In this article, I share insights from Bunyangabu District, Tooro Sub-Region, on women’s involvement in a Village Savings and Loans Association (VSLA).
Globally, an estimated 2.5 billion individuals are unbanked, highlighting the need for efficient and sustainable methods at a low cost to reach communities not covered by financial services (ILO, 2021c).
Today, over 20 million people globally are impacted by variations of the Village Savings and Loans associations (VSLA), with about two-thirds adopting that model. VSLA has evolved through various organizations and practitioners working in micro-savings, community development, and financial institutions, targeting individuals underserved or completely excluded by formal financial institutions. The principle of VSLA is to offer financial services to those who are otherwise excluded from formal financial services, represented by marginalized communities excluded based on factors such as gender, indigenous heritage, mobility, literacy, economic status, access to the labor market, or other social factors. Oware (2020) agrees with this assertion, adding that VSLA provides crucial safety nets by smoothing incomes, offering social assistance, and facilitating access to affordable credit.
In Uganda, VSLAs have become an integral part of the microfinance industry. The VSLA movement has already benefited over 600,000 Ugandans in over 22,000 groups (CARE Uganda, 2022). Ideally, this social protection is a multifaceted concept encompassing various interventions aimed at reducing poverty and vulnerability (Lubinga et al., 2025).
One example of VSLAs in Bunyangabu district is the Kyawaihige Bakyara Tukorrehamu Group, based in Kiyombya Sub County. The savings groups opened the opportunity to start dairy and poultry farms as an additional source of income. This project includes the supply of cooking stoves with power generated from solar panels, further decreasing production costs and increasing profits. This sequence of events, beginning with savings programs that facilitated women’s involvement in the production cycle, ultimately culminated in women taking ownership of agricultural projects and enterprises.
Additionally, the group empowers women politically when they assume leadership roles within the group, such as loans officer, timekeeper, treasurer, secretary, chairperson, vice-chairperson, mobilizers, advisers, decision-makers, and change agents. Overall, Self-Help Groups (SHGs) contribute to dismantling patriarchal structures and advancing social justice for all. In addition to these benefits from VSLA, women gain a sense of ownership and agency over their financial resources (CARE Uganda, 2022). This increase in self-esteem and improvement in social capital play an important role in breaking the cycle of poverty and exclusion.
However, significant financial challenges affect the success of this group, such as limited funds for lending and repayment defaults. This leads to dropout or the disappearance of VSLA members after they receive loans or during the loan cycle. Poor stakeholder relationships and poor leadership also undermine the effectiveness of the group.
It is thus recommended that increased effort be put into accruing enough capital to provide adequate loans to its members besides engaging in educational initiatives and simplified information campaigns to improve awareness and promote informed participation in VSLAs. Lastly, providing leadership training and improved coordination among stakeholders, in order to promote the commitment of members is of critical importance.
The writer is a researcher
Email: basemeranestor3@gmail.com
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