An update from Akidi Brenda Nancy, Senior Empowerment Manager
THRIVEGulu implements Village Savings and Loan Associations (VSLA) within all 25 Empowerment Groups established by THRIVE. Group members voluntarily save money from their small businesses each week depending on each individual’s ability to save. This money is invested into the VSLA for the good of the community. With these funds, VSLA loan money to members, enabling them to invest back into their small businesses. The VSLA charges a nominal interest, which most members can supply. Each member can borrow an amount depending on her/his savings deposits. At the end of an annual savings cycle, each group participates in a “share out” during which time group members get back their savings plus interest.
At THRIVEGulu, we first train all Empowerment Group members on group dynamics, so that each group is strong and accountable, and that they demonstrate a spirit of community which underlies each VSLA cooperative. THRIVE monitors each group, helping them manage their finances and maintain group health. This support lasts for three years, after which time each group must be determined self-sustainable.
The most positive outcomes we have observed include: 1) our first batch of 25 groups have a 100% success rate in terms of proper savings and loan procedures, and generating income; 2) each of the 25 groups has become self-sustainable; and 3) the 25 groups are by no means isolated, but rather work together, creating a community of THRIVERs over 1,000 strong!
This past May, I was blessed to be selected among a competitive pool of applicants across the African continent to participate in a VSLA training. The weeklong program was organized by the University of New Hampshire’s Carsey School of Public Policy, in the USA. The training was held in Kigali, Rwanda. During the program, I was able to interact with other VSLA practitioners from 7 countries! I had the opportunity to be trained by leading international experts on a new, more simplified version of VSLA methodology that better suits our target group. Now, I can more successfully guide THRIVE staff in implementing VSLA methodology, so that we can help thousands more emerge from poverty!
My ability to participate in this program was thanks to the MasterCard Foundation, which provided me a scholarship, as well as many generous donations from THRIVE supporters. I am grateful to everyone who made this experience possible.
