a report on village savings and loan association (vsla

Project of support for the preparatory phase of the Uganda National Action Plan for the elimination of

child labour (SNAP)

A report on Village Savings and Loan Association (VSLA) training for ILO partner staff operating in

Wakiso District

International Programme on the Elimination of Child Labour (IPEC)

Esella Country Hotel, Kiira, Wakiso District 19-23 September 2011

This report was produced as a result of the VSLA training workshop organised by ILO/IPEC-SNAP Project for its partner staff operating in Wakiso District. Thanks go to all the participants, Facilitators and ILO/IPEC-SNAP team for the tireless efforts exhibited to have the training workshop successfully concluded. Funding for the workshop and report writing was provided by the United States Department of Labour through the ILO International Programme on the Elimination of Child Labour (IPEC). (Project UGA/08/P50/USA) This report does not necessary reflect the views and policies of the United States Department of Labour, nor does mention of trade mark names, commercial product or organisations imply endorsement by Unites States Government.

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Table of contents 1 Introduction .................................................................................................................. 3

1.1 Background ............................................................................................................ 3

1.1.1 How does VSLA work? ......................................................................3

1.2 Training Objectives ................................................................................................. 5

1.3 Training Methodology ............................................................................................. 5

1.3.1 Simulation exercises ...........................................................................6

2 Training process .......................................................................................................... 8

2.1 Training observations ............................................................................................. 8

2.2 Training Sessions ................................................................................................... 9

2.2.1 Opening Remarks................................................................................9

2.2.2 Session 1: Overview of ILO /IPEC .....................................................9

2.2.3 Session 2: VS&LA Background and Community mobilization/preliminary meetings ...................................................................10

2.2.4 Session 3: VS&LA /Group formation and the General Assembly ...10

2.2.5 Session 4: VS&LA Concepts and Leadership/management system.11

2.2.6 Session 5: Development of Internal Regulations and Election of the VS&LA Management Committee ....................................................................12

2.2.7 Session 6: VS&LA record keeping ...................................................13

2.2.8 Session 7: Mock VSLA meetings (Saving, Loan disbursement and loan repayments) ...............................................................................................13

2.2.9 Session 8: Action Audit / Conflict Resolution ..................................15

2.2.10 Session 9: CBT data collection form, CBT role in VSLA, Dos and Don’ts of a VSLA Trainer ................................................................................15

2.2.11 Session 10: VSLA and Child Labour Integration .............................16

2.3 Field visit ............................................................................................................... 17

3 Conclusion and Recommendation ........................................................................... 20

3.1 Recommendations: ............................................................................................... 20

Appendix 1: Village Savings and Loan Association ........................................................ 23

Appendix 2: List of participants ........................................................................................ 26

Appendix 3: Training programme ..................................................................................... 28

Appendix 4: Action Planning ............................................................................................. 30

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List of Acronyms ARC American Refugee Council CBT Community Based Trainer CRS Catholic Relief Services HLCI Huys Link Community Initiative ILO International Labour Organization IPEC International Programme on the Elimination of Child Labour IRC International Rescue Committee IABA Integrated Area Based Approach KIN Kids In Need MFI Micro Finance Institutions PRA Participatory Rural Appraisal Q&A Question and Answer RYDA Rubaga Youth Development Association UWESO Uganda Women Efforts to Save Orphans UYDEL Uganda Youth Development Link VSLA Village Savings and Loan Association

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1 Introduction

This is a report on the VSLA methodology Training of Trainers course that was attended by staff of four (4) implementing partner organizations that are working in collaboration with International Labour Organization (ILO) operating in Wakiso district, Central Uganda. The training was conducted from 19th to 23rd September 2011 at Esella Country Hotel in Kiira Town Council, and it was facilitated by M/s Sylvia Kaawe and Mr. Eddie Wambewo, all VSLA practitioners working with CARE international in Uganda and UWESO respectively. Participants mainly included: Implementing Agencies’ Monitoring and Evaluation Officers, Social Workers, one Program Coordinator, members of Child Labour committees, Wakiso District Commercial Officer, Labour Officer and the District NAADS Coordinator. Also in attendance were the ILO/IPEC Monitoring and Evaluation Officer and Wakiso DPA. These were selected to attend the training on VSLA methodology as an exit strategy for ILO/IPEC-SNAP project to have a cadre of trainers on the ground who will continue advocating for children’s rights in the communities where the ILO partner organizations operate. The trainers will also ensure child Labour free zones in their respective areas of operation, support the education of children and elimination of child Labour in hazardous conditions, through incomes generated as a result of the children care takers participating in the Village savings and loans association methodology.

This report has three sections; the first section provides an in-depth presentation of the background, objectives of the training, methodology used and observations captured during the training.

Section two explains the workshop process and the key topics handled while section three includes conclusions and recommendations plus different appendices and annexes related to the training.

1.1 Background

ILO/IPEC in partnership with various locally based organizations is strategically planning to improve livelihoods of their targeted population in Wakiso district through implementing VSLA activities in various areas of operation. The VSLA methodology is a savings-based financial service which facilitates the mobilization of group members’ savings and on-lending among members only with no external liabilities. The VS&L model emphasizes provision of simple and accessible financial services, to the vulnerable and poor communities in the rural and peri - urban areas of Africa, Latin America and Asia through the VSLA methodology.

1.1.1 How does VSLA work?

Self selected members agree to form a VSLA these (members) are trained on group cohesion, savings and credit management, development of internal rules and regulations, election of committee members and simple record keeping. Minimum amount to be saved

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is determined by the group members and the highest saver does not exceed five times of the minimum saving value. A VSLA operates with a metallic cash box where important records and any un-borrowed monies are kept. The box is opened and locked in the meeting only before all group members to enforce transparency and accountability. No external funds are allowed into a VSLA cash box, members collect their own internally generated funds which they on lend to one another at an interest. Interest collected on loans and fines from members who do not follow the group internal rules and regulations accumulate into profits that are shared at the end of an operating cycle which runs between eight to twelve months. After share out a group can choose to dissolve or start another cycle of saving. Studies have shown a survival rate ranging from 95% to 100%, i.e groups that complete the first cycle continue into subsequent cycles. The VSLA methodology therefore reduces dependency syndrome hence empowering rural communities both socially and economically.

