Enhancing Women’s Financial Empowerment through Savings Strategies: Evidence from MAMIDECOT, Masaka District, Uganda

2.1 Women’s financial empowerment

Women’s financial empowerment is widely recognized as a critical driver of economic development and gender equality, encompassing the ability to access, control, and utilize financial resources effectively. Empowerment is commonly understood as a process through which individuals gain control over resources, make strategic life choices, and influence decisions affecting their well-being. Zimmerman (2000) defines empowerment as both a process and an outcome, emphasizing self-determination, competence, and the capacity to influence one’s environment. Kabeer (2001) conceptualizes empowerment as the expansion of people’s ability to make choices, noting that disempowerment occurs when individuals are denied this capacity.

In the financial context, women’s empowerment is reflected in access to financial services, control over household income, asset ownership, entrepreneurial participation, and enhanced bargaining power at both household and community levels. Recent studies demonstrate that financially empowered women are better positioned to participate in economic decision-making, invest in income-generating activities, and improve household welfare (Kumar et al., 2020; World Bank, 2019). Empowerment is thus multi-dimensional, encompassing economic, social, and, in some contexts, political capacities that interact to shape women’s agency and resilience.

2.2 Savings strategies and women’s empowerment

Savings strategies are increasingly recognized as foundational for women’s financial empowerment globally and across sub-Saharan Africa. Structured savings practices, including individual savings accounts, group-based schemes, and digital savings platforms, enhance financial literacy, resilience, and household decision-making (Kumar et al., 2020). In Kenya, Jack and Suri (2014) demonstrate that mobile money savings improved women’s ability to manage financial risks and participate in household economic decisions. Similarly, D’Espallier et al. (2017) highlight that community-based savings groups strengthen peer learning, collective bargaining, and the capacity to invest in income-generating activities. Kabandula and Mulenga (2018) further report that savings increase women’s bargaining power and entrepreneurial potential.

However, the evidence is not universally consistent. Some studies indicate that savings alone may not overcome structural barriers such as gender norms, limited access to formal finance, or weak institutional frameworks (Mugisha et al., 2019). Contextual factors—including socio-cultural norms, economic stability, and digital literacy—moderate the extent to which savings strategies translate into empowerment outcomes. This divergence underscores the need for localized research, particularly in rural areas and cooperative settings where formal banking infrastructure is limited.

In Uganda, community-based savings initiatives, digital savings platforms, and SACCOs offer promising avenues for financial inclusion, yet rural women often face challenges including low financial literacy, unstable incomes, and socio-cultural constraints (Mugisha et al., 2020; GSMA, 2023). Despite these interventions, empirical research examining the effectiveness, accessibility, and outcomes of savings strategies in rural districts such as Masaka remains scarce, highlighting a critical gap in the literature. The summary of related literature reviewed in this study is summarized in Table 1.

2.3 Theoretical framework

This study is guided by two complementary theoretical perspectives: Empowerment Theory and Financial Intermediation Theory. Empowerment Theory (Zimmerman, 2000) frames empowerment as both a process and an outcome, emphasizing how individuals develop skills, confidence, and agency to influence decisions. Applied to women’s financial empowerment, it explains how access to and control over savings enhances self-efficacy, decision-making, and participation in household and community economic activities.

Financial Intermediation Theory provides a complementary lens by explaining how financial institutions, such as SACCOs and microfinance organizations, mobilize savings and channel them into productive uses (Gurley & Shaw, 1960). Within this framework, savings serve as mechanisms for resource pooling, risk management, and capital formation, enabling women to access credit, invest in income-generating activities, and expand economic opportunities. Together, these theories illuminate both the individual empowerment processes that women experience and the institutional mechanisms that facilitate financial inclusion through savings strategies.

Although savings strategies are widely recognized as drivers of women’s financial empowerment, key gaps remain. Most studies in Africa and Uganda emphasize urban populations, mobile money, or microfinance institutions, with little focus on cooperative savings systems such as SACCOs that are central to rural women’s financial participation (Jack & Suri, 2014; Kumar et al., 2020; Mugisha et al., 2020). Evidence on community-based savings groups also reveals challenges of weak governance, irregular contributions, and socio-cultural barriers that limit sustainability and long-term empowerment outcomes (D’Espallier et al., 2017; Kabandula & Mulenga, 2018). Furthermore, while digital savings platforms are expanding, little is known about how rural women navigate technological barriers, low financial literacy, and trust issues, leaving questions about their effectiveness in advancing financial empowerment (GSMA, 2023).

