THE IMPACT OF COMMUNUTY BASED SAVING AND LENDING GROUPS (SLG) INTEREVENTION IN INCREASING HOUSEHOLD INCOME:EVIDENCE FROM ADAMA CITY, ETHIOPIA

Abstract

Abstract Community-based Saving and Lending Group (SLG) interventions have been found to be a critical instrument in a bid to improve the livelihoods of poor and vulnerable people. The purpose of this study was to assess the contribution of SLG interventions in supporting household income, particularly assessing the impact on asset, social capital and the effect of income in ensuring household welfare. Descriptive and econometric analyses were done to see the impact on basic household economic variables that include change in income, incomediversification, asset accumulation,change in assets and living standards. The PSM estimation findings provided statistically significant effect for the SLG intervention which yielded at least ETB 1368.074 income differences on average between beneficiaries and non-beneficiaries, all other things kept constant. The household’s total income increase, social capital increase and developing self-confidence and overall income increase were considered as important factors that help households to create assets though its contribution to household welfare and meeting basic needs in the study area.