An assessment of the role of village savings and loans associations in improving the lives of farmers
Abstract
This report reflects an assessment of the role played by Village Savings and Loans Association
(VSLAs) on Improving Farmers’ Livelihoods as a result of study conducted in Kiryandongo Sub
County Kiryandongo District. The major objective of the research was to find out the role of
Village Savings and Loans Association (VSLA) service in improving farmers’ livelihoods in
Uganda using Kiryandongo Sub-county as a case study.
The research design was a case study which employed only qualitative approaches. The study had
a total population of 330 with a sample size of 30 people targeted from six VSLA groups in
Kiryandongo Sub-county. Data was collected using interviews and success story methods.
Furthermore, data was analysed and presented using a narrative form by categorisation method
using themes.
The study findings revealed that use of loans was a relevant intervention that was worthy further
pursuit. Participants attributed the improvements in their state of life to the loans they had acquired.
The study largely also revealed that basing on savings, VSLA members accessed loans and
acquired assets for their homes, even acquiring houses, purchase of land, farm equipment,
agricultural inputs among other which transformed greatly their livelihoods. Through BDS
trainings, members were able to acquire business skills amongst themselves which has assisted
them to invest wisely compared to those without the BDS skills
The study however recommended the following: since at a later stage, the financial needs of some
individual VSLA members surpass what the VSLA’s can provide, there is huge need to link VSLA
to established financial institutions. This would also reduce on the risks associated with keeping
money in a cash box. Saving meetings becomes routine and monotonous for individual VSLA
members; there is need to liaise with government agencies like NAADS to enable VSLA access
other government services like agricultural trainings; whilst the VSLA model guidelines require
15-30 individuals to become members, it is evident that in some communities, opening up
membership slightly would be quite useful