VILLAGE LOCAL
SAVINGS
ASSOCIATIONS (VSLA)
By Temakholo Mathebula
Introduction
to VSLA
Groups
•VLS groups establishedto support CA learning groups to
save money for agricultural inputs.
•Now serve broader functions i.e. used to meet household
needs, pay back loans, school fees and to purchase new
stock for their businesses.
•A VLS group operates for 12 months
•In the thirteenth month the group has a share out of
“profits” (interest gained) and thereafter either dissolves
or begins another cycle.
•During these twelve months group members take out
loans which they repay with a 10% interest fee added
monthly
Groups
Established
and
Supported
by MDF
•Bergville: 15 groups between 1 and 7 years operational
•Creighton: 2 Groups between 1 and 2 years operational
•Nokweja: 1 Group, 2 years operational
Twelve groups visited in April for annual review in
Bergville to monitor progress and address challenges.
Table 1: Total Shares and Cumulative Shares (April 2019)
No
Name of Group
# SHARES
BOUGHT
TODAY
VALUE OF
SHARES
(TODAY)
CUM # OF
SHARES
VALUE OF TOTAL
SHARES
1
Sizakahle
36
R3,600
61
R6,100
2
Inyonyana
41
R4,100
270
R27,000
3
Isibonelo
72
R7,200
430
R43,000
4
Masibambane
80
R8,000
474
R47,400
5
Masithuthuke
74
R7,400
406
R40,600
6
Mbalenhle
73
R7,300
375
R37,500
7
Mphelandaba
22
R2,200
126
R12,600
8
Sakhokuhle
49
R4,900
342
R34,200
9
uMntwana
100
R10,000
445
R44,500
10
Vukuzenzele
72
R7,200
310
R31,000
11
eZIbomvini
52
R5,200
249
R24,900
12
Ukhamba
43
R4,300
192
R19,200
TOTAL 714
R71,400
3680
R368,000
Bergville
Annual
Review
Summary
Contd
•Groups met in the first and second week of April for savings.
•Twelve groups visited saved R 71 400 with a total cumulative
amount of R 368 000.
•Total loans repaid R 44 690, new loans R 86 400, existing loans R
304 550 and total amount due including new and existing loans
came to R 446 690.
The total amount of new loans and total amount owed increased
from 2018 to 2019.
Group Name
LOAN
REPAID
TODAY
EXISTING
LOANS
NEW LOAN
TAKEN
AMOUNT DUE
NEXT MONTH
1
Sizakahle
R450
R2,300
R4,000
R6,930
2
Inyonyana
R6,010
R25,800
R6,000
R35,080
3
Isibonelo
R4,260
R42,300
R11,500
R59,460
4
Masibambane
R5,660
R41,300
R2,000
R47,830
5
Masithuthuke
R4,600
R4,600
R6,000
R37,400
6
Mbalenhle
R4,170
R35,900
R11,400
R52,630
7
Mphelandaba
R1,580
R12,450
R3,900
R18,000
8
Sakhokuhle
R3,530
R35,300
R8,400
R48,950
9
uMntwana
R5,950
R36,800
R15,900
R56,080
10
Vukuzenzele
R3,730
R26,300
R11,000
R38,280
11
eZIbomvini
R2,690
R22,500
R24,750
12
Ukhamba
R1,970
R19,000
R6,300
R21,300
13
TOTAL
R44,600
R304,550
R86,400
R44690
Table 2: Total Loans Repaid, Loan Due and New Loans
Primary
Highlights
and
Challenges
All Groups
Successfully
Shared out for
2018
Reduced Inter
group conflict
Improved
adherence to
group
constitution
Low number of
people exiting
groups after
share out
HIGHLIGHTS
Irregular
meeting
attendance
Stacking of
loans
Disagreements
with regard to
loan issuing
CHALLENGES
SHARE-OUTS
•All of the groups have had their share-outs for 2018.
