By Elton Mhango
MZIMBA-(MaraviPost)-Village Savings and Loan (VSL) or locally known as Bankimkhonde groups have continued to be the game-changer in money saving and lending among many people in the country.
VSL models creates a self-managed and self-capitalized groups, where members save their monies and access small loans to boost their businesses and farming activities.
Many people in the country, especially those from the rural settings are preferring to save and borrow monies under VSL model, rather than commercial banks, which are also not available in most parts of rural areas.
This, has resulted into many Non-Governmental Organizations (NGOs) implementing different interventions in the country to incorporate VSL initiatives in their programming to reduce poverty among rights-holders.
One such intervention is the Sustainable Food Systems for Rural Agriculture Transformation and Resilience (Transform) programme which started in 2020 and is being implemented by Norwegian Church Aid (NCA) and Dan Church Aid (DCA) in the districts of Rumphi, Mzimba, Kasungu, Dowa and Mchinji through different partners.
It seeks to enhance agriculture transformation by improving income, food and nutrition security among smallholder farmers in the said districts.
One woman, Frolence Chavula, a widow, and mother of six children from Samuel Nkhoswe village in Traditional Authority (T/A) Jaravikuwa in Mzimba North District is reaping plenty from Bankimkhonde, as commonly referred in the communities.
Chavula, a disadvantage farmer, together with her fellow farmers formed Tovwirane VSL group in 2020 in her community to eke out a living and support their family.
The group was later approached by Find Your Feet organization, Transfom implementating partner in the Mzimba District where they trained them on how manage finances under VSL.
“I am a local farmer, and without enough capital to invest in buying farm inputs and find a better land, it’s difficult to prosper with farming. Life was tough to imagine,” she says.
Chavula in an interview during the tour to the area on Thursday, says she started saving under the Tovwirane VSL with the little she had.
“I started saving the little I could manage at the village bank and the first year of 2020, I managed to get K600 000.
“I didn’t stop there. In 2021, I kept my momentum and my shares earned me MK900 000. In 2022, I got MK1 million, in 2023, my shares rose to MK1. 1 million and last year in 2024, I got MK1. 5 million,” she says.
Chavula, says she as used part of the money she generated from village bank along the years to build herself a descent house, invest in farming and send her kids to school.
“As I am speaking I have completed my house, and I have 30 bags of 50 kilograms of maize. Three of my children are at school and we are not struggling,” said Chavula.
Chavula is optimistic that this year in December she will generate more when the group receive their shares and has set a goal to buy a business motorcycle soon.
Chavula is not the only one benefitting from the VSL group I’m the area.
Another woman, Alifa Mkandawire, 65, said the VSL group has helped her move out of poverty along the years.
“Last year I earned K800 000 and I used part of it to buy feltilizer and paid school fees for my three school going children,” said Mkandawire, a father of five who now says is food secure.
Chairperson of the group Alick Gama said the group which has 16 members has helped them move out of acute poverty.
He says this year they expect to generate K22 million as the group.”This year will be shared among the members and we will use it to develop our households,” he said.
Find Your Feet project coordinator Anthony Chingala said the Transfom programme championed the formulation of VSL groups to improve vulnerable farmer’s households livelihood.
“These farmers are being helped by these VSL groups because apart from saving, they also access small loans to boost their farming endeavors,” he said.
Chingala hopes that the farmers will sustain the groups created as the project is coming to an end this December.
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