Evaluation e-Library (EeL) cover pages Note: To be filled out and inserted at top of evaluation reports submitted for uploading to the EeL. For words given in blue, select (delete words that do not apply). Full cover page(s) should not be more than 3 pages in length. Name of document Scaling up Savings to Augment Income Nationally (SUSTAIN II) Completion Report Full title Scaling Up Savings to Augment Income Nationally (SUSTAIN II) Completion Report Acronym/PN SUSTAIN, UGA093 Country Uganda Date of report July 2010 Dates of project 2006 to December 2007 Evaluator(s) FRIENDS Consult External? Yes Language English Donor(s) DFID Life‐of‐Project Cost US$1,857,355.23 (Expenditure in $US) Scope Project Type of report final evaluation Length of report 64 pages Sector(s) Financial Services (VSLA) Brief abstract In 2006 CARE International in Uganda, with funding from DFID, piloted the (description of project) Village Savings and Loan Association (VSLA) Model through the Scaling Up Savings To Augment Income (SUSTAIN I). VSLAs are self‐managed informal groups of up to 30 people in a village, who come together for eight months to a year, with three motives: pooling their savings, lending to members from the savings and contributing to a social Insurance fund for members to use in emergencies. The project was implemented in the five sub regions of Northern Uganda namely West Nile, Karamoja, Acholi, Lango and Teso. This was meant to test a fully pro‐poor methodology which helps the local people to harness their own meager financial resources and intermediate them. The pilot project ended in December 2007 and on the basis of the positive impact assessment, a follow‐on project (SUSTAIN II) was launched in January 2008. The project operations were implemented through Community Based Trainers who worked with the communities to form groups; train and offer technical assistance to the groups for one cycle lasting between eight to twelve months, and then wean them off to be on their own. The training/TA include the first four months of intensive care (weekly meetings, TA & Training), the second four months of “development phase” when the trainer meets the group twice a month and the third/last two to four months when he/she meets them once a month. After this, the cycle is over, the Action Audit (calculations and dividing up of the money in box) is done and, in principle, the project involvement with the group is over. Program (higher‐level) The goal of the SUSTAIN II project was to improve the livelihoods of poor and Goal (to which the Marginalized households in Northern Uganda. project contributes) Project Goal (for which In keeping with the goal, the project purpose was to improve access to project is accountable) financial services for 100,000 poor and marginalized households in northern Uganda by July 2010 through 4,000 self‐managed Village Savings and Loan Association (VSLA) groups.

Objectives (more 1. To establish 4,000 self‐managed VSLAs in the districts of West Nile, specific outputs/ Karamoja, Acholi, Lango & Teso sub‐regions. outcomes) 2. To enhance technical capacity of implementing partner organisation to implement the VSLA methodology in Northern Uganda 3. To create VSLA knowledge base for use by policy makers and other stakeholders for the benefit of poor and marginalized households 4. To integrate VSLA methodology with relevant development initiatives for wider adoption and scaling up

Evaluation design Formative (process) Evaluation • Document reviews – to gain an overall understanding of the project Methodology goal and Purpose, performance targets for comparison, understand performance trends and assess any variances in outputs/ results. • Data collection using both qualitative and quantitative methods – to aid the understanding of project impact. A structured questionnaire for quantitative data was administered to a sample of 90 individual members from 30 VSLAs in the five 3 sub regions for household level information (like incomes, asset‐endowment and women empowerment through changed domestic relations). • Qualitative information was obtained through focus group discussions and key informant • Interviews with relevant project stakeholders, using guiding questionnaires. In the Sampling frame/plan, five representative districts‐ one from each sub region – were selected: Arua(West Nile), Soroti(Teso), Moroto(Karamoja), Apac(Lango) and Kitgum(Acholi). A total of six VSLAs were selected from each district as follows: two best performing; two moderate performing and two poor performing. The five districts were also chosen so that coverage could include at least one of each type of IPO (farmers’ association, private sector promotion company and NGO). Survey? it included a household and community‐level survey Summary of lessons Grassroots project design and management determine its success learned (evaluation A key question that microfinance and other development experts have for findings of interest to long sought the clear answer to is: can communities harness their meager other audiences) resources to significantly improve their economic welfare and livelihood? The SUSATIN II project has answered this question with a clear “Yes” in a practical way that defeats doubt and argument. The poor have money to save and they can be effectively helped to mobilize their savings and gainfully invest. • People believe, change their minds and join progressive development efforts when they see benefits for themselves. There is an abundance of testimonies of local leaders, business people and other locals who were extremely skeptical but who, after seeing and understanding what the project does, became passionate enthusiasts of it. • Impact sustainability of a grassroots development project is enhanced to the extent that it is easily replicable. Replicability of a responsive project attracts constructive imitation from other projects and the local population. As they imitate, they inadvertently extend the frontiers of the project’s impact. • Simplicity is key to local ownership and sustainability. If a project needs an expert to manage the operations at the lowest local level, its influence would most likely stop when the project ends. SUSTAIN II has demonstrated how this can be avoided • Depth of poverty outreach with financial services requires innovative, nonconventional Approaches. The VSLA model has been effective in reaching where banks, MFIs and SACCOs could not reach Contribution to 1a: Income, 1b: Hunger, 3: Women’s Empowerment and 8. Civil Society MDG(s)? Address main UCP Gender Equity “interim outcomes”? Social Inclusion [empowered poor] Pro‐poor, just governance policies and practices Comment

