Contributions of Community Microfinance Groups Services on Economic Empowerment of Widows in Moshi Municipality, Tanzania

Abstract

Community microfinance Groups play a pivotal role in fostering economic empowerment among widows, providing a supportive framework for financial resilience by facilitating savings, investment, and communal support; these groups empower widows to navigate the challenges of widowhood, fostering economic independence and social well-being. Community Microfinance Groups play a vital role in ensuring that widows gain equal access to financial services, which enhances their ability to increase income and acquire assets such as land and technology. This financial assistance is essential for enhancing their economic empowerment, especially in marginalized and less developed areas. This study seeks to evaluate the impact of Community Microfinance Groups on the economic empowerment of widows in Moshi Municipality, Tanzania. It specifically aims to explore how financial literacy initiatives offered by these groups contribute to widows' economic advancement, assess the effects of savings and loan programs on household expenditures, and investigate the role of income-generating activities in improving widows' capacity to own property. The determinant for economic empowerment of widows as a dependent variable were: Improved widow’s independent income in terms of increased saving and investment amount, Increased Property ownership capability in term of increased asset possession levels, and decision making ability, Increased widows’ entrepreneurship development and business exposure and finally Increased ability to cover daily basic and unexpected household expenses. The study was conducted in Moshi Municipality Tanzania. The study used a mixed research approach associated with a cross-sectional research design to collect data from 96 widow’s members in Community Microfinance Groups, Community Microfinance Group leaders, District wards, and village officials in Moshi Municipality. Quantitative data were analysed using descriptive statistics such as averages, frequencies, ranges, standard deviations, and medians. Qualitative data analysis was analysed using content analysis. The study concludes that there is a transformative impact of Community Microfinance Groups services on economic empowerment of widows in Moshi Municipality, Tanzania. This indicates that participation of widows in Community Microfinance Groups was found to be significantly associated with age, occupation and level of education. Majority of the study participants were aged 38 to 47(50%), Most of respondents had primary education (42.9%) and most of respondents involved themselves in informal labour (50.6%) Multiple regression economic empowerment indicators revealed a significant association between widow’s program participation and their economic empowerment at 0.00 P-Value level. We demonstrated a positive association and concluded that these findings offer valuable insights into the profound impact of Community Microfinance Groups services on widows’ economic empowerment. However, efforts are needed to make the programs reach the most disadvantaged.