Village Savings and Loans Associations (VSLAs)
The Village Savings and Loans Associations (VSLAs), established and supported by the Saboba Youth Centre (SYC), enable villagers without access to a bank accounts to save together. This mutual savings system provides families with a financial safety net. Most people in the Saboba District rely on subsistence farming, with little to no savings, forcing them to take out loans under unfavorable conditions when unexpected expenses arise. To address this issue, the SYC has set up the VSLA groups.
Each VSLA group consists of 20 to 30 families who meet weekly to save money. Every week, money can be paid into the common cash depot, which is kept in a secure metal box. The box, along with its multiple keys, is kept by different trusted individuals to ensure security.
Group members can take out loans from the pooled savings, with the loan conditions set by the group itself. These loans are used to start small businesses, pay children's school fees, or purchase food during difficult times. Participants have shared that they were able to make purchases that would have otherwise been difficult or impossible. Additionally, the system provides better protection against unforeseen expenses, such as medical emergencies or accidents.
At the end of the year, members receive their saved money along with a share of the profits generated from interest on the loans. While the SYC assists communities in establishing new VSLA groups and facilitates initial meetings, the groups operate autonomously afterward. Silas, the chair of the SYC, has worked many years for an American NGO overseeing similar savings groups in the Yendi and Zabzugu districts, bringing valuable expertise to the SYC team.
As of 2024, there are already 31 VSLA groups, and the SYC continues to receive requests from new communities. They are working to expand their capacity, with plans for the project to grow further in the coming years.