In Uganda this intervention was designed in response to the gaps that exist within the microfinance sector in the greater Northern part of the country. These gaps include: difficulties in taking microfinance services to the displaced and poor/remote communities; the emphasis of banks and MFIs on credit as opposed to savings, exposing the poor to greater risks; and the need for collateral; the long waiting period for funds due to the legal requirement of the institutions; and the expensive processing fees.

A number of development agencies have implemented VSLA in various parts of the country these include among others: CARE International in Uganda, CRS, UWESO, Plan international, OXFAM, ARC, IRC, Save the children, GOAL Uganda and now ILO. A lot of impact and lessons have been documented as a result of implementing VSLA and these include:

• Improved saving culture of the poor and marginalized communities of rural Uganda

• Increased incomes • Improved livelihoods ( nutrition, clothing, etc) • Improved capacity to meet requirements like medical and education • Increased asset accumulation notably like furniture for home, radios, mobile

phones and ox ploughs to increase agricultural productivity • Improved social net works and capacity to take up leadership roles at community

level by VSLA members • Improved self esteem and control of household resources especially by women.

Picture 1 VSLA session in action.

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VSLA implementation has mostly been done through locally based implementing partner organizations spread in various parts of the country, although some organizations implement directly. Successful VSLA implementation has been a result of well planned coordination, provision of technical assistance to implementing staffs, monitoring and evaluation, information dissemination, assuring quality, sustainability, and encouraging cross-learning among implementing agencies.

Provision of technical support to implementing staff involves planning and executing trainings on the VSLA methodology, monitoring and evaluation, funding support, constant mentoring and coordination. Training on VSLA methodology is the initial step in implementation of VSLA activities and it is aimed at imparting knowledge and skills to targeted VSLA trainers so that they in turn have the capacity to mobilize, form, train and monitor VSLA groups.

ILO is implementing a project on elimination of Child Labour in Wakiso district. ILO is desirous of integrating VSLA implementation in the IPEC-SNAP project and this will be done by working with already existing structures in the communities i.e child Labour committees to mobilize and involve vulnerable households in VSLA activities. This integration is expected to result into improved livelihoods, improved incomes resulting into improved ability of care takers to send children to school, reduced cases of child abuse and child Labour. It is therefore against this background that training in VSLA methodology was conducted for staff of implementing partner organizations operating in Wakiso together with members of the child Labour committees from various sub-counties who will in turn operate as Community Based Trainers (CBTs) on a voluntary basis.

1.2 Training Objectives

The training was aimed at achieving the following objectives:

1. Equip participants with knowledge and skills on VSLA methodological principles, best practices and operational procedures

2. Improve participants skills in community mobilization and participatory training techniques

3. Introduce and familiarize participants to the key VSLA training materials and data collection/reporting tools

4. Share experiences on VSLA implementation strategies, systems, structures and key lessons learned.

1.3 Training Methodology

Facilitators used various techniques that were more participatory and highly interactive. These included question and answer, simple quizzes, simulation of completed sessions,

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conducting mock VSLA training and meetings and a field interaction visit. These were aimed at enabling participants to attain a deeper and practical understanding of the key concepts and topics trained. Facilitators were also able to establish whether trainees were following and understanding the key issues covered during the sessions, hence providing targeted follow up and support during the training. Question and answer/quiz sessions were also handled to allow participants get a deeper understanding of the VS&LA methodological best practices, principles and procedures and all relevant issues that were applicable to the daily operations of CBTs.

For all the sessions handled, demonstrations and stories relating to the topics covered were handled/ read to participants for them to have a clear and more elaborate way of handling key issues relating to the main topic.

1.3.1 Simulation exercises

Simulation exercises were done by giving participants a chance to facilitate training sessions that were earlier facilitated by trainers. Persons doing the simulation were supposed to follow all the steps of the training using the VSLA training guide. The simulation exercises were aimed at building participants capacity to conduct/facilitate adult trainings and also introduce participants to using the VSLA training materials/manual. At the end of the simulation, participants were given a chance to bring out / identify key strengths and areas of improvement as observed from the simulation, this enabled participants not only to critique or applaud the simulator but also draw lessons that would later help them improve their facilitation skills, learn how to prepare for a training session and also skills of public communication. Other key lessons that were observed from the simulations included:

• Self introduction and background of one’s organization if it is the first visit to the community

• The need to do thorough preparation for any training to be facilitated • Not to misinform participant on key issues that they require to understand very

well • Knowing one’s audience and creating rapport with them • Knowledge and masterly of the topic one is facilitating to avoid being caught off

guard by participants • Take charge and be in control of class to avoid being diverted from key

discussions • Follow steps as indicated in the training guide to avoid making mistakes ( read

stories and conduct all demonstrations as indicated in the training guide) • Master VSLA key principles and Child labour protection issues in order to fully

explain to issues that require technical attention. • Avoid mannerisms and use of complex language/slangs when facilitating to get

participant’s attention

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• Involve the audience and utilize their expertise to explain certain issues where you may not be well informed about like religious beliefs on issues related to training e.g. payment of interest on loans as understood by Moslems.

Picture 2 One of the participants (Ticia Gladys) conducting a simulation training exercise

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2 Training process

The training sessions were preceded by opening remarks from the ILO Uganda Chief Technical Advisor who emphasized the linkage between VSLA implementation and elimination of child labour in the communities where ILO and the partners were working. This was followed by an over view of the ILO/ IPEC programme whose major focus is on promoting children rights especially elimination of child labour. The background of VS&LA methodology elaborating its meaning, origin, objectives, key principles and delivery system was also discussed. The process was aimed at enabling participants get a clear understanding of the VS&LA methodology. The training mainly focused on VS&LA concepts / methodology, facilitation skills and Group dynamics and was conducted in seven sessions.

2.1 Training observations

• Participants were very active and eager to learn. This helped them to ably participate during training simulations, tests/ quizzes and mock VSLA meeting exercises which improved their ability to facilitate community meetings and training of adults.

• The team was highly knowledgeable about child labour issues which enabled them to easily identify the linkage between VSLA training of communities and its anticipated result on education of children and elimination of child labour.