DFID CARE International in Uganda

Final Report

SCALING UP SAVINGS TO AUGMENT INCOME NATIONALLY (SUSTAIN II) COMPLETION REPORT JULY 2010

ACRONYMS

CBT - Community Based Trainer DFID - Department for International Development FAL - Functional Adult Literacy IPOs - Implementing Partner Organisations NDP - National Development Plan NGO - Non Government Organisation NUSAF - Northern Uganda Social Action Fund PEAP - Poverty Eradication Action Plan SUSTAIN - Scaling Up Savings to Augment Income Nationally TA - Technical Assistance ToT - Training of Trainers VSLA - Village Savings and Loan Association

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EXECUTIVE SUMMARY At the end of its life, the SUSTAIN II project was assessed for this Completion Report. The three key questions addressed herein are: i) to what extent has the project achieved its overall goal and purpose? ii) what impact has the project had on the target beneficiaries? iii) how appropriate, sustainable and replicable is the VSLA model for Uganda? The findings from this assessment (which included document reviews, focus group discussions and key informant interviews) are that:
The project has overall met its set goal and purpose, and exceeded them, largely because of its suitability for the target population, relevance , effectiveness in addressing the identified needs, adequate implementation structure/ set-up and simplicity of operations.

There is vivid impact in the lives of beneficiaries, corroborated by their own testimonies. They understand and own their groups, are effective in group governance and management and feel the model gives them financial services that are keenly responsive to their situation and realities. There has been significant positive socio-economic impact in aspects like household incomes, household assets acquisition and retention, access to finance by women and their inclusion in household decision making, household/ individual investment capacity and household health/ general welfare.

The project is appropriate, replicable and has inbuilt seeds of sustainability by design. It reached more than 116,000 of the bottom poor who are difficult to reach by existing microfinance models, proved effective in helping the poor people harness and productively use their resources, acquire skills, improve their quality of life and run the groups on their own. With some improvement, the model can be made more sustainable from the operational standpoint (continuity rather than complete winding up at the end of each cycle)

The key lessons learnt, which can be applied to future projects and by other development partners, are that:
With well focused project design, people at the grassroots can be assisted to effectively mobilize themselves to better their economic wellbeing in a cost-effective way
People adopt, believe and if need be change their minds to participate in community development initiatives if they can clearly see benefits for themselves
The ease of replicability extends the frontiers of a project’s impact and spreads its benefit beyond the project life and scope
Simplicity is vital in designing a grassroots participatory project that local people own and embrace
When concrete, refined and clear indicators/ targets are agreed during rather than before implementation the targeted/ actual variance monitoring can be a challenge
Full beneficiary participation and control promotes efficiency and effectiveness.

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TABLE OF CONTENTS

1.0 BACKGROUND AND INTRODUCTION ...... 1 1.1 National Development Context ...... 1 1.2 Background to the Project ...... 1 1.3 Project Goal and Implementation Arrangements ...... 1 1.4 Reason for and contents of the Completion Report ...... 2 1.5 Assignment Methodology and Activities ...... 2 1.6 Challenges and limitations ...... 3 2.0 PROJECT SUITABILITY AND EFFECTIVENESS ...... 4 2.1 Relevance ...... 4 2.2 Targets and Outcomes ...... 4 2.3 Project Management and Monitoring ...... 5 2.3.1 Structure and level of coordination...... 6 2.3.2 Adequacy of implementation arrangements ...... 7 2.4 Beneficiaries’ Viewpoint of Project Effectiveness ...... 9 2.4.1 Why the project was effective ...... 9 2.4.2 External aspects that affected the project’s performance/ effectiveness ...... 10 2.5 Efficiency ...... 10 3.0 CHALLENGES AND AREAS OF IMPROVEMENT IN VSLA IMPLEMENTATION ...... 12 4.0 PARTICIPATION, UNDERSTANDING AND OWNERSHIP BY STAKEHOLDERS ...... 14 5.0 EFFECT OF THE PROJECT ON ACCESS TO FINANCIAL SERVICES ...... 15 5.1 Overall Effect ...... 15 5.2 Savings ...... 15 5.3 Credit ...... 16 5.4 Insurance ...... 16 5.5 Financial Literacy ...... 16 6.0 SOCIAL AND ECONOMIC CHANGES RESULTING FROM THE PROJECT ...... 16 6.1 Household Incomes ...... 17 6.2 Acquisition and Protection of Assets ...... 17 6.3 Decision Making and Empowerment of Women ...... 18 6.4 Development and Improvement of Productive Enterprises ...... 19 6.5 Household Investment Capacity ...... 20 6.6 Household Health and Welfare ...... 21 6.7 Demonstration Effect ...... 22 6.8 What the Non-VSLA Members Missed ...... 22 7.0 APPROPRIATENESS OF THE MODEL ...... 23 7.1 Responsive Financial Services ...... 23 7.2 Improved Economic Activity ...... 23 7.3 Improved Household Wellbeing and Gender Equity ...... 24 7.4 Business Skills ...... 24 7.5 Improved the Quality of Social Lives ...... 24

