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American Journal of  Applied 
Statistics and Economics (AJASE)

The Efficacy of  VICOBA Intervention in Alleviating Poverty in Emerging Economies: A 
Study of  the ORGUT SEDIT VICOBA Lending Scheme Project in Morogoro, Tanzania

Jacob Kilamlya1*, Dickson Utonga1

Volume 3 Issue 1, Year 2024
ISSN: 2992-927X (Online)

DOI: https://doi.org/10.54536/ajase.v3i1.2616
https://journals.e-palli.com/home/index.php/ajase

Article Information ABSTRACT

Received: March 05, 2024

Accepted: April 03, 2024

Published: April 06, 2024

Microfinance institutions have emerged as crucial agents in the fight against poverty, 
particularly in emerging economies. Despite debates about their effectiveness, microfinance 
interventions have contributed positively to socio-economic conditions, improving livelihood 
access. Recognising the importance of  the microfinance subsector, Tanzania has instituted 
tools to foster financial inclusion. The Village Community Banks (VICOBA) are an example 
of  these efforts, aiming to empower marginalised communities through financial inclusion 
and access to credit. This study assesses the effectiveness of  the VICOBA intervention 
in alleviating poverty in Morogoro District, Tanzania. Using a cross-sectional design and 
logistic regression analysis, the study examines the relationship between key variables (access 
to credit, ability to save, access to insurance services, entrepreneurship skills) and poverty 
alleviation. The results show the effectiveness of  access to credit, savings, and access to 
insurance services in poverty alleviation.

Keywords

VICOBA, Microfinance, Poverty 
Alleviation, Effectiveness, Financial 
Inclusion, Tanzania 

1 Department of  Project Planning and Management, Tengeru Institute of  Community Development, Arusha, Tanzania
* Corresponding author’s e-mail: jacobkilamlya80@gmail.com

INTRODUCTION
Microfinance institutions are widely recognised for 
their role in poverty alleviation, particularly in emerging 
economies (Geremewe, 2019; Kasali, 2015). The 
institutions have positively impacted the socio-economic 
conditions of  people experiencing poverty, leading to 
better access to health, education, and essential services 
(Geremewe, 2019). However, the effectiveness of  
microfinance initiatives in reducing poverty has been 
questioned, with some studies suggesting that they may 
only sometimes lead to poverty alleviation (Chikwira, 
2022). Still, these institutions have been found to reduce 
household poverty by improving incomes through 
financial services (Ngong et al., 2021). Furthermore, 
institutions are recognised as essential tools for poverty 
reduction and are increasingly identified as critical and 
strategic initiatives for economic empowerment (Mamun 
et al., 2017; Ahmad, 2022).
The United Republic of  Tanzania recognises the 
importance of  microfinance in poverty alleviation and 
has put in place policies and frameworks that facilitate the 
growth and sustainability of  the institutions. The National 
Microfinance Policy of  2012 outlines the government’s 
commitment to promoting financial inclusion and 
inclusion of  people experiencing poverty. Additionally, 
the Cooperative Societies Act of  2003 established a 
regulatory framework for the operation of  cooperative 
financial institutions.
The Village Community Banks (VICOBA) is a 
prominent microfinance institution that aims to empower 
marginalised communities through financial inclusion and 
access to credit. In Tanzania, microfinance institutions 
such as VICOBA are crucial in providing financial 
services to people excluded from the conventional 
banking system, promoting economic development and 