• Participants reflected high interest and the zeal to implement the VSLA practice in their respective areas of operation, this calls for immediate planning in order to ensure that the key start up activities like mobilization meetings and group trainings are done immediately.

• Key partner organization staff like Executive Directors / Managers missed the training this may limit their level of conceptualization, which may in turn affect the kind of support they give to their staff like the need to plan for immediate implementation of VSLA activities.

• Inclusion of children/youth between the ages of 14 to 17 as VSLA members was also an issue of discussion during the training, and there will be need to come up with guidelines on the issue.

• Like in Rakai, Wakiso participants who attended the training are going to work as volunteers. ILO together with her partners need to come up with strategies on how these volunteers will work focusing on key issues like (manageable caseloads, remuneration, monitoring of groups for at least one year, reporting and accountability).

• The field visit to groups in Mukono, Kimenyede sub county Mukono district was an excellent learning experience. It was the climax of learning for participants since they were given a chance to interact with VSLA clients and also practically view what they had been discussing in the class. Participants were able to bring out important observations that would guide them in their day to day work.

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2.2 Training Sessions

2.2.1 Opening Remarks

Training sessions were preceded by opening remarks from ILO Chief Technical Advisor who gave a background on why the VSLA training was organized and called upon participants to utilize the skills acquired from the training in order to implement VSLA activities in their respective areas of operation. She noted that implementation of VSLA will act as a tool for ILO and the partners to:

• Promote a saving culture among the communities in which they operate. • Enhance community solidarity through working with local structures and district

leadership on matters related to children rights.

• Reduce child labour and promote education of children as a result of their care takers participating in VSLA activities.

• Implement VSLA in an urban setting hence promoting development initiatives among the urban poor and creating avenues for learning, especially for VSLA practitioners who are implementing the methodology in rural areas.

2.2.2 Session 1: Overview of ILO /IPEC

This session aimed at giving participants a background of the ILO/ IPEC major areas of focus in elimination of child labour under the SNAP project, with an emphasis on an Integrated Area Based Approach (IABA) being implemented in three selected districts in

Uganda: Wakiso, Rakai and Mbale.

Members learnt that the IABA is aimed at creating good-practice models that lay the groundwork for the establishment of child-labour free zones that can be scaled-up throughout the country. Project interventions like VSLA will therefore strengthen community capacity to manage risk and address the needs of its most vulnerable members, enhance local governments’ capacity for social

Picture 3: ILO/IPEC Chief Technical Advisor, Akky de Kort delivering opening remarks to participants

Picture 4: ILO/IPEC M&E Officer, Bazil Mugenyi presenting on the relationship between ILO/IPEC and VSLA

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service provision and coordination and create an enabling environment at the district level for combating child labour through awareness raising, training, as well as support for child labour bylaws and their enforcement. ILO therefore saw it fit to integrate the IABA approach with VSLA implementation in order to step up the desired impact on elimination of child labour.

2.2.3 Session 2: VS&LA Background and Community mobilization/preliminary meetings

This session enabled participants acquire the general understanding of the VS&LA methodology origin, objectives, how the methodology works (core principles and best practices: see appendix i), strengths and weaknesses of the methodology. Discussions also focused on the VSLA context in Uganda and the key features of VS&LA that distinguish it from other forms of financial services.

Preliminary meetings for sensitizing and raising awareness on the VSLA methodology to the community and the local leaders were also discussed. The main objective was to enable trainees (CBTs) acquire skills of soliciting support and participation from the community. It also spelt out a step by step approach of mobilizing the community and their leaders emphasizing key aspects of their presentation as;

• Their identity & the organization they are representing • Current activities and aim of their employing organizations • Operating principles of the VS&LA • Benefits of the project (VSLA) to intended beneficiaries

During the session, participants were guided through the systematic approach of introducing VS&LA methodology to the communities. This introduced participants to a better understanding of VS&LA core operations.

2.2.4 Session 3: VS&LA /Group formation and the General Assembly

The session focused on defining characteristics of a good group, duties of a group member and the role of the General Assembly. By the end of the session participants had understood the meaning of a group, appreciated benefits of belonging to a group and the need to promote quality groups. During the session, the following key areas were discussed:

• A distinction between a group and a gathering • Conditions for the establishment of a VS&LA • Qualities of a good group/VS&LA • Qualities of group members • Advantages of belonging to a group with emphasis to a VS&LA

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The session also introduced trainers to the meaning and role of the General Assembly (GA). It was emphasized that the GA is a superior body in a VS&LA that holds the decision-making power. The session highlighted the following as the key roles of the GA:

• Election of the VS&LA management committee • Dissolve the management committee • Oversee the management committee’s performance • Develop and reinforce the group’s by-laws • Witness all VS&LA transactions

Roles and responsibilities of each individual member of a VSLA were discussed with emphasis on the following:

• Attendance of all VS&LA meetings • Saving weekly or by-weekly • Paying all personal loans • Participating in all group decisions • Ensuring confidentiality of group operations to strengthen group cohesion • Obeying the group’s by-laws

Discussions concluded with clarifying common questions about management and decision-making in a VS&LA. It was emphasized that in VSLA all powers belong to the members of the general assembly including decision making on key issues that affect the group.

2.2.5 Session 4: VS&LA Concepts and Leadership/management system

The session focused on Key VSLA concepts namely saving, loan, interest and social/welfare fund. During this session participants were guided on the definition, application and importance of each concept in VSLA operations.

Leadership/ management committee of the VS&LA was also handled during this session. The purpose was to enable trainers understand why it is necessary for a group to have a management committee, the roles, responsibilities, and qualities of good leadership. It was discussed that a VS&LA management committee comprises of the following:

• Chairperson • Secretary • Treasurer • 2 money counters • 3 key keepers who are elected from the General Assembly (however, they are not

members of the management team)

Further discussions enabled participants to appreciate the roles and qualities of the management committee, but also noted the key roles of the general assembly in electing

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the management committee basing on the qualities and responsibilities discussed, and ensuring that the committee members perform their duties satisfactorily.

