A little goes a long way

In the past, women used to get small loans from micro loaning institutions and would end up paying huge sums of interest when repayment time came.

When the women did not have enough money to pay back, the institutions would come and get their properties. This method was therefore a big gamble to take since sometimes their businesses would not go as planned and the women would not make any profits in time to give the money back. With VSL, the women do not have to worry about that happening, as they can bypass the financial institutions entirely.

It may not seem much but to these women the difference it makes in their lives is priceless. With as little as K25,000 (100 pounds) saved for the whole of the year, they have been able to make significant changes to the quality of life of their families as well as their own decisions regarding money.

The VSL group is a self-selected group of people who pool their money into a fund from which members can borrow.  The money is paid back with interest, causing the fund to grow. 

With the money that I received from VSL, I have managed to finish the building of my house. I have used iron corrugated roof instead of the thatched grass of my old house. I have also started a small business and have bought more seeds to plant in my garden

says Linda, a proud beneficiary from the Rumphi District.

As she stands outside her almost complete huge house, you can see the excitement and pride in her eyes. This is quite a huge achievement for the mother of seven and she is now the envy of the community.

With VSL, when one meets any problems when the time to return the money comes, you are able to ask for extra days from your fellow women and since we all understand, we do not reach the point of taking properties from each other

says Linda.

Linda is one of the members of the Chitatata Women’s Forum, a group of 10 women who contribute as little as K200 every month. They have all gone through business management training organised by ActionAid Malawi to assist them in setting up their business before they are given a small incentive as a starting point for the VSL.

 The group’s vision is to increase the amount of money they save in their local pool in order to help them expand the process and their plans.

The praises of VSL are shared in the central part of Malawi where another group of women farmers called the Tilipo Circle are using the system.

We had a lot of problems in this area. Because of the high illiteracy levels of women, we were unable to calculate our money and our husbands would take advantage of that. Being unable to read also meant that our husbands would leave important letters just lying around the house knowing that even if we found them we would not be able to read and know what the letter said

 says the Chairperson for the group, Fainess Ulemu.

Being economically dependent on their husbands also meant that the men could treat their wives in any way they wanted and there was nothing they could do about it.

Today it is a different story. The women of the Tilipo Circle meet on Tuesdays, Wednesdays and Fridays when a teacher comes and teaches them how to read, write and do simple mathematics. The women are now able to go to the markets on their own to see their own crops. They also know their rights and are able to discuss things with their husbands.

Not only have they benefited with the school, business studies and human rights, the women have also grown a lot of crops, allowing thems to become economically independent.