3.1 Ethical considerations

This study was conducted in accordance with the principles outlined in the Declaration of Helsinki. Ethical approval was obtained from the Kampala International University Research Ethics Committee (KIU-REC), approval Number: KIU-2024-463, and further clearance was granted by the Uganda National Council for Science and Technology (UNCST) Registration/Permit Number: SS3454ES. Prior to data collection, informed consent was obtained from all participants, who were assured of confidentiality, anonymity, and the voluntary nature of their participation.

Both oral and written Informed consent were obtained from all participants prior to data collection. Participants were all adults, and no minor was involved, and they were provided with information regarding the purpose, procedures, risks, and benefits of the study, and they voluntarily signed written consent forms before participation. Confidentiality and anonymity were strictly maintained throughout the study.

4.1 Results

The results in Table 2 indicate that savings strategies significantly influence women’s financial empowerment among the respondents. Across all statements, the overall mean score was 4.43 with a standard deviation of 0.606, suggesting a strong positive perception of savings practices and their impact on empowerment. Specifically, nearly half of the respondents strongly agreed (48–49%) and an additional 45% agreed that savings motivated them to join cooperatives, highlighting the role of cooperative structures in encouraging women’s participation in collective financial initiatives. Similarly, respondents agreed that saving as a group (rather than individually) and pooling resources together enhanced their collective financial capacity, with consistent mean scores of 4.43, indicating that group savings mechanisms foster collaboration and mutual support. In terms of personal outcomes, respondents reported that savings contributed to financial independence, improved financial decision-making, and reduced dependence on others, with mean scores ranging from 4.42 to 4.43. The low standard deviations (around 0.606) across all items suggest a high level of consensus among respondents regarding these benefits.

The histogram of standardized residuals in Figure 1 shows that the residuals are approximately symmetrically distributed around zero, with most values concentrated near the mean. The slight skewness and minor peaks at certain intervals are minimal, indicating that the residuals are roughly normally distributed. This suggests that the assumption of normality required for regression analysis is reasonably met. The standard deviation is close to 1, and the mean is effectively zero, further supporting the adequacy of the model fit.

Figure 1. Histogram for testing normality.

Source: Primary Data 2025.

The normal probability-probability plot (P-P plot) in Figure 2 shows the observed cumulative probabilities of the standardized residuals plotted against the expected cumulative probabilities from a normal distribution. Most points lie close to the 45-degree reference line, with only minor deviations at the extremes. This indicates that the residuals do not significantly depart from normality, supporting the validity of the regression results and confirming that the linear model assumptions have been satisfied. Overall, both plots indicate that the regression model for Savings Strategy on FEW meets the normality assumption, suggesting that the findings from the regression analysis are reliable and the estimated effects of SS on women’s financial empowerment can be interpreted with confidence.

Figure 2. Normal P–P plot for testing normality.

Source: Primary Data 2025.

Figure 3 presents a boxplot used to visually assess the presence of outliers in the dataset for the variables relating to savings strategies and financial empowerment. A boxplot typically displays the median, interquartile range (IQR), and any potential outlier values plotted outside the whiskers. The boxplot shows that the majority of the data points fall within the acceptable range (within the whiskers), indicating that the data is generally clean and well-distributed. Only a few mild outliers appear beyond the whiskers, but these values are not extreme enough to distort the analysis or invalidate the regression assumptions. This suggests that the dataset is reliable and suitable for further statistical analysis such as correlation and regression.

Figure 3. Box plot for testing outliers.

Source: Primary Data 2025.

Figure 4 specifically examines the presence of outliers for the combined variables for Overall Savings Strategy and the Savings Strategy Cultural Factor (SSCF). The boxplot reveals a similar pattern to Figure 3 data points are largely concentrated within the interquartile range, with very few outliers. This demonstrates that both savings strategy measures and their cultural components have consistent responses among participants. The absence of extreme outliers indicates that the moderating variable (cultural factors) does not introduce abnormal variability into the model, supporting the reliability of the regression results involving SSCF.

Figure 4. Box plot for testing outliers for overall saving and cultural factors.

Source: Primary Data 2025.

