Feb, 24, 2025. Through the TUI Wildlife initiative, funded by the TUI Care Foundation, and implemented collaboratively with the African Wildlife Foundation, we continue empowering women groups by training them on the Village Savings and Loan Associations (VSLA’s) model.
One of the groups that has benefited from this training is the Vogha Self-Help group in Maktau which engages in beekeeping, basketry, and farming.
Most of these local groups have been practicing the art of basket weaving but struggled to gain income from it. VSLAs provide a solution to this by enabling them to make savings from the little they earn and acquire loans from their savings, hence strengthening their economic resilience.
With the adoption of the VSLA model, members can access capital to start diversified income-generating activities (IGAs), thus reducing their dependence on activities such as farming.
Traditional women’s savings groups, or “chamas,” often break apart due to unfair share-out processes, where members who took loans receive more than those who only saved.
VSLAs solve this by ensuring an equal distribution of savings, whether a member has taken a loan or not. Additionally, VSLA has a social fund that assists members in times of need.
This fund is a shared contribution given as goodwill, with no expectation of repayment, fostering community support and solidarity.
The training covered record keeping, profit calculation, the share-out process, formulation of a VSLA constitution, and how to conduct effective meetings.
Such knowledge will help the local group manage their savings efficiently while advancing their economic growth.