International Labour Organization / International Programme

on the Elimination of Child Labour (ILO/IPEC)

Project of Support for the Preparatory Phase of the Uganda

National Action Plan on the Elimination of Child Labour

A report on

VSLA Training for ILO partner staff

Operating in Rakai district Uganda

Conducted
By: Sylvia Kaawe and Eddie Wambewo
Date: 15th to 19th August 2011
Maria Flo Hotel- Masaka
This report was produced as a result of the VSLA training workshop organised
by ILO/IPEC-SNAP Project for its partner staff operating in Rakai District.
Thanks go to all the participants, facilitators and ILO/IPEC-SNAP team for the
tireless efforts exhibited to have the training workshop successfully concluded.

Funding for the workshop and report writing was provided by the United
States Department of Labour through the ILO International Programme on the
Elimination of Child Labour (IPEC). (Project UGA/08/P50/USA)

This report does not necessary reflect the views and policies of the United
States Department of Labour, nor does mention of trade mark names,
commercial product or organisations imply endorsement by Unites States
Government
TABLE OF CONTENTS

List of Acronyms .................................................................................................... ii

1 Introduction ...................................................................................................... 1
1.1 Background.......................................................................................................... 1
1.2 Training Objectives .............................................................................................. 2
1.3 Training Methodology .......................................................................................... 3
2 Training process ............................................................................................... 4
2.1 Training observations........................................................................................... 4
2.2 Training Sessions ................................................................................................ 5
Session 1: VS&LA Background and Community mobilization/
preliminary meetings ....................................................................................... 5
Session 2: VS&LA /Group formation and the General Assembly .............. 5
Session 3: VS&LA Concepts and Leadership/management system ........... 6
Session 4: Development of Internal Regulations and Election of the
VS&LA Management Committee ................................................................... 7
Session 5: VS&LA record keeping .............................................................. 8
Session 6: Mock VSLA meetings ................................................................ 9
Session 7: Action Audit / Conflict Resolution............................................. 9
Session 8: CBT data collection form, CBT role in VSLA, Dos and Don’ts
of a VSLA Trainer ......................................................................................... 10
Session 9: VSLA and Child Labor Integration .......................................... 11
2.3 Field visit ............................................................................................................ 12
3 Conclusion and Recommendations ................................................................ 15
3.1 Conclusion ......................................................................................................... 15
3.2 Recommendations ............................................................................................. 15
Appendix i: ............................................................................................................ 17
Appendix ii: List of participants ............................................................................ 20
Appendix iii: Training programme ........................................................................ 22
Appendix iv: Action Planning ............................................................................... 24

i
LIST OF ACRONYMS

ANPPCAN African Network for the Prevention and Protection against Child Abuse and
Neglect
ARC American Refugee Council
CBT Community Based Trainer
CRS Catholic Relief Services
ILO International Labour Organization
IPEC International Programme on the Elimination of Child Labour
IRC International Rescue Committee
MFI Micro Finance Institutions
OCBO Orphans Community Based Organization
PRA Participatory Rural Appraisal
Q&A Question and Answer
RACA Rakai Counsellors Association
UWESO Uganda Women Efforts to Save Orphans
VSLA Village Savings and Loan Association

ii
1 INTRODUCTION

This is a report on the VSLA methodology Training of Trainers course that was
attended by staff of implementing partner organizations that are working in
collaboration with International Labour Organization (ILO/IPEC) operating in the
district of Rakai, Central Uganda. The training was conducted from 15th to 19th
August 2011 at Maria Flo Hotel in Masaka, and it was facilitated by M/s Sylvia
Kaawe and Mr. Eddie Wambewo, all VSLA practitioners working with CARE
international in Uganda and UWESO respectively. Participants mainly included:
Implementing Agencies’ Project Officers and social workers, members of child
labour committees and Rakai District Community Development Officers. These
were selected to attend the training on VSLA methodology as an exit strategy for
ILO/IPEC project to have a cadre of trainers on the ground who will continue
advocating for children’s rights but also support vulnerable households on
improving livelihoods through implementing the Village savings and loans
association methodology in their respective areas of operation.

The report has three sections; the first section provides an in-depth presentation of
the background, objectives of the training, methodology used and observations
captured during the training.

Section two explains the workshop process and the key topics handled while
section three includes different appendices and annexes related to the training.

1.1 Background

As earlier indicated, ILO/IPEC is strategically planning to improve livelihoods of

their targeted population in Rakai district through implementing VSLA activities.
The VSLA methodology is a savings-based financial service which facilitates the
mobilization of group members’ savings and on-lending among members only
with no external liabilities. The VS&L model emphasizes provision of simple and
accessible financial services, to the vulnerable and poor communities in the rural
and peri-urban areas of Africa, Latin America and Asia through the VSLA
methodology.

In Uganda this intervention was designed in response to the gaps that exist within
the microfinance sector in the greater northern part of the country. These gaps
include: difficulties in taking microfinance services to the displaced and
poor/remote communities; the emphasis of banks and MFIs on credit as opposed
to savings, exposing the poor to greater risks; and the need for collateral; the long
waiting period for funds due to the legal requirement of the institutions; and the
expensive processing fees.

