VSLAs Transforming Lives of Vulnerable Groups

Village Savings and Loan Associations (VSLAs) are a valuable social safety-net for vulnerable groups of people. They provide a sort of adaptation financing and increase financial choices for poverty-stricken populations in the face of climate change
and Pandemics.

For us JESE, we learn that VSLAs are a valuable social safety-net for vulnerable groups of people. They provide a sort of adaptation financing and financial choice in the face of climate change. Poor people can draw their reserves to invest in climate Smart Agriculture, healthcare and education.

For the 30 years of its existence, JESE facilitated the mobilisation of over UGX10 Billions in Western Uganda that have been re-invested by rural households and providing alternative livelihoods. In this magazine, we share some of the stories of beneficiaries of this village financing model. Below are the stories of change:

Atuhaire Grace

I belong to a VSLA group called Kyembogo Bakyara Tukorre Hamu. I am a Community Based Trainer (CBT) but also a group member since I could not sensitise the community about an initiative that I am not part
of. So, I am the 30th member of my group. I started saving well like I was taught by JESE.

During the first cycle, I saved only UGX 520,000 and received UGX 620,000 at share out, which means I had a profit of UGX 100, 000. I learned that saving is one way to minimise the misuse of money because we save weekly. I also learned that saving money helps me make priorities. I learnt to prioritise and where
I need to spend; practices that I had never done before. It helped to avoid unnecessary expenditure.

The money I shared out in the first cycle was used to expand our coffee plantation by half a hectare. This was in collaboration with the entire family, here we all work on the farm including my husband. In the second cycle, I also saved UGX 520, 000 because we maintained the share value of UGX 10,000. We saved for 52 weeks, I received UGX 680,000 with a profit of about UGX 160,000.

We did not have a vehicle then when we started expanding our farm. We had challenges in transporting our coffee and bananas, so we waited for the share out and topped-up to purchase a pickup. It’s old but it serves the purpose that when we harvest coffee, we are able to take it for processing and no longer sell it to middle men. I got a loan of UGX 400,000 in the second cycle to start a piggery project. I am starting small and have bought one piglet at UGX 200,000. I also got another loan to support my children at school. My children are encouraged to study well.

VSLAs supports diversification into off farm enterprises

On-farm livelihoods are increasingly facing climate change risks, including uncertainty of seasons, pests
and diseases and the resultant farm losses. Such risks and vulnerability forced Allen Twinomujuni to diversify into the business of groceries, while drawing empowerment from the VSLA approach to obtain the much needed startup capital. VSLAs enhance sustainable access to credit and provide
opportunities for financial inclusion, income diversification and expanding the asset base.

Allen Twinomujuni is one of the many beneficiaries of VSLAs supported by JESE over
the past 10 + years and she narrates how VSLAs provided the launch pad to start her grocery
business.

My name is Twinomujuni Allen. I am the chairperson of Kyerenga Village Savings and Loans Association and an active member of Kyerenga Wetland Conservation Association. I am also a retail trader, operating a grocery in Rwaibale. I have been involved with JESE since 2019 when I was trained in VSLAs and taken for learning visits in Fort Portal to see how other farmers do things differently and profitably.

Since that time, I was personally challenged to be creative and pursue agribusinesses that have stable income streams. So, when I started out in my VSLA, I was inwardly persuaded to take out a loan of 300,000 Shillings to invest in crop growing. However, I lost it all when the crops failed. I paid off the debt with other produce I had kept that season. I dared the second time and took out another 500,000 in loan and this time I invested it in a grocery, selling a variety of food stuffs like tomatoes, potatoes, beans,
cassava and fresh vegetables, a thought that I had invested wisely this time.

From the grocery, I am able to save 20,000 every month and the rest of the money is invested in food production and a piggery project. I am also working towards establishing a zero grazing dairy project”
I am grateful to JESE for introducing to us the VSLA initiative because the women do not have to stake their land and other assets any more to guarantee loan acquisition. The process is easier and friendly
to our status as women who in most cases do not own land or assets to raise collateral required by
the banks.”