Economic Contribution Of Village Community Banks In Conserving Forest Resources: A Case Of Kazimzumbwi And Pugu Forest Reserves

ABSTRACT

Village Community Banks aimed to reduce extreme poverty among community group members and enable members share knowledge on how to generate income which could be alternative sources of income rather than depending on illegal exploitation of forest resources for the economic purpose. This study aimed at assessing economic contribution of VICOBA in conserving forest resources. Multistage sampling technique was used to obtain 5 villages adjacent to both Kazimzumbwi and Pugu Forest Reserves. In the selected villages 23 VICOBA was selected by using Probability Proportional to Size (PPS), 230 respondents form selected VICOBA was sampled and 15 key informants were purposively selected. Primary data was collected using questionnaires and key informants interviews. Quantitative data were processed and analyzed using SPSS and Microsoft excel, in addition a binary logistic regression analysis was done to determine factors influencing VICOBA member decisions in exploit forest products. Results show that, VICOBA programme enable its members to engage in small business activities as alternative sources of income at 55% which reduce illegal exploitation of forest resources, also binary logistic model results reveal significant factors that were negatively influence VICOBA members decision in forest products consumption at P < 0.05 are alternative sources of income, national conservation laws, access to credit, educational level and cultural believes, 44% of VICOBA members were aware in forest conservation through conservation education provided and engaged in conservation through reporting illegal activities and participating in environmental clubs. Finally, this study recommends promotion of community microfinance groups in societies which could be source of alternative income generating activities to reduce overdependence and overconsumption of forest resources