By: Golden Kang'oma

Salima, October 25, Mana: Salima District Community Development Office, has geared up efforts to revamp and reorganize Village Savings and Loans (VSL) groups, in order address the social and economic challenges faced by local communities.

Speaking during a stakeholder orientation on Thursday, Salima District Community Development Officer (DCDO), Samuel Chimwaza expressed excitement about the potential of reorganizing the Savings and Loans technical working groups, which he said would uplift community livelihoods.

He said: "In Salima, we have more than 2,200 Village Savings Loan (VSL) groups registered with the Community Development Office, however, there are still more than 60 percent of the groups that are not registered.

"This means that over 2,500 groups are not yet accounted for, representing about 40 percent of the total, so this will help to enhance our working relationship and make sure that every group is accounted for,” he said.

Chimwaza pointed out that VSL's have made significant contributions in addressing social and economic issues in Salima, particularly in providing a buffer against climate-related catastrophes and ensuring food security.

 “The VSLs have become a form of social support, helping communities address income security and purchasing power, especially in the face of food shortages and other economic challenges," he said.

He said funds from VSLs have been instrumental in supporting community initiatives, such as assisting school-going children with fees and improving overall household welfare hence revamping the structures.

However, Chimwaza emphasized the need for improved data collection on the contributions of VSLs.

“We need to quantify the impact of these groups both in terms of numbers and their qualitative impact on people’s lives and how they affect mental health, family cohesion, and economic stability,” he said.

Field Facilitator for Action Aid under the Tipindule project, Pamela Likoswe, said the initiative is very crucial, noting the importance of linking VSLs with formal financial institutions.

“So far, we’ve reached 293 groups, with a total membership of 7,302 people in Traditional Authority Kuluunda, and this engagement aimed at revamping the technical working groups will help strengthen collaboration with stakeholders and formalize more village savings groups,” she said.

Likoswe said most VSL'S groups have been losing a lot of money because they had no proper training and people were defaulting loans, observing the revamping of the groups will help seal the gaps that were there before.