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7.6 Inbuilt Seeds of Continuity and Sustainability and Replicability ...... 24 8.0 SUSTAINABILITY AND REPLICABILITY OF THE MODEL ...... 25 8.1 Stakeholders’ Views on Project Necessity ...... 25 8.2 Emerging Signs of Impact Sustainability ...... 25 8.3 How Could Impact Sustainability Have Been Better Enhanced? ...... 26 8.4 Replicability of the Model ...... 26 9.0 LESSONS LEARNT ...... 27 10.0 CONCLUSION AND RECOMMENDATIONS ...... 27

APPENDIX II: DOCUMENTS REVIEWED ...... 30 APPENDIX III: ENABLING FACTORS 32 APPENDIX IV: FINAL PROJECT LOGFRAME (MARCH 2010) 33 APPENDIX V: PROJECT LOGFRAME (DEC 2009) 34 APPENDIX VI: LIST OF PERSONS INTERVIEWED 39 APPENDIX VII: GENDER DISAGREGATED TABLES AND CHARTS 47 APPENDIX VIII: PERSONAL STORIES 54

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LIST OF FIGURES

Figure 1: Project Implementation structure and roles ...... 6 Figure 2: Diversity of household sources of income ...... 17 Figure 3: Types of assets acquired by VSLA members before and after the project ...... 18 Figure 4: Women participation in decision making before the project; Figure 5: Women participation in decision making after the project ...... 18 Figure 6: Main source of household income before the project ; Figure 7: Main source of household income after the project ...... 19 Figure 8: Types of investments before the project; Figure 9: Types of investments after the project ...... 20 Figure 10: Number of meals consumed by VSLA member households before and after the project ...... 21 Figure 11: Household consumption of sugar before and after the project ...... 21 Figure 12: Households with all children of school going age in school before and after the project ...... 22 Figure 13: Diversity of household income sources by gender of the household ...... 49 Figure 14: Acquisition of assets by male VSLA members before and after the project ...... 49 Figure 15: Acquisition of assets by female VSLA members before and after project ...... 49 Figure 16: Investments made by VSLA members before the project by gender ...... 50 Figure 17: Investments made by VSLA members after the project by gender ...... 50 Figure 18: VSLA members who have made investments out of their savings by gender ...... 51 Figure 19: Origin of money used by VSLA members to acquire assets by gender ...... 51 Figure 20: Number of meals taken per day by households before the project by gender ...... 51 Figure 21: Number of meals taken per day by households after the project by gender ...... 52 Figure 22: Household consumption of sugar before the project by gender of household head ...... 52 Figure 23: Household consumption of sugar after the project by gender of the household head ...... 52 Figure 24: Households with all children of school going age in school before the project by gender of the household head ...... 53 Figure 25: Households with all children of school going age in school after the project by gender of the household head ...... 53

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PART 1: ACHIEVEMENT OF OBJECTIVES, OUTPUTS AND OUTCOMES

1.0 BACKGROUND AND INTRODUCTION

1.1 National Development Context The key development challenge for Uganda as a country is the pervasive poverty among the rural and less educated majority of the population. The Poverty Eradication Action Plan (PEAP) which defined Uganda’s economic development planning framework from 1997 to 2009, as well as its successor- the National Development Plan (NDP) focus on reduction of poverty through sustainable wealth creation. Among the identified key challenges to poverty reduction is lack of access to responsive financial services for the rural poor. A 2006 national survey on financial access - the “Fincope Study”, concluded that about 62% of Ugandans are financially excluded, the problem being more severe in rural areas and among the poor. Since the banking sector has existed in the country for over six decades and the traditional microfinance for more than twenty years, it might be a fair observation to say that the formal financial sector cannot wholly address Uganda’s problem of financial exclusion.

1.2 Background to the Project With the critically low level of access to financial services by the poor, an alternative model needed to be tested that could reach the unreached. In 2006 Care International in Uganda, with funding from DFID, piloted the Village Savings and Loan Association (VSLA) model through the Scaling Up Savings To Augment Income (SUSTAIN I). This was meant to test a fully pro-poor methodology which helps the local people to harness their own meagre financial resources and intermediate them. The pilot project ended in December 2007 and on the basis of the positive impact assessment, a follow-on project (SUSTAIN II) was launched in January 2008.

The project operations are fairly simple. Community Based Trainers (CBTs) work with the communities to form groups; train and offer technical assistance to the groups for one cycle lasting between eight to twelve months, and then wean them off to be on their own. The training/ TA include the first four months of intensive care (weekly meetings, TA & training), the second four months of “development phase” when the trainer meets the group twice a month and the third/ last two to four months when he/she meets them once a month. After this, the cycle is over, the Action Audit (calculations and dividing up of the money in box) is done and, in principle, the project involvement with the group is over.

1.3 Project Goal and Implementation Arrangements The goal of the SUSTAIN II project was to improve the livelihoods of poor and marginalized households in Northern Uganda. In keeping with the goal, the project

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purpose was to improve access to financial services for 100,000 poor and marginalized households in northern Uganda by July 2010 through 4,000 self-managed Village Savings and Loan Association (VSLA) groups . VSLAs are self-managed informal groups of up to 30 people in a village, who come together for eight months to a year, with three motives: pooling their savings, lending to members from the savings and contributing to a social insurance fund for members to use in emergencies. The project was implemented in the five sub regions of Northern Uganda namely West Nile, Karamoja, Acholi, Lango and Teso. Project implementation arrangements had:

DFID funding the activities and relevant overheads through Care International in Uganda- the contractor
Care disbursing funds, monitoring and offering technical assistance to Implementation Partner organizations (IPOs) who are either private sector promotion companies, NGOs, district farmer associations or other types of established entities
The IPOs recruiting, training (with assistance from Care), deploying, supervising and offering support to Community Based trainers
Community Based Trainers (CBTs) working in the communities to help people form groups, galvanize/ strengthen their groups, start and sustain the VSLA operations, and to offer the groups training and TA.

