In 2020, Clementine Mukangango and her neighbours joined the SOS Children’s Villages in Rwanda BMZ Quality Care Project Villages Savings and Loan Association (VSLA) Abadahigwa ba Nkingo with the hope that it will help them out of poverty.
Clementine is a mother of five children and two grandchildren living in Kamonyi District (southern province) of Rwanda. Her husband is suffering from a chronic disease since 2016, and as such, she is struggling to raise their big family of seven children. She was in the last category of Ubudehe wealth ranking but was determined to reverse the trend.
Clementine survived on tilling her small land approximately 170 square meters which produced so little that even getting food for home was a serious problem. Affording basic needs including health insurance and clothes for her children was a struggle.
“I couldn’t fend for my children, and they were not attending school regularly,” explained the 58-year-old mother. “I was not able to find the basic needs for them, including school fees and school uniform”. Four children out of five dropped out of school before joining the VSLA. Fortunately, that has changed for the better as they all have resumed their studies.
VSLAs got me out of poverty
Clementine is one of the members of VSLA in her cell “Abadahigwa ba Nkingo. She described this group of savings as a place of refuge for loneliness, innovation, and poverty breakdown.
“We always discuss matters that can lift the life of our children and family. They train us about savings and how we can start small businesses. I first took a loan of Rwf 100,000 which I used to cultivate onions. This doubled the produce, and I was able to pay the loan off on time.” I acquired a loan for the second time of Rwf 250,000 with the aim to expand the onions produce.” she said.
Clementine with her family lives in a small house with three bedrooms which she bought from a loan acquired in Abadahigwa ba Nkingo VSLA. Consequently, she was also able to have her children resume their studies.
VSLA in Rwanda
The purpose of a VSLA is to provide savings and loan facilities in a community that does not easily access formal financial services. The activities run in cycles of one year after which the accumulated savings and the loan profits are distributed among members.
SOS Children’s Villages in Rwanda established 15 Village savings and loans associations in Kamonyi and Kicukiro District with 295 members. 74 members who took the loan saved Rwf 8,737,198 since January 2023. Rwf 18,680,000 were disbursed to beneficiaries and 10,667,005 have been repaid.