contributing to poverty reduction efforts. VICOBA’s 
effectiveness in poverty reduction and economic growth 
in Tanzania can be further illustrated through various 
studies and reports. 
In addition, the World Bank’s Global Findex database 
provides empirical evidence on the effectiveness of  
microfinance institutions on poverty reduction globally, 
with a specific focus on Tanzania. Information from 
the Global Findex database can provide insights into 
the reach and effectiveness of  microfinance institutions 
such as VICOBA in addressing financial exclusion and 
promoting economic empowerment among marginalised 
populations.
The effectiveness of  microfinance interventions in 
poverty alleviation has been highlighted in various 
contexts, including rural areas, Bangladesh, and Ghana 
(Kasali et al., 2017; Ali et al., 2016; Batinge & Jenkins, 
2021). Despite debates about the depth of  outreach 
required to address the demands of  poverty reduction 
adequately (Ali et al., 2015), the microfinance subsector 
is widely recognised as capable of  alleviating poverty 
even in impoverished areas (Annim & Alnaa, 2013), 
with particular emphasis on its role in ensuring poverty 
alleviation for women in Africa (Batinge & Jenkins, 2021).
Even with the increasing number of  microfinance 
interventions such as VICOBA implementations, 
there is a rising need to examine their effectiveness in 
poverty alleviation. This study uses the ORGUT SEDIT 
VICOBA Lending Scheme Project to assess the efficacy 
of  VICOBA in alleviating poverty in Morogoro District. 
ORGUT SEDIT implemented this VICOBA lending 
scheme project to empower marginalised communities in 
the Morogoro Region through financial inclusion, savings 
promotion, and access to credit facilities.
By assessing the effectiveness of  VICOBA on poverty 



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alleviation in Morogoro District, this study makes an 
academic contribution by extending empirical evidence 
and previous studies to inform microfinance policy and 
practice. Given the dynamic nature of  the microfinance 
subsector and the poverty alleviation landscape in 
Tanzania, it is paramount to conduct this investigation to 
promote poverty alleviation initiatives.

MATERIAL AND METHODS
Study Area 
This study was conducted in Morogoro District, located 
in the eastern part of  Tanzania within the Morogoro 
Region. The district is a vibrant economic hub with a 
diverse geographical landscape and thriving commercial 
activities. Its strategic location and well-developed 
transport infrastructure make it a vital link between major 
cities and towns, facilitating trade flows and economic 
activities, particularly with Dar es Salaam, Tanzania’s 
largest city and port.
The district’s commercial environment is characterised by 
diverse activities such as trading, transport, and logistics, 
supported by a vital local economy. Agricultural activities, 
including cultivating staple crops such as maize, rice, sugar 
cane, various fruits, and livestock, contribute significantly 
to the district’s economic strength. Its tropical climate, 
with distinct wet and dry seasons, provides favourable 
conditions for agriculture, further enhancing its economic 
potential. With its blend of  natural resources, agricultural 
productivity, and commercial opportunities, the district 
is a crucial economic centre within Tanzania, driving 
growth and development in the region.
Morogoro District was selected as the study area due to 
its reputation as a hub for microfinance institutions from 
among the districts where the ORGUT SEDIT VICOBA 
Lending Scheme Project was implemented. The area is 
renowned for its extensive microfinance infrastructure 
due to the expansion of  commercial activities, which 
makes it a fast-growing town. The district’s diverse 
microfinance landscape provides a rich context for 
assessing the effectiveness of  microfinance interventions 
in poverty alleviation through the VICOBA intervention.

Study Design
The study employed a cross-sectional design, primarily for 
financial and time reasons. This design allows researchers 
to collect data from a representative population sample 
simultaneously. It is based on practical considerations. 
Conducting a longitudinal study or using repeated 
measures designs would have required multiple visits to 
respondents over an extended period, which would have 
significantly increased the financial and time burden 
of  the study. Given the resource constraints, a cross-
sectional design was a feasible approach to data collection 
and assessment of  the effectiveness of  the VICOBA 
on poverty reduction within a reasonable timeframe. In 
addition, the cross-sectional design allowed the study to 
capture a snapshot of  the present situation regarding 
poverty and the effectiveness of  the VICOBA lending 
scheme in the district.