1.4 Reason for and Contents of the Completion Report With the project approaching completion (July 2010), there was need for an evaluation of SUSTAIN II project and preparation of a Project Completion Report. Broadly, the evaluation was intended to assess:

i. The extent to which the project has achieved its overall objectives, outputs and outcomes as detailed in the project document and log frame ii. The impact of the project on the target beneficiaries by establishing how their lives have improved as a result of participating in the VSLA methodology iii. The appropriateness and replicability ability of the VSLA model for Uganda.

1.5 Assignment Methodology and Activities The methodology agreed and adopted for the evaluation involved: i. Document reviews – to gain an overall understanding of the project goal and purpose, performance targets for comparison, understand performance trends and assess any variances in outputs/ results. ii. Data collection using both qualitative and quantitative methods – to aid the understanding of project impact. A structured questionnaire for quantitative data was administered to a sample of 90 individual members from 30 VSLAs in the five

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sub regions for household level information (like incomes, asset-endowment and women empowerment through changed domestic relations). Qualitative information was obtained through focus group discussions and key informant interviews with relevant project stakeholders, using guiding questionnaires. In the sampling frame/plan, five representative districts- one from each sub region - were selected: Arua(West Nile), Soroti(Teso), Moroto(Karamoja), Apac(Lango) and Kitgum(Acholi). A total of six VSLAs were selected from each district as follows: two best performing; two moderate performing and two poor performing. The five districts were also chosen so that coverage could include at least one of each type of IPO (farmers’ association, private sector promotion company and NGO).

In each of the districts covered, activities were sequenced as follows: • Introductory meeting with IPO management and staff • Agreement (with IPO) on the schedule of interviews with VSLAs and local leaders in the respective sub counties • Focus group discussions with VSLA members and CBTs • Administration of the Quantitative Survey Tool (for personal/ household impact information) to VSLA members • Key informant interviews with local officials/ leaders. • Preliminary brief of findings by consultants to VSLA representatives and IPO staff. In Arua, qualitative interviews/ FGDs were also held with two control groups iii. Analysis of data/ information from the above two processes in the context of the ToR provisions, so as to draft the Completion Report for comments before producing the final report.

1.6 Challenges and limitations Some challenges and limitations faced during this assignment were:

• Short notice and logistical arrangements: whereas Care and the IPOs did their best to communicate the field work to VSLA members, the time available for such mobilization was tight. • In some cases, respondents gave cautious rather than straight forward answers – for example to the question: “do you have enough to save out of your monthly income?” some VSLA members who save answered “no”. • Getting control group members to come proved impractical because these people were not recorded during the baseline study and there was no incentive for most of them to participate. • Interference of local phenomena like market days and food distribution.

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• No vast comparison of the project beneficiaries with non-beneficiaries.

2.0 PROJECT SUITABILITY AND EFFECTIVENESS

2.1 Relevance With all the financial institutions and initiatives in the country, what is the relevance of a project like SUSTAIN II? Both the outright responses by beneficiaries and the consultants’ analysis during this assignment proved that the project was highly relevant to the local populations. Among the highlights of the project’s relevance are:

• It provided a facility for the groups to offer themselves highly tailored and responsive financial services with easy access and fairly safe custody. • The VSLA operations were friendly to all people including the poor and illiterate • Easy access to suitably sized loans which were well repaid. • Informal insurance, “social protection fund” from which the VSLA members can borrow in cases of personal/ household emergencies. This enabled members to concentrate their loans and pay-outs on their businesses. • Very responsive to member needs. • Provided an effective financial services model that is suitable for the context of hard-to-reach regions like Karamoja.

The relevance of the project was evident in its flexibility. While the overall goal and purpose of the project remained the same, operational level changes were made as challenges set in and new conditions unfolded. As an example, recording and reporting formats procedures among VSLAs were improved. The security of the cash box, which was meant to be kept by the treasurer, was also enhanced in a number of the VSLAs by allowing each VSLA to innovate its own safety measures – like rotating it among members and opening a SACCO account to keep the money while the cash box remains near-empty. In places like West Nile, the IPOs figured out ways to turn the potentially destructive involvement of politicians to the advantage of the project.

Overall, the project was relevant and is still in very high demand by both VSLA members and those who did not get the chance to join the VSLA during SUSTAIN II

In the subsection 2.2 below, planned and actual outcomes are compared to assess the project’s effectiveness in terms of the extent to which it met its targets.

2.2 Targets and Outcomes As demonstrated below, the project goal and purpose/ targets were largely exceeded by actual performance (details in Appendix I).

