VSLAs improve rural livelihoods

BY WATIPASO MZUNGU JNR

Village Savings and Loans Associations (VSLAs) have been commended for transforming the socioeconomic development of people in the rural settings.

International Committee for the Development of People (CISP) is implementing VSLA projects in some districts in the country including Blantyre and Balaka to empower women in micro-financing activities reduce vulnerabilities and expand economic viable ventures in rural areas through improved financial services, especially for women and youth.

Speaking at Chiendausika Primary School on Monday when CISP officials visited the area, Group Village Headman Chasinda of Balaka said village savings and loans have helped in building the social and economic capacity of women of his people.

Chasinda explained that women in his area have registered a significant socioeconomic difference since the introduction of VSLAs.

“This initiative is very good as it empowers rural people, especially women to actively take part in socioeconomic activities,” said the chief.

“My people are now able to save their money and access it and at a time of need. This reduces the unnecessary spending in families. We’re very grateful for this initiative,” Chasinda added.

CISP HIV and Aids expert Yusuf Kadwala said through VSLAs his organization aims at reaching vulnerable people and train them in the formation of small scale businesses.

Kadwala explained that in some countries VSLAs offer hope for individuals without collateral, steady employment and a verifiable credit history and, therefore, cannot meet even the most minimal qualifications to gain access to traditional credit.

“It’s our wish to reach as many people as possible with this initiative. And with this initiative, we aim at empowering as many people as possible with skills and capital for forming and running small businesses,” Kadwala said.

In his remarks, Project Malawi coordinator for Balaka Patrick Musa said village financial groups can be crucial in fighting the socioeconomic challenges brought about by HIV and Aids.

Musa urged the people to take VSLAs seriously.

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