Below are some of the crosscutting issues raised on the qualities and roles VSLA committee members:

Qualities Roles and Responsibilities • Honesty • Confidentiality • Reliability • Integrity • Trustworthiness • Literate ( in the case of the

secretary) • Can keep group secrets • Availability • Good listener • punctual for group meetings • Organized. • High level of responsibility

• Organize for group meetings • Ensure all group activities have been

executed in line with agreeable procedures

• Ensure security of group funds in the box • Maintain order and solidarity among

group members • Solve members conflicts • Enforce group by-laws • Ensure group growth and development

2.2.6 Session 5: Development of Internal Regulations and Election of the VS&LA Management Committee

The purpose of this session was to enable participants understand the importance of internal regulations in a VS&LA and also master the procedures of electing a VS&LA management committee members (secret ballot elections to avoid conflicts in the group). Participants were guided through a practical session on development of internal rules and regulations. Some of the key important elements of the VSLA internal regulations discussed included:

• Group objective • Criteria for membership • Meetings and savings • Criteria for loan disbursement • Loan repayment conditions • Criteria for managing welfare fund • Withdraw and death of membership • Fines and offences

Further discussions indicated that the VS&LA internal regulations cover issues of ownership and governance of the group together with rules and procedures on savings, loans and the welfare fund. Participants were informed that the constitution will bind the members in groups hence making it a very important element of the group. It was also

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noted that members need to sign the constitution as a sign of ownership and ensuring that the constitution is authentic and applies to all members in the group.

The developed rules were later used practically in a mock election of VSLA committee members following the secret ballot. Members were told that these will be the same procedures and processes they will use to guide their groups in electing committee members for purposes of reducing conflicts in the group.

2.2.7 Session 6: VS&LA record keeping

The session covered the main records kept in a VS&LA and emphasis was put on the importance of keeping accurate records in the group. The aim of this session was to enable participants understand the records kept by VS&LA and how data in each record is captured. The records discussed included:

• Register • Welfare/social fund ledger • Savings ledger • Fines ledger • Member’s passbook ( Savings and Loans ) • Cash book

From the plenary group discussions and practical exercises in session 6, participants showed a good understanding of the key records kept at group level, although more efforts will be required by management of the various partner organizations to mentor trainers constantly and ensure masterly of group records .

2.2.8 Session 7: Mock VSLA meetings (Saving, Loan disbursement and loan repayments)

This session was handled in three phases/meetings and the purpose was to enable participants appreciate and understand the procedures of each key activity in a typical VSLA meeting. The process involved members conducting mock VSLA meetings with the management committee and the general assembly practically playing their roles. This gave them an opportunity to practice what will actually happen in the groups they are going to form. The exercise also helped them to know the role they will be playing in guiding groups as this was being done practically by the facilitators during the mock meetings. PRA tools were used for members to systematically follow meeting procedures as seen below:

Procedures of very first saving meeting Procedures of subsequent meetings i. calling the meeting to order by the

chairperson, ii. calling of the register by the secretary, iii. Contribution of welfare funds iv. Lending of welfare fund loans

i. calling the meeting to order by the chairperson,

ii. calling of the register by the secretary, iii. Verification of funds in the social fund

bag (funds not verified if it is the first

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v. Collection of savings/buying of shares vi. Disbursement of loans

vii. Closing of cash box viii. Discussion of any other issues important

to group

meeting) iv. Contribution of welfare funds v. Repayment of welfare fund loans (welfare

fund loans are not repaid if it is the first meeting/ skip and go to next step)

vi. Lending of welfare fund loans vii. Verifying balance in cash box

viii. Collection of savings/buying of shares ix. Repayment of loan x. Disbursement of loans

xi. Closing of cash box xii. Discussion of any other issues important

to group

Picture 6: A participant practices how savings are paid in a VSLA meeting

Picture 5: Participant conducting a mock VSLA meeting

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2.2.9 Session 8: Action Audit / Conflict Resolution

This session handled the processes and procedures of how an Action Audit is done in a VS&LA. The purpose of this topic was to equip participants/trainers with the knowledge on how to prepare groups on how to conduct an action audit. Participants were also able to learn the formula and procedures followed for a successful Action Audit.

The session also focused on how to manage conflict in a group. The aim of this topic was to introduce trainers to the common problems encountered in VS&LA operations and equip them with the different tools and skills that can be applied in case a group had a conflict to resolve. This session was very important to the CBTs because it was fore seen that they are likely to solve different conflicts during their interaction with VSLAs, yet they are also required to build the capacity of the group management teams on conflict resolution.

The topic was presented using different case studies so as to highlight the likely conflicts in a VS&LA setting. The following sub-topics were emphasized:

• Identification of possible conflicts in a VS&LA • Approaches to conflict resolution • Tools for conflict resolution • Conflict resolution skills

2.2.10 Session 9: CBT data collection form, CBT role in VSLA, Dos and Don’ts of a VSLA Trainer

This session focused on the data collection tool used for capturing VSLA data from the field by the Community Based Trainers. Participants were guided through each variable on the tool focusing on the definition/interpretation and source of data. It was noted that since the trainers were the ones to use this tool more, there is need for them to be supported more on understanding the data collection exhaustively in order to minimize cases of inaccurate/wrong data captured.

The session further elaborated on key issues that trainers should emphasize and those that they should desist from as they implement VSLA operations in their respective areas of operation. Plenary discussions and individual exercises also brought out the roles of the trainers in the communities. Below are some of the issues highlighted from the discussions.

