As part of efforts towards financial inclusion and widening our reach within joining communities of Obuasi, Stegenor Microfinance Ltd has introduced the Village Savings and Loans Group model of bringing financial services and products to rural communities. Traders, artisans, farmers and start-ups are mobilized into groups depending on their sector, community or age. They are exposed to basic financial models that protect their businesses against economic shocks. We also train them in book keeping and how to develop trade markets. Our business development officer also links the trainees with possible markets to offtake their produce. 

Credit Officer trains Begroase Community members on VSLG concepts

We are creating financial accessibility within remote parts of Ghana with this model. Overtime, the VSL groups are groomed to run independently and nurtured into a community savings hub. We also extend microlending services to start these groups. Each group can accommodate a maximum of 50 members. They elect their leaders and report on group dynamics to all stakeholders.

We plan to sustain this model across communities with limited financial presence but demonstrate some economic activity. Through our lasting partnership with Rotary Clubs of Obuasi and Kumasi, microloans are possible for these groups.

The ultimate goals has been to improve the economic activities in these areas and also boost the income levels of participants.

So far we have implemented VSLGs for

  1. Kente weavers
  2. Rice farmers
  3. Maize farmers
  4. Animal Husbandry groups
  5. Artisans
  6. Beauticians
  7. Grocery dealers
  8. Carpenters
  9. Transport operators
  10. Water and toilet makers and many more.

With an impact of over 650 members, we plan to touch more areas with our empowerment model and make the lives of rural communities better.