Village Savings Groups Empower SCT Beneficiaries in Nkhata Bay District
These groups have eliminated the financial challenges these beneficiaries once faced while providing for their families.
Nkhata Bay, Malawi - The lives of Social Cash Transfer (SCT) beneficiaries from Chisinde cluster in Senior Chief Mankhambira in Nkhata Bay District have seen a remarkable transformation, thanks to village savings and loans groups, writes Rabecca Kaunda.
These groups have eliminated the financial challenges these beneficiaries once faced while providing for their families.
Out of the 120 beneficiaries in the Chisinde cluster, an impressive 86 of them actively participate in various village savings and loans (VSL) groups.
These VSL groups have become a crucial way for these beneficiaries to save the money they earn from their small-scale businesses.
Esther Kasambala, a mother of four and a beneficiary from the cluster who graduated in 2022, emphasized the importance of these village savings groups and how they have positively impacted her household.
She vividly remembers the struggles her family faced before 2016, but everything changed when she joined a savings group.
Kasambala is engaged in buying and selling dry fish, a venture funded by the VSL group.
She noted, "Whenever I want to invest more in my business, the group is always there to support me with loans, which have significantly boosted my business."
Even though Kasambala graduated from the VSL, she continues to save every coin she earns from her business.
Her life continues to shine, and she often makes profits of up to K50,000 whenever she goes to the market with her fish.
She can now provide for her household and proudly pays K220,000 in school fees for her daughter at Bandawe Secondary School.
Another beneficiary, Margaret Zimba, who is expected to graduate in 2026, encouraged fellow beneficiaries who are not part of savings and loans groups to join as soon as possible. She assured them that they would witness the positive impact.
Zimba, who sells doughnuts, uses her small-scale business profits to pay all her bills, including the K20,000 school fees for her daughter at Sanga Community Day Secondary School.
However, she also requested authorities provide business management skills to help beneficiaries run their businesses more effectively.
Wisdom Mwafulirwa, SCT Coordinator for Nkhata Bay Council, expressed his satisfaction with the performance of members from the Chisinde cluster.
He encouraged new beneficiaries not to squander all the money they receive but instead to think about tomorrow by joining such groups, which would enable them to access loans to boost their businesses.
He agreed with the need for business management skills and confirmed that their office would soon allocate a facilitator to provide guidance on running businesses.
In the district, there are 6,470 SCT beneficiaries, and 369 households are under the jurisdiction of Senior Chief Mankhambila.
Approximately MK1.6 billion has been disbursed in the district, with Mankhambira receiving MK81 million and MK21 million allocated for the cluster from the World Bank.