Access to credit in rural Africa

The absence of a robust cash economy in most of the regions where the IRC works is a strong contributor to the lack of economic opportunities. The IRC promotes village savings and loan associations (VSLA) or savings groups to provide access to credit. Through these groups community members gain improved access to secure savings, management and business training skills, and improved or new alternative income earning opportunities, promoting self-reliance and economic viability.

The IRC has experience with VSLA in post-conflict countries as well as in integrating with programmes to reduce violence against women. The IRC believes VSLA supports the reintegration of returnees by improving their access to finance. Increasing the ability of women to contribute financially to the household often has the effect of enhancing their role and reducing abuse.

How you can help

The IRC would like to roll out VSLAs much more widely than it is currently able across various countries in Africa including, where support permits, the following: Rwanda, Sudan, Kenya, Cote d’Ivoire, DR Congo, Uganda, Burundi, Sierra Leone and Liberia.

Initially, it is proposed that £73,378 would pay for the set up and implementation of 20 groups of 25 people (500 direct beneficiaries). As the average household in Africa consists of six people, up to 3,000 would benefit indirectly.

A full budget breakdown is available on request but includes:

• Staff to train groups
• Cash box with secure locks and ledgers for accounting purposes
• Vehicle to travel to remote villages
• Computers for staff to track portfolio returns
• Overhead and general costs
• Conducting business training with group members
• Support costs including HR, finance and IT

A lesser amount would also be helpful in that it would enable a lesser number of groups to be run.

Please contact Alison Pemberton, head of external relations, on 020 7692 2735 or alison.pemberton(at)ircuk.org for more information.