A number of development agencies have implemented VSLA in various parts of

the country which include among others: CARE International in Uganda, CRS,
UWESO, Plan international, OXFAM, ARC, IRC, Save the children, GOAL
Uganda and now ILO. A lot of impact and lessons have been documented as a
result of implementing VSLA and these include:

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 • Improved saving culture of the poor and marginalized communities of
rural Uganda.
• Increased incomes
• Improved livelihoods ( nutrition, clothing, etc)
• Improved capacity to meet requirements like medical and education
• Increased asset accumulation notably like furniture for home, radios,
mobile phones and ox ploughs to increase agricultural productivity
• Improved social net works and capacity to take up leadership roles at
community level by VSLA members
• Improved self esteem and control of household resources especially by
women.

VS&LA implementation has mostly been done through locally based

implementing partner organizations spread in various parts of the country,
although some organizations implement directly. Successful VSLA
implementation has been a result of well planned coordination, provision of
technical assistance to implementing staffs, monitoring and evaluation,
information dissemination, assuring quality, sustainability, and encouraging cross-
learning among implementing agencies.

Provision of technical support to implementing staff involves planning and

executing trainings on the VSLA methodology, monitoring and evaluation,
funding support, constant mentoring and coordination. Training on VSLA
methodology is the initial step in implementation of VSLA activities and it is
aimed at imparting knowledge and skills to targeted VSLA trainers so that they in
turn have the capacity to mobilize, form, train and monitor VSLA groups.

ILO is implementing a project on elimination of Child Labour in Rakai district.

ILO is desirous of integrating VSLA implementation in the IPEC project and this
will be done by working with already existing structures in the communities i.e.
child labour committees to mobilize and involve vulnerable households in VSLA
activities. This integration is expected to result into improved livelihoods,
improved incomes resulting into reduced cases of child abuse and child labour. It
is therefore against this background that training in VSLA methodology was
conducted for staff of implementing partner organizations operating in Rakai
together with members of the child labour committees from various sub-counties
who will in turn operate as Community Based Trainers (CBTs) on a voluntary
basis.

1.2 Training Objectives

The training was aimed at achieving the following objectives:

1. Equip participants with knowledge and skills on VSLA methodological

principles, best practices and operational procedures.
2. Improve participants skills in community mobilization and participatory
training techniques.

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 3. Introduce and familiarize participants to the key VSLA training materials
and data collection/reporting tools.
4. Share experiences on VSLA implementation strategies, systems, structures
and key lessons learned.

1.3 Training Methodology

Facilitators used various techniques that were more participatory and highly
interactive. These included question and answer, simple quizzes, simulation of
completed sessions and conducting mock VSLA training and meetings. This
enabled participants to attain a deeper and practical understanding of the key
concepts and topics trained. Facilitators were also able to establish whether
trainees were following and understanding the key issues covered during the
sessions, hence providing targeted follow up and support during the training.
Question and answer and quiz sessions were also handled to allow participants get
a deeper understanding of the VS&LA methodological best practices, principles
and procedures and all relevant issues that were applicable to the daily operations
of CBTs.

For all the sessions handled, demonstrations and stories relating to the topics
covered were handled/ read to participants for them to have a clear and more
elaborate way of handling key issues relating to the main topic.

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2 TRAINING PROCESS

The training started with an over view of the background of the VS&LA
methodology elaborating its meaning, origin, objectives, key principles and
delivery system.

The process was aimed at enabling participants get a clear understanding of the
VS&LA methodology. The training mainly focused on VS&LA concepts /
methodology, facilitation skills and Group dynamics and was conducted in seven
sessions.

2.1 Training observations

• The training was timely and participants were eager to learn. The members
ably participated during training simulation and mock VSLA meeting
exercises which improved their ability to facilitate and resulted into high
interest to go and immediately implement the concepts learned from the
training. Hence the need to plan early for the mobilization meetings and
group trainings.
• Despite the above mentioned interest to learn, participants were not at the
same level of conceptualization and learning. Some of them demonstrated
a low level of understanding, and desired performance expected from a
CBT. This was observed from the wanting performance during sessions,
simulation exercises and from the individual assignment scores. These will
require constant mentoring and support from their immediate supervisors.
The most affected include:

No Name Organization Designation

1 Nakazibwe Ruth RACA Child Labour committee member
2 Bwesigye Ruth RACA Child Labour committee member
3 Byuma Robert OCBO Child Labour committee member

• Inclusion of children/youth between the ages of 14 to 17 as VSLA

members was an issue of discussion/ interest during the training, and there
will be need to come up with guidelines on the issue.
• Further discussions revealed that the participants who attended the training
are going to work as volunteers. ILO together with her partners need to
come up with strategies on how these volunteers will work focusing on
key issues like ( remuneration, Monitoring, reporting and accountability)
• When discussing the three phases of training and supervising a group, it
was observed that this will take almost 52 weeks (a year) for a group to get
to maturity/graduation (i.e. 6-8 weeks of training, 16 weeks of intensive
supervision, 16 weeks of development supervision and 12 weeks of
maturity supervision). Given the limited project time left, this may not be
achieved.