CBT roles and responsibilities

Dos of VSLA implementation

Don’ts of VSLA implementation

• Mobilization of community and local leaders on VSLA

• Formation of VSLA groups

• Guide group members to formulate and use their internal rules and regulations

• Train groups well on key

• Never influence groups in making decisions

• Do not promise group members things you will not be able to

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• Training groups • Providing support to

groups on following meeting procedures, record keeping and application of internal rules

• Monitoring groups on conceptualization and application of best practices and principles of the VSLA methodology

• Helping groups to resolve conflicts

• Reporting • Participation in

evaluations, studies on VSLA and guiding visitors who visit groups to learn about VSLA

issues of VSLA implementation

• Monitor and support groups in mastering VSLA best practices and maintaining good /accurate records

• Attend to groups as required especially during training and intensive supervision

• Be ethical when supporting groups

• Dress decently • Keep time for group

meetings • Maintain good relationship

with members and leaders • Be exemplary to the group

members

deliver e.g. external funds

• Do not go to train group when not prepared

• Avoid missing/ going late for group meetings

• Avoid unethical behaviors when dealing with the group

• Avoid bringing political issues to the group members

• Avoid conflicts with group members and local leaders who key stakeholders in VSLA implementation

2.2.11 Session 10: VSLA and Child Labour Integration

This session focused on the application of VSLAs in addressing child Labour. Participants were informed that the VSLAs program will complement already existing efforts of addressing the problem of child Labour in the targeted communities. This will also give opportunity to vulnerable households to participate in saving and loaning activities leading to improved ability of these households to be able to provide basic needs to the children and reducing child Labour cases as a result of increased incomes from VSLA participation. Further anticipated benefits of this venture were outlined as seen below:

- Through the VSLAs, the community will gain access to school fees funds hence be able to provide their children scholastic materials and fees.

- Participation in VSLA eventually changes peoples’ negative attitude towards life and the children for the better.

- Savings are more important to poor people than loans because poor people need to have cushion of wealth before they can start to take the risks associated with borrowing

- VSLAs bond the community members together. They meet on weekly basis so apart from saving and loans, VSLAs will act as a forum to discuss important issues especially those affecting children.

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- VSLAs formed near or at schools will act as link between the school and the community i.e. teacher/parent relationships improve.

- Participation in VSLAs will promote/encourage households to work hard, initiate business to meet the basic needs of their children.

- VSLA is a community initiative and does not need a lot of donor support.

- Due to its successes in the past, the VSLA approach was adopted to deal with vulnerability factors such as poverty under the ILO/IPEC-SNAP project. It has an added advantage that even households which did not benefit from IGAs will be able to benefit under the VSLA program.

- UWESO is working with the VSLAs promoted under the child Labour project to convert the social fund into an education fund in order to support provision of lunch for school going children.

- VSLA will act as a sustainability tool of social support in the targeted communities.

2.3 Field visit

The field visit involved participants visiting existing VSLA groups in Kimenyede sub county, Mukono district. The groups were formed and mentored by UWESO. A total of three groups were visited in a cluster meeting in Kiwafu Parish Magonga village. Participants had the opportunity to physically follow meeting activities; they asked questions and in the end learnt a lot from this experience. Below are some of the issues captured from the field visit:

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Good lessons learned ( to emulate) Issues to avoid that are not in line with VSLA methodological principles and best practices

1. VSLA principles enable members to be organized in their operations i.e. • Good attendance of members • Good record keeping • Members interested in what is taking

place • Members looked to be united and

cooperative 2. Failure to pay loan in time calls for payment

of fine despite the interest charged 3. Members who did not turn up for the

meetings were fined 4. External funds from people like politicians

were not put in the box but instead shared by members who planned for the money individually

5. Women are the majority members in all the groups

6. The general assembly was very serious about money collected in the group i.e. they followed all the transactions

7. As the cycle was coming to the end the members reduced the rate of borrowing and concentrated on recovery

8. A lot of money was collected as savings but it was out of the box in form of loans

9. Members appreciated the work done by the management committee and were planning a token of appreciation at the end of the cycle ( although this is optional)

10. Members signed their internal rules and regulations and the followed them very well

11. Members collected welfare funds and in case of death they still contributed additional funds to the bereaved member

12. Members willingly paid for the cash box 13. Towards action audit members get conscious

about safety of the funds 14. 14. Members register a next of kin who is not

necessarily a member to benefit from their savings in case of death

1. some members saved more than 5 times of the share value which may result into dominance over others

2. some members were asked to put security on loans especially when their saving did not match up to three ( 3) times of their saving

3. some groups had positions for more leaders i.e. Vice chair person , information secretary, chief whip, these tend to dis-empower the general assembly

4. some groups had more than 30 members ( 35, 44, 40)

5. youth above 18 years were allowed as members of VSLAs but those below 18 and in gainful employment were represented by their parents

6. members borrowed a lot from welfare fund bag to avoid the funds in the cash box to avoid payment of interest

7. one group was new in the VSLA system and members did not seem to understand key concepts and principles of the methodology, the made participants realize the importance of training and ensuring good quality of a group

8. one group did not include interest funds in the box to cater for emerging expenses

9. some groups kept welfare funds in the box, hence defeating the purpose of the welfare funds

10. some members were given loans when they had not yet finished old loans

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Picture 7: Participants learning from VSLA members in Mukono

Picture 8: A participant, Aisha Mukova learning more from VSLA members in Mukono

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3 Conclusion and Recommendation

Just like in Masaka for the Rakai team, the training in Wakiso was appreciated by the participants and this was evident in the way the participated and inquired about pertinent issues that needed to be taken care of before they stat actual implementation. The participatory methods of learning especially the simulation exercises and the field visit kept participants motivated and eager to learn more. This therefore calls for ILO to work with her partners and come up with strategies of ensuring timely start up activities like mobilization, training of groups and procurement of key items like stationery to be used by each trainer and cash boxes for groups to start saving.

3.1 Recommendations:

• VSLA planning : One of the key issues raised by participants was caseloads by trainers given the terms and condition of their work. ILO will need to guide her partners on definition of overall targets and consequently plan manageable caseloads that will enable the CBTs implement VSLA activities with ease and at the same time are able to attend to their private work. There will also be need to plan for financial resources that will facilitate early procurement of key items like training materials and cash boxes as earlier indicated.

• Implementing VSLA with un paid staff/volunteers: Like in Rakai, Wakiso trainers will be working on a voluntary basis hence calling for a clear strategy development at partner level with ILO’s guidance, focusing on the following: a) Manageable caseloads ( number of groups/clients to support) b) Remuneration (system and amount) and general field facilitation c) Clear definition of roles and functions (include other stakeholders) d) Supervision and monitoring e) Volunteer capacity building plan f) Sustainability of volunteers in future VSLA implementation

• For both Rakai and Wakiso Implementing agencies’ management teams did not attend this training, despite the fact that they participated in the exchange visits, there will be need for them to get re-oriented on key issues related to VSLA implementation especially those that require management attention, like planning of group caseloads, planning and management of both human and financial resources, monitoring and quality control, in order for them to provide informed leadership on VSLA implementation.

