Women’s Economic Empowerment through Village Banking: Evidence from Kaunda Square Stage One, Lusaka

Abstract

Women in many developing countries remain excluded from mainstream economic growth, prompting targeted strategies to enhance participation. Evidence on village banking in urban Zambia is limited. This study examines the impact of village banking on women’s economic well-being in Kaunda Square, Lusaka. Using a convergent mixed-methods, descriptive cross-sectional design, we collected structured survey data and semi-structured interviews concurrently from 90 randomly selected participants. Descriptive statistics and thematic analysis show that access to small loans and collective savings is associated with gains in household income, business expansion, healthcare access, and children’s education, an indication that village banking can meaningfully foster women’s economic independence in urban contexts. However, the study also identified operational constraints such as short repayment cycles and weak record-keeping which may dampen sustainability. We recommend strengthening financial literacy, extending repayment periods, and instituting robust governance and accountability mechanisms. By providing context-specific evidence from an under-researched urban setting, the study contributes to debates on women’s economic empowerment and offers practical guidance for policymakers, microfinance institutions, and development partners designing inclusive, sustainable financial interventions.