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 • Given that majority of the participants are community based with low
levels of education, some of them could not easily conceptualize and
absorb key issues when discussed in English. This led to a shift of
facilitating the training in the local language (Luganda) which could easily
be understood by all and facilitated learning with ease. However the lesson
from the above experience is that there is need to translate the training
materials in Luganda for easy use by the Community Based Trainers.
• The field visit to groups in Kasali sub county Kyotera district was an
excellent learning experience. It was the climax of learning for participants
since they were given a chance to practically view what they had been
discussing in the class. Participants were able to bring out the good and
bad practices from the field visit which lessons would help them when
they are physically forming, training and monitoring their own groups

2.2 Training Sessions

Session 1: VS&LA Background and Community mobilization/ preliminary

meetings

This session enabled participants acquire the general understanding of the

VS&LA methodology origin, objectives, how the methodology works (core
principles and best practices: see appendix i), strengths and weaknesses of the
methodology. Discussions also focused on the VSLA context in Uganda and the
key features of VS&LA that distinguish it from other forms of financial services.

Preliminary meetings for sensitizing and raising awareness on the VSLA

methodology to the community and the local leaders were also discussed. The
main objective was to enable trainees (CBTs) acquire skills of soliciting support
and participation from the community. It also spelt out a step by step approach of
mobilizing the community and their leaders emphasizing key aspects of their
presentation as:

• Their identity & the organization they are representing

• Current activities and aim of their employing organizations
• Operating principles of the VS&LA
• Benefits of the project (VSLA) to intended beneficiaries

During the session, participants were guided through the systematic approach of
introducing VS&LA methodology to the communities. This introduced
participants to a better understanding of VS&LA core operations.

Session 2: VS&LA /Group formation and the General Assembly

The session focused on defining characteristics of a good group, duties of a group

member and the role of the General Assembly. By the end of the session
participants had understood the meaning of a group, appreciated benefits of
belonging to a group and the need to promote quality groups. During the session,
the following key areas were discussed;

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 • A distinction between a group and a gathering
• Conditions for the establishment of a VS&LA
• Qualities of a good group/VS&LA
• Qualities of group members
• Advantages of belonging to a group with emphasis to a VS&LA

The session also introduced trainers to the meaning and role of the General
Assembly (GA). It was emphasized that the GA is a superior body in a VS&LA
that holds the decision-making power. The session highlighted the following as
the key roles of the GA;

• Election of the VS&LA management committee

• Dissolve the management committee
• Oversee the management committee’s performance
• Develop and reinforce the group’s by-laws
• Witness all VS&LA transactions

Roles and responsibilities of each individual member of a VSLA were discussed

with emphasis on the following;

• Attendance of all VS&LA meetings

• Saving weekly or by-weekly
• Paying all personal loans
• Participating in all group decisions
• Ensuring confidentiality of group operations to strengthen group cohesion
• Obeying the group’s by-laws

Discussions concluded with clarifying common questions about management and

decision-making in a VS&LA. It was emphasized that in VSLA all powers belong
to the members of the general assembly including decision making on key issues
that affect the group.

Session 3: VS&LA Concepts and Leadership/management system

The session focused on Key VSLA concepts namely Saving, Loan, Interest and
social/welfare fund. During this session participants were guided on the definition,
application and importance of each concept in VSLA operations.

Leadership/ management committee of the VS&LA was also handled during this
session. The purpose was to enable trainers understand why it is necessary for a
group to have a management committee, the roles, responsibilities, and qualities
of good leadership. It was discussed that a VS&LA management committee
comprises of the following;

• Chairperson
• Secretary
• Treasurer

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 • Two money counters
• Tree key keepers who are elected from the General Assembly (however,
they are not members of the management team)

Further discussions enabled participants to appreciate the roles and qualities of the
management committee, but also noted the key role of the general assembly in
electing the management committee basing on the qualities and responsibilities
discussed, and ensuring that the committee members perform their duties
satisfactorily.

Below are some of the crosscutting issues raised on the qualities and roles VSLA
committee members;

Qualities Roles and Responsibilities

• Honesty • Organize for group meetings
• Confidentiality • Ensure all group activities have been executed in line
• Reliability with agreeable procedures
• Integrity • Ensure security of group funds in the box
• Trustworthiness • Maintain order and solidarity among group members
• Literate ( in the case of the • Solve members conflicts
secretary) • Enforce group by-laws
• Can keep group secrets • Ensure group growth and development
• Availability
• Good listener
• Punctual for group meetings
• Organized
• High level of responsibility

Session 4: Development of Internal Regulations and Election of the VS&LA

Management Committee

The purpose of this session was to enable participants understand the importance
of internal regulations in a VS&LA and the procedure of electing a VS&LA
management committee members. Participants were guided through a practical
session on development of internal rules and regulations. Some of the key
important elements of the VSLA internal regulations discussed included:

• Group objective
• Criteria for membership
• Meetings and savings
• Criteria for loan disbursement
• Loan repayment conditions
• Criteria for managing welfare fund
• Withdraw and death of membership
• Fines and offences

Further discussions indicated that the VS&LA internal regulations cover issues of
ownership and governance of the group together with rules and procedures on
savings, loans and the welfare fund. Participants were informed that the

7
constitution will bind the members in groups hence making it a very important
element of the group.

The developed rules were later used practically in a mock election of VSLA
committee members following the secret ballot. Members were told that these will
be the same procedures and processes they will use to guide their groups in
electing committee members for purposes of reducing conflicts in the group.

