Village Savings and Loan Makes a Difference for a Ugandan Family

Agnes Akello used to sell tomatoes and fish at a roadside market in Uganda. But when a Village Savings and Loan Association started in her community in 2012, she joined and later borrowed 400,000 shillings (about US$155).

“I would never have been able to access this amount of money in this village,” says the mother of four.

Agnes used the loan to start a sorghum-selling business. She buys sorghum, a grain used for food and livestock fodder, during the harvesting season when it is plentiful and sells it at a higher price during the dry season. She also expanded her petty trade business, which she says earns her more money now than before.

The VSLA group, which started with the assistance of ChildFund Ireland’s Communities Caring for Children Programme in Agnes’ village, meets every Friday to make loans and take in money. The group’s current loan portfolio is US$1,100, and members plan to save even more.

Agnes, who has been chairperson of her 30-member VSLA group since its inception in 2012, says she is proud of the fact that she now makes a meaningful contribution to her family’s well-being. “My greatest joy is in seeing my children go to school, get good medical services, proper food and clothing, which was very difficult before, considering that my husband is only a farmer. My whole life has changed,” she says with a smile.

Agnes assists a customer at her stall.