Establishment of the Village Saving and Loan Association (VSLA) has shifted farmers’ mindset towards business opportunities. It has enabled farmers to start small businesses and enhanced their wellbeing.

Mang’oto is a village in the southern highlands of Tanzania. The village has a population of 3700 people and is 2000m above sea level. The village is part of the Makete region, which struggles with poverty.

VSLA’s establishment was supported by the Tanzania Tree Growers Associations Union (TTGAU), which is one of FFD’s parterns. The loan program has been designed so that a group of people save money and then individuals can take loans when they need them according to agreed processes. Loans are only given to those who don’t have any other loans. TTGAU offers mentoring and coaching services to groups to ensure sustainable development and fair financials services to everyone.

Before joining VSLA, Mang’oto residents didn’t have enough capital to etablish businesses. Now families can take short micro loans to enhance their farming practices. Loans may be taken to purchase animals like pigs, goats and chicken, to buy chain saws to cut trees or to expand their business.

Eva Chengula

Eva Chengula, a 42-year old married woman from Mang’oto, has joined VSLA. She took a loan to build a toilet in her house because she didn’t have one. After joining VSLA, Eva has received training and now she’s dreaming of building a house.

Avelina Ilomo

Avelina Ilomo, a 30-year old married woman, works as a secretary and joined VSLA in order to buy land. Avelina took a loan of TZS 50,000 (17 euros) to buy 15 chicken. Now she sells eggs to her neighbours. In the future, Avelina would like to expand her business to 50 chicken. She would also like to buy more land where she could build a house.

““When you support hard working people with good ideas, they can build a better future.””