1: Participants conducting a mock election of VSLA Committee Members

Session 5: VS&LA record keeping

The session covered the main records kept in a VS&LA and emphasis was put on
the importance of keeping accurate records in the group. The aim of this session
was to enable participants understand the records kept by VS&LA and how data
in each record is captured. The records discussed included;

• Register
• Welfare/social fund ledger
• Savings ledger
• Fines ledger
• Member’s passbook ( Savings and Loans )
• Cash book

From the plenary group discussions and practical exercises in session 6,

participants showed a good understanding of the key records kept at group level,
although more efforts will be required by management of the various partner
organizations to mentor trainers constantly and ensure masterly of group records .

8
Session 6: Mock VSLA meetings

This session was handled in three phases/meetings and the purpose was to enable
participants appreciate and understand the procedures of each key activity in a
typical VSLA meeting (Saving, Loan disbursement and loan repayments). The
process involved members conducting mock VSLA meetings with the
management committee and the general assembly practically playing their roles.
This gave them an opportunity to practice what will actually happen in the groups
they are going to form. The exercise also helped them to know the role they will
be playing in guiding groups as this was being done practically by the facilitators
during the mock meetings. PRA tools were used for members to systematically
follow meeting procedures as seen below:

2: Participants conducting a mock VSLA meeting following the key procedures

Procedures of very first saving meeting Procedures of subsequent meetings

1. Calling the meeting to order by the 1. Calling the meeting to order by the chairperson
chairperson, 2. Calling of the register by the secretary
2. Calling of the register by the secretary, 3. Verification of funds in the social fund bag (funds not
3. Contribution of welfare funds verified if it is the first meeting)
4. Lending of welfare fund loans 4. Contribution of welfare funds
5. Collection of savings/buying of shares 5. Repayment of welfare fund loans (welfare fund loans are
6. Disbursement of loans not repaid if it is the first meeting/ skip and go to next
7. Closing of cash box step)
8. Discussion of any other issues important to 6. Lending of welfare fund loans
group 7. Verifying balance in cash box
8. Collection of savings/buying of shares
9. Repayment of loan
10. Disbursement of loans
11. Closing of cash box
12. Discussion of any other issues important to group

Session 7: Action Audit / Conflict Resolution

This session handled the processes and procedures of how an Action Audit is
done in a VS&LA. The purpose of this topic was to equip participants/trainers

9
with the knowledge on how to prepare and conduct an action audit. Participants
were also able to learn the formula and procedures followed for a successful
Action Audit.

The session also focused on how to manage conflict in a group. The aim of this
topic was to introduce trainers to the common problems encountered in VS&LA
operations and equip them with the different tools and skills that can be applied in
case a group had a conflict to resolve. This session was very important to the
CBTs because it was fore seen that they are likely to solve different conflicts
during their interaction with VS&LAs, yet they are also required to build the
capacity of the group management teams on conflict resolution.

The topic was presented using different case studies so as to highlight the likely
conflicts in a VS&LA setting. The following sub-topics were emphasized;

• Identification of possible conflicts in a VS&LA

• Approaches to conflict resolution
• Tools for conflict resolution
• Conflict resolution skills

Session 8: CBT data collection form, CBT role in VSLA, Dos and Don’ts of
a VSLA Trainer

This session focused on the data collection tool used for capturing VSLA data
from the field by the Community Based Trainers. Participants were guided
through each variable on the tool focusing on the definition/interpretation and
source of data. It was noted that since the trainers were the ones to use this tool
more, there is need for them to be supported more on understanding the data
collection exhaustively in order to minimize cases of inaccurate/wrong data
captured.

The session further elaborated on key issues that trainers should emphasize and
those that they should desist from as they implement VSLA operations in their
respective areas of operation. Plenary discussions and individual exercises also
brought out the roles of the trainers in the communities. Below are some of the
issues highlighted from the discussions.

CBT roles and responsibilities Dos of VSLA Don’ts of VSLA

implementation implementation
• Mobilization of community • Allow members to use • Do not influence group
and local leaders on VSLA their internal rules and decisions
• Formation of VSLA groups regulations in key • Never touch group’s
• Training groups decisions money
• Providing support to groups on • Always prepare well for • Do not go to train group
following meeting procedures, training when not prepared
record keeping and application • Keep time for group • Do not go late for group
of internal rules meetings meetings
• Monitoring groups on • Attend to groups as • Do not absent yourself
conceptualization and required especially from group meetings
application of best practices during training and • Do not bring politics in

10
 and principles of the VSLA intensive supervision VSLA work
methodology • Keep secrets of group • Avoid rumours in
• Helping groups to resolve issues groups
conflicts • Dress decently • Do not go to group
• Reporting • Be exemplary to the when drunk
• Participation in evaluations, group members • Do not use
studies on VSLA and guiding abusive/disrespectful
visitors who visit groups to language to group
learn about VSLA members
• Avoid compromising
relationships with group
members

Session 9: VSLA and Child Labor Integration

This session focused on the application of VSLAs in addressing child labour.