Figure 5 shows a line graph illustrating the general trend or pattern in the savings strategy data over the measurement scale or across respondents. The line graph displays a stable, consistent upward pattern, indicating that participants generally rated savings strategies positively and very similarly. The trend suggests a high level of agreement on the importance of saving, pooling resources, and improving financial independence. This smooth and consistent trend also reinforces the reliability of the scale and indicates that respondents’ perceptions do not fluctuate erratically. This stability supports the strong means recorded in Table 2.

Figure 5. Line graph for testing trends.

Source: Primary Data 2025.

Figure 6 plots standardized residuals against predicted values to assess whether the assumptions of linear regression (linearity, homoscedasticity, and independence of errors) are met. The residual plot shows that residuals are randomly scattered around the zero horizontal line, with no visible patterns, clustering, or funnel-shaped formations. This indicates that: Linearity is satisfied (relationship between variables is linear), Homoscedasticity is satisfied (the spread of residuals is equal at all predicted values) and Independence of errors is upheld (residuals do not exhibit systematic correlation).The absence of patterns confirms that the regression model is statistically sound and the estimates for savings strategy effects on empowerment are valid.

Figure 6. Residual plot for regression diagnostics.

Source: Primary Data 2025.

Figure 7 presents a scree plot used during Exploratory Factor Analysis (EFA) to determine how many underlying components or factors should be retained for the savings strategy items. The scree plot shows a clear and sharp decline in the eigenvalues at the first few components and then levels off, forming a distinct “elbow.” This indicates that only the first 1–2 components have meaningful explanatory power. This pattern confirms that the items measuring savings strategies load well onto a small number of major factors indicating strong construct validity of the savings strategy scale. The scree plot supports using the identified main factor(s) for regression and moderation analysis.

Figure 7. Scree plot for exploratory factor analysis.

Source: Primary Data 2025.

The correlation analysis in Table 3 revealed a moderate positive relationship between SSCF (Savings Strategy Cultural Factor) and women’s financial empowerment (FEW), with a Pearson correlation coefficient of r = 0.300, which is statistically significant at the 0.01 level (p = 0.000). This indicates that as SSCF increases, FEW tends to increase as well, although the relationship is not as strong as observed with other savings strategy measures.

The multiple regression analysis in Table 4, examining the influence of savings strategies (SSCF) on women’s financial empowerment (WFE) revealed a moderate positive relationship (R = 0.551), indicating that higher engagement in savings strategies is associated with greater financial empowerment. The model explained 30.4% of the variance in WFE (R² = 0.304; Adjusted R² = 0.295), suggesting that while other factors also contribute to empowerment, savings strategies account for a meaningful portion of the outcomes. The standard error of the estimate was 0.34491, reflecting reasonable predictive accuracy. Furthermore, the inclusion of savings strategies significantly improved the model (F Change = 36.526, df1 = 4, df2 = 335, p < 0.001), confirming that structured savings initiatives play a significant role in enhancing women’s financial autonomy, decision-making capacity, and overall empowerment.

The regression coefficients in Table 5, indicate that for every one-unit increase in SSCF, FEW increases by 0.038 units (B = 0.038, t = 5.785, p < 0.001), holding other factors constant. The standardized Beta of 0.300 aligns with the correlation coefficient, confirming the positive but moderate predictive power of SSCF.

Residual statistics in Table 6 indicate that the model is reasonably well-behaved, with residuals roughly normally distributed. Standardized residuals range from -3.25 to 1.68, which suggests a few mild outliers but nothing highly problematic. The predicted values are tightly clustered, with a mean of 4.504 and a standard deviation of 0.123, supporting the model’s precision. Overall, the findings suggest that cultural factors associated with savings strategies moderately enhance women’s financial empowerment. While the effect is positive and statistically significant, the relatively low R² indicates that other factors beyond SSCF likely contribute more substantially to empowerment outcomes. This highlights the need to consider broader institutional, economic, and social determinants when designing savings-based empowerment interventions.

