Written by Krystle Praestiin
Village Savings and Loans Associations (VSLA) are being embraced with enthusiastic, open arms. Women who have struggled hard to contribute to their family beyond household chores and cooking meals are now able to support their family by contributing money. Their new ability to purchase things like steel roofing for their homes or to pay for school fees, has brought them self-respect and the respect from their husbands, children and community.VSLA provides women with an opportunity to learn how to save and loan money. Women form their own groups and develop their own constitution to govern the terms, such as interest rates and minimum amounts of shares that can be bought. As women buy shares, takeout and repay loans, the pool of savings starts to increase. At the end of every year the money is divided up between the women, according to the amount of shares each woman has bought.
Mrs Magnet Mulunguzi is 23 years old and has four children. In 2010 she became a member of the Chimwambizi VSLA women’s group. When she first joined the group, she was able to draw out a loan of 4,000 Kwacha ($26 USD). This made it possible for her to buy some farm inputs, which she used in irrigation farming (maize). After harvesting and selling the green maize, she was able to buy some more shares – after 9 months she saved 12,000 Kwacha ($78 USD), more than she has ever seen in her lifetime. Mrs. Mulunguzi used part of this money to pay for her daughters schooling (she is in form 2) and the other part she used to buy household needs, such as soap and salt.
“Ndzaidandaula ikadzatha ADRA-(I will never forget ADRA),”
says Mrs. Mulunguzi.ADRA Malawi has helped the group through capacity building in terms of training and providing resources such as a VSLA cash box and also regular supervision.
