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Village Savings and Loan Associations (VSLAs) 

VSLA is a group of 25 – 30 people who meet regularly to save together and take small loans from those savings. Members do not have to save in equal amounts these can vary at each meeting. The purpose of a VSLA is to provide simple savings and loan facilities in a community that does not have easy access to formal financial services.

Basic features of a VSLA
Save
Communities that were once plagued with diseases and spending on medical bills are now able to save that money in VLSAs. They provide proper, stable structures and security for money for the members. The savings are made in share formats and as such money grows.
Borrow

From the money saved, VSLA group members are able to choose and start an investment project of their own. These include commercialised crop farming, apiary, goat/pig rearing and small scale businesses.

Start a Social fund

Start a social fund to help members who experience an emergency

Promoting sanitation and hygiene while growing incomes
Improving sanitation and hygiene practices and expanding access to sustainable WASH facilities requires supporting the development of social and economic opportunities. Income generating activities like small businesses, goat /pig raring, farming, are outcomes of the VSLAs in the communities. Improving sanitation and hygiene practices and expanding access to sustainable WASH facilities requires supporting the development of social and economic opportunities. Income generating activities like small businesses, goat /pig raring, farming; satopan sale, tight fitting covers and supply of hand washing facilities are outcomes of the VSLAs in the communities.
GISASA VSLA
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Gisasa VLSA

Two years ago, families in Gisasa Village, Kanaba Sub-county, were trapped in a cycle of preventable water-related illnesses and poverty. Frequent cases of diarrhea and typhoid forced households to spend scarce income on medical treatment, leaving little opportunity to save or invest.

Through Africa Water Solutions’ WASH program, community members adopted improved sanitation and hygiene practices, including better latrines, bath shelters, handwashing facilities, and Solar Water Disinfection (SODIS). As illness declined, families spent less on healthcare and began retaining more of their income.

“For the first time, we realized that good hygiene was also saving us money. Instead of paying for treatment, we could think about our future,” shared one community member.

Building on these health gains, 43 community members (13 women and 30 men) formed the Gisasa Side A Muhindura Health Group Village Savings and Loan Association (VSLA). Members contributed a registration fee of UGX 20,000 and saved UGX 5,000 monthly, turning money previously spent on preventable illnesses into productive savings.

Within two years, the group accumulated UGX 10.78 million in savings, enabling members to access affordable loans for businesses, farm inputs, school fees, and household emergencies. Members also collectively established an Irish potato seed enterprise, now valued at approximately UGX 11.2 million, creating a

sustainable source of income while supplying quality seed to local farmers.

“We started by learning how to protect our families from disease. Today, we are building businesses together,” reflected one group member.

The Gisasa experience demonstrates how integrated programming can multiply development outcomes. By improving health through WASH and linking communities to savings and financial inclusion, Africa Water Solutions has helped households transform reduced healthcare costs into stronger livelihoods, greater resilience, and long-term economic opportunity.

KAMUGOYI VSLA
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Kamugoyi VLSA

Kamugoyi is one of the villages of Muhindura Parish in Kanaba Sub-County, Kisoro District. This village was baselined, triggered, and trained at the beginning of 2023. Before triggering, the sanitation and hygiene conditions in this village, situated at the peak of sharp hills in the southwestern district of Kisoro, were very poor. The poverty levels were equally crude.

After triggering, people went back and improved sanitation and hygiene in their homes. They later formed a Village Saving and Loans Association (VSLA) group, which they called the “Kamugoyi Healthy and Development Group." The majority of the group’s 32 members were champions of improving sanitation and resolved to be at the forefront of the village's transformation in March 2023. The group is led by an executive committee of 09 members that includes the chairperson, vice chairperson, secretary, vice secretary, treasurer, market researcher, defense, mobilizer, and bookkeeper. The consideration of gender balance within this group is another amazing feature.

The group members started with a subscription of UGX 20,000 as a membership fee and a monthly subscription fee of UGX 5,000 per head. After pooling UGX 800,000, they came up with a plan of having income-generating activities. The group members buy Irish potatoes, which they keep turning into seed, and when the seed is ready for planting, they sell it with some profit. AWS came in and supported the group with UGX 150,000, a cash box, savings passbooks, and 1 counter book. The group were trained in bookkeeping and writing minutes of their meetings. Since this is predominantly an Irish potato growing area, the group members were inspired to begin a store for Irish potato seed as their best income-generating project.

At the beginning, the group bought 4 bags (400 kg) of fresh Irish potatoes in April 2023 for the new stock of Irish seed, worth UGX I,200,000. Since then, their stock value has expanded.

By the end of 2025, the group had increased the store capacity to100 bags (10,000 kg) of Irish seed and a little cash, both worth UGX 30,248,000. In November 2025, the group bought 32 goats, which were distributed to the group members, with each member getting one goat. This was out of the savings made from the Irish potato seed business. During the function of launching this project, attendance was high, with Uganda local government technical team members, other VSLA leaders in the area, and many community members present.