The Role of Women-led Microfinance Services in Enhancing Education and Health Accessibility in Rural Tanzania

Abstract

This study aimed to assess the impact of women microfinance services on rural households’ accessibility to education and health services using a Cross-sectional research design. The study population came from women, members of WEDAC Microfinance located in Monduli district, Arusha, Tanzania, between March and October 2024. Purposive sampling was employed and sample size of 339 women were obtained using Yamane’s formula. Analysis of data follows Descriptive statistics and Partial least square structure equation modelling (PLS-SEM). 77.5% of women took loan, in a range between TZS 1Mil – 7Mil to support education, and health services among family members. The relationship between microcredit with a beta coefficient of 0.428 (P-value 0.000); micro insurance with a coefficient of 0.217 (P-value, 0.004); Social intermediation services with a coefficient of 0.181 (P-value, 0.022) were positive and significant in relation with socio-economic welfare of rural communities. The findings indicate that women microfinance services play significant role in enabling investments in education, health, improving household income, and reducing the socioeconomic vulnerabilities of women led Microfinance beneficiaries in rural areas. The study concluded that, the women microfinance services are instrumental in improving rural household education and health services also support women ability to invest in small businesses as depicted in SDG 5. Women microfinances are recommended to prioritize the enhancement of their products and services to women. Relevant agencies are actively recommended to promote women microfinance programs that aim to enhance the education and health insurance services.