The role of social networks in savings groups: Insights from village savings and loan associations in Luwero, Uganda

Studies of village savings and loan association (VSLAs) programmes in several African countries portray these initiativesas spaces that increase financial access for the poor, improve livelihoods, and provide members with social capital. Littleis known, however, about their impact beyond increasing financial access. This paper shows that the benefits that accrue (ordo not) from membership in VSLAs are mediated through networks of friendships and other social relations that predate theintroduction of VSLAs. Based on ethnographic research on VSLAs conducted between 2012 and 2014 in Luwero District, Uganda,this paper examines women's experiences in VSLAs, how social networks influence their decision to join a VSLA, and how VSLAsprovide women an opportunity to exercise agency through utilizing their social networks in their community. In this way, theyare able to challenge structural barriers to financial autonomy and control at the household level. This research shows thatfemale participants utilize two kinds of networks in VSLA spaces: ‘silence-in’ and ‘silence-through’ networks. The findingsunderscore the influence of friendships and family relations in shaping the impact of externally initiated micro-level programmessuch as VSLAs beyond financial inclusion, livelihood, and poverty reduction. The decision to join a VSLA, the desire for financialautonomy, the struggle against power dynamics, and unintended consequences are all negotiated within the VSLAs space throughsocial networks.