• VSLA inclusion of children/youth from 14 to 17 years: this matter was also brought up by Wakiso participants and as earlier indicated, it was agreed in principle that children/youth aged 14 to 17 should be allowed to participate in VSLA activities as long as they are well known and trusted by members of the communities where they live (the principle of self selection of VSLA members). There will also be need for group members to be guided on when developing group internal rules and regulations on how such members will be handled especially on matters that will involve loans.

• Secondly ILO will need to work with her partners to utilize existing policies or develop guidelines that will be followed by the partner staff when forming groups in

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communities where there are child headed families and many youths below 18 years but with assumed responsibilities.

• Integration of child Labour issues in VSLA Training: ILO program management team with support from the trainers (Sylvia and Eddy) will need to revise the VSLA training guide to incorporate a session on worst forms of child Labour and value of education in the ILO/IPEC VSLA training sessions. This will help to strengthen the ILO/IPEC implementing agencies’ efforts on educating the communities on the need to improve incomes through saving and investment in order to boost children education, which in turn leads to reduced involvement of children and youth in worst forms of child labour. VSLA will further act as a forum to discuss child labour issues in the community and thus increased awareness and positive responsive to child labour issues.

• VSLA Monitoring : This is critical to successful VSLA implementation. There is need for ILO and her partners to plan for resources that will facilitate constant monitoring of VSLA implementation in order to ensure good quality of work on the ground and service delivery by the trainers.

• Capacity Building: Besides monitoring, supervisors at ILO and implementing partner level are expected to operate as VSLA product champions and hence expected to provide mentoring support to staff especially those exhibiting weak performance.

• There will also be need to plan for refresher courses in VSLA in order to capture field staff experiences and key lessons that can inform general implementation of the project.

• Upholding VSLA principles and procedures: Observations from the field findings brought out a number of key issues that were emphasizing the need to uphold VSLA principles, these are the key issues that make VSLA unique from other forms of microfinance and have also made the methodology successful leading to a high rate of replication. Implementing agencies need to take note of this and ensure that their VSLA operations do not involve the following:

a) VSLA /group operating without a cash box (this is a symbol of accountability and

transparency)

b) Writing and submission of Loan application letter by the member intending to borrow

c) Security / Collateral on loans

d) A borrower having guarantors ( VSLA operates a group guarantee system on loans with all members being liable to follow up any loan defaulted)

e) Spouse approval on loan

f) Cluster meetings

g) Payment of membership fees

h) Prepayments (collecting money for saving in advance)

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i) Increased membership of more than 30

j) Failure to apply self selection of members which leads to misunderstandings and conflicts in future.

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Appendix 1: Village Savings and Loan Association

VSLA Best Practices and action planning

Facilitators emphasized the need for CTBs/ trainers to master and adhere to the VS&LA best practices and core principles in order to effectively promote the methodology within the rural communities. Below are the principles discussed:

VSLA Core principles 1. Periodic action audit: VSLAs operate in a cycle of 8 – 12 months and then share out their money. This allows members to; Share profits on their savings, review group internal rules, revisit issues that cannot be changed during the cycle/the share value., interest rate and membership, assess leadership performance 2. The ring fenced box: VSLAs operate with a metallic box with 3 padlocks. The box is opened only during group meetings before all group members to ensure; financial transparency and enable accountability 3. Zero/no tolerance to arrears: (of savings and loans) to; Promote saving culture among members, allow fast accumulation of funds, minimize risk of losing members’ money through loan defaulters 4. Independent groups: VSLAs operate using their internally generated funds. There is no external influence to the group i.e. members make their own rules and they manage their own affairs. How does an independent group look like?

• Group leaders and general assembly are active, • Internal rules and regulations in place and applied, • Group members can make decisions on matters that affect their group, • Group members understand and apply principles and best practices of VSLA

methodology in their day to day operations.

VSLA methodology Best Practices 1. A VSLA is self selected i.e. members self select themselves based on how well

they know one another (character, background, general conduct)

2. VSLAs are made up of 15-30 members

3. A VSLA is trained for 6 – 8 weeks

4. VSLAs are autonomous and self managing

5. VSLAs are comprised of the general assembly and a management committee.

6. VSLAs agree on a set of rules or constitution that guides their activities

7. VSLAs meet and save on a weekly basis maximum 5 shares

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8. All transactions are carried out during meetings in front of all members to ensure transparency and accountability

9. There is no external money injected or given to a VSLA (especially during the first cycle)

10. A VSLA keeps simple records to help track member transactions in the group

11. A VSLA operates within a cycle of 8-12 months

12. A VSLA must have a welfare fund to cater for members’ insurance and emergency needs

13. A VSLA must be formed through the following phases;

a) (6 – 8 weeks) Training/intensive phase 16

b) Development phase 16

c) Maturity phase 12

14. VSLA loans are for productive purposes to group members only

15. The VSLA loan term is 1-3 months and the loan amount should not be more than 3 times of the borrower’s savings

16. Interest is charged on loans and repayments are due on a monthly basis i.e. after every 4 weeks

17. VSLAs must conduct action audit at the end of the cycle

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Picture 10: A participant Marion Kimala shows joy upon receiving her training certificate

Picture 9: Kiira Town Council Production Coordinator (Representing the Town Clerk) addressing participants at training closure

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Appendix 2: List of participants No Name Organization Designation Tel Email 1 MUKOVA AISHA HUYSLINK CHILD LABOUR

COMMITTEE MEMBER

0774439251 -

2 BABIRYE REBECCA HUYSLINK SOCIAL WORKER 0781459149 [email protected] 3 KIMALA MARION HUYSLINK CHILD LABOUR

COMMITTEE MEMBER

0782537480 -

4 LUBEGA SEMU UYDEL CHILD LABOUR COMMITTEE MEMBER

0776808054 -

5 NAKAKEMBO MARIAM

UYDEL CHILD LABOUR COMMITTEE MEMBER

0774838314 -

6 KABANDA RAYMOND

UYDEL M&E OFFICER 0788242734 [email protected]

7 NANSUBUGA FATIMA

UYDEL CHILD LABOUR COMMITTEE MEMBER

0784427907 [email protected]

