The Role of SACCOs’ Microcredits in The Empowerment of Female-Headed Households in The Njombe Region, Tanzania.
DOI:
https://doi.org/10.26437.ajar.03.2022.14Abstract
Purpose: This study assessed the role of SACCOS microcredits (SMCR) on the empowerment of the rural Female-Headed Household (FHHs) in the Njombe region of Tanzania. The objectives of the study were to assess the influence of SMCR on economic, social, and political empowerment; and to assess the moderating role of education and mediating role of culture on FHHs empowerment.
Design/Methodology/Approach: The primary data were collected using a cross-sectional survey and explanatory design in the six districts of the Njombe region whereby, about 350 FHHs were randomly selected from various SACCOS. Data were analyzed by using descriptive and regression analytical approaches concomitantly with Haye's moderation and mediation processes.
Findings: Findings revealed that SMCR had a significant influence on the economic and social-cultural empowerment but less on the political empowerment of the FHHs. The findings further indicated that education had a moderating role on SMCR influence on FHHs empowerment while culture has a mediating role on SMCR FHHs empowerment at p<0.05% level of significance.
Research Limitation/Implication: The study was limited by narrow coverage and the use of multiple regression analysis. Moreover, moderation and meditation were analyzed using the Hayes effect. We recommend in the future study to use advanced data analysis such as Structured Equation Modeling which is efficient in analyzing moderation and mediation variables. Furthermore, we recommend mixed-method designs to accommodate both qualitative and quantitative variables.
Practical and Social Implication: The study recommends that the government and other stakeholders empower the FHHs by channelling their funds with a reasonable interest rate in SACCOS to promote their economic, social-cultural and political empowerment. Furthermore, they should educate women and remove cultural barriers.
Originality/ value: This is the first SACCOS study to integrate the microcredits and FHHs' economic, social-cultural and political empowerment. The study further analyzed the moderating role of education and mediating role of the culture of microcredits use on the empowerment of female-headed households which has not been considered by previous scholars.
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