Nyada VSLA
Nyada VSLA
Country: Uganda
City/Town: Kapelebyong
CarePoint: Nyada
People Impacted: 160
Total Cost: $6,035.94
Estimated time to complete: 2 years
Area of Transformation
Economic Development
Project Description
The Village Savings and Loan Association (VSLA) provides a bucket of funds for guardians to contribute to and borrow from within the local village to help provide capital to start small businesses, as well as meeting other basic needs. The VSLA program educates participants and offers secure and accessible savings to locals, ultimately fueling income-generating activities to support community development.
Historical Background
The Nyada region has suffered insurgencies including the Lord’s Resistance Army rebels in 2003, cattle rustlers, and the HIV/AIDS pandemic, causing this community to be economically vulnerable. Access to finance is a huge concern, both because of Nyada’s location to cities, and unreasonably high interest rates at financial markets in the region.
In this project, members will be able to borrow money from the VSLA that will boost their businesses. They are also offered business and marketing skills during the VSLA training that will help them launch or continue a viable business.
Return on Investment Potential
VSLA projects are one of the fastest ways of empowering communities in rural areas by providing easy access to finances for project members without stringent securities and collaterals. Rural communities benefit from VSLA groups and improve standards of living through initiating income-generating projects, increasing income at the household level, improving the living conditions of members in the group, as well as empowering members to meet some education expenses for their children.
In a period of one year, the economic strength of Nyada will significantly increase. Members will be free to borrow from the group to improve agricultural and business output, support savings and animal husbandry, increase enrollment of children in school, develop youth entrepreneurship, and access better medical care for families.
Additional Impacts
The project promotes self-reliance, individual earning empowerment, and unity in the larger community.
Volunteer and Travel Opportunities
Donors are encouraged to visit Nyada to see for themselves what the VSLA has done in the community and how individuals have used the startup funds as well as the generated income in the savings program.
