WUZDA Ghana has introduced the Village Savings and Loan Association (VSLA) concept to the Jakpahi, Wovogumah, and Bagon communities.
The VSLA is a community-based microfinance initiative that empowers individuals, especially women, to save money, access small loans, and improve financial security.
This system helps rural and deprived communities without formal banking access to build financial resilience, fund small businesses, and support local development.
By introducing the VSLA concept, WUZDA Ghana aims to enhance economic empowerment, improve livelihoods, and encourage collective financial responsibility within these communities.
The initiative typically involves community members forming savings groups, contributing to a collective fund, and borrowing from it to meet their financial needs, such as paying for healthcare, education for the child, and/or starting small enterprises.
The introduction of the VSLAs in Jakpahi, Wovogumah, and Bagon marks the beginning of individual and communal transformation, and this approach is particularly beneficial in rural areas, where financial services are limited.
The WUZDA Ghana team was welcomed warmly by the community members, who were intrigued by the information about the introduction of the VSLA.
Jakpahi is a farming community that had its fair share of farming-related challenges, resulting from the rain cut this year, dealing a huge blow to especially commercial farmers in the community.
In a meeting with community members during which WUZDA Ghana explained the scope of the VSLA, WUZDA Ghana’s Credit and Marketing Officer, Salifu Mahamud, highlighted the initiative’s importance in rural communities such as Jakpahi.
“This is not just about saving money, it is about empowering yourselves to invest in your future, to have funds available when you need them, and to support each other’s growth”, Mr. Mahamud said.
Excited about the initiative, the community members expressed satisfaction about the possible outcomes of the VSLA process, stressing that they will be committed to it since it accords them the opportunity to access their own savings or get loans without having to pay exorbitant interest, as well as bringing their resources together to enforce communal development.
One of the women in the community and a participant, Fatimata, committed to saving some money from her vegetable trading, expressed high interest in the initiative, stating that “if we save together, we can grow together”.
After a series of similar thoughts expressed by other community members led to a consensus on the need to access the initiative’s benefits, the Jakpahi Village Savings and Loans Association (VSLA) was born, starting a journey towards financial sustenance for the community.
Elders and members of Wovogumah were elated about WUZDA Ghana’s introduction of the Village Savings and Loans for the community’s access.
At a meeting to introduce the initiative to the community, both the men and women had all the questions on their minds answered, raising their interest in the support the VSLA will bring as development in the area.
Addressing the gathering, Credit and Marketing Officer, Salifu Mahamud said “this is your group, your savings, and your decisions. You will decide how much to save, when to lend, and how to share the profits at the end of the year.”
Mr. Mahamud continued to respond to questions including on the consequences regarding non-payment of loans from the VSLA on time, saying that is why it is a group support initiative, where they have to support each other and understand that people sometimes have genuine challenges in trade.
He added that the only thing is that if for some challenging reason, one cannot pay back the loan within the given time, they should communicate their difficulties to the group.
After clarifying all the issues and responding to all the questions bothering the minds of the community members, there was an overwhelming acceptance of the VSLA concept, leading to its initiation in Wovoguma.
Bagon is another farming community, located in the Kumbungu District, where the people are mainly involved in crop production and animal rearing.
The people of Bagon are known for their entrepreneurial spirit, they meanwhile lack the capital to either start or grow their businesses.
When WUZDA Ghana introduced the VSLA concept to the community, it was met with enthusiasm.
The idea of managing their savings and being able to access loans without the constraints of bank procedure and its attendant hindrances was one they found as perfect.
During the introduction of the VSLA to Bagon, Credit and Marketing Officer, Salifu Mahamud reminded the community members of the need for them to have access to reliable financial support for their trade, adding that the initiative assures security for their savings, with a flexible procedure to access their funds, as well as loans.
The VSLA Output
After the introduction of the VSLA concept, Jakpahi, Wovogumah, and Bagon saw changes beyond just financial growth.
The communities became more cohesive, with members supporting one another not only in savings but also in solving common challenges.
The women, especially, found their voices amplified, as they played central roles in managing the VSLA groups.
Under its Livelihood Initiative Programme, WUZDA Ghana seeks to continue expanding the VSLA initiative to more rural communities, providing support for secure local savings and loans for trade expansion, for the development of individuals and the rural north.
WUZDA Ghana 