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INTENDED RESULT COMMENT Goal: improve the livelihoods of poor and Attained with I the localities marginalized households in Northern Uganda reached Purpose: To improve access to financial Exceeded services for 100,000 poor and marginalized households in northern Uganda by July 2010 through 4000 VSLA groups Output 1: To establish 4,000 self-managed Exceeded VSLAs in the districts of West Nile, Karamoja, Acholi, Lango and Teso sub-regions. Output 2: To enhance technical capacity of Exceeded implementing partner organisations to implement the VSLA methodology in Northern Uganda Output 3: To create VSLA knowledge base for Largely met use by policy makers and other stakeholders for the benefit of poor and marginalized households. Output 4. To integrate VSLA methodology with Largely met relevant development initiatives for wider adoption and scaling up. 1

Generally, the project activities are reported to have been aligned with Schedule of Activities and Annual Plans. The frequent challenges were: the IPOs say they experienced late disbursement of funds while Care, the project manager, reported that in some cases there were untimely and inaccurate reports from the IPOs, necessitating thorough reviews of the reports before disbursements.

2.3 Project Management and Monitoring The figure below shows the overall organizational structure, roles and responsibilities of the parties.

1 This output was defined too narrowly: to refer to former RALNUC groups instead of capturing all other programs that use or integrate the VSLA model in their operations

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2.3.1 Structure and level of coordination Figure 1: Project Implementation structure and roles

DFID ( Funding )

Care ( Capacity building to IPO staff and CBTs; refinancing project activities on behalf of DFID; coordination and monitoring IPOs and field activities)

IPOs ( Recruitment/s upervision/ monitoring of project officers and CBTs; coordination of project activities at sub-region level

CBT( Sensitisation and mobilisation for groups -formation; training of groups; TA to groups during implementation; implementation reports to the IPOs.

Effectively, Care supported and monitored the performance of the IPOs, which in turn monitored and supported the CBTs who delivered the training and TA to the VSLAs. The IPOs submitted quarterly reports which Care consolidated to show overall project performance.

Level of coordination among players was overall good, which provided the right synchrony for good project performance. Although some IPOs cited a few coordination challenges (mainly related to on-the-ground coordination between Care officers and IPO in cases when some operational things needed to be changed), the coordination between Care and IPOs was overall good. In addition to consulting the IPOs on key issues of VSLAs, Care provided technical support and training to the CBTs to further ground them on VSLA methodology. There was close and beneficial coordination between IPOs and CBTs, which included mentoring, tasking, supervising and monitoring the CBTs. This enabled most CBTs to perform well, resulting into good overall performance of the project as detailed in section 2.3 of this report.

Each IPO submitted financial reports (receipts from Care and expenditure) and narrative reports (updates on the progress and achievements of the project) every quarter. Care checks the reports for conformity to agreed reportable items and then consolidates them. There was also a mid-term evaluation done and report prepared, which helped stakeholders to review where the project was and where it was going.

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2.3.2 Adequacy of implementation arrangements Adequacy of this arrangement showed in the accomplishments of the project. Care had vast experience in successfully managing similar projects, most of the IPOs were well versed with the local economies where the VSLAs are and with supervision of CBTs who deliver business related services to people at the grass-roots. It was particularly insightful to pick CBTs from the sub counties/ districts where the VSLAs are located so that they could train and facilitate TA in local languages.

On the flipside, the project officers at the IPOs and CBTs were too few to adequately cover the VSLAs. They were therefore stretched although they still reportedly did their best. There were also complaints by some CBTs about their remuneration being less than commensurate with the amount of work required of them. This in some cases led to high turnover of CBTs, particularly in Karamoja region, affecting the scheduled implementation of project activities. This also meant inadequate supervision of the groups at certain times as the new CBTs got acquainted with their duties.

The strengths and weaknesses of the relationships within hte implementation arrangement are summarized below.

RELATIONSHIP STRENGTHS WEAKNESSES DFID -CARE Shared goal and purpose for the Pre -financing by Care and post - project financing DFID by Care proved Joint efforts to address project quite challenging; sometimes Care realted issues did not have ready cash to Adequate communication, prefinance project operations in enabling mutual updates time. Fund disbursements done in line Less formal fora for lessons learnt with plans discussions than was anticipated CARE -IPO Effective capacity building Too much coverage area for Effective monitoring available Care staff &supervision Perceived underfunding 2 Prefinancing project activities Perceived change of procedures Collaboration in work planning directly with CBT outside IPO and budgetting knowledge(rare cases) 3 IPO -CBT Training &support TA to CBTs by Recruitment of ineffective CBTs (in IPOs, ensuring CBTs mmet sosme cases) targets. IPO staff too few to supervise all Backstopping of CBTs ensured CBTs effectively that field work ran smoothly Low salaries to CBT, caausing high

2 Karamoja IPO, for intance, mentioned that the funding was insufficient to enable adequate monitoring of the CBT activities at district level by the IPO. As such they were not able to closely monitor to ensure that all the groups were being trained. 3 This was reported by only one of the six IPOs interviewed

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Effective supervision/ oversight tu rnover in some cases ensured that CBTs were focused. CBT -Groups CBTs were from the local districts In some isolated cases, CBTs and thus used local languages fleeced groups Groups easily related with the IPO budgets for transport refunds CBTs were reportedly insufficient to Fairly high mutual trust between facilitate regular follow up of the groups and CBTs in most groups cases In some cases, inadequate training/ guidance of groups by the CBT, causing the groups to perform modestly

