The nexus of VSLA participation and financial inclusion among rural women entrepreneurs in Ghana
Author Identifier (ORCID)
Ebenezer Afrifa-Yamoah: https://orcid.org/0000-0003-1741-9249
Abstract
Purpose: Financial inclusion remainslimited for rural women in developing countries. To addressthis gap, this study examined the mediating role of financial literacy in the relationship between Village Savings and Loan Associations (VSLAs) participation and financial inclusion, thereby shedding light on the mechanisms and outcomes of VSLA involvement. Design/methodology/approach: The study examined 72 VSLA comprising 1,944 women in Ghana’s Kpandai District. Using simple random sampling, 265 women from 5 rural communities were selected. Partial least squaresstructural equation modelling was used to test both the direct and indirect effects of VSLA participation on financial inclusion, with financial literacy as a mediator. Findings: The results revealed that VSLA participation significantly improved financial literacy among rural women. However, VSLA participation did not directly predict financial inclusion. Instead, financial literacy fully mediated this relationship, indicating that increased financial knowledge and skills acquired through VSLAs ultimately fostered broader financial inclusion. Originality/value: This study is valuable for its novel approach, utilising an integrated theoretical and conceptual model to empirically validate the emerging discourse on the impact of participation and the role of financial literacy in linking access to community-based savings groups with meaningful financial inclusion for vulnerable populations
Document Type
Journal Article
Date of Publication
2025
Publication Title
International Journal of Social Economics
Publisher
Emerald
School
School of Science
RAS ID
82719
Copyright
subscription content
Comments
Asitik, A. J., Nunfam, V. F., Kodom, M., & Afrifa-Yamoah, E. (2025). The nexus of VSLA participation and financial inclusion among rural women entrepreneurs in Ghana. International Journal of Social Economics. Advance online publication. https://doi.org/10.1108/IJSE-10-2024-0834