Sample Size Determination and Sampling Technique
The sample size for this study was determined based 
on practical considerations and the need for adequate 
representation of  VICOBA members and key informants. 
Sixty-two respondents were selected, comprising sixty 
VICOBA group members and two key informants. 
Purposive sampling was employed to select key 
informants, including a community development officer 
dealing with VICOBA and SEDIT staff. This sampling 
technique allowed an intentional selection of  individuals 
with relevant expertise and experience in microfinance 
and community development, ensuring precise data 
collection and perceptions of  the effectiveness of  the 
VICOBA.
In selecting VICOBA members, a combination of  
multistage sampling, simple random sampling, and 
purposive sampling was employed as follows:
Morogoro district was selected from among the nine 
districts in the region. This initial stage of  multistage 
sampling involved purposefully selecting the Morogoro 
district due to its significance as the study area with a 
concentration of  microfinance institutions. Within the 
Morogoro district, five wards were purposively selected: 
Kihonda, Mji Mpya, Bigwa, Kingolwira, and Mazimbu. 
These wards were chosen due to the prevalence of  
VICOBA groups in comparison to others. Additionally, 
they are situated in areas where VICOBA members 
have spearheaded numerous initiatives. Within each 
selected ward, twelve respondents were chosen randomly. 
Random selection ensured that every VICOBA member 
had an equal chance of  being included in the sample.

Source of  Data and Data Collection Techniques
The study data was gathered from primary sources, i.e., 
VICOBA members and officers from the Morogoro 
district and SEDIT. The exercise involved surveys, 
interviews, questionnaires, and interview guides. They 
were utilised as follows:
Surveys were conducted in a structured manner to 
maintain consistency and ensure the quality of  the 
collected data. Questionnaires were distributed to 
VICOBA members to gather quantitative data on various 
aspects of  their group involvement. The semi-structured 
questionnaires collected information on demographic 
characteristics, financial behaviours, perceptions of  the 
VICOBA intervention, and its effectiveness in poverty 
alleviation. The distribution process involved obtaining 
consent from participants, explaining the purpose of  
the study, and providing instructions for completing the 
questionnaires.
In addition to surveys, interviews were conducted with 
key stakeholders involved in the implementation of  the 
project. This included a community development officer 
and a programme leader. The interviews were semi-
structured, utilising interview guides to ensure consistency 
and focus on key topics. Through interviews, qualitative 
data were collected to understand the operational aspects 
of  the VICOBA intervention, challenges faced, successes 
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in poverty alleviation. Interviews with community 
development officers and VICOBA lending scheme 
leaders were arranged through prior appointments. 
Interview guides escorted the conversation to ensure 
that relevant topics were covered. Interviews were 
conducted face-to-face and by phone, depending on 
the availability and preferences of  the interviewees. 
During interviews, probing questions elicited detailed 
responses and captured perspectives on the effectiveness 
of  the VICOBA intervention in poverty alleviation. 
The need to gather in-depth and firsthand information 
directly from the study’s stakeholders led to using 
survey questionnaires and interviews as the primary data 
collection methods. Surveys allowed for the systematic 
collection of  quantitative data, while interviews, on the 
other hand, provided a platform for stakeholders to share 
experiences and perceptions, enriching the understanding 
of  the study.

Data and Analytical Strategy
The data analysis involved descriptive and inferential 
techniques to assess the effectiveness of  the VICOBA 
intervention in alleviating poverty. Before the analysis, 
data was processed and managed via the Statistical 
Package for the Social Sciences (SPSS) version 26; IBM 
imported it to STATA version 13 for analysis.

Descriptive Analysis Techniques
This analysis involved summarising and presenting key 
characteristics of  the VICOBA members. Demographic 
variables such as age, gender, and education level were 
described using frequencies. The descriptive analysis 
findings were presented using percentages to provide a 
clear and concise overview of  the data, facilitating the 
interpretation of  socioeconomic characteristics among 
VICOBA members.

