We recently traveled with the Villages Savings and Loan Association (VSLA) team to Bobi, about 30 km outside of Gulu, to check up on one of their newly formed VSLA groups.
The members of this group have given themselves a name in Luo, the language spoken in northern Uganda, which means “It’s better than being idle,” when translated in English. This group is anything but idle. When we approached them they greeted us warmly with smiles and laughter, but when the VSLA meeting began, they were all business.
As members of a VSLA group, these community members meet weekly to save and loan money together. Meeting as a group provides everyone involved with three valuable benefits: a way to save money, a way to earn interest, and a way to access previously unavailable capital.
At the meeting we attended, the group managed to save 67,500 shillings (around $30). Since they began saving as a group, they’ve saved over $600 – very impressive for a newly formed VSLA group! Saving together allows members of the group to take out small loans to invest in their individual businesses, which they repay with interest.
Lucy, a member of the group, borrowed 20,000 shillings (about $8) to buy baking flour to make and sell bread. She’s an experienced baker and is currently working on paying back the loan. Based on her past investments, she expects a high return.
All of the group members are excited about their success – they each plan on keeping it a life-long practice. “We will continue meeting because it is so good,” one member explained. “It’s really working.”
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