8 KIBALAMA IBRAHIM UYDEL SOCIAL WORKER 0752842568 [email protected] 9 BUNJO ALI UYDEL CHILD LABOUR

COMMITTEE MEMBER

07720010089 -

10 NURUH KAYIWA RYDA CHILD LABOUR COMMITTEE MEMBER

0782386620 -

12 KAGGWA STANELY RYDA CHILD LABOUR COMMITTEE MEMBER


13 KATITI PHIONA RYDA FIELD OFFICER 0771818973 [email protected] 14 AINEMBABZI

SYLVIA RYDA PROGRAMME

COORDINATOR 0774304228 [email protected]

15 MAGOMBE FRED KIN CHILD LABOUR COMMITTEE MEMBER

0773196656 -

16 TURYAHABWE BEATRICE

KIN ACTIVITIES COORDINATOR


17 TSETUYI MARY GORRETTI

KIN CHILD LABOUR COMMITTEE MEMBER

0772377330 -

18 TICIA GLADYS KIN CHILD LABOUR COMMITTEE MEMBER

0789068320 -

19 NAMAYANJA JACINTA

KIN CHILD LABOUR COMMITTEE MEMBER


20 ANNET ZALWANGO WAKISO DISTRICT

NAADS COORDINATOR

0772/0701 658201

[email protected]

21 MPAKIBI WAISWA ROBERT

WAKISO DISTRICT

COMMERCIAL OFFICER

0782898879 0700401501

[email protected]

22 MUHUMUZA WAKISO LABOUR OFFICER 0774-089323 [email protected]

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CELESTINE DISTRICT 23 SEKAGIRI FRANK ILO DPA WAKISO 0772-427123 [email protected] 24 MUGENYI BAZIL ILO M&E OFFICER 0782505134 [email protected] 24 SYLVIA KAAWE CARE FACILITATOR 0772495733 [email protected] 25 EDDIE WAMBEWO UWESO FACILITATOR 0783846913 [email protected]

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Appendix 3: Training programme DAY ONE 8:30-9:00 am Introductions, Expectations & Workshop Norms 9:00 – 9:30am Opening Remarks (if applicable) Workshop Objectives, course

content review 9:30-10:30 am VSLA Background and Ugandan context informal financial sector 10:30-11:00 am Break Tea 11:00-1:00 pm Preliminary meetings 1,2,3 1:00-2:00 pm Lunch Break 2:00 – 3:30pm Group formation and the general assembly 3:30-4:00pm Tea Break 4:00-4:30 pm Simulation Preliminary meetings 4:30-5:30 pm Q & A, and Closure DAY TWO 8:30-9:00 am Recap / Evaluation of Day one’s work 9:00-10:30 am Simulation Group formation and the General Assembly 10:30-11:00 pm Break Tea, 11:00-1:00 pm VSLA Concepts 1:00- 2:00pm Lunch Break 2:00-3:30 pm Leadership and roles of management committee 3:30 – 4:00pm Election of Management committee and Internal Regulations 4:00 - 4:30pm Tea Break 4:30-5:00pm Simulation Elections, Internal Regulations 5:00-5:30 pm Q&A, Closure DAY THREE 8:30-9:00 am Recap/Evaluation of Day two’s work 9:00-9:30am Simulation VSLA Concepts 9:30-10:30 am Record Keeping (Register, Fine, Social fund ledger) 10:30-11:00 am Tea Break 11:00-1:00 pm Records Continued. Savings Ledger, Passbook, Member Loan

record, Cash book 1:00-2:00 pm Lunch Break 2:00 – 3:30pm First Savings Meeting/Meeting Procedures and loan disbursement 3:30 – 4:00pm Tea break 4:00-5:00 pm Simulation Records 5:00-5:30 pm Q&A, Quiz, Closure DAY FOUR 8:30-9:00 am Recap of Day Three’s work 9:00-10:30 am Meeting Procedures continued, welfare fund, savings , loan

repayment 10:30 – 11:00am Tea Break 11:00-12:00 pm Action Audit, Conflict Resolution

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12:00 – 1:00pm CBT field data collection form 1:00 – 2:00pm Lunch Break 2:00-3:30 pm Dos and Don’ts of VSLA field operations, VSLA Best Practices 3:30-4:00 pm Tea break 4:00- 5:30 pm Q&A, Closure DAY FIVE 8:30-9:00 am Child Labour issues 9:00-11:00 am File visit to VSLA Group in Mukono 12:00 – 12:45pm Recap/Review of field findings 12:45-1:00 pm End and Closing Remarks 1:00 – 2:00pm Lunch and departure

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Appendix 4: Action Planning

RUBAGA YOUTH DEVELOPMENT ASSOCIATION (RYDA) ACTION WORK PLAN OF VSLA PROGRAM NO

. DATE ACTIVITY OUTPUT RESPONSIBLE

PERSON MATERIALS

NEEDED 1 3rd OCT– 7th OCT Orientation workshop to

RYDA staff VSLA Awareness raised among RYDA staff.

-Sylivia (Project Co-ordinator) -Phionah (Field worker)

• Stationery • Ring fenced box

2 10th Oct Namayumba S/C 12th Oct Wakiso S/C 14th Oct Mende S/C

Orientation workshop to the sub-county and community leaders from the 3 sub-counties of Namayumba, Wakiso and Mende

VSLA awareness raised among Councilors, local and community leaders of the 3 sub-counties


• Stationery • Ring fenced box • Transport refund • Fuel

3 17th Oct Luguzi 19th Oct Kanziro 21st Oct Nakedde

Community mobilization in parishes of Namayumba Sub-county

VSLA introduced in 3 parishes of Luguzi Kanziro and Nakedde

-Sylivia (Project Co-ordinator) -Phionah (Field worker) -Kaggwa (cclcs) -Nuruh (cclcs)

• Fuel • Air time

4 24th Oct Kanziro 26th Oct Nakedde 28th Oct Luguzi

Community Sensitization to members of Luguzi, Kanziro and Nakedde Parishes

3 VSLA sensitization meetings held among potential participants

-Sylvia (Project Co-ordinator) -Phionah (Field worker) -Kaggwa (cclcs) -Nuruh (cclcs)

