A quasi-experimental study of community-based financial capability intervention and depression in Central Mozambique

Abstract Poverty imposes multiple stressors that heighten mental health challenges, especially among low-income women. Community-based financial capability (FC) interventions have the potential to improve mental health while strengthening household assets, food security, social support, and general health. This study analyzed de-identified data from a February 2023 program evaluation in Central Mozambique, using a post-test-only quasi-experimental design with a random subsample of 653 women (317 intervention, 336 comparison). Multiple linear regression and Structural Equation Modeling (SEM) were used to assess the influence of FC participation and duration on depression, with household assets, neighborhood social capital (NSC), general health, and hunger as mediators. Results showed that FC participants had significantly lower depression scores than non-participants. SEM analyses indicated inverse associations between participation (β = − 0.78, ov p  < .05) and duration (β = − 0.30, p  < .01) with depression. Participation was positively associated with household assets and general health and negatively with household hunger. Mediators revealed that NSC and household hunger were positively linked to depression, while general health had a strong inverse link. FC participation influenced depression both directly and indirectly through general health (β = − 0.08, p  < .01) and household hunger (β = − 0.19, p  < .01), and duration showed indirect pathway via hunger (β = 0.04, p  < .05). The SEM models explained 51% (R 2  = 0.51) and 52% (R 2  = 0.52) of the variance in depression. These findings suggest that FC interventions are scalable, community-driven strategies that reduce the probability of psychological distress and improve life outcomes in resource-limited settings.