MP Opolot injects over Shs 50mln into VSLAs

SERERE, June 26, 2024 – The Pingire County Member of Parliament, Fred Opolot, through The Opolot Fred Foundation has donated Shs 50 million to village savings and loans associations [ VSLAs ] in his constituency.

The Opolot Fred Foundation work is tailored towards improving livelihoods in the rural fishing communities of Pingire County through rehabilitation of health and education facilities, increase of output and quality of farm products as well as building capacity of women and youth saving and credit groups.

Currently, the Foundation is undertaking programs aimed at diversifying livelihoods, educating locals, and improving their general health, cognizant of the significant role this plays in Reduction of poverty, food security, and improvement in the general welfare of these fishing communities.

MP Opolot, the Foundation’s Executive Director said that the loans scheme which was launched in July, 2023 has seen 48 VSLAs comprising women, men and youth receive financial boost of Shs 1mln each.

Among the 48 VSLAs that have been supported with seed capital include Mugarama B VSLA, Akuoro VSLA, Mulondo VSLA, Opunoi VSLA, Olumot VSLA, Ojera VSLA, Ongia VSLA, Odapakol VSLA, Ogata VSLA, Ojera VSLA, Ongia VSLA and Aswii VSLA.

“The purpose of extending this financial support to the VSLAs is to boost their existing savings for the purchase of agricultural inputs when seasons set in, acquisition of goats, pigs, and sheep for rearing amongst members, payment of veterinary services, and extension services, plus cope with post-harvest demands”, said Opolot.

The VSLAs, according to Opolot, not only increase resilience, but also decrease challenges around income, food, and healthcare.

He described the VSLA concept as a powerful tool for improving the conditions of impoverished households.

“There is no considerable domestic development that can be achieved without saving,” he said, adding that there is no small amount of money when saved.

According Opolot, the group executive committee members were first trained on financial management and governance before by given the funds to be given out as loans to members.

He revealed that some of the VSLAs that received financial support, have saved up to Shs 10mln, which he said is a tremendous step forward towards poverty eradication.

“I have trucked their activities, cohesion, and it’s absolutely impressive because since then some of the groups have multiplied the money to between Shs 10mln and Shs15mln while those that not performing well on average have raised Shs5Mln,” said Opolot.

According to Opolot, his plan is to have VSLAs join a big SACCO in Pingire County but called on the members to recruit more people into the groups.

Some of the beneficiaries who spoke to this reporter, commended Fred Opolot for the initiative.

Moses Okello, Chairperson Mulondo VSLA, one of the beneficiaries of Opolot’s cash donation, said the seed capital received has helped members to start or grow their businesses.

Caroline Aluga, a member of Mugarama VSLA said beyond the financial growth, their association has brought them together.

A member of Okidi VSLA, Moses Ooyu told this reporter that they received the funds last year and have now managed to increase their savings to Shs 10mln within a year.

However, Richard Emanio, a rural development trainer in charge of financial literacy, and group governance warned the executives of the VSLAs against embezzling members’ savings.

He expressed concern over the rate at which some VSLAs are collapsing due to mismanagement and misappropriation of members’ contributions by those entrusted to manage the funds.

Emanio warned stern action would be taken against group leaders who thrive on misappropriation of members’ savings.

https://thecooperator.news/vslas-are-powerful-tool-for-economic-empowerment-mp-opolot/

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