Women in Ngora district have said that Savings groups that were recently started by the Woman MP Stella Apolot Isodo in which people pool money for saving and borrowing have empowered women, increased business investment, and provide greater access to financial services.
Under the Apolot Stella Isodo Foundation – ASIF, MP Apolot mobilized both men and women in all the villages across the district to adopt the saving culture.
Four months later while delivering a total of Uganda Shillings 14 Million to 14 groups in Atoot Sub County in Ngora County, MP Isodo was shocked with the progress of the groups with several groups having saved a minimum of 4 Million.
Jaffar Wabwire the LCIII Atoot sub county says that access to village savings and loans associations (VSLAs) has increased the number of businesses some households are operating.
He noted that the groups have boosted the length of time businesses and also increased total household income and food security.
“What we are seeing is that the people can save for themselves; this has positively changed their livelihoods. We see savings and business income increase, but importantly there is also a boost in women’s empowerment. As women get more access to these groups, their say in household decisions also increases,” Wabwire added.
VSLAs are a popular tool to encourage financial inclusion and empowerment, often in the poorest and more rural communities.
VSLA members, typically women, pool their money together and make small weekly deposits into a common fund. Members can also request loans from the common fund when necessary, which they pay back with interest, thus allowing the group’s deposits to earn a return.
Sarah Apio 29, a treasurer at Ajesa Village Saving Group attests that savings groups have restored love to their families as most of them can now take care of their family expenses that were long left for only men.
Apio says that households who are members of the VSLAs have had higher savings, took out more loans, and had more profitable businesses.
“The impact VSLAs have on women’s economic empowerment is enormous. We are confident that the promising short-term outcomes reflected here are indicative of significant potential for long-term impacts on resilience, household income, food and nutrition security and women’s overall position within their households and communities,”said Akiror Betty 52, a treasurer in Kadok savings group.
“We now know that with just a little bit of training to start these groups, people in Ngora can become their own bankers, and women can gain more power in their households. We hope that with longer term data we can learn if these effects grow bigger or shrink over time, as this would be helpful for donors and organizations to know,” said Richard Emanio, a lead trainer of ASIF.
While handing over the support of Uganda Shillings 14 Million to 14 savings groups MP Apolot called on the locals to embrace savings groups saying members who are already in the groups are using the funds for agricultural investments, food, and education costs.
She added that VSLAs will help in achieving financial inclusion by helping people access tailored services and products that match their level of economic development.