Access Africa
Impact of VSLA
Evidence from Ghana, Rwanda, Tanzania, Uganda and Malawi
Brownbag presentation Atlanta June 2012
By Abdoul Karim Coulibaly
Lift 30 million people (70% of whom are
women) and their families out of poverty by
ensuring equitable access to a suite
of basic financial services (savings,
loan, insurance, remittances) over the next
decade in sub-Saharan Africa
Access Africa : Goal
Access Africa: Logic modelE
FF
EC
TO
UT
PU
TIM
PA
CT
Projects Year Target Countries Donor
Sustainable Access to Financial services for Investment (SAFI)
2008 - 2011 108 200 members Rwanda
Master Card FoundationCIDA
SAVE-UP 2008 - 2011 300 000 members
Tanzania, Malawi, Uganda
Bill and Melinda Gates Foundation
ESCAPE 2007 - 2010 5 400 members Ghana
The Projects
Experimental model: Cluster RCTTime
XIntervention Group
1
3
2
4Control Group
RANDOM
Used in Uganda, Malawi and Ghana in partnership with Innovation for Poverty Action (IPA)
This is a Cluster RCT. Instead of Randomizing the Individual, randomized the community (cluster)
Limitations:
1. The data from intervention and control communities are compared. Risk of dilution of VSLA effect if the take-up rate is low
2. Ethical: control community are excluded from intervention during the time of study. Limit the possibility for a long term impact analysis
Take-up rate:1. Malawi: 22%2. Uganda: 36%3. Ghana: 36%
Sample:1. Malawi: 40002. Uganda: 42003. Ghana: 6800
Time
XIntervention Group
12
Non-experimental model:Pre and Post-test
Panel study
Limitations: Measure VSLA contribution to the change. The change could be due to other factors. We can claim a contribution to the change, but not attribute the change only to VSLA
Used in Rwanda and Tanzania. Internal CARE surveys
Essentially based on quantitative methods, but once combined with qualitative approach, this methods appears to be strong. Sample:
1. Rwanda: 6142. Tanzania: 375
33 months
30 months
27 months
24 months
21 months
18 months
15 months
12 months
9 months
6 months
3 months
0 month
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Year 1 Year 2 Year 3
First baseline data collection for
the cohort 1. Data are
collected on group created during the first
quarter
Final baseline data collection for the cohort 1. Data are collected on groups created during the 4th
quarter
End of project
Final data collection organized 3 months before the end of the
project. The same groups surveyed during the baseline are
considered in the sample.
Survival groups of the first cohort. During the data collection, the oldest groups will be 2 years and 9 months old (groups created during the first
quarter of the project 1st year) and the youngest group will be 1 year and 9
months old (groups created during the last quarter).
Survival groups of the 2nd cohort. During the data collection, the oldest
groups will be 1 year and 9 months old (groups created during the first quarter
of the project 2nd year) and the youngest group will be 9 months old
(groups created during the last quarter).
Age of the groups
Year of project implementation
Panel study (cont.)
20112009
• Household level data
Demographic of HH membersHabitatAssets ownershipFood Security
• Individual dataSocio-demographic characteristics of the VSL members Investment and expenses of membersCivil society and political participationSelf-image and confidenceHousehold decision making and violence against women
Data Collection Tools
Part 1: Comparative Impact
across the 5 countries
Source and period of the study
RCT RCT RCT Member surveyMember survey
2009-2011 2009 - 2011 2008 - 2011 2009 - 2011 2009-2011Level Domain Malawi Uganda Ghana Tanzania Rwanda
Impact
Assets ownership
Education
Habitat
Food security
Health
Effect
Access to loan
More productive use of the loan
Business
Women decision making
Women community influence
Area of impact
Strong impact
Perceptible change
Slight change
No impact
Description of the Impact
Malawi Uganda Ghana Tanzania
Asset ownership: Households in treatment villages own an average of 6.2 fowls, a 12 percentage point increase when compared to the control group. Other livestock categories are not affected by the program.Habitat: More expenditure to improve housing condition. But no impact on housing indicators.
Food security: Adults are 4 percentage points less likely to have had to reduce their daily food consumption.
Education: A small increase in investment. Slight increase in enrollment.