Participants were informed that the VSLAs program will complement already
existing efforts of addressing the problem of child labour in the targeted
communities. This will also give opportunity to vulnerable households to
participate in saving and loaning activities leading to improved ability of these
households to be able to provide basic needs to the children and reducing child
labour cases as a result of increased incomes from VSLA participation. Further
anticipated benefits of this venture were outlined as seen below:

• Through the VSLAs, the community will gain access to school fees funds
hence be able to provide their children scholastic materials and fees.
• Participation in VSLA eventually changes peoples’ negative attitude
towards life and the children for the better.
• Savings are more important to poor people than loans because poor people
need to have cushion of wealth before they can start to take the risks
associated with borrowing.
• VSLAs bond the community members together. They meet on weekly
basis so apart from saving and loans, VSLAs will act as a forum to discuss
important issues especially those affecting children.
• VSLAs formed near or at schools will act as link between the school and
the community i.e. teacher/parent relationships improve.
• Participation in VSLAs will promote/encourage households to work hard,
initiate business to meet the basic needs of their children.
• VSLA is a community initiative and does not need a lot of donor support.
• Due to its successes in the past, the VSLA approach was adopted to deal
with vulnerability factors such as poverty under the SNAP child labour. It
has an added advantage that even households which did not benefit from
IGAs will be able to benefit under the VSLA programme.
• UWESO is working with the VSLAs promoted under the child labour
project to convert the social fund into an education fund in order to
support provision of lunch for school going children.

11
 • VSLA will act as a sustainability tool of social support in the targeted
communities.

2.3 Field visit

3: Participants learning from VSLA members in Kasali

The field visit involved participants visiting existing VSLA groups in Kasali sub
county, Kyotera district. The groups were formed and mentored by UWESO. A
total of five groups were visited in a cluster meeting in Kigenya Parish.
Participants had the opportunity to physically follow meeting activities; they
asked questions and in the end learnt a lot from this experience. Below are some
of the issues captured from the field visit:

Good lessons learned ( to emulate) Issues to avoid that are not in line with VSLA
methodological principles and best practices
1. VSLA builds unity, trust among members 1. Record keeping was not well done, every
2. VSLA members Value / know the group had its own way of keeping records
importance of saving/ good saving culture e.g. in some groups every member had a
among VSLA members page to record saving, social fund in record
3. VSLA is real and is successful journal, a number of books to record
4. VSLA has impact on participants different transactions i.e. savings, welfare
5. The more you save in VSLA, the more you fund loans and Loan and repayments
share out at action audit time 2. One group was operating without a cash box
6. Contribution of welfare fund is very for 2 years
important since it works as insurance for 3. One group had self selection problem
members leading to defaulting of loans
7. Replication, continuity of VSLA will depend 4. Some members did not keep time for the
on the quality of work on the ground group meetings which led to delay in the
8. Weekly meetings encourage members to meeting
participate fully and keep interested 5. The groups meeting venue is not safe and
9. All VSLA transactions were done before the secure (Road side) given that they deal with
general assembly in the meeting large sums of money
10. It is better for members to select themselves 6. Groups meet in a cluster of 5 groups meeting
based on how well they know each other on the same day, time and venue; this

12
11. When people get organized in groups like reduces the aspect of confidentiality/keeping
VSLA they can easily get support from other secrets of each group hence making the
development agencies like NAADS and the groups vulnerable to risks of theft. Meetings
government 7. Members in need of loans apply before the
12. When members join groups the benefits they meeting day. The application is recorded in
get are also shared by other members of their an individual member exercise book and
household especially children kept in the box
13. The VSLA monthly loan tracking system 8. Group members ask for security / collateral
enforces timely loan repayments from borrowers
14. Time keeping is important in VSLA 9. As VSLAs mature i.e. pass through one
operation cycle to another they innovate new
15. Participation in VSLA leads to hard work in things/practices that sometimes are not in
search for money to save every week line with the VSLA methodological
16. When a VSLA has more members (within principles and best practices e.g.
the limit of 15-30) it is easy to accumulate a. Loan application form
savings in the group b. Security / Collateral on loans
17. When a member has a loan and gets c. Guarantors
problems in repaying it, it is important to d. Spouse approval on loan
follow up the loan and ensure full recovery e. Cluster meetings
18. VSLA members are orderly; they follow f. Payment of membership fees
numbers, sitting arrangement, activities are g. Prepayments (collecting money before
systematic meeting)
19. VSLA members should mind about their h. Increased membership of more than 30
security in terms of the LOCATION /
VENUE of meeting
20. Record keeper/secretary needs to be a
committed and responsible person
21. Majority of VSLA members are women,
hence there is need to have targeted
inclusion of men and youth
22. It is always good for all money to be
borrowed for security of box/group funds
23. As we promote the project, it is important to
refer to the organization that we represent
for future reference, monitoring and quality
control
24. VSLA is a good community mobilization or
entry tool
25. Current VSLA members are willing to help
new staffs on community mobilization and
mentoring support to new groups
26. VSLA members are conscious of the
security of the box
27. VSLA members voluntarily decide to reward
their leaders for the work they do for the
group
28. Sharing system money at action audit is easy
to follow
29. it is the responsibility of every member to
verify the money they have paid in the group

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30. Women are good and committed VSLA
leaders
31. There is a high level of accountability and
transparency in VSLA operations
32. The general assembly has powers over the
management committee
33. It is important for a group and its leaders to
be trained on VSLA operation in order to
have successful operations.
34. It is important to follow group rules and
regulations for a group to perform well e.g.
attendance, time keeping

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3 CONCLUSION AND RECOMMENDATIONS
3.1 Conclusion

The training was timely and participants were very active. The participatory
methods of learning kept participants motivated and eager to learn more. A lot of
lessons were learned through various discussions and the field visit. This gave
participants the determination to immediately go and start mobilizing
communities on VSLA. There is therefore need for ILO to work with her partners
and come up with strategies of ensuring that mobilization and training of groups is
well planned for, especially making sure that key materials for training and cash
boxes for groups to start saving are ready in place.

