Oyam |In Uganda’s Oyam district, a transformative program aimed at improving financial inclusion and empowering rural communities is gaining momentum.
The Village Savings and Loan Association (VSLA) model is lowering poverty, promoting self-reliance among local communities, and opening doors for economic growth. VSLAs help to empower marginalized communities by providing access to savings, credit, and financial education in areas where formal banking services are limited.
On December 13, 2024, a team from Community Focus International (CFI) paid a monitoring visit to four Village Savings and Loan Associations (VSLAs) in Oyam district: Atek Ilwak in Amukugu parish, Ogwalo Note in Pii Yic parish, Par Pi Diki (Wonlobo parish), and Obanga Twero in Bario.
These VSLAs are inclusive groups formed by CFI specifically for Persons with Disabilities (PWDs).
In recent years, CFI has been instrumental in setting up these groups to create opportunities for PWDs to overcome economic barriers. The support from CFI, including revolving funds and knowledge sharing, helps these individuals to become financially independent and active participants in their communities.
The groups meet weekly, and this report summarizes their activities, savings progress, and the effectiveness of the financial assistance provided.
The total savings across the four groups reflect strong financial growth for the year 2024, with notable amounts saved in each group. These savings are critical for the groups’ financial sustainability and provide a significant foundation for future borrowing and lending activities for all the groups.
In the year 2024, all the four groups demonstrated strong participation with an average attendance rate of 75%, which reflects the commitment of members to the group activities.
Notably, the Par Pi Diki and Obanga Twero groups had a higher attendance rate of 85%, indicating greater member engagement in these locations. Additionally, when compared to other groups, these two groups have the highest rate of saving.
Successfully, the groups have managed their revolving funds, with none of the groups reporting any defaulters, an aspect seen to maintain trust, and financial discipline within the different groups.
Despite the milestone, there is a need to embrace digital channels of handling and keeping record for future references and proper accountability while recommending continued monitoring to ensure the sustainability of the groups.
Additionally, regular training on financial management and leadership are further required to boost the strength and existence of the groups.
In conclusion, with active participation from all group members and significant progress in savings accumulation. CFI’s support through revolving funds has helped boost the groups’ borrowing, while the absence of defaulters in all groups is a clear indicator of the success of the members’ financial management strategies.
These VSLAs are not just about saving and borrowing, they are a vital resource for members to improve their lives and the lives of their families. The ability to repair mobility devices ensures greater independence, while the funds for sending children to school help create a brighter future for the next generation.
Furthermore, the ability to access loans for food and other needs directly contributes to better health and well-being for these families.
What you need to know:
Atek Ilwak VSLA, location: Amukugu Parish
Number of Members: 50
Ogwalo Note VSLA, location: Pii Yic Parish
Number of Members: 27
Par Pi Diki VSLA, location: Wonlobo Parish
Number of Members: 30
Obanga Twero VSLA, location: Bario Parish
Number of Members: 22
The writer is an intern, communications department at CFI.
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