Econometric Analysis Strategy
The econometric analysis in this study involved the 
application of  statistical and econometric techniques to 
assess the relationship between VICOBA output and 
poverty reduction among members of  the study area. 
Specifically, a logit regression model was utilised to assess 
the impact of  the VICOBA on poverty reduction among 
beneficiaries. The logit regression model was selected for 
this study to assess the effectiveness of  the VICOBA 
intervention on poverty reduction among beneficiaries. 
The Logit model is suitable for analysing binary 

outcomes and categorical dependent variables, making 
it an appropriate choice for assessing the likelihood of  
poverty reduction due to the VICOBA intervention.
The logit regression model is a statistical technique 
commonly used to estimate the probability of  an event 
occurring (Waqas & Md-Rus, 2018). It establishes a 
non-linear maximum likelihood function to determine 
the likelihood of  a specific outcome, being a failure or 
success. Logit regression provides a probabilistic model 
that can predict the probability of  an event based on 
the input variables (Ullah et al., 2023). In this case, it was 
employed to assess the effectiveness of  the VICOBA 
intervention on poverty alleviation in the study area. The 
model quantified the relationship between factors, such 
as the ability to save, access to credit, insurance services, 
and entrepreneurship skills, and their effectiveness 
in poverty alleviation. The model assumed a linear 
relationship between the log odds of  the probability of  
poverty being reduced and the independent variables. It 
can mathematically be represented as:
Log (Pi/1-Pi)= logit(Pi)= β0+ β1 x1+ β2 x2+ β3 x3 +β4 x4+ µi
Where:

* Log (Pi/(1- Pi )) is the natural logarithm of  the odds 
ratio (log-odds), also known as the logit function.

* Pi is the probability that poverty is alleviated due to 
the VICOBA intervention.

* 1- Pi  is the probability that poverty is not alleviated as 
an impact of  the VICOBA intervention. 

* β0  is the intercept term representing the baseline 
log-odds of  poverty alleviation when all independent 
variables are zero.

* x1, x2, x3, and x4 imply ability to save, access to credit, 
access to insurance services and entrepreneurship skills 
respectively

* β1, β2, β3, and β4  are the coefficients associated with 
each independent variable (x1, x2, x3, and x4) respectively, 
indicating the change in log-odds of  poverty reduction 
for a one-unit change in the corresponding independent 
variable.

* µi  represents the error term, capturing the variability 
in poverty alleviation that is not explained by the 
independent variables.

Variables and Measurements
Table 1 illustrates the variables under consideration and 
the corresponding measurements used to analyse the 
effectiveness of  the VICOBA intervention on poverty 
alleviation in Morogoro District.

Table 1: Variables and measurements
Variable Description Measurement Expected 

Sign
References

Ability to Save After becoming a VICOBA 
member, an individual 
manages to set aside a portion 
of  their income towards a 
savings purpose

1 represents setting aside 
income for savings, and 0 
indicates otherwise

Positive Ngong et al., 2021; 
Ali et al., 2023



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RESULTS AND DISCUSSION
Respondents’ Socio-Demographic Characteristics
Sex of  the Respondents
In the study, a significant proportion of  respondents 
were female, constituting 66.7% (N = 40) of  the sample. 
This higher representation of  females in VICOBA 
initiatives indicates a greater engagement in microfinance 
endeavours, which may alleviate poverty by creating 
income-generating and entrepreneurship opportunities. 
This aligns with Beyene and Dinbabo (2019), who identified 
that women’s participation in microfinance programmes 
significantly positively impacts poverty reduction.
Further, Minja et al. (2023) noted that these programmes 
provide women access to financial and non-financial 
products and services, enabling them to improve 
their portfolios and living. Women’s participation in 
microbusinesses, notably registered ones, has been 
shown to have a higher and more beneficial impact on 
their consumer spending, decision-making power, and 
provision of  resources for their families (Imai et al., 2012). 

