Accra: The village savings and loan association (VSLA), a vital microfinance group, is making significant strides in helping women in Oetuke Village manage their finances and rebuild social cohesion in the aftermath of a devastating landslide in 2021. The association, which comprises a core group of 24 women, aims to bolster resilience in the face of crises such as natural disasters, illness, death, crop failure, or job loss.
According to UN Women, while men are welcomed to join the VSLA, the majority of its current members are women who traditionally oversee household finances. Members contribute to a collective fund with their savings on the 15th of each month, paying a nominal administration fee to join. They can avail of interest-free loans from this fund, with a repayment schedule—ranging from 1-3 months, depending on the loan amount and the borrower’s income—agreed upon during association meetings.
Juridna L. Bahan, the head of the Oetuke association, explained that unlike conventional savings and loan schemes, which disburse money upfront, the VSLA encourages members to save first before taking loans. This approach helps them avoid falling prey to debt collectors.
Beyond financial assistance, the association has empowered its members to actively participate in public forums and village governance. During meetings, members engage in discussions about the association’s purpose, effective financial management, and personal or household financial challenges, thereby fostering trust and solidarity.
“I now see the mama-mama (mothers) raising their hands to speak up in our gatherings, and it’s heartwarming to see them confidently sharing their opinions,” shared Juridna.
Milka Yosina Feo, a 34-year-old member of the association, highlighted the need for funding support to purchase threads or commodities for weaving fabric and restocking kiosks. These ventures generate income, especially when their primary livelihood of gathering colored stones along the coast is hindered by the rainy season’s big waves.
To sustain the VSLA and broaden opportunities for women entrepreneurs, the village government has provided financial support amounting to 5 million Indonesian Rupiah (approximately USD 307).
Juridna expressed optimism about the future of the association, saying that with ongoing encouragement, the group is poised to complete its first savings cycle and welcome more members.
“When I see the happy faces of mama-mama who are part of the village savings and loan association, I feel proud,” she remarked.