MST-Department of Geography

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Browsing MST-Department of Geography by Author "Chewe, Margaret"

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    An Investigation on Savings and Internal Lending Communities’ Relationship to Household Welfare in Shangai Informal Settlement-Mpika-Zambia.
    (Kenyatta University, 2024-06) Chewe, Margaret
    The study aimed at assessing effects of Savings and Internal Lending Communities (SILC) on informal operators’ household welfare in Shangai informal settlement. SILC is a kind of informal social security mechanism which is widely used by low-income households among informal operators. About 4 billion people around the world are not provided with social protection by the government, they remain entirely unprotected ILO (2020). In the informal economy, traditional and informal mechanisms provide social protection due to inadequate provision of formal social protection programmes. Informal operators have had involved themselves in informal social security mechanisms such as savings groups that raise income through internal accruals. Shangai informal settlement has had experienced increasing levels of SILC participation, however, many are still having poor standards of living. This study was conducted to determine if SILC programmes as a social security mechanism made any positive impact on livelihood outcomes of Shangai informal operators. The specific objectives of the study were; to find out the reasons for joining SILC, assess the effects of SILC on poverty reduction, establish the challenges faced by SILC members and to assess whether participation in SILC leads to socio economic empowerment among informal operators. The study employed descriptive research design. Questionnaires were used to collect quantitative data and Key Informant Interviews (KII) were used for qualitative data. Fourteen registered SILC groups were purposively sampled because had the target population. Study sample size was 112 which was randomly selected. Quantitative data was analysed using descriptive statistics by use of SPSS version 22 and results were presented as means, frequency and percentages. While qualitative data collected from 8 key informant interviews was analyzed by content, classified according to major themes that were covered in this study. Examination on effects of SILC participation and poverty reduction was by use of independent t test while examination of influence of SILC participation on socioeconomic empowerment was through use of paired t test and chi square test with a p<0.05 as criterion of Statistical significance. Saving money, access to loans, and access to social funds were major reasons study participants joined SILC in Shangai informal settlement. This study established that SILC participation had positive effect in poverty reduction through assets accumulation of phones (p=0.044), bed (p=0.016), sponge mattress (p=0.014) and breakable plates (p=0.054). Main challenges faced by SILC study participants were non-repayment, late repayment, late reporting and poor attendance of SILC meetings. Study results further revealed that participation in SILC empowered informal operators with increased household monthly income (p=0.001) and funds for any emergency (p=0.054). Therefore, this study recommends to the government to capacity build SILC groups as viable social protection cover for informal sector. Furthermore, comparative studies should be conducted between SILC participants and non-SILC participants in Shangai informal settlement as to determine if SILC could be an alternative financial intervention.