WVU’s saving schemes garner success in Kibaale district
By RACHEAL NINSIIMA
It is a perilous journey to Kamina island located in Ndaiga sub-county in Kibaale district. The road leading from Kibaale town to Kamina is steep, paved with hundreds of boulders, deep galleys and clouds of dust. When a team of journalists and World Vision staff visited the island recently, they were in for a kaleidoscope of an unforgettable experience. After disembarking from the cars at one trading center in Ndaiga, we had to hop onto boda bodas as the road to Kamina is motor vehicle inaccessible.
According to Joram Ssali Ssekitoleko, the deputy Chief Administrative Officer (CAO) of Kibaale district, it is 96KMs from Kibaale town to Kamina Island. He described it as a hard-to-reach area.
“The education and health of this area is bad. However, we cannot leave this area to suffer. We need support of stakeholders and we thank World Vision for its commitment in the area,” Ssekitoleko said in an interview.
After 10 minutes, we were accosted with deep steeping and monstrously rocky route. Fastening ourselves on the motor bikes, we braced for the bumpy ride. Tyre screeches, bangs and stops were frequent on the hour long journey. However, when the first bike (of the 12 that was in the ‘convoy’) pulled onto the island, we breathed a sigh of relief. It’s here that we learnt of an initiative, the Village Savings and Loan Association (VSLA), which is lifting locals out of poverty.
The VSLA prototype was introduced by World Vision in Kibaale district in 2015.
ABOUT VSLA
VSLA is a micro-finance model under which savings groups are formed at the community level to reduce poverty by empowering people to save and invest their money in economically viable activities. Muhindo Libuma, the WV manager for Kibaale cluster says VSLAs do not receive any external funding but rather, its members who save their money together and have easy access to loans through them.
“Members of a particular VSLA can use the loans to invest in income generating activities to raise household income. In Kamina, the model is helping people invest in improved methods of farming,” Libuma said in an interview.
To have a viable VSLA, community members first form a group (not more than 30 people each) and these pool money together. It is from the pooled funds that members access loans to invest in different businesses. With profits from the businesses, members then pay back the loans with interest. Later, an auction audit is conducted and the money is shared among the members.
BIG IMPACT
Enock San, a VSLA trainer and secretary of the Kamina-Twemukye VSLA testifies of the transformation that he has witnessed among the locals since the inception of the VSLA in September 2015. Kamina-Twemukye is a 30-member strong saving group whose vision is to have increased household income and self-reliant community. Among its aims are: improve quality of fishing methods, improve food security, preserve good sanitation in Kamina and fight poverty.
“Each member is required to save Shs 10,000 weekly. Currently, we have accumulated savings of up to Shs 17m and we have been able to purchase three boats. We have also bought a plot of land costing Shs 500,000 where we have planted some trees to conserve the environment,” said San.
Additionally, part of the savings have been used to purchase a canoe ambulance for referral of patients to Ntoroko hospital, across the vast L. Albert.
Many women that spoke to the visiting team confirmed that the initiative has helped them improve household incomes and provision of basic needs for their families. One of these is Abwooli Makoru, a physically disabled mother of two. She is a member of the Kamina-Twemukye VSLA which she joined at its inception in September 2015. She told us that she has savings of over Shs 300,000 and has been able to borrow more in order to start a business.
“I borrowed Shs 400,000 and was able to buy a sewing machine. I make Shs 30,000 a week off this business. All my two children are studying and I can afford food for the family,” boasts the seamstress.
Another, Knight Kembabazi, a member of Kachanga VSLA which started on March 9 2016 says that she has savings worth Shs 100,000. She envisions establishing a retail second-hand clothes shop before the end of this year. Currently, she is mongering fish.
With the Shs 116m that has been realized from the more than 10 VSLAs that have been trained in Ndaiga sub-county, San says they envision n developing a bank in future.
Furthermore, with the enviable success so far up the VSLAs sleeve, Ssekitoleko and Libuma agree that there is need to train more people to save as current savings are still meager to meet future plans such as construction of schools and modern latrines.