Age of  the Respondents
The respondents’ age indicates a notable presence of  
individuals aged 18–35, aligning with the youth category 
outlined in the Tanzania Youth Development Policy 
2006. This demographic pattern suggests the possibility 
of  economic advancement and alleviation of  poverty, 
given the association of  the youth demographic with 
productivity and engagement in income-generating 
endeavours. Hafeez and Fasih (2018) commend that the 
potential can only be realised if  the youth are effectively 
engaged in economic activities. This implies that economic 
development can be fostered and sustained by empowering 
youth and allowing them to shape their future.

Education Level of  the Respondents
The distribution of  respondents based on their education 

level, with a substantial percentage having secondary 
education (43.3%) and higher education levels (28.3%), 
highlights the significance of  education in influencing 
financial behaviours and outcomes within microfinance 
interventions. The findings suggest that individuals with 
higher education levels are more likely to possess the 
knowledge and capabilities necessary to engage effectively 
in income-generating activities.
Education levels play a crucial role in shaping individuals’ 
choices and participation in microfinance interventions, 
with higher levels of  education enhancing entrepreneurial 
skills and income-generating opportunities. Ngong 
et al. (2021) discuss the critical role of  education in 
influencing entrepreneurial intentions, with universities 
and entrepreneurship education programmes seen as 
crucial for developing entrepreneurial skills, attitudes, 
and behaviours. Khanam et al. (2018) argue that 
higher education levels are essential for developing 
entrepreneurial intentions and behaviours, highlighting 
the role of  education in fostering entrepreneurial skills 
and attitudes.

Logistic Regression Model Results
The following section presents the logistic regression 
analysis results, illustrating the relationship between key 
variables and their effectiveness in poverty reduction in 
the context of  the VICOBA lending programme. The 
logistic regression model allows for a thorough analysis of  
the factors that impact the success of  VICOBA members 
in poverty reduction. The results are interpreted in light 
of  existing literature on microfinance interventions and 
their role in promoting economic empowerment and 
poverty reduction.
The findings are discussed with previous studies providing 
helpful evidence on the effectiveness of  the VICOBA 
lending scheme in addressing poverty challenges. The 
results are presented in Table 2 as follows.

Access to Credit After becoming a VICOBA 
member, an individual gains 
access to various financial 
services that can be utilised to 
fulfil their financial needs

1 represents gaining access 
to various financial services, 
and 0 indicates otherwise

Positive Khanam et al., 
2018; Hussain et 
al., 2018; Ngong, 
2023

Insurance 
Services

A member has an insurance 
policy for mitigating business 
risks

1 represents a member 
having an insurance policy 
for mitigating business risks, 
and 0 indicates otherwise

Positive Ngong et al., 2021; 
Khanam et al., 
2018

Entrepreneurship 
Skills

A member equipped with the 
necessary entrepreneurship 
skills

One represents a 
member equipped with 
entrepreneurship skills, and 
0 indicates otherwise.

Positive Banerjee & 
Jackson, 2016;; 
Bansal & Singh, 
2020

Poverty 
alleviation

When one becomes a member 
of  VICOBA, there is a 
possibility of  experiencing a 
reduction in poverty status

1 represents a reduction in 
poverty status after becoming 
a VICOBA member, and 0 
indicates otherwise

Ali et al., 2015; 
Amsami et al., 
2021; Chowdhury 
et al., 2021

Source: Study construction, 2024



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Table 2: Logistic Regression Results 
Variable Coefficient Std. Err z P>IzI
Access to credit 5.280119 1.791468 2.95 0.003**
Ability to save 4.321305 1.386219 3.12 0.002**
Access to insurance services 2.500522 1.288625 1.94 0.0052**
Entrepreneurship .3215854 1.794436 0.18 0.858
Constant -7.41177 2.638245 -2.81 0.005**
Number of  Obs 60
LR chi2(4) 43.72
Pro>chi2 0.0000
Pseudo 0.6283
Log-likelihood -12.9349

