VSLA brings joy to Kwania residents
KWANIA -More than 400 registered saving groups in Kwania district are benefiting from Village Savings and Loans Association [VSLA] programme, which is turning into a formal alternative savings scheme for residents.
Under the VSLA scheme, a group of 30 members in the village meet regularly to save money together and use members’ savings to lend to each other. To become a member, one must be 18 years and above with a reputable record and pay a commitment fee of Shs 15,000.
The scheme is steadily improving people’s livelihoods in Kwania district, especially those running small-scale businesses.
Mary Akao, a member of Obanga-ber Disability VSLA in Aduku town and plans to start a poultry project said she had been saving between Shs 2,000-8,000 weekly.
Another member Simon Oruru Rwot-mon said he had earlier failed to start a piggery project but when he joined VSLA, he got an opportunity to borrow more than Shs 400,000 for his business.
“My first plan was to borrow money from a Sacco which is in our home area, but I was scared of the high interest rate and the duration of paying back the loan, being a target saver this group gave me an opportunity to save and borrow money to start my business,” he said.
Oruru who was able to save Shs 500,000 this year plans to use part of his savings to boot his business and use part of his savings to pay school fees.
Yeko Omuno, the Chairperson Obanga-ber Disability Saving Association said, “Members have learned to work hard and manage their small resources effectively after three years when this group was established.” He appealed to members to spend wisely during this festive season.
Patrick Bura, Kwania district commercial officer who doubles as the VSLA supervisor says the saving scheme has been embraced by many people in rural areas as well as in some urban centres.
“VSLA system is being embraced in the rural areas of Kwania. Members are focused on saving and this has increased access to sustainable financial services for the poor. They are able to access loans quickly, loans with less or even no interest,” he told this reporter in a recent interview.
VSLA has been rated as the poverty reduction tool in developed countries. However, the majority of the rural population in Uganda are unable to save or access loans with the Gross Domestic Product [GDP] ratio standing at 13.48 percent.
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