical knowledge and at the same time builds further confidence to SILC groups on tackling the poverty challenge in Misungwi District. In terms of policy, SILC should discourage members to distribute all of their accumulated savings at the share-out and start over again, as this slows down group progress because time is required to accumulate the initial capital which will be available for lending to members. A policy to register all SILC groups in a similar way as other formal microfinance institutions is important due to vital role played by SILC groups in poverty reduction initiative in Tanzania. In this way, SILC groups will gain popularity and the poor could be aware of their existence, and join the same. The area of further research is to investigate on the sustainability of other microfinance institutions in locations where SILC groups are well established.
Description
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class Mark (THS EAF HG2069.T34J62)
Keywords
Financial services, Loans, Poverty
Citation
Joakim, R (2009) The contribution of savings and internal lending communities (SILC) to poverty reduction in Misungwi district – Mwanza region, Master dissertation, University of Dar es Salaam