Significance. Codes. *** = 1% significance level, ** = 5%, and * = 10% significance level

From Table 2, it is determined that;

Access to Credit
The study results show that having access to credit 
has a significant positive effect on reducing poverty in 
VICOBA groups. For every unit increase in access to 
credit, the chance of  reducing poverty increases by 
about 5.28 units. Alternatively, the odds ratio calculation 
reveals that a unit increase in access to credit is linked to 
a 197.54-fold rise in the probability of  poverty reduction 
among VICOBA members. These results contribute 
to the understanding of  microfinance’s role in poverty 
reduction by highlighting the significance of  access to 
credit within VICOBA groups.
Khanam et al. (2018) previously determined the 
contribution of  microfinance services, particularly credit, 
to poverty reduction, especially among female participants. 
The current findings align with this perspective, indicating 
a positive impact of  credit access on poverty reduction 
among VICOBA members. Furthermore, Utonga and 
Ndoweka (2023) and Hussain et al. (2018) emphasised 
the importance of  microfinance in poverty alleviation, 
further supporting the notion that access to credit can 
lead to tangible outcomes in reducing poverty. Scholars 
such as Ngong (2023) also discussed the nexus between 
microfinance and poverty alleviation, reinforcing the 
significance of  credit access for enhancing financial 
inclusion and reducing poverty levels.
The convergence of  findings from these scholars 
emphasises the critical role of  access to credit in poverty 
alleviation efforts within microfinance institutions like 
VICOBA groups. This corroboration confirms that 
enhancing credit accessibility can effectively contribute 
to poverty reduction outcomes, empowering individuals 
to improve their economic conditions and achieve 
sustainable development goals.

Savings
The study findings suggest that the ability to save has a 
statistically significant positive effect on poverty reduction 
among VICOBA members. Each unit increase in the 

ability to save is associated with a predicted probability of  
poverty reduction of  approximately 4.32 units. Using the 
odds ratio formula, a value of  4.321305 equals an odds 
ratio of  75.53. This means that when other factors are 
considered, a one-unit increase in VICOBA members’ 
ability to save is linked to a 75.53-fold increase in their 
chances of  falling out of  poverty. This study contributes 
to the growing body of  literature on microfinance and 
poverty reduction by demonstrating the significant impact 
of  saving behaviour within VICOBA groups.
The findings align with previous research by Ngong et 
al. (2021), which discussed the role of  financial inclusion 
in poverty alleviation, highlighting the contribution of  
saving behaviour to enhancing financial stability and 
reducing poverty levels. The current study’s findings 
corroborate this perspective, indicating that the ability 
to save plays a pivotal role in empowering individuals to 
improve their economic conditions. Additionally, Ali et 
al. (2023) argued that financial literacy impacts financial 
satisfaction, suggesting that encouraging saving can result 
in economic well-being and poverty reduction. This 
aligns with the present study’s results, which indicate that 
increasing the ability to save among VICOBA members 
can effectively contribute to poverty reduction outcomes.

Insurance Services
The study findings suggest that access to insurance 
services has a statistically significant positive effect on 
poverty reduction among VICOBA members in the study 
area. Specifically, each unit increase in access to insurance 
services is associated with a predicted probability of  
poverty reduction of  approximately 2.50 units. Using 
the odds ratio formula, 2.500522 equals an odds ratio of  
12.18. This means that when other factors are considered, 
a one-unit increase in VICOBA members’ access to 
insurance services is linked to a 12.18-fold increase in their 
chances of  getting out of  poverty. These results establish 
the importance of  access to insurance services in poverty 
reduction efforts within microfinance interventions.
Furthermore, Ngong et al. (2021) discussed the micro-
financial inclusion nexus and its role in poverty alleviation, 



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supporting the idea that access to insurance services 
enhances financial stability and reduces poverty levels. 
Similarly, Khanam et al. (2018) argued for the significant 
role of  microfinance services, including insurance, 
in poverty reduction, further reinforcing the positive 
influence of  insurance services on poverty reduction 
outcomes.
The collaborative view from these studies supports the 
critical role of  access to insurance services in poverty 
alleviation efforts within microfinance interventions. 
The evidence fortifies that improving access to insurance 
services can effectively contribute to poverty alleviation 
outcomes, empowering individuals to enhance financial 
security and achieve sustainable development goals.

