Village Banking as a Catalyst for Women’s Economic Empowerment: A Sociological Analysis of Market Traders in Chirundu District, Zambia Journal: Feminist, Microfinance and Gender

Abstract

Background: Access to inclusive and contextually responsive financial systems remains central to the economic empowerment of women operating within informal economies, particularly in sub-Saharan Africa. In Zambia, women market traders continue to face systemic exclusion from formal banking institutions due to limited collateral, irregular incomes, and gendered socio-economic constraints, despite their substantial contribution to household welfare and local economic development.
Aim: To examine the role of village banking as a grassroots financial mechanism and its role in advancing the economic and social empowerment of women market traders in Chirundu District, Zambia.
Methods: The study employed a qualitative research approach with hermeneutic phenomenological research design. Purposive non-random sampling method was used to recruit 15 participants who were active members of village banking groups. Semi-structured interviews were used to collect data and interviews were audio recorded. Qualitative data was analysed using thematic analysis.
Findings: The findings reveal that village banking provides critical services including savings opportunities, access to loans and credit facilities, interest-bearing savings schemes, and mentorship coupled with financial training. These services enabled women to mobilise capital for business expansion, enhance household livelihoods through improved nutrition, housing, and educational support for children, and reduce reliance on exploitative informal moneylenders. Beyond economic gains, participation in village banking strengthened women’s financial discipline, decision-making autonomy, self-esteem, and social recognition, thereby contributing to broader processes of social empowerment and gender equality. However, the study also identified persistent challenges such as loan default, weak adherence to group rules, inadequate investment capital, leadership accountability gaps, and domestic tensions arising from shifting gender roles.
Conclusion: The study concludes that village banking constitutes a significant catalyst for women’s economic and social empowerment within informal markets and represents a viable pathway toward advancing
Sustainable Development Goal 5 on gender equality, provided that governance, financial literacy, and institutional linkages are strengthened. The study recommends strengthening institutional support, accountability, financial literacy training, and linkage with formal financial institutions to improve outcomes.
Keywords: Village Banking, Women’s Economic Empowerment, Financial Inclusion, Microfinance, and Market Traders