3.2 Recommendations

1. VSLA rollout plan: There is need for the VSLA users to come up with
strategies of how the project will be rolled out considering that trainers will be
working as volunteers and have other personal activities to run for their living.
There will also be need to plan for financial resources that will facilitate early
procurement of key items like training materials and cash boxes
2. Implementing VSLA with un-paid staff/volunteers: Despite the fact that the
trainers are volunteers based in targeted communities, it is important to come
up with a clear strategy of maintaining this team to continue mobilizing and
training groups. The key issues to plan for include:
a. remuneration (system and amount) and general field facilitation
b. clear definition of roles and functions (include other stakeholders)
c. supervision and monitoring
d. volunteer capacity building plan
e. sustainability of volunteers in future VSLA implementation
3. VSLA inclusion of children/youth from 14 to 17 years: In principle it is
okay for children/youth aged 14 to 17 to participate in VSLA activities as long
as they are well known and trusted by members of the communities where
they live (the principle of self selection of VSLA members). There will also be
need for group members to be guided on when developing group internal rules
and regulations on how such members will be handled especially on matters
that will involve loans.
4. ILO will need to work with her partners to utilize existing policies or
develop guidelines that will be followed by the partner staff when forming
groups in communities where there are child headed families and many youths
below 18 years but with assumed responsibilities.
5. Integration of child labour issues in VSLA training: There is need to
incorporate a session on worst forms of child labour and value of education in
the ILO/IPEC VSLA training sessions. This will strengthened the ILO/IPEC
implementing agencies’ efforts on educating the communities on the need to
improve incomes through saving and investment in order to boost children
education, which in turn leads to reduced involvement of children and youth
in worst forms of child labour. VSLA will further act as a forum to discuss
child labour issues in the community and thus increased awareness and
positive responsive to child labour issues.

15
6. Translation of training materials: there will be need for ILO and her
partners to put aside resources towards translating the training manual for easy
use and interpretation by the trainers since they are more conversant with the
local language (Luganda) than English. Alternative means of interpreting key
sessions and words in VSLA training could also be devised in order not to
delay implementation.
7. VSLA monitoring: This is critical to successful VSLA implementation. There
is need for ILO and her partners to plan for resources that will facilitate
constant monitoring of VSLA implementation in order to ensure good quality
of work on the ground and service delivery by the trainers.
8. Capacity Building: Besides monitoring, supervisors at ILO and implementing
partner level are expected to operate as VSLA product champions and hence
expected to provide mentoring support to staff especially those exhibiting
weak performance.
9. There will also be need to plan for refresher courses in VSLA in order to
capture field staff experiences and key lessons that can inform general
implementation of the project.
10. Upholding VSLA principles and procedures: Observations from the field
findings brought out a number of key issues that were emphasizing the need to
uphold VSLA principles, these are the key issues that make VSLA unique
from other forms of microfinance and have also made the methodology
successful leading to a high rate of replication. Implementing agencies need to
take note of this and ensure that their VSLA operations do not involve the
following:
a. VSLA /group operating without a cash box (this is a symbol of
accountability and transparency)
b. Writing and submission of Loan application letter by the member
intending to borrow
c. Security / Collateral on loans
d. A borrower having guarantors (VSLA operates a group guarantee system
on loans with all members being liable to follow up any loan defaulted)
e. Spouse approval on loan
f. Cluster meetings
g. Payment of membership fees
h. Prepayments (collecting money for saving in advance)
i. Increased membership of more than 30
j. Failure to apply self selection of members which leads to
misunderstandings and conflicts in future.

16
APPENDIX I:

VSLA Best Practices and action planning

Facilitators emphasized the need for CTBs/ trainers to master and adhere to the
VS&LA best practices and core principles in order to effectively promote the
methodology within the rural communities. Below are the principles discussed:

VSLA core principles

1. Periodic action audit: VSLAs operate in a cycle of 8 – 12 months and then

share out their money. This allows members to; Share profits on their savings,
review group internal rules, revisit issues that cannot be changed during the
cycle/the share value., interest rate and membership, assess leadership
performance
2. The ring fenced box: VSLAs operate with a metallic box with 3 padlocks. The
box is opened only during group meetings before all group members to
ensure; financial transparency and enable accountability
3. Zero/no tolerance to arrears: (of savings and loans) to; Promote saving culture
among members, allow fast accumulation of funds, minimize risk of losing
members’ money through loan defaulters
4. Independent groups: VSLAs operate using their internally generated funds.
There is no external influence to the group i.e. members make their own rules
and they manage their own affairs.

How does an independent group look like?

• Group leaders and general assembly are active,

• Internal rules and regulations in place and applied,
• Group members can make decisions on matters that affect their group,
• Group members understand and apply principles and best practices of
VSLA methodology in their day to day operations.

