Strengthening Financial Inclusion through Group Savings models

At the heart of sustainable economic development lies financial inclusion, and for many young people, Village Savings and Loan Associations (VSLAs) are proving to be a transformative solution. Whether it’s launching a business, paying for education, or managing household needs, VSLAs are driving real change among the youth.

VSLAs are community-based savings groups that enable members to save regularly, access small loans, and build financial resilience. These models have become essential by offering a practical alternative to formal financial institutions, which often impose barriers such as high collateral requirements which youth cannot meet.

Impact at a Glance

TeamUp has supported youth in Mityana and Kassanda districts to create 230 VSLAs. Since September 2022, there has been a notable rise in VSLA participation:

Overall participation increased from 67.8% to 76.6%, surpassing the initial 70% target.
96.7% of youth in VSLAs are actively saving.
64.1% of members have accessed loans for income-generating activities and emergencies.
Loan repayment rate stands at 78%, showing growing financial discipline and trust within the groups.
Participation of youth aged 20–24 increase from 23.0% to 85.8% and 22.0% to 88.5% for those aged 25-29.
Up to 97.4% female and 96.2% male members of youth groups are actively saving.

“Before joining the VSLA, it was almost impossible to get a loan because I had no collateral. Now, I can access credit to grow my business, save consistently for both short- and long-term needs, and get support during emergencies. It has really changed my financial life,” Charles Ssozi, Member, Akezimbira Youth Group, Namungo Subcounty, Mityana District.

Charles Ssozi in his business at Mugulu

Looking Ahead: Expanding and Strengthening the Model

To enhance the long-term success of VSLAs and deepen financial inclusion, TeamUp is focused on:

Digital transformation of group savings and loan processes
Training on smart saving and investment strategies
Stronger governance structures for VSLAs
Linking VSLAs to formal financial institutions to offer a wider range of financial products