What happens when savings groups grow up? Examining savings group sustainability and perceived long-term benefits

ABSTRACT

Using qualitative methods, this article examines savings groups that have been in operation for five to ten years in Tanzania to understand internal and external factors influencing savings group longevity and explore member perception of how long-term participation affected the well-being of their households and children. Although groups did not consistently adhere to best practices, they viewed good leadership, trust, and love as the most important factors for sustainability. Poor loan repayment, low savings rates, and dependence on external support represented the greatest challenges to sustainability. Respondents perceived ongoing positive outcomes across several areas of well-being for their households and children.

KEYWORDS:

• Social sector – HIV/AIDS and sexual health
• Labour and livelihoods –Microfinance, Poverty reduction
• Sub-Saharan Africa

Acknowledgments

The authors are grateful to the study team, led by Rasel Madaha, for their efforts in collecting this data. We also thank the savings groups members for their participation as well as NACOPHA and WAMATA for their collaboration. This study was produced under United States Agency for International Development (USAID) Cooperative Agreement No. AID-OAALA-13-00001 and was made possible by the generous support of the American people through USAID and the United States President’s Emergency Plan for AIDS Relief. The contents are the responsibility of FHI 360 and do not necessarily reflect the views of USAID or the United States Government.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This work was supported by United States Agency for International Development [grant number AID-OAALA-13-00001].

Notes on contributors

Whitney Moret

Whitney Moret is Technical Director of the USAID-funded Accelerating Strategies for Practical Innovation & Research in Economic Strengthening (ASPIRES) project at FHI 360, where she leads research and technical assistance initiatives to improve the implementation of economic empowerment programmes for vulnerable populations.

Mandy Swann

Mandy Swann is a Technical Advisor at FHI 360, where she leads mixed-methods research and evaluation activities to understand and address structural and behavioural factors that influence HIV care and treatment outcomes.

Lara Lorenzetti

Lara Lorenzetti is an Associate Scientist in the Behavioural, Epidemiological, and Clinical Sciences division at FHI 360. Her research focuses primarily on integrated approaches that improve the health and economic well-being of vulnerable groups, with an emphasis on economic strengthening, social inclusion, and women’s empowerment.