The Savings Strategy Cultural Factor (SSCF) also exhibited a positive relationship with FEW, though of moderate strength. Pearson correlation analysis showed r = 0.300, significant at the 0.01 level (p = 0.000). Simple linear regression indicated that SSCF explains approximately 9.0% of the variance in FEW (R² = 0.090). The regression coefficient (B = 0.038, t = 5.785, p < 0.001) demonstrates that a one-unit increase in SSCF is associated with a 0.038-unit increase in FEW, with a standardized Beta of 0.300. ANOVA results (F(1,338) = 33.468, p < 0.001) confirmed the statistical significance of the model. Collinearity diagnostics revealed no multicollinearity issues (Tolerance = 1.000, VIF = 1.000), and residual statistics indicated a good fit with predicted FEW values ranging from 4.276 to 4.858 and standardized residuals within ±3. These findings suggest that while SSCF positively contributes to women’s financial empowerment, its effect is modest compared to structured savings strategies (SS).

4.1.1 Qualitative results on savings strategy

The findings reveal a significant improvement in the savings culture among women members of MAMIDECOT SACCOs. Notably, 82% of participants reported improved savings habits as a result of participating in group savings schemes such as Village Savings and Loan Associations (VSLAs). These schemes were particularly effective in fostering both emotional support and financial accountability, which in turn encouraged more consistent saving behavior. However, women also reported several barriers to sustaining their savings, including irregular income flows and unforeseen family emergencies, which often forced them to withdraw funds earlier than intended. As one participant explained: “The savings group helps me stay consistent, but sometimes I have to use the money for medical needs at home.” These responses highlight the dual role of group savings mechanisms: they serve as practical financial tools while also acting as social support networks.

4.2 Discussion

Qualitative findings from Group-based savings mechanisms were widely perceived as promoting financial discipline, mutual trust, and self-reliance. Nonetheless, participants noted that irregular income streams occasionally hindered consistent saving, highlighting the need for complementary livelihood support to sustain savings practices.

These findings demonstrate the transformative role of savings strategies in enhancing women’s financial empowerment in Masaka District. Structured savings mechanisms significantly improved financial autonomy, decision-making capacity, and access to resources, supporting the view that financial participation is a key pathway to empowerment. These results align with prior studies in Africa and globally; for instance, Kumar et al. (2020) and Ody-Brasier (2017) found that women engaged in systematic savings exhibited higher financial literacy and bargaining power, while Jack and Suri (2014) highlighted the role of mobile savings in promoting economic control among rural women in Kenya.

Participation in group savings schemes substantially improved women’s financial behaviors whereby the quantitative findings showed that 82% of respondents reported enhanced savings habits, while qualitative interviews revealed that peer-driven savings foster discipline, accountability, and emotional support. However, irregular or unstable incomes occasionally limited consistent contributions, indicating that economic stability moderates the effectiveness of savings strategies.

Savings Strategy (SS) emerged as a strong and significant predictor of women’s financial empowerment, whereas the Savings Strategy with Cultural Factor (SSCF) had a moderate significant. Structured savings mechanisms directly enhanced financial independence, resilience, and decision-making capacity, while cultural practices provided supplementary support but explained less variance in empowerment outcomes. Regression analysis confirmed a significant positive effect of SS on empowerment (B = 0.353, t = 8.928, p < 0.05), whereas the moderating effect of cultural factors was not significant (B = 0.010, p > 0.05), indicating that savings strategies are broadly effective across different cultural contexts within Masaka District.

The study also confirms the relevance of Empowerment Theory (Zimmerman, 2000), which conceptualizes empowerment as both a process and an outcome. Savings strategies facilitate empowerment by building skills, discipline, and confidence, while also producing tangible outcomes such as improved financial access, household influence, and community participation. However, empowerment is context-dependent; factors such as irregular income, cultural norms, and limited institutional support can affect the sustainability and impact of savings strategies.

5.1 Future research

While this study provides valuable insights into the relationship between savings strategies and women’s financial empowerment, several limitations should be noted. First, the research was confined to Masaka District, which may limit the generalizability of the findings to other regions or contexts. Second, the reliance on self-reported data introduces the possibility of response bias, particularly regarding financial behaviors and empowerment outcomes. Finally, the cross-sectional design constrains the ability to infer causal relationships between savings strategies and empowerment.

Future research could address these limitations by conducting longitudinal studies across multiple districts to capture temporal dynamics and regional variations in savings practices and empowerment outcomes. There is also need of exploring the role of digital savings platforms and mobile money would provide insights into the potential of emerging financial technologies to enhance economic participation and empowerment among rural women. Such studies would contribute to a deeper understanding of effective savings interventions in Masaka.