Challenges to IPOs with regard to management, systems and support • Generally, the NGO and association-type IPOs were less innovative, less proactive and their field staff seemed be less conversant with the project log frame than private sector, profit oriented IPOs • Some bureaucratic delays in the transfer of funds and reporting beween the IPO field office to the head office, and then between the IPO head office to CARE. • In some cases(save for the private sector companies) management aptitude for this kind of project seemed modest • In some cases, poor internal communication within the IPO: senior IPO personnel kept proejct related infomation from the field implementation staff and released it late or not at all. Overall, the arrangements were suitable and delivered the desired results. Project suitability and adequacy of the implementation arrangement was also spot-lighted by the resulting support that Care and VSLAs received from other development partners. The table below summarizes some of these:

DEVELOPMENT FOCUS OF SUPPORT PARTNER Barclays Bank Pilot linkage banking with the VSLA (which if successful will address the twin problems of cash box security and operational continuity of the groups Christian Aid Training and technical assistance for development of grassroots enterprises for the VSLAs, for the groups and their members NUSAF Delivery of services for improvement of group/ household incomes Finca Linkage banking with VSLAs STROMME Partnership with IPOs to provide business skills training Foundation (Selection, Planning and Management Course) to VSLAs in Abim District.

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Although the above table contains only a sample of how the other development programs are using the VSLA structures, it shows that the project has had a powerful demonstration effect. The single vital message is that poor communities can be assisted to mobilize and, using their meagre resources, pool efforts to substantially improve their livelihoods.

2.4 Beneficiaries’ Viewpoint of Project Effectiveness

2.4.1 Why the project was effective As can be inferred from the foregoing sections, overall objectives of the project have been achieved. It is useful to cross-check this analysis-based conclusion with the less analytical but fact-based views of the project beneficiaries. Asked whether they thought the project was a success and what contributions it had in their lives, the VSLA members all responded to the affirmative, giving the following key reasons: • They received very good technical support and training from the CBT’s which changed their mindset from looking for help to seeking ways in which they could help themselves. • Training in group formation and maintenance, governance, management, book keeping, meeting procedures, guidance to write regulations and conflict resolution helped them to establish simple but working principles which will help them remain in operation even after the project ends (very vital for longevity of the groups and sustainability of the project’s economic impact). • The cash box has become a symbol of hope, security and social cohesion to members of every VSLA . • Members were empowered to form and manage their own groups; no external person imposed rules on them. • The organization of VSLA groups attracted other services like agricultural inputs and enterprise TA from other development programs. • Linkage banking – Barclays Bank pilot project with VSLAs followed the bank’s realization that the groups were well structured and run to form bankable clientele. Other financial institutions like Finca and SACCOS are also trying to get into relationships with VSLAs now (although it could be argued that this linkage idea was not in the project concept, it is a pointer to the fact that the project could eventually play a vital role in broader financial inclusion and integration of locals in the mainstream financial sector. • The good project design, which centered on user- ownership, participation and control, keeps attracting increasing numbers of people to the groups. Furthermore, simplicity of the methodology helped all people, including the illiterates and semi-literates, to understand and embrace it

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• Payouts and the visible household improvements of the VSLA members’’ lives every year continues to be a big attraction to both members and non-members of VSLA groups • Inclusion of other stakeholders/ development initiatives and services helped to add tremendous value to the project.

In some isolated cases, groups did not perform as well others, mainly due to: • Inadequate training of groupss, especially those whose CBT s get replaced • Low skills in and aptitude for business among the group members 4 • Poor attendance of groups meetings by some members resulting into low savings • Drought which affected the Teso sub region affected incomes and savings capability • Conflict/disagreement amongst members • Member drop outs and replacment with new members who are trained on VSLA operations • Low member contributions, hence inadequate loan amounts available for loan disbursements.

2.4.2 External aspects that affected the project’s performance/ effectiveness Influence of externalities on the project and its beneficiaries has been both positive and negative. The positive influences included cooperation and support of local leaders, peace and resettlement of IDPs in Northern Uganda, presence of other complementing programs like FAL, NAADS, RALNUC and NUSAF. The negative influences included free/ welfare gifts by Care and other donor agencies, politicians and their confusing messages (and in some cases with their cash to VSLA –which, thankfully, did not manage to pollute the VSLA members’ minds), low financial literacy and business skills in the communities and, initially, past disappointments with unscrupulous microfinance schemes. Overall, the positive contribution of external factors seems to have outweighed the negative ones.

2.5 Financial Arrangements and Efficiency 2.5.1 Project Financing Arrangements At project start, budgets were agreed on with each IPO. On the basis of this, quarterly tranches were determined for each IPO. The quarterly tranches guided the IPOs in their budgeting and fund requisitions were then given quarterly tranches. According to both the IPOs and Care, disbursements were guided by the plans and annual budgets.

From DFID to Care, funds were released on a reimbursement basis – which enhanced the level of accountability but could also have slowed down project at the times when

4 Each group and IPO interviewed mentioned, without prompting, that basic training in practical business skills is very necessary for group members

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Care as an implementer got financially constrained. On a quarterly basis, Care gave the IPOs advances for use as agreed in the plans and budgets. The IPOs used the money and presented accountability to Care before getting subsequent funding. Generally, IPOs consider the arrangements to have been suitable (save for the complaint on late disbursement of funds to the IPOs). Causes of delays were mainly two: Care’s temporal cash flow challenges and inadequate/ late accountability by some IPOs. The often meant that some project activities, including actual start of field work, were accomplished somewhat late. The rereuslting delays in payment of salaries in some cases demotivated CBTs and project staff.

