Village Savings and Loan Associations - experience from Zanzibar
Authors: Anyango, Ezra; Esipisu, Ezekiel; Opoku, Lydia; Johnson, Susan; Malkamaki, Markku; Musoke, Chris
Source: Small Enterprise Development, Volume 18, Number 1, March 2007 , pp. 11-24(14)
Publisher: Practical Action Publishing
Abstract:The continuing failure of MFIs to reach remote and rural areas, especially in Africa, has renewed interest in finding alternative models of service delivery that can achieve this goal. The Village Saving and Loan Association model promoted by CARE is an accumulating savings and credit association that is timebound, with a periodic action audit at which all the funds are paid out. The approach was implemented in Zanzibar in 2001-2002 and CARE then left the area. This article reports findings from a follow-up study to assess the performance of the groups. The number of groups had grown and overall outreach had expanded to some 4,500 members. The financial performance of the groups was strong with returns on savings of 53 per cent. The context for this strong performance is a relatively well-off and well-educated population that is likely to have favoured strong group governance.
Document Type: Research article
Publication date: 2007-03-01