Savings Groups, Women's Empowerment and Community Development: Evidence from USAID-Supported Village Savings and Loan Associations in Awka North, Anambra State, Nigeria

Purpose. Village Savings and Loan Associations (VSLAs) are promoted worldwide as low-cost, self-managed instruments of financial inclusion for rural women, yet evidence from Nigeria remains thin, and little is known about whether donor-initiated groups can outlive project cycles. This study examines how participation in USAID-supported VSLAs relates to household conditions, access to savings and credit for enterprise, community solidarity, and prospects for sustainability in Awka North Local Government Area (LGA), Anambra State. Methods. A descriptive cross-sectional survey was conducted using a multi-stage sampling design (stratification by clan, purposive selection of 16 villages, random selection of 48 VSLAs). A structured questionnaire (test–retest reliability r = .81) was administered to 384 women, yielding 358 valid responses (93.2%). Data were analysed with descriptive statistics and chi square tests of association with Cramér's V as the effect-size measure. Findings. Most members reported confidence in saving with their group (85.5%), saving more than before joining (70.9%), and having access to loans (75.7%, against 41.9% who had access to emergency credit before joining). Nearly two-thirds (64.5%) reported combined gains in food security, health and education. Perceived household improvement (χ²(3) = 15.19, p = .002, V = .21) and enterprise-related access to savings and loans (χ²(3) = 21.26, p < .001, V = .24) varied significantly across clans, whereas perceived solidarity did not (χ²(3) = 6.26, p = .10, V = .13). All respondents reported group involvement in community projects and plans to continue after donor close-out. Originality and implications. The study provides rare evidence on donor-supported savings groups in south-eastern Nigeria and shows that outcomes are uneven within a single LGA. Programme design should attend to locally variable constraints, build linkages to formal finance, and invest in group-level governance to secure post-project sustainability.