Muscco links VSL groups to Saccos

Malawi Union of Savings and Credit Co-operatives (Muscco) says the village savings loan groups (VSL) that are sprouting in communities need to be linked to community Saccos so that group members are be able to sustain themselves.

Muscco business development coordinator for the North Ezekiel Thindwa said this after witnessing women under Grace Village Bank in Karonga share K3.3 million which they mobilised since December last year.

Thindwa said most VSL lack sustainability because group members do not save the money after it is shared.

“This creates a circle whereby the members mobilise a lot of money, share among themselves and spend. That is why we have developed a Group Savings Loan Associations Programme to encourage VSL groups to save their money with our community Saccos.

“It is important for them to save with Saccos because they will have access to loans to venture into large scale businesses,” he said.

Muscco is an umbrella body for the Savings and Credit Co-operatives (Saccos) in the country. It has seven Saccos in the North, of which three are community Saccos.

Chairperson for Grace Village Bank Mary Mwafulirwa said members of the group had problems accessing loans before their group was attached to a Sacco.

“We advise each other to save our money with Sacco. Most of us now are into large scale business because of the loans we get from Sacco,” she said.