Model Fitness
The LR chi-square statistic yielded a value of  43.72 (p < 
0.0001), indicating statistical significance. This shows that 
the logistic regression model is an excellent way to explain 
the connection between the independent variables (like 
access to credit, savings, insurance services, and business 
skills) and the dependent variable (like reducing poverty) 
among VICOBA members in the study area.
Furthermore, the pseudo-R-squared value of  0.6283 
suggests that the independent variables in the model 
can account for about 63% of  the variation in poverty 
alleviation. This indicates the model’s moderately 
explanatory power, implying that the selected independent 
variables collectively contribute to understanding the 
factors influencing poverty alleviation among VICOBA 
members.

CONCLUSION
The results of  this study shed light on the socio-
demographic characteristics of  respondents and their 
relationship with poverty reduction among members of  
VICOBA. The findings reinforce the importance of  access 
to credit, savings, and insurance services in promoting 
poverty reduction initiatives within microfinance systems. 
The significant representation of  women in VICOBA 
initiatives highlights the potential of  microfinance to 
empower women economically, thereby contributing to 
poverty reduction efforts. Similarly, the presence of  youth 
and individuals with higher levels of  education suggests a 
demographic well-positioned for economic advancement 
and participation in income-generating activities, further 
promoting poverty alleviation. Furthermore, logistic 
regression analysis revealed the significant positive 
impact of  access to credit, the ability to save, and access 
to insurance services on poverty reduction among 
VICOBA members. Each unit increase in these factors 
was associated with a substantial increase in the predicted 
probability of  poverty reduction, highlighting the 
effectiveness of  these interventions in addressing poverty 
challenges.
The LR chi-squared statistic and pseudo-R-squared value, 
which indicate the logistic regression model’s statistical 
significance, confirmed the model’s robustness in 

explaining the connection between independent variables 
and VICOBA member poverty reduction. Approximately 
63% of  the variation in poverty alleviation could 
be explained by the variables included in the model, 
demonstrating moderately explanatory power.

RECOMMENDATIONS
Based on the findings of  this study, several 
recommendations are made to strengthen poverty 
alleviation efforts within microfinance initiatives such as 
VICOBA,
a. Efforts should be intensified to promote women’s 
economic empowerment through targeted interventions 
within microfinance programmes. This may include 
providing tailored financial products and capacity-
building programmes to increase women’s participation 
and leadership in micro-enterprises.
b. There is a pressing need to actively engage youth in 
economic activities and provide them with skills training 
and entrepreneurship opportunities. Initiatives aimed 
at harnessing the potential of  the youth demographic 
can contribute significantly to poverty reduction and 
sustainable development.
c. Policymakers and stakeholders should prioritise efforts 
to strengthen financial inclusion by expanding access to 
credit, savings, and insurance services, especially among 
marginalised groups. This may involve the development 
of  innovative financial products and using technology to 
reach underserved populations effectively.
d. Educational programmes aimed at improving financial 
literacy and promoting a culture of  saving and insurance 
should be implemented within communities. Raising 
awareness of  the benefits of  microfinance and financial 
planning can empower individuals to make informed 
decisions and improve their economic well-being.
e. Regular monitoring and evaluation of  microfinance 
programmes is essential to assess their impact, identify 
areas for improvement, and ensure accountability. 
Stakeholders should adopt reliable monitoring 
mechanisms to track progress towards poverty reduction 
goals and make evidence-based decisions to improve the 
programme.

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