Village Savings and Loans Associations

BRIEF ON VILLAGE SAVINGS AND LOANS

Many households require a reliable and affordable source of funds to construct their latrines in Ghana. Unfortunately, in most rural communities, there are no ‘friendly’ financial facilities that they can rely on. Banks and Micro Finance Institutions have not yet demonstrated any encouraging interest in financing the construction of household latrines. Households are therefore mostly compelled to rely on their own sources through savings or family contributions.

In an effort to encourage latrine uptake in communities that are willing to, or have stopped open defecation, partners in the ODF Ghana campaign support community members to form Village Savings and Loans Associations (VSLA), where members usually make weekly savings of a defined value per share. Members then borrow from the Sanitation Fund component of the association’s accumulated fund to support latrine acquisition and other purposes.