Press Release: 60 Decibels Study Finds Loans to Savings Groups Contribute to Stronger Financial Resilience in Africa
Drawing on client feedback across eight countries in Africa, the study found that small, timely loans, averaging $46 per person, were linked to improvements in business outcomes and financial resilience among rural entrepreneurs.
VisionFund, the financial inclusion arm of World Vision, provided loans to nearly 3,000 savings group members, the majority of whom are women and living in rural areas.
Through VisionFund’s Finance Accelerating Savings Group Transformation (FAST) programme, the study has demonstrated that access to capital combined with financial education can help businesses grow.
“We were encouraged to see our clients’ feedback overperforming industry benchmarks like inclusivity and quality of life. Listening to our clients is central to how we manage our impact, and client voice data provides actionable insights tailored to each country context to help us further improve the FAST product,” VisionFund Global Impact Director Josh Olson.
The study showed that over 80% of borrowers used their loans to expand their primary income-generating activities, and most of them reported that they achieved their business goals due to the additional funding.
The majority of clients also reported stronger savings habits, greater ability to weather emergencies, and reduced financial stress.
The impact of the programme also extended beyond supporting income. The study found that nine out of ten borrowers reported an improvement in their quality of life, citing a better ability to care for their children as it became easier to pay for their education, health, and nutrition.
“60 Decibels’ survey data from thousands of women across eight countries shows a clear pattern: access to capital, even in small amounts, drives transformation. The FAST program demonstrates that when financial services reach the last mile, lives change,” 60 Decibels CEO Sasha Dichter said.
The study, conducted by 60_Decibels, tracked nearly 3,000 members of savings groups over a two-year period in Senegal, Ghana, Zambia, Malawi, Uganda, Kenya, Rwanda, and Tanzania, from 2022 to 2024.
It particularly examined whether the FAST programme is reaching the financially excluded, particularly rural poor and women, ensuring that loans support income-generating activities, increase household income, and improve quality of life for families, especially children.
The FAST programme focuses on supporting those traditionally excluded by financial services. It reached savings group members in underserved communities, with 86% living in rural areas, 69% being women, and 86% reporting no access to a viable alternative loan.
VisionFund is dedicated to helping children, families, and communities overcome poverty and injustice. It provides financial inclusion services through affordable loans, savings, insurance, and financial education in 28 countries.
60 Decibels is the world’s leading customer insights company for social impact. With a network of more than 1,400 researchers across 80+ countries, they bring reach, speed, and repeatability to social performance measurement. 60dB has built the largest global dataset of impact benchmarks, with a particular focus on Financial Inclusion, Off-Grid Energy, and Agriculture. This data enables investors, funders, Fortune 500 companies, and NGOs to understand their impact performance relative to their peers and translate insight into action with greater speed and confidence.
Photo courtesy of International Labour Organization ILO.
Source: VisionFund (link opens in a new window)
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