VILLAGE LOCAL SAVINGS ASSOCIATIONS (VSLA) By Temakholo Mathebula - PowerPoint PPT Presentation

VILLAGE LOCAL SAVINGS ASSOCIATIONS (VSLA) By Temakholo Mathebula

Introduction • VLS groups established to support CA learning groups to save money for agricultural inputs. to VSLA • Now serve broader functions i.e. used to meet household Groups 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 • Bergville: 15 groups between 1 and 7 years operational • Creighton: 2 Groups between 1 and 2 years operational Established • Nokweja: 1 Group, 2 years operational and Twelve groups visited in April for annual review in Bergville to monitor progress and address challenges. Supported Table 1: Total Shares and Cumulative Shares (April 2019 ) by MDF # SHARES VALUE OF CUM # OF VALUE OF TOTAL BOUGHT SHARES SHARES SHARES No Name of Group TODAY (TODAY) 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 • Groups met in the first and second week of April for savings. • Twelve groups visited saved R 71 400 with a total cumulative Annual amount of R 368 000. • Total loans repaid R 44 690, new loans R 86 400, existing loans R Review 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 Summary from 2018 to 2019. Contd Table 2: Total Loans Repaid, Loan Due and New Loans LOAN EXISTING NEW LOAN AMOUNT DUE Group Name REPAID LOANS TAKEN NEXT MONTH TODAY 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

Primary CHALLENGES HIGHLIGHTS Highlights All Groups Irregular Successfully meeting Shared out for and attendance 2018 Challenges Reduced Inter Stacking of group conflict loans Improved Disagreements adherence to with regard to group loan issuing constitution Low number of people exiting groups after share out

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 TOTAL MAX NO. OF NEW MIN AVERAGE AMOUNT AMOUN NO Village GROUP NAME YRS MEMBER SHARE AMOUNT/M AMOUNT/ USES SHARED T/MEMB S VALUE EMBER MEMBER OUT ER Inputs, school fees, cutlery, blankets, 1 Vimbukhalo Ukhamba 2 20 R130.00 R75,000 R8,000 R0.00 R1,300 renovations, furniture Christmas and school clothes, new TV, tiles, 2 Eqeleni Masithuthuke 6 23 R130.00 R80,000 R7,800 R1,560 R3,680 renovations Fertiliser, LAN, Maize seed, lounge suite, 3 Eqeleni Masibambane 5 25 R136.00 R79,698 R8,000 R700 R4,000 floor tiles 4 Stulwane uMntwana 7 36 R130.00 R140,000 R7,500 R1,200 R3,200 Inputs, furniture, other household needs Electricity installation, furniture, serviced 5 Stulwane Mbalenhle 2 20 R149.00 R108,000 R9,000 R1,600 R5,000 debts, business stock, groceries smart phones, clothing, fertiliser, seed, 6 Ngoba Sakhokuhle 3 23 R145.00 R105,000 R8,000 R3,500 R3,500 wardrobe, building material, fencing Wedding celebration, furniture, livestock, 7 Ngoba Isibonelo 3 30 R152.00 R100,000 R9,000 R1,200 R4,000 groceries, investments New stock for meat business (tripe), eggs to 8 Bethany Gudlintaba 3 20 R161.00 R86,070 R9,600 R1,400 R4,500 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 What Is SBS? • SBS is a small business development program which places BUSINESS emphasis on coaching, rather than training, therefore program more suitable for people who are already doing SCHOOL something. (SBS) Ezibomvini Farmer Centre

SBS: 8 Modules Module 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 Deepen business management skills of participants by sharing combined experiences. PROGRESS Bergville: modules 1 to 8 have been completed with around 30 participants interested in establishing new or growing existing enterprises.