Asset ownership: it is evident that households acquired more assets between 2009 and 2011.The proportion of household possessing at least one asset has slightly increased.Education: The average amount spent in education by the VSLA members increased from about $55 to $97. There is a slight but not significant increase in enrollment.Habitat: Increase investment but no evidence of habitat quality improvement
Description of the effectMalawi Uganda Ghana Tanzania
Access to loan: 67% of members stated that they took a loan from the group at least once. Respondents in treatment groups are 9 percentage points more likely to receive a loan.More productive use of the loan: Loans are primarily used to finance business investments (40%) and food consumption (20%)Women Empowerment: a 5 percentage point increase in the number of women that report having a strong influence on business decisions within the household. We also find evidence of an increase in the share of women with a high ability to influence other areas of intra-household decision-making, such as food consumption and schooling expenses.
Access to loan: The program increases access to and usage of financial services. 84% of members stated that they took a loan from the group at least once. respondents in treatment groups being 10 percentage points more likely to receive a loan.Business: There is evidence of improvements in business outcomes for women. The percentage of women that take credit for business purposes increases from 8% in the control group to 14% in program areas yearly business profits increase by $12 in treatment areas.Women Empowerment: we find suggestive evidence of a 4 percentage point impact on the same indicator on intra-household decisions for school expenses
Access to loan: The program increases access to and usage of financial services. Half the members stated that they took a loan from the group at least once. Respondents in treatment groups are 12 percentage points more likely to receive a loan.More productive use of the loan: Loans are primarily used to finance business investments (42%) and food con.Business: The number of women that took a loan to fund a business increases substantially in treatment communities, rising from 8% to 16% .
Access to loan: In 2009 less than 1/3 of the members could access a loan. Today we have the majority of the members (78%) who took a loan in the year preceding the survey. It appears that almost the totality of the loan (95%) taken, were from VSLA followed by Bank (3%) and MFI (0.6%).Community leadership: VSLA seems to have contributed to improve the members’ public speaking ability: from 32% of members who spoke up in public meeting to 37% in 2011. The membership into community organizations has strongly evolved between 2009 and 2011: from 27% to 46% of VSLA members joining other civil society organization.
Part 2:
Impact of CARE Rwanda SAFI project
2.a. Description of the study population
VSL Members: Gender
77%
23%
Female Male
Average age of VSL members by gender
Average age of female and male VSL members
4341
0
5
10
15
20
25
30
35
40
45
Female Male
Ave
rag
e a
ge
in y
ears
VSL Members: Socio-Demographic characteristics
Male Female Total
Marital status
Single 12% 6% 8%
Widow 6% 41% 33%
Divorced/Separated 4% 17% 14%
Married 78% 36% 46%
LiterateYes 61% 42% 46%
No 39% 58% 54%
Level of education
No education 36% 55% 51%
Primary 59% 42% 46%
O level 4% 3% 3%
Secondary 1% 0% 0%
Total 100% 100% 100%
3222
6878
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Male Female
Have abandoned Still member
% of member who have abandoned the group per gender
% of member who have abandoned the group per district
0
4933
13 17 18 2438
11 5 7
100
5167
87 83 82 7662
89 95 93
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Kir
ehe
Rw
amag
ana
Bu
ges
era
Nya
gat
are
Kay
on
za
Gat
sib
o
Gic
um
bi
Nya
bih
u
Gak
enke
Ru
lin
do
Ru
bav
u
No longer member Still member
Reasons for leaving the VSLA group
provided by the members who left the group
53%
24%
18%
12% 11%8%
2% 2% 1%
11%
0%
10%
20%
30%
40%
50%
60%
Unable tosave
Groupleadershipproblem
Could notparticipate
to meetings
The groupexpelled me
Conflict inthe group
Sick Did not seeconcreteresults
Notsatisfiedwith thegroup
Difficult topay backthe loan
Other
2.b. VSLA impact onHousehold Livelihood Conditions
With their own words….
“I have benefited a loan of $1333 from the
SACCO because of my membership into VSLA, this allowed me to build
my house”
“We were marginalized such that we could not
even sit with others…”
“Now everyone from our group have a house, cloths, health insurance…”
“No more food problem at home”
“I was in the list of the most vulnerable.
