Assessment of the Contribution of Community Savings and Credit Associations to the Livelihood of Vulnerable Households in Mekelle City, Tigray Regional State

Abstract

The purpose of this study was to assess the contribution of community savings and credit associations (CSCA) to the livelihoods of vulnerable households. These associations were established through modalities of NGOs focused on livelihood and economic strengthening programs. The research was conducted in Ayder and Semen sub-cities of Mekelle, located in the Tigray National Regional State. Both quantitative and qualitative data were used to evaluate the impact of CSCA on the livelihoods of these households, and the study adopted a descriptive approach. Data were collected from 253 respondents using simple systematic and purposive sampling methods through questionnaires and interview guides as data collection tools. The collected data were analyzed descriptively with the help of SPSS software, and the findings were presented in both tabular and narrative formats. The study revealed that CSCA enabled economically vulnerable households to increase their savings and access loans, thereby improving their income and resilience. CSCA also served as a community platform where members became more actively engaged in social and economic issues. These associations contributed to developing members' knowledge, facilitated decision-making within families, and encouraged participation in local structures. Additionally, the study identified basic services provided by the government and evaluated their effectiveness in supporting business activities. It highlighted the need for formal saving and credit associations under formal and legal frameworks for CSCA members. In conclusion, livelihood improvements among CSCA members included increased capacity to afford education, food, housing, clothing, and social capital. It is recommended that the CSCA model be expanded to other vulnerable areas with ongoing support and follow-up from the government and nongovernmental organizations.