Inventory and Functionality Review of Village Savings and Loans Associations Takunda Resilience Food Security Activity

The project directly impacts 301,636 people and seeks to promote Village Savings and Loans Associations (VSLAs) as a key component of its strategy. VSLAs are community-based groups that provide financial services to their members, enabling them to save, borrow, and invest in their livelihoods. The project's overall objective is to map and assess the functionality of previously established VSLAs in preceding programs, identify the drivers for sustained operations of existing VSLAs, and learn about the adaptations these groups have undertaken to enhance their continued operations. The study also aims to address evidence and knowledge gaps, particularly regarding the sustainability of previously established structures, such as the ENSURE program. A total of 286 VSLA groups in Takunda implementation districts were reviewed, with a total membership of 1,830 members. The mapping exercise showed that 54% of the VSLA groups were still functional and receiving support from community-based cluster facilitators since the end of NGO-supported programs. The study used a qualitative research approach, incorporating focus group discussions, in-depth interviews, key informant interviews, desk research, and participants' records. The findings of the study will help Takunda determine which VSLA models to promote and in what form to ensure sustained VSLAs in the immediate and distant future. The study's results will also be used to refine the Theory of Change (ToC) and close the knowledge gap regarding the sustainability of previously established structures. The study identified several key drivers of sustainability for VSLA groups, including motivation, resources, capacity, and linkages. Motivation was cited as a key factor, with 71% of respondents indicating that they were motivated to participate in VSLAs due to the potential for financial benefits. Resources, such as access to capital and training, were also critical, with 63% of respondents indicating that they had received training on financial management and 55% indicating that they had access to capital. Capacity was another key driver, with 58% of respondents indicating that they had received training on leadership and management. Linkages with other organizations and services were also important, with 53% of respondents indicating that they had linked with other organizations, such as NGOs and government agencies, to access additional resources and services. The study also identified several challenges faced by VSLA groups, including limited access to capital, inadequate training, and lack of linkages with other organizations. The study's findings suggest that VSLA groups that have access to capital, training, and linkages with other organizations are more likely to be sustainable and effective in promoting financial inclusion and poverty reduction. Overall, the study provides valuable insights into the functionality and sustainability of VSLA groups in the context of the Takunda Resilience Food Security Activity. The findings have important implications for the design and implementation of VSLA programs, highlighting the need for a comprehensive approach that addresses the key drivers of sustainability and addresses the challenges faced by VSLA groups.