VSLA methodology Best Practices:

1. A VSLA is self selected i.e. members self select themselves based on how
well they know one another (character, background, general conduct)
2. VSLAs are made up of 15-30 members
3. A VSLA is trained for 6 – 8 weeks
4. VSLAs are autonomous and self managing
5. VSLAs are comprised of the general assembly and a management committee.
6. VSLAs agree on a set of rules or constitution that guides their activities
7. VSLAs meet and save on a weekly basis maximum 5 shares
8. All transactions are carried out during meetings in front of all members to
ensure transparency and accountability
9. There is no external money injected or given to a VSLA (especially during the
first cycle)
10. A VSLA keeps simple records to help track member transactions in the group

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11. A VSLA operates within a cycle of 8-12 months
12. A VSLA must have a welfare fund to cater for members’ insurance and
emergency needs
13. A VSLA must be formed through the following phases;
a. (6 – 8 weeks) Training/intensive phase 16
b. Development phase 16
c. Maturity phase 12
d. VSLA loans are for productive purposes to group members only
e. The VSLA loan term is 1-3 months and the loan amount should not be
more than 3 times of the borrower’s savings
f. Interest is charged on loans and repayments are due on a monthly basis i.e.
after every 4 weeks
g. VSLAs must conduct action audit at the end of the cycle

4: VSLA Members in Kasali/Kyotera in action

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5: Another one of the groups visited in Kasali /Kyotera in conducting its meeting activities

6: Rakai District Labour Officer handing over training certificates to participants

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APPENDIX II: LIST OF PARTICIPANTS

No Name Organization Designation Tel

1 GEORGE BBAALE RACA Social Worker 0774080628
2 BUKIRWA EDITH RACA Child Labour committee member 078535199
3 NAKAZIBWE RUTH RACA Child Labour committee member 0754852147
4 KASINGA MATIA RACA Child Labour committee member 0775320464
5 MWIRU JOSEPH RACA Child Labour committee member 0755891505
6 KABAHINDA ROSE RACA Child Labour committee member 0788895101
7 BWESIGYE RUTH RACA Child Labour committee member 0778274285
8 MUJUKA KATO RACA Child Labour committee member 0758900049
9 BANTURAKI GODFREY RACA Child Labour committee member 0779635961
10 SIMON MWESIGWA ANPPCAN Accountant ANPPCAN 0787130946
11 SEMPERA ANGELLO ANPPCAN Social Worker 0779429489
12 MUSAAZI PETER ANPPCAN Social Worker 0704393020
13 HAJJI WALAKIRA ANPPCAN Community Facilitator 0703060798
14 NDYAMUSIMA ANPPCAN Child Labour committee member 0784031074
SCONDINA
15 NAKABITO TEDDY ANPPCAN Child Labour committee member 0703310045
16 KAGANDA DOMINIC OCBO Child Labour committee member 0772927212
17 KAYIRA JOHN MARY OCBO Child Labour committee member 0782345980
18 MUSAAZI DAMIANO OCBO Child Labour committee member 0704393020
19 MUHIGIRWA OCBO Child Labour committee member 0778812473
CELESTINO
20 MUDDU PHILLIP OCBO Social worker 0782768874
21 BYUMA ROBERT OCBO Child Labour committee member 0772317304
22 KIZITO LUTAYA OCBO Child Labour committee member 0782866996

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23 NSAMBA PATRICK OCBO Child Labour committee member 0772470653
24 JOSEPH SEKYONDWA OCBO Project Officer 0782604308
25 KAGANDA PATRICK OCBO Child Labour committee member 0775170274
26 NASSALI IMMACULATE Rakai District Local Rakai District Community Development 0774456653
Government Officer
27 KIMBUGWE GODFREY Rakai District Local Rakai District Community Development 0774393837
Government Officer
28 JULIUS GIZAMBA ILO-IPEC DPA, MBALE 0711626754
29 SCOVIA BIIRA ILO-IPEC DPA, RAKAI 0772610652
30 SYLVIA KAAWE CARE FACILITATOR 0772495733
31 EDDIE WAMBEWO UWESO FACILITATOR 0782846913

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 APPENDIX III: TRAINING PROGRAMME

DAY ONE
8:30 - 9:00 am Introductions, Expectations & Workshop Norms
9:00 - 9:30 am Opening Remarks (if applicable) Workshop Objectives, course
content review
9:30 - 10:30 am VSLA Background and Ugandan context informal financial sector
10:30 - 11:00 am Break Tea
11:00 - 1:00 pm Preliminary meetings 1,2,3
1:00 - 2:00 pm Lunch Break
2:00 - 3:30 pm Group formation and the general assembly
3:30 - 4:00 pm Tea Break
4:00 - 4:30 pm Simulation Preliminary meetings
4:30 - 5:30 pm Q & A, and Closure
DAY TWO
8:30 - 9:00 am Recap / Evaluation of Day one’s work
9:00 - 10:30 am Simulation Group formation and the General Assembly
10:30 - 11:00 pm Break Tea,
11:00 - 1:00 pm VSLA Concepts
1:00 - 2:00 pm Lunch Break
2:00 - 3:30 pm Leadership and roles of management committee
3:30 - 4:00 pm Election of Management committee and Internal Regulations
4:00 - 4:30 pm Tea Break
4:30 - 5:00 pm Simulation Elections, Internal Regulations
5:00 - 5:30 pm Q&A, Closure
DAY THREE
8:30 - 9:00 am Recap/Evaluation of Day two’s work
9:00 - 9:30 am Simulation VSLA Concepts
9:30 - 10:30 am Record Keeping (Register, Fine, Social fund ledger)
10:30 - 11:00 am Tea Break
11:00 - 1:00 pm Records Continued. Savings Ledger, Passbook, Member Loan
record, Cash book
1:00 - 2:00 pm Lunch Break
2:00 - 3:30 pm First Savings Meeting/Meeting Procedures and loan disbursement
3:30 - 4:00 pm Tea break
4:00 - 5:00 pm Simulation Records
5:00 - 5:30 pm Q&A, Quiz, Closure

