Bright Future for Makokoba Informal traders
A revolving fund group from ward 7 – Makokoba, consisting of 34 women is looking forward to setting up structures for Internal Savings and Lending Schemes (ISALS) that is being implemented by Bulawayo Vendors and Traders Association (BVTA) with support from WeEffect under the Market Aggregation, Linking markets and Innovations (MALI) project. The program seeks to enhance members’ skills to increase their income through savings and investments as well as provide access to loans for investments. These women started out as a small group of 16 members contributing 5 rands weekly but as they evolved, they have doubled the number to 34 people and are now contributing a dollar each and 5 rands every week. “We are grateful for this opportunity as a group as it will enable us as vendors to enhance our skills to increase our income through savings and investments as well as provide access to affordable loans for business investments,” said ward seven chairperson Edith Ndebele. Within a short period of three months, they have managed to save up to 400 USD which they will channel towards their NBS bank account. The money will be used by the bank to track their traffic record for weighing their eligibility for the loans. Internal Savings and Lending Schemes (ISALS) are groups that allow members to save money and borrow funds from the group, often at low interest rates. These groups are typically made up of people who live in close proximity to each other, and they often have a strong sense of trust and social cohesion. The money saved in the group is then used to provide loans to members who need them, and the interest paid on those loans helps to cover administrative costs and build up the capital of the group.
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