•. The biggest items on which share-out money is utilized
include furniture; fridges, wardrobes and televisions in
particular which were mentioned by 95 percent of the
members.
•Other uses include payment of school fees, groceries and
household renovations which were also mentioned by
more than 80 percent of the members of the savings
groups.
•A small percentage (5-10 %) used the money to purchase
agricultural inputs, i.e. fertiliser, seed and other
agriculture related products such as meat and eggs.
SHAREOUTS CONTD
NO
Village
GROUP NAME
YRS
NO. OF
MEMBER
S
NEW
SHARE
VALUE
TOTAL
AMOUNT
SHARED
OUT
MAX
AMOUN
T/MEMB
ER
MIN
AMOUNT/M
EMBER
AVERAGE
AMOUNT/
MEMBER
USES
1
Vimbukhalo
Ukhamba
2
20
R130.00
R75,000
R8,000
R0.00
R1,300
Inputs, school fees, cutlery, blankets,
renovations, furniture
2
Eqeleni
Masithuthuke
6
23
R130.00
R80,000
R7,800
R1,560
R3,680
Christmas and school clothes, new TV, tiles,
renovations
3
Eqeleni
Masibambane
5
25
R136.00
R79,698
R8,000
R700
R4,000
Fertiliser, LAN, Maize seed, lounge suite,
floor tiles
4
Stulwane
uMntwana
7
36
R130.00
R140,000
R7,500
R1,200
R3,200
Inputs, furniture, other household needs
5
Stulwane
Mbalenhle
2
20
R149.00
R108,000
R9,000
R1,600
R5,000
Electricity installation, furniture, serviced
debts, business stock, groceries
6
Ngoba
Sakhokuhle
3
23
R145.00
R105,000
R8,000
R3,500
R3,500
smart phones, clothing, fertiliser, seed,
wardrobe, building material, fencing
7
Ngoba
Isibonelo
3
30
R152.00
R100,000
R9,000
R1,200
R4,000
Wedding celebration, furniture, livestock,
groceries, investments
8
Bethany
Gudlintaba
3
20
R161.00
R86,070
R9,600
R1,400
R4,500
New stock for meat business (tripe), eggs to
sell, poultry, medical bills,College fees
9
Vimbukhalo
Inyonyana
3
20
R130.00
R41,210
R3,770
R780
R1,950
Furniture, groceries, school fees
10
Ezibomvini
Ukuzama
3
21
R125.00
R23,375
R3,375
R2,000
R2,000
Inputs, household needs
11
Ndunwana
Mphelandaa
3
20
R149.00
R41,610
R3,576
R700
R2,200
Christmas and school clothes, renovations
TOTAL
258
R879,963
SUMMARY
•Majority of the savings group members are unemployed and therefore whatever
income they receive goes towards supporting their families.
•Eleven Groups were asked about share-out during the review and most said that
everything went well and they were satisfied with what they got.
•The groups visited distributed a total of R 879 963.00 amongst 258 members
•Majority of the groups had a share increase value ranging between 25 and 49 percent.
•Two out of the eleven groups managed to achieve a share increase percentage above
50% which somehow shows that despite concerted efforts to increase interest, the
reality of a lack of money will always override those efforts as the current model
simply gives back what the members put in and is most cases it is not much.
STREET
BUSINESS
SCHOOL
(SBS)
What Is SBS?
•SBS is a small business development program which places
emphasis on coaching, rather than training, therefore
program more suitable for people who are already doing
something.
Ezibomvini Farmer Centre
SBS:
8 ModulesModule 1: Getting out of your
comfort zone
Module 2: How to start a business
enterprise
Module 3: Finding Capital
Module 4: Record keeping
Module 5:Market Research
Module 6: Business Planning
Module 7: How to grow your
customer base
Module 8:Money Management
PRIMARY OBJECTIVE
PROGRESS
Bergville: modules 1 to 8 have been completed with around 30 participants interested in
establishing new or growing existing enterprises.
Deepen business management skills of participants by sharing combined experiences.