Empowerment of women through microloans in community based saving groups: an empirical study in rural Tanzania

Abstract

The aim of this study was to investigate the influence of microcredit on women's em-powerment through an empirical case study. This research focused on women residing in rural Tanzania who engage in community-based saving facilitated by Saving for Transformation Groups (S4T) administered by World Vision Tanzania. Employing a qualitative case study approach, the study involved interviewing a representative cohort of participants from rural Tanzania, who were members of these savings groups and had established relationships through their involvement over time. To address the re-search question regarding factors contributing to empowerment and the efficacy of mi-crofinance services, as well as to delineate the benefits of community-based saving groups and the challenges encountered in the empowerment process, the study utilized focus group discussions and individual interviews with S4T group members. Data anal-ysis, conducted through grounded theory methodology, entailed successive stages of open, axial, and selective coding to scrutinize and contextualize the gathered data. Drawing upon these research outcomes, the study derived recommendations for stake-holders in development cooperation and proposed avenues for further investigation to elucidate and address the phenomena uncovered. In summary, the empirical findings of this case study demonstrated that microfinance loans can yield positive outcomes for women's empowerment when implemented within a community-centric framework that ensures equitable participation of both women and men. Moreover, the study un-derscored the essential role of educational initiatives in the success of microfinance programs. Notably, this research also shed light on the implications of climate change on the viability of respondents' small-scale enterprises, revealing that climate vulnera-bility exacerbates the challenges faced by impoverished populations, particularly women. Thus, this study contributes to the scholarship on gender equality and women's empowerment, with specific relevance to Tanzania, and offers insights into the impact of microfinance initiatives in the realm of development cooperation.