Now I can’t even accept being in such
list”
Evolution of the Poverty level of the VSL members’ household
63%
77%
97%
62%
76%
97%
54%
70%
90%
0%
20%
40%
60%
80%
100%
120%
% of People below nationalpoverty line
% of people below $1 a day % of People below $2 a day
Baseline 2009 Final 2011 Rwanda national - 2006
Change in Quantity and Quality of the meal:
Perception of the households on the change on the quality and quantity of their meal during the last 2 years and the contribution of the VSLA to the change
Sig. i
ncrea
sed
Slightly
incr
ease
d
Staye
d the
sam
e
Slightly
dim
inis
hed
Signifi
cantly
dim
inis
hed0%5%
10%15%20%25%30%35%40%45%50%
20%
44%
27%
5% 5%
19%
37%
0% 0%
% who declared the change % who attribute the change to VSLA
Change in the revenue of the household:
Perception of the households on the change on the revenue of their household during the last 2 years and the contribution of the VSLA to the change
Sig. i
ncrea
sed
Slightly
incr
ease
d
Staye
d the
sam
e
Slightly
dim
inis
hed
Signifi
cantly
dim
inis
hed0%
10%
20%
30%
40%
50%
60%
23%
48%
23%
3% 3%
22%
43%
0% 0%
% who declared the change % who attribute the change to VSLA
Change in access to education for the HH children: Perception of the households on the change on their children’s access to
education during the last 2 years and the contribution of the VSLA to the change
Sig. i
ncrea
sed
Slightly
incr
ease
d
Staye
d the
sam
e
Slightly
dim
inis
hed
Signifi
cantly
dim
inis
hed0%
10%
20%
30%
40%
50%
60%
15%
33%
51%
1% 1%
13%
28%
0% 1%
% who declared the change % who attribute the change to VSLA
Change in access to health care by the HH members:
Perception of the households on the change in access to healthcare by their members and the contribution of the VSLA to the change
Sig. i
ncrea
sed
Slightly
incr
ease
d
Staye
d the
sam
e
Slightly
dim
inis
hed
Signifi
cantly
dim
inis
hed0%
5%
10%
15%
20%
25%
30%
35%
40%
32%35%
29%
4%1%
25% 23%
1% 0%
% who declared the change % who attribute the change to VSLA
Change in households’ assets over the past 2 years
Baseline adjusted
2009
Final
2011
% who have purchased asset during the last 12 months 31% 63%Average amount spent (in USD) to purchase assets $11 $41
Significant and positive trend
Significant but negative trend
Not significant
Legend for this table and the following ones
Evolution of the % of households possessing each asset over the past 2 years
Cow Sheep Goat Pork Poultry Rabit Bee hive0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
4% 4%
15%
4%
13%
7%
1%
21%
11%
41%
9%
18%
9%
2%
2009 2011
Evolution of the % of households possessing each asset over the past 2 years
Bicycle Radio Television Cell-phone Matress Bed0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
3%
27%
0%3%
7%
18%
10%
38%
2%
19%
24%
36%
2009 2011
Change in the quality of housing over the past 2 years
Baseline adjusted
2009
Final
2011
% of VSLA members who did house improvement 15% 39%Average amount (in USD) spent for house improvement $7 $56
Change in Food Security over the past 2 years
Baseline adjusted
2009Final
2011
% of HH without food for 1 day during the last 3 months 57% 29%
Number of meal in 2 days 2.1 3.2
Food quality index 37.1 46.0
Change in children’s education over the past 2 years
2009 2011
% of VSLA members who have invested in their children education during the last 12 months
60% 54%Average amount spent into education (in USD) during the last 12 months
$8.9 $9.5
Change in access to health over the past 2 years
2009 2011
% of VSLA members who made medical expenses for their HH during the last 12 months
75% 61%
Average amount spent (in USD) into Medicare $5.9 $10.7
2.c. Economic impact on the members
“We were wasting money without saving” women
“Before we thought that when you are poor you can only
work for others. Now many women are conducting IGA.”
women Gicumbi
“My entire life I could not imagine possessing $17, but now I am capable of asking a
loan of $17 and even more being able to reimburse it”
women in Gicumbi
“VSLA has awakened us, it gave us a light,
helped us to save. We have benefited from advises on how to
move out of ignorance …”
women of Kayonza
“Now I can even challenge money
…” women
With their own words….
