Impact of village savings and loans associations participation on cocoa farmers' livelihood in the Western North Region, Ghana

The study examined the impact of Village Savings and Loans Associations (VSLA) participation on cocoa farmers livelihoods in the Western North region of Ghana. The study analyzes the factors that influence VSLA participation and the intensity of savings. The sample size for the study was 301. The Heckman two-stage model was used to analyse the factors that influence VSLA participation and the intensity of savings. Propensity Score Matching (PSM) was used to examine the impact of VSLA participation on cocoa farmers livelihoods. The results demonstrated a positive and statistically significant relationship between VSLA participation and the following variables: age, gender, household size, education, children's education, and social contributions. However, variables such as respect, income, and gender had a negative influence on VSLA participation. The result also established a positive and significant relationship among extension contact, respect, income, and intensity of savings. VSLA participation had a negative impact on natural capital (land size), a positive impact on human capital (children's capital) and on financial capital (total income), and no impact on social capital (community social distributions) and physical capital (home assets). Policy makers should therefore consider these factors or attributes of beneficiaries in the development and implementation of future interventions. It is recommended that government of Ghana through Ghana COCOBOD should implement policies that intensify sensitization and education on need for farmers to participate in VSLAs. Additionally, policies that support community-building activities such as VSLAs, can be implemented to foster community engagement and build social capital in cocoa growing communities.