Topic:
The Impact of Village Banking on Financial Inclusion for Female Marketeers: A Case Study of
Masala Market in Ndola.
Problem Statement
Village banks are formed for improving social inclusion and poverty alleviation. Village banking
initiative significantly contributes towards a reduction in poverty particularly, it empowers poor
women and encourages social and economic development in poor communities. The facilitation
and coordination of the provision of financial services is a vital component of poverty
alleviation, community and individual development, and harnessing the potential of poor
households (Greene, 2002).
There has always been a strong demand or need for financial services such as savings, low-cost
credit or loans, transmission and insurance by the poor households in Zambia. However, the
formal financial institutions' provision of these financial services, both conventional
banks and micro-lenders, is dominated and constrained by institutions' systemic weaknesses,
high transaction costs, the need for traditional collateral, and low returns and infrastructural
limitations.
Moreover, (Begasha 2012) observed that micro-finance schemes alone cannot alleviate poverty
but can only contribute to poverty alleviation as one of the strategies. According to Nitch (2001)
argue that only significantly few poor people have participated. This may mean that it is not an
agenda in raising household income issues. However, it has been observed that there are
currently many micro-finance NGOs that provide financial services to the poor in Zambia.
It is over this backdrop that this study draws its motivation since studies on this topic lack for
Zambia. Yet, there is growing local demand and trend of Village banking being a tool that can be
used for financial inclusion. This research was done to discover how Village banking can be a
tool used for financial inclusion and ways it can be made efficient in the long run and protect the
members' interests.
Purpose of the Study
The study explored the challenges faced by women marketeers on village banking at the Twapia
market in Ndola district, Copper belt province of Zambia.
Main Objective
To determine the impact of financial inclusion of female marketers in village banking
Specific Objectives
To identify the social and economic problems that are faced by women marketers in
village banking.
To investigate measures on how village banking can alleviate poverty among female
marketers.
To understand the benefits of village banking to female marketers
Significance of the Study
This study sets out to highlight the impact of financial inclusion on village banking to female
marketers at Masala Market Ndola district, Copperbelt province of Zambia. Furthermore, this
study will shade lighter on how to improve the village banking scheme among marketeers. The
results will lead to social empowerment among women in the long run, which policymakers can
adopt. The study can also add to the body of knowledge used as references to other researchers.
Furthermore, the research will also understand the insight of village banking and what measures
can be used to improve this tool.
