Monthly donations from payday loan company Payday Express to development charity Build Africa have helped to set up two Village Saving and Loan Association (VSLA) groups and will help set up six more over the next 12 months.
The partnership began in September 2011, with Payday Express committing to support the charity in the regular set up of new VSLAs.
Build Africa describes VSLAs as self-managed groups that do not receive external capital and provide people with a safe place to save their money, access small loans and contribute to a welfare fund that members can draw on in emergencies.
VSLAs are currently being set up across Uganda and Kenya , with the help of volunteers from Build Africa as well as funds from Payday Express, as part of an ongoing project to give families the opportunity to save and invest their way out of poverty.
The Umoja B Savings Group and Upendo Savings Groups have already been formed with financial help from the emergency payday loans provider and each already has more than 30 active members. Both savings groups meet once a week to discuss the savings accumulated and to agree on how the money can be most wisely invested. For example, a business that is selling soft drinks in a local village can be extremely lucrative when the nearest town or trading centre is more than 3km away, and such a business can be supported and grown with help from a VSLA.
Sarah Carroll, operations manager at no fax payday loan lenders Payday Express, said: “The donations the company regularly provides to Build Africa are helping communities in Africa transform their futures.
“We look forward to receiving regular updates from Build Africa about the savings and loans groups that have been set up as a result of Payday Express donations. It feels really good to work for a company that is determined to help those less fortunate to save and borrow money to improve their lives.â€
The Build Africa VSLA projects have already helped more than 30,000 people in more than 1,000 VSLA groups.
Via EPR Network
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