On Care’s part, the arrangements were challenging because Care had to pre-finance the operations and at times it reportedly ran into a financial squeeze.

2.5.2 Value for Money

Measurement of efficiency at IPO and CARE level i.e cost per client

BUDGET A ND ACTUAL COMPARATIVE EXPENSES IN (USH) PERCENTAGES Total DFID Actual DFID Item Budget Expenditure Budget Actual Personnel (national) 994,519,834 838,918,878 22% 21% Personnel (int'l) 98,194,891 101,850,732 2% 3% Travel & transport 323,709,935 273,070,075 7% 7% TA and documentation 436,614,768 317,548,149 9% 8% Disbursements to IPOs & others 2,771,775,107 2,431,407,045 60% 61% TOTAL 4,624,814,535 3,962,794,879 100% 100%

The total cost per beneficiary reached was USh 34, 094 (PStg 10) of which the project management/ administration cost was Ush 8,094 and project implementation cost was USh 26,000. Given that the project benefits continue well after the project period, this was quite efficient.

The project implementation cost (Disbursements to IPOs, travel/ transport, TA and documentation) totalled 76% of the budget and project management/ administration took 24%. Although this falls short of the sound practice maximum management/project cost ratio of 20: 80, it should be acceptable value for money. The project advisors and coordinator, whose salaries are included in the project management costs, were involved full time the project implementation.

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3.0 CHALLENGES AND AREAS OF IMPROVEMENT IN VSLA IMPLEMENTATION

The following table summarizes the challenges and areas of improvement of the project.

CHALLENGE/ IMPROVEMENT AREA POSSIBLE OPTIONS TO EXPLORE Free money from politicians; in Vura sub i. Constructively involve politicians and county of Arua, for instance, a politician local leaders by helping them tried to give Sh 100,000 per group and was understand project method and convincing them to merge benefits ii. Continually sensitize groups against the vices of such offers Politics of VSLA vs SACCOs i. Further sensitize politicians and local leaders that VSLAs do not destroy SACCOs Safety of the cash box: case of Okollo Sub i. Rotate keeping of box to create County (Arua district) where the treasurer unpredictability was attacked by thieves at 1.00 am. ii. Negotiate for charge- free savings Thankfully, thieves did not manage to accounts in banks, MDIs, SACCOs break the cash box and it was recovered intact Measurement/ monitoring of gender i. For future project design, ensure equity impact of the project: Whereas a gender and other key monitorable pro-poor development project of this types development indicators are included, needed to have gender/ women with clear indicators empowerment ingrained in its purpose and ii. For SUSTAIN II, use the data on performance targets, this was missed out in access by gender (no. of male and the initial logframe. Consequently, the MIS female VSLA members) as a proxy design used for monitoring did not capture measure for all gender related gender disaggregated information on quantitative outcomes of the project. access to and total portfolios of loans and savings. 5 The liquidity challenges of the implementer The most suitable financing arrangements pre-financing project activities should be put in place, perhaps where the funder makes the first advance against a performance bond –then releases subsequent amounts on the basis of accounability for the previous disbursements Delays in fund release, which can at times Lead implementer and funder to work out

5 This has now been rectified and future phases of the project should benefit from the revised MIS with gender disaggregated indicators.

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CHALLENGE/ IMPROVEMENT AREA POSSIBLE OPTIONS TO EXPLORE delay work progress appropriate modalities for prompt disbursements CARE has another program giving free ox Review project branding to address ploughs, cash boxes and goats. SUSTAIN II potentially misleading cues beneficiaries are sometimes not happy that they cannot access these free gifts Pre-operational preparations and For future projects of the type, practical Reporting: originally, IPOs were not modalities and procedures for reporting oriented in the MIS for reporting should be worked out well before project start The documents that were supposed to i. Always complete the project design have existed at the start of the project documents, including logframe, before were done very late: Logframe 6 in Dec 2009 the project starts. and Baseline Report second half of 2009 – ii. Outsource activities that would delay when the project had just about a year to vital processes if done in-house go Lack of business skills training, which For future projects of the type, include results in low business aptitude by VSLA business skills development as a key members component, or actively collaborate with an effective initiative that delivers training/ BDS to micro-entrepreneurs Low capacity (personnel, logistical and skills For IPO, select organizations with endowment) of some of the IPOs – very adequate skills, financial and logistical low capacity to implement and innovate. endowment – they do better, innovate This is a challenge to the rigour and more and are more likely to achieve more innovation that the role often requires Welfare/ entitlement mentality of people Continual sensitization and demonstration in some areas where the VSLAs operate of the reality and sweetness of self reliance will address this. Graduation happens too soon and could In the next phase, IPOs could for a year affect the sustainability of the project retain some residual roles (for conflict benefits resolution, occasional training and TA for the Action Audit) after each VSAL graduates Perceived inconsistency in implementing Frequent dialogue between/ among some of the terms in the IPO/ Care MoU implementers is important. In addition to and some activities/ role switching during collaborating on field implementation,

6 Construction of the log-frame, the project’s defining matrix, well after the start of the project – thus meaning that in the BL report itself, already there was a difference between project included people and the control group