• Stationery • Fuel

5 31st Oct Nakedde 2nd Nov Kanziro 4th Nov Luguzi

Group Formation and the General Assembly

3 trainings conducted -Sylivia (Project Co-ordinator) -Phionah (Field worker) -Kaggwa (cclcs) -Nuruh (cclcs)


6 7th Nov Kanziro 9th Nov Nakedde 11th Nov Luguzi

Training of VSLA method to the community potential participants

At least 3 groups trained on VSLA concepts and leadership



7 14th Nov Luguzi 16th Nov Kanziro 18th Nov Nakedde

Election of the Management Community

At least 3 groups trained on the ring fenced metallic box

-Sylivia (Project Co-ordinator) -Phionah (Field Worker) -Kaggwa (cclcs) -Nuruh (cclcs)

• Stationery • Fuel • Ring fenced box

8 21st Nov Nakedde 23rd Nov Luguzi 25th Nov Kanziro

Development of the Internal Rules and Regulations

At least 3 groups trained on formation of group bye-laws and internal regulations



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9 28th Nov Kanziro 30th Nov Nakedde 2nd Dec Luguzi

Record Keeping Training in VSLA method

At least 3 groups trained on written record keeping in VSLA method



10 5th Dec Nakedde 7th Dec Luguzi 9th Dec Kanziro

First Saving Meeting At least 3 groups trained on saving procedures in VSLA method

-Sylivia (project co-ordinator) -Phionah (Field worker) -Kaggwa (cclcs) -Nuruh (cclcs)


11 12th Dec Luguzi 14th Dec Kanziro 16th Dec Nakedde

Conflicts Resolution At least 3 groups trained on how to maintain good relations of the groups



Note: This VSLA work plan has been compiled by RYDA Project team, Phionah (field worker) and Sylivia (project Co-ordinator)

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KIN VSLA ORGANISATIONAL WORK PLAN OBJECTIVES OUTPUT ACTIVITY DATE RESPONSIBLE

PERSON 1. To lay the ground work for the establishment to child labour free zones that can be scaled up within the communities and through out the country. 2.To enhance local governments’ capacity for social service provision and co-ordination to create an enabling environment at both village and district levels for combating child labour through awareness raising, training, as well as support for child labour bylaws and their enforcement on ground.

VSLA TOT information and key issues harmonized among KIN staff

analyze the information learnt from the training workshop

2nd Oct 2011

the tot staff

VSLA awareness raised among KIN staff and local government staff

sharing on VSLA concept with other staff in order to understand and be able to help in the implementation

4th Oct 2011 the tot staff

Local leaders sensitized and mobilized in order to support VSLA implementation

Introduction of the VSLA to the district and government officials.

6th oct.2011 the program coordinator and the tot staff

3. To boost the social economic welfare of families within the villages of kitubulu, nakiwogo, and doho rice scheme through provision of new saving practices and enhance saving schemes within the next two years. 5.to strengthen community’s capacity to manage risks and address the needs of it’s most vulnerable members

Community members in …. Parishes sensitized and mobilized on VSLA participation

community mobilization and sensitization at parish and village level

7th -13th oct.2011

the tot community representatives and kin staff

At least 5 groups operating in VSLA activities

forming and training village savings and loans association groups at village level

within 2 months

the tot community representatives and kin staff

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At least ….. old groups participating in VSLA activities

formalize the already existing groups to take up VSLA concept

one month the tot community representatives and kin staff

Conduct at least one monitoring visit per month .

regular support visits to the formed groups

16 weeks the tot community representatives and kin staff

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UYDEL ACTION PLAN NO ACTIVITY OUTPUT DATE PERSON

RESPONSIBLE

TARGET RESOURCES

1 VSLA training at office -VSLA awareness to fellow staff -Work place reviewed

10-14/ October

-CBTs -Kibalama Ibrahim

Organizational staff

-Stationery -transport -refreshments

2 Introducing VSLA to selected sub-counties

-VSLA awareness to the local leaders

19/10/2011 -Rogers Mutaawe -Kibalama Ibrahim

-CDOs -local leaders

-transport

3 Community sensitization -VSLA awareness to the communities

24-October to 11-November

-Kibalama Ibrahim -Kabanda Raymond -CBTs (as to their sub counties)

-Village chairpersons -Community members

-transport -refreshments

4 Group formation -Creation of groups of 15-30 members each

14-November to 25-November

-CBTs -Kibalama Ibrahim

-Group members

-transport

5 Training of groups formed -Training groups 28-November to 27-January

-CBTs -Group members

-stationery -transport -refreshments

6 Visiting clustered groups -Assess the relevance of the training

10-January -Kibalama Ibrahim -Kabanda Raymond

groups -transport

7 Visiting groups -Monitoring the group progress

20-February to 29-February and after every two months until the group reaches its maturity stage.

-Kabanda Raymond -Kibalama Ibrahim

-groups -CBTs

-Transport

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HUYSLINCI ACTION PLAN FOR THE VILLAGE SAVINGS AND LOAN ASSOCIATION ORIENTATION AND TRAININGS.

s/n

Activity Output Duration Person Responsible

Resources October November December

Wk1

Wk2

Wk3

Wk 4

WK1

Wk2

Wk3

Wk4

Wk1

Wk2

Wk3

Wk4

01

Orientation of staff on VSLA at the office

25 project staff oriented on VSLA

Project Field officer

Stationery

02

Introducing of the VSLA to the District.

District Development officers, CAO, Labour officer and other relevant departments briefed on the project outcomes

Project Field officers

Transport, stationery

03

Introducing of the VSLA to the Sub-County in the areas of operation

Sub- county chief, Parish chiefs, councilors, community development officers and other relevant structures briefed on the project outcomes

04

Community Sensitization on VSLA

08 villages in 2 parishes of Bweya and Busabala in Ssisa and Makindye Sabagabo Sub-counties respectively reached with information on the importance of VSLA

05

Group Formation and develop

10 groups consisting of 15 to 30 members

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ment each formed and developed

06

Identification of training needs

Needs identified to facilitate the development of the training content.

07

Training of the developed groups

08

Group follow ups and input support.

a report on village savings and loan association (vsla

Documents