Change in access to loan over the past 2 years
2009 2011
% of VSL members who have accessed a loan during the last 12 months
20% 83%
Average number of loan contracted during the last 12 months 1.5 2.6
Average amount of loan taken (in USD) $4.4 $43.8
Source of loan taken by the VSL members in 2009 and 2011
2009 20110%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
25%
93%
56%
VSLA MFI Family/relatives SACCOBank Local associations Cooperatives ChurchGovernment Other
Main use of the loan in 2009 and 2011
IGA/B
usin
ess
Housin
g
Live
stock
Food
Agricu
ltura
l inpu
ts
Health
exp
endi
ture
House
hold
equ
ipm
ents/
asse
ts
Schoo
l fees
Cloth
s
Buy la
nd
Socia
l exp
ense
s
Trans
port
Other
0%
5%
10%
15%
20%
25%
30%
35%
40%
20092011
% of loan contracted during the last 12 months, mainly used for …
Change in Income generating activities
over the past 2 years
2009 2011
% of VSL members who are conducting IGA 19% 43%
Amount of money invested into IGA (in USD) $5.7 $25.1
Relationship with formal financial institutions: saving and loan services
2009 2011
% who have benefited from saving services with formal financial institution (individually or through their group) (***)
1.5% 46.0%% who have benefited from loan services with formal financial institution (individually or through their group) (***)
0.2% 17.8%
2.d. Social effect of VSLA: Gender and Community Leadership
With their own words….“There is a change in women
involvement into decision making. Some husbands
discuss household expenditure decisions with
their wife, because they know that it’s her who take the loan”
Women
“Today I can express myself freely and being
understand by my husband, while before he
used to hit me” Woman of Rubavu
“At the baseline in 2009, the VSLA members from Gicumbi
was even afraid to approach us and talk, they were visibly very
vulnerable and lacking confidence. I cannot imagine
they are the same people I have met 2 years ago”
Beata enumerator at baseline and Final survey
“Our husbands are happy because the
charges of the household are now
shared”Women of Gicumbi
“At the first share-out we bought goat, at the second
share-out we bought a mattress; it was the first time we slept on mattresses. Our husband appreciated it, and realized that we women are
capable” Women of Rubavu
VSL and community leadership over the past 2 years
2009 2011
% who are member of any other community based associations 17% 15%
% occupying leadership position in the community 5% 4%
% who plan to run for office during the next local election 15% 11%
% who spoke at a public meeting during the last 12 months
39% 38%
Change in women self-esteem over the past 2 years
2009 2011
I can always resolve problems if I try hard enough
31% 41%
If somebody opposes me, usually I can find a way to get what I want 19% 22%I always find some way to deal with problems that confront me 27% 42%I can influence my husband’s decision making
30% 37%
I can take action to improve my life 37% 51%I can influence important decisions in my community 15% 16%
% of female VSL members reporting a “full agreement” with the following statements :
Change in women’s decision making over the past 2 years
2009 2011
Children’s schooling 30% 44%
Health 36% 42%
Food 38% 48%
Housing 13% 27%
Equipment 33% 31%
% of female VSL members reporting a “high contribution” in decision making
Change in women’s contribution to household expenditures
over the past 2 years
2009 2011
Children’s schooling 25% 33%
Health 32% 33%
Food 33% 36%
Housing 15% 27%
Equipment 31% 32%
% of female VSL members reporting a “high contribution” to HH expenditure
Where else are we currently doing similar survey ?
TANZANIA
BURUDI
EQUATORIALGUINEA
ANGOLA
REP OFTHE
CONGO
Zanzibar
MALAWI
ZAMBIA
MO
ZAM
BIQ
UE
MA
DA
GA
SC
AR
ZIMBABWE
BOTSWANA
SWAZILANDLESOTHO
SOUTHAFRICA
NAMIBIA
ANGOLA
1000 Nautical Miles5000
© Copyright Bruce Jones Design Inc. 2004
NIGER
CHAD
SUDAN
ETHIOPIA
DJIBOUTI
ERITREA
UGANDA SOMALIA
KENYADEMOCRATICREPUBLIC
OF THE CONGO(ZAIRE)
CENTRALAFRICANREPUBLIC
RWANDAGABON
NIGERIA
CAMEROON
TUNISIA
WESTERNSAHARA
ALGERIA
MALI
LIBYAEGYPT
BENIN
TOGOCOTED’VOIRE
BURKINA
GUINEA
SENEGAL
GHANALIBERIA
MAURITANIA
SIERRALEONE
GAMBIA
GUINEABISSAU
THE
MOROCCO
Countries with an ongoing VSL member survey initiative
ASIA
• Vietnam• India• Indonesia