Experiences of Women in Informal Savings Groups: Pathways to Leadership Empowerment

Abstract

Women actively participate in informal savings groups such as Village Community Banks (VICOBA) in Tanzania, yet their representation in leadership roles remains low. Existing research focuses mainly on economic benefits and pays limited attention to how participation creates pathways to leadership empowerment. This study examined how involvement in unregistered VICOBA groups in Arusha District serves as a pathway to leadership empowerment among women. Guided by Trans-formational Leadership Theory and Social Capital Theory, the study adopted a qualitative phenom-enological design. 23 women participated in the study: 15 through semi-structured interviews and 8 through two focus group discussions. Data were analysed to identify patterns related to leadership empowerment. Findings indicate that participation strengthens five interconnected dimensions that function as pathways to leadership empowerment: financial literacy, decision-making capacity, teamwork, communication skills, and self-confidence. Financial literacy and decision-making capacity emerged as the most influential pathways. However, empowerment outcomes remained largely confined to group settings due to cultural norms, limited institutional recognition, and lack of structured leadership training. The study concludes that unregistered VICOBA groups function as grass-roots platforms for nurturing pathways to leadership empowerment. Strengthening legal recognition and structured leadership development initiatives could expand their contribution to women’s broader participation in community leadership.