Contribution Of Village Community Banks (VICOBA) To Economic Development Of Women In Tanzania:A Case Of Dodoma Resindents

ABSTRACT

Village Community Banks (VICOBA) plays an important role of enabling poor women to save and access credit. The study aimed at assessing the contribution of VICOBA to the economic development and livelihood of women in Tanzania. The study was cross sectional research in design where by the 59 respondents were included. Primary data was collected by using questionnaires. The quantitative data was analyzed by Statistical Package for Social Sciences(SPSS). The results showed that most of the about half of respondents joined VICOBA because of getting capital for business and later savings. Good number of respondents appeal ease accessibility and join VICOBA for the purpose of improving life. The further revealed that findings from the study show that half of the respondents appealed that VICOBA helped the to own and run small business in town, others said the managed to pay school fees for the children and have improved living standards like buying plots and houses renovations, others had opened business like saloon and restaurant “food vending”. Data revealed that money for borrowing is accumulated from profit, members saving and member‟s fines in case of breaching contract. Likewise, also the main challenge facing the operation of VICOBA was delays in the repayment of loans to many members were defaulters, low education of the members and funds embezzlement and unethical leaders. These results to majority of women join VICOBA due to approachable regulations and conditions for loan granting. There is a huge need to increase information and create more awareness of the important role that VICOBA play in the economy. This study recommends to the women they should active members of the VICOBA and abide in rules and regulations.