Empowering Communities through Village Savings and Loan Associations (VSLAs)
In Karamoja, Uganda, the Building Resilience in Conflict Affected and Fragile Communities of Karamoja (BRICK) project is transforming lives through its Cash for Work program. Beyond providing immediate financial support, the project fosters financial inclusion and entrepreneurship through Village Savings and Loan Associations (VSLAs).
From Recipients to Entrepreneurs
Lokiru Lokwameri, a Cash for Work beneficiary from Lonyasan village, enthusiastically shares his experience and a member of Obara Alotic Group: “Through VSLA, I’ve learned to save and borrow money within my community. It’s amazing how our collective efforts have created a safety net.”
Lokiru’s group, comprising 25 members, saves UGX 2,500 (approximately USD 0.68) weekly. They’ve already started lending to each other, facilitating small businesses and agricultural projects.
To enhance the establishment and strengthening of community Livelihood groups in the project target areas, Raimiriam Civil Society Network-Karamoja is currently training community-based trainer facilitator to support train young women, and men in the different courses which include digital literacy, business skills, life skills, entrepreneurship, environment protection, and mindset change.
According to Magdalena Ederu, the Governance and Advocacy Officer, Riamiriam Civil Society Network-Karamoja, the objective of the training which was conducted in the local dialogue was to train VSLA groups in group dynamics, meeting procedures, conflict solving, and democratic decision-making, group leadership, members’ duties and responsibilities.
Breaking the Cycle of Poverty
Richard Omoding, Executive Director of Riamiriam Civil Society Network-Karamoja, emphasizes the project’s impact: “VSLAs empower communities to take charge of their financial futures. By promoting saving and lending, we’re breaking the cycle of poverty and dependence.”
Nakwatulina Akello, a beneficiary from Rupa sub-county, testifies to the positive change: “I borrowed UGX 50,000 (approximately USD 13) from my VSLA group to start a small vegetable garden. Now, I’m earning a steady income and supporting my family.”
Community-Led, Community-Driven
The BRICK project’s approach prioritizes community ownership and leadership. Lokiru’s group has elected its own leadership and established rules for savings and lending.
“VSLAs have united us,” says Lokiru. “We’re no longer reliant on external aid; we’re building our own economic resilience.”
Scaling Impact
With over 300 members participating in VSLAs, the BRICK project is poised to create lasting change in Karamoja.
Lawrence Achia, the Commercial Officer, Moroto District, notes: “The VSLA component has enhanced the overall impact of the Cash for Work program. It’s a sustainable, community-driven solution to poverty reduction.”
According to the UNDP’s Karamoja Resilience Report, ” UNDP has supported VSLAs as a mode of economic empowerment for women, youth and the vulnerable in Karamoja subregion; an area that has suffered years of insecurity and drought. VSLA`s have contributed significantly to increased financial inclusion and resilience among pastoralist communities.”
As the BRICK project continues to empower communities, Lokiru’s words resonate: “We’re not just recipients; we’re entrepreneurs, building a brighter future for ourselves and our families.”
About BRICK Project:
The Building Resilience in Conflict Affected Communities in Karamoja (BRICK) project aims to enhance economic resilience, social cohesion, and infrastructure development in Karamoja. Implemented by UNDP, KOICA, and local partners, BRICK seeks to improve the lives of vulnerable communities.
Fact Box:
– 300+ households participating in VSLAs
– UGX 4.8 million (approximately USD 1,320) saved collectively in 2 months
