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Village Savings and Loans Associations (VSLA)

A safety net for alternative livelihoods in coastal communities in Sierra Leone

By UNDP Sierra Leone

June 22^nd, 2023

“I used to borrow money from people in my community. I don’t again. This box (VSLA saving box) has done me a lot of good. Since joining the VSLA, I am now “steady”, because I know I have something big behind me”. - Emmah Y. Sumah, a VSLA Box Keeper of the Tamemsu Village Savings and Loans Association, Conakridee, Port Lokko District, recounts her journey.

Village Savings and Loans Associations (VSLA)

Emmah’s story may not be very different from that of many other women in coastal communities. For many residents of Sierra Leone’s coastal communities, their livelihoods hang on the benevolence of the sea. When fisher folks catch low volumes of fish or are unable to go to sea because of high tides, the entire community suffers. This situation appears to be recurring often as a result of climate change effects.

Access to finance is one of the major problems affecting coastal communities and Conakridee is no different. The banking system is not available within the coastal communities and even if they are, they could not afford the prerequisite to access loans.

In 2019, the VSLA scheme was introduced in Conakridee through UNDP/Global Environment Facility (GEF) funded project “Adapting to Climate Change Induced Coastal Risks Management in Sierra Leone”, as an alternative livelihood opportunity through which groups member will save their resources and borrow among themselves without collateral.

Through the VSLA, women in the coastal communities are taking control of their financial destinies, fostering self-reliance, and creating opportunities for themselves to survive and support their families.

The VSLA provides a platform for women to come together, pool their resources, and engage in savings and lending activities. By contributing a portion of their income to the VSLAs, these women create a communal fund that acts as a financial safety net for all members. This collective effort enables them to access credit for their businesses and invest in income-generating activities.

Emmah Y. Sumah with her three children at home in Conakridee

Tamemsu VSLA Box Keepers carrying the savings box to a meeting in Conakridee

When women save with the VSLAs, they prosper together

For Emmah and her colleagues in Conakridee, the VSLA scheme has empowered them.

“The women of Conakridee have benefited a lot from this scheme. Previously when fishermen arrive from the sea, the women will collect the fish on credit, sell and pay the fishermen later. But that has changed. UNDP and GEF project has made the women of this community proud. Now we pay cash for the fish says, Emmah. When I go town (Freetown), I now go with my money to buy what I want to come and sell here, today I am able to take care of myself and my family all thanks to the project.”

Twenty-six VSLAs groups were established in six coastal communities (Conakridee, Lakka, Hamilton, Tombo, Shenge, and Turtle Island) with a total membership of 780. Each VSLA group was given a startup grant of $2,000 to increase their cash base enabling them to gain financial independence and start their own businesses.

Building business skills of women for income generating activities

The women in the coastal communities also received the necessary skills, and resources for continuous economic activities.

In Shenge, Moyamba District, Esther Barley, has now registered as a caterer following her involvement in the project.

“With my savings and credit from the VSLA, I registered my business as a caterer. Everyone in the community now knows me. I cater for programmes and events that involve large gatherings.

Isatu Jalloh shares her story

Isatu Jalloh is the Chairlady of the Women in Fisheries Group in Conakridee. She has been involved in the fish business for close to 20 years. She notes her business skills has improved considerably due to the capacity building provided through the project.

“First, I just buy and sell without checking if I am making a profit or not. So, the business was not growing. Now, I calculate all the costs involved in the business. I am able to estimate my profit for the week. Out of that, I make my weekly savings to the VSLA. I tell God, Tenki (Thanks be God), I can take care of my children’s school fees now and provide what we eat regularly,” Isatu says with pride.

VSLA group members across the six coastal communities are excited about their achievements and they can reduce the poverty within their families and communities.

To safeguard incomes derived from the fishing sector, a comprehensive training programme and modern facilities were obtained to optimize post-harvest handling. The aim was to reduce losses, create better market prospects, and enhance the livelihoods of those involved in the fishing industry. As part of the initiative, solar-powered cold rooms, ice flake machines, standby generators, and improved fish smokers were acquired and installed successfully.

Tamensu VSLA members after their weekly meeting in Conakridee

About the project

The “Adapting to Climate Change Induced Coastal Risks Management in Sierra Leone” project was implemented from July 2018 to April 2023, with the aim to strengthen the ability of coastal communities to systematically manage climate change risks and impacts on physical infrastructure and economic livelihoods in six pilot sites (Conakry Dee, Lakka, Hamilton, Tombo, Shenge and Turtle Island). The project reached estimated direct beneficiaries of a total of 61,366 (Male 32,068; Female 29,298) people.

It was implemented by UNDP with funding from Global Environment Facility (GEF) in partnership with four Implementing partners: the Environmental Protection Agency (EPA SL), the Ministry of Fisheries and Marine Resources (MFMR), the Institute of Marine Biology and Oceanography (IMBO) and the National Tourist Board (NTB).

Footnotes

Story by Janet Dabire and Photos by Geoffrey Buta .

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FootNotes

Story by Janet Dabire and Photos by Geoffrey Buta .

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