Financial literacy among rural agribusiness women in Luweero District, Uganda: implications for mobile money and village savings and loan associations

Abstract

In an era of growing financial complexity, understanding the financial literacy levels of rural agribusiness women is paramount for promoting economic empowerment and inclusion. This study examines the financial literacy levels among rural agribusiness women in Luweero District, Uganda, and the factors influencing these levels. Using binary logistic regression, we analyze the effect of personal financial training, membership in village savings and loan associations (VSLAs), mobile money usage, possession of a bank account, income levels, and education on financial literacy. Our findings reveal the importance of financial literacy training in enhancing financial literacy levels. Additionally, we identify positive associations between membership in VSLAs, mobile money usage, and financial literacy levels. Moreover, perceived financial control emerges as a significant factor affecting financial literacy among rural agribusiness women in Luweero District. These insights have implications for policymakers and practitioners seeking to promote financial inclusion and empowerment among rural communities, particularly through targeted interventions leveraging mobile money and VSLAs. This research highlights the critical role of financial literacy in empowering rural agribusiness women in Luweero District, Uganda. By analyzing the influence of factors such as financial training, village savings and loan associations (VSLAs), and mobile money usage, the study underscores the importance of targeted interventions in enhancing financial literacy. Our findings demonstrate that financial education, participation in VSLAs, and mobile money usage significantly improve financial literacy levels, which in turn supports economic empowerment and inclusion. These insights provide valuable guidance for policymakers and practitioners aiming to promote financial inclusion in rural communities through strategic, evidence-based programs.