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DAY FOUR
8:30 - 9:00 am Recap of Day Three’s work
9:00 - 10:30 am Meeting Procedures continued, welfare fund, savings , loan
repayment
10:30 - 11:00 am Tea Break
11:00 - 12:00 pm Action Audit, Conflict Resolution
12:00 - 1:00 pm CBT field data collection form
1:00 - 2:00 pm Lunch Break
2:00 - 3:30 pm Dos and Don’ts of VSLA field operations, VSLA Best Practices
3:30 - 4:00 pm Tea break
4:00 - 5:30 pm Q&A, Closure
Day FIVE
8:30 - 9:00 am Child Labour issues
9:00 - 11:00 am File visit to VSLA Group in Masaka
12:00 - 12:45 pm Recap/Review of field findings
12:45 - 1:00 pm End and Closing Remarks
1:00 - 2:00 pm Lunch and departure

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APPENDIX IV: ACTION PLANNING

RACA ACTION PLAN

No. ACTIVITY OUTPUT DATE RESPONSIBLE RESOURCES
VSLA training - VSLA 22 to 25th CBTs Stationery
report to office awareness to Aug 2011 Transport
fellow staff
Created
- Work plan
reviewed
Introducing VSLA - VSLA 29th Aug Project Manager Stationery
to district and awareness to to 10th M&E officer Transport
government local leaders Aug 2011 CBTs lunch
officials Created
- mandate to
implement VSLA
sought
Introducing VSLA - local leaders 15th Sept Area CBT and Stationery
to selected sub- sensitized on to 10th Oct Project Officer Transport
counties VSLA 2011 lunch
Community - VSLA 12th to CBT and Project Stationery
sensitization at awareness to 20th Officer Transport
parish and village community and October
levels opinion leaders 2011
created
- potential VSLA
members
identified
Visiting clustered VSLA training 25th Nov CBTs and Field Transport
groups dates identified to 2nd Dec Officer Stationery
2011
Training of groups - at least 80 6th Dec CBT, Field Transport
on VSLA groups formed 2011 to Officer Training
methodology and trained 20th April materials
2012 Cash box

ANPPCAN ACTION PLAN

No. ACTIVITY OUTPUT DATE RESPONSIBLE RESOURCES
Introducing - mandate to 24th Aug Project Officer Stationary
VSLA to district implement 2011 and Vehicle and
and government VSLA sought CBTs fuel
officials
Introducing - local leaders 31st Aug to Area CBT and Stationary
VSLA to sensitized on 1st Sept 2011 Field Officer Vehicle and
selected sub- VSLA fuel
counties
Community - VSLA 8th Sept to CBT and Field Stationary
sensitization at awareness to 8th Nov 2011 Officer Vehicle and
parish and community and fuel
village levels opinion leaders
created
- potential
VSLA members
identified
VSLA training
dates identified

24
 Training of - at least 40 12th Sept to CBT, Field Transport
groups on VSLA groups formed 12th Officer Training
methodology and trained November materials
2011 Cash box
Review meetings Field October 2011, Project Manager Transport
to assess field experiences Jan 2012 etc lunch
activities captured and on quarterly
solutions basis
identified
Monitoring of CBT capacity October 2011, Field Officer Vehicle and
formed groups improved Jan 2012 etc fuel
on quarterly lunch
basis

OCBO VSLA ACTION PLAN

KEY ACTIVITIES OUT PUT TIME RESPONSIBLE RESOURCES
FRAME
1. Conduct an Orientation 1 meeting 29/08/2011 OCBO trained Note books
meeting of the VSLA of conducted staff. and pens
the T.O.T.s to harmonize Transport
the VSLA working/training refund
language /concepts Up keep
2. District council 1 meeting 31st Project Time
sensitization conducted at /09/2011 coordinator Fuel
district level
3. Sub county sensitization 4 sensitization 5th /9/2011 OCBO trained Time, fuel,
meetings staff and CBTs upkeep
conducted
4. Parish level sensitization At least 10 12th OCBO trained Time, fuel,
meetings /9/2011 staff and CBTs upkeep
conducted
5. Village level At least 20 26th/9/2011 OCBO trained Time, fuel,
sensitization meetings staff and CBTs upkeep
conducted
6. Procurement of VSLA 20 boxes 3rd/10/2011 Project officer Time ,funds
materials
7. Formation and training At least 20 10/11/2011 OCBO trained Time, fuel,
of VSLA groups groups formed staff and CBTs upkeep
and trained
8. Monitor 20 VSLA Monitoring On going OCBO trained Time, fuel,
groups to check reports written staff and CBTs upkeep
performance and shared
9. Conduct review 8 review 5/12/2011 OCBO trained Time, fuel,
meetings at sub county meeting staff and CBTs upkeep
level conducted
annually
10. Conduct exchange 6 exchange 12th OCBO trained Time, fuel,
visits between VSLA visits /04/2012 staff and CBTs upkeep
groups conducted

25