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CHALLENGE/ IMPROVEMENT AREA POSSIBLE OPTIONS TO EXPLORE implementation meeting to identify and resolves misunderstandings would be advisable Risk/ inadequate safety of the cash box Keeping the cash box with a SACCO for towards the end of the cycle; and security purposes occasional embezzlement/ theft of group Exploring charge free MDI and bank funds savings accounts Difficulty in identifying profitable income Training in business skills/ business generating activities culture Lack of market for income generating As above, and offering/ liaising with activities initiatives that give TA for market access to the groups Disagreement amongst group members Continual training and arbitration by IPOs, even for weaned off groups

PART 2: PROJECT IMPACT ON BENEFICIARIES

4.0 PARTICIPATION, UNDERSTANDING AND OWNERSHIP BY STAKEHOLDERS 7 The IPOs are well versed with the project rationale, goal and purpose and the beneficiaries all know why the project exists. Nearly all the project beneficiaries are able to correctly explain the project’s “reason for being”, though not in the articulate words of the project purpose. This proves that they are quite aware of the project rationale and largely explains the great extent to which group members have understood and embraced their respective VSLAs. Among the beneficiaries, the depth and accuracy of knowledge of the project purpose depends on extent of education and exposure of the person –but they all appreciate that economic and social empowerment is the intended and realised result.

The beneficiaries’ knowledge of the project is clearer at the “on-the- ground” operational level - their interface with the IPOs and some basic knowledge the there is Care in the background. They generally do not know about the involvement of DFID. Although it is commendable for a funder/ donor to remain in the background, some basic level of visibility for DFID in such a project would be helpful, especially in helping other development partners to embrace the methodology.

7 VSLA members, IPOs and implementation personnel

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Extent of VSLA members’ understanding and participation in the project has greatly facilitated project success. While the beneficiaries are not much concerned with the issues of high level rationale, they fully understand their group functioning and are passionate with group ownership, governance and management. This is largely a result of the suitable training done by the CBTs, which in turn is a result of the ToTs done by Care and regular field monitoring by both Care and the IPOs. Good understanding, keen ownership and active participation has enabled the beneficiaries to reap the benefits/ positive impact explained in this report – from ready access to suitable financial service to better living and greater domestic harmony.

5.0 EFFECT OF THE PROJECT ON ACCESS TO FINANCIAL SERVICES

5.1 Overall Effect SUSTAIN II targeted the lowest income people who are normally left out by even the most localized semi-formal set-ups like SACCOs. These people need three basic financial services, which are all provided by the project: Safe savings facility, suitable credit/ loans and basic insurance to cater for occasional mishaps/ crises.

The project’s goal was to assist 100,000 people in Northern Uganda to access the basic financial services over its life. According to the MIS performance report from Care, 116,231 8 people accessed these services by joining VSLAs under the project. Of these, 82, 072 (70.6%) were women and34, 159 (29.4%) men – highlighting both the extent of access and the gender equity effect (access by women).

The leadership positions of the groups are to a great extent occupied by women, with men being incorporated in the event that the women are unable due to literacy challenges. In the West Nile sub region, for instance, 76% of the project beneficiaries were women (who controlled the policies and management of the groups).

5.2 Savings Typically, there is a minimum and often maximum amount of savings each member of the VSLA must contribute every week, in a meeting that all must attend. The weekly deposit amounts range from UGX 1,000 9 to UGX 15,000 depending on the stage of development of the group. These savings are received, read out/ declared, recorded and kept the group’s cash box. The cash box has three locks whose keys are kept by three different people . The savings accumulate for each member for the whole cycle. In each meeting, the treasurer/ secretary updates members on the total savings as well as

8 Figures in this paragraph were obtained from raw reports for May 2010 and reconciliation with of these with earlier quarter figures, and thus there could be minor variations from actual figures. 9 Typically, groups started with Sh 200 or 500 as weekly minimum savings and members unanimously resolved to raise this minimum later on.

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loans, interest and social fund so far collected. Overall savings by all groups in the project by June 2010 was Sh 9.4 billion.

The most attractive features of the project, which attracted the large numbers, were the simplicity and responsiveness of the product features.

5.3 Credit Each VSLA determines its minimum and maximum loan; maximum loan period and interest rate. Because all members are in the same locality and know each other including every member’s occupation, it is quite easy for them to collectively appraise a loan application (done verbally in the meeting), approve, get the member to sign for the loan and disburse –all in a meeting that can last as little as one hour. There are no complicated forms to fill, no need for literacy or numeracy, no waiting times and no subsidiary charges/ fees. The loan period depends on what the member intends to invest in, but every loan must have been paid up by the end of the cycle. The loans are therefore very responsive to members’ needs.

5.4 Insurance Alongside the savings, every VSLA has a fixed amount (typically UGX 200 to 1,000) that each member contributes per meeting into a pool of informal insurance called the “social protection fund”. Members of the group are able to borrow, interest free, from this fund for emergencies like funeral expenses, medical bills and similar crises. This serves a vital purpose of helping the group members to deal with typical occurrences that would otherwise make them divert funds away from their businesses.

5.5 Financial Literacy One of the most frequent answers to the question, “how has this project changed your life?” during the interviews/ discussions with beneficiaries was, “I have learnt how to budget, prioritize my expenses, save and invest in business”. Volumes of savings are increasing; meaning continual improvement of the savings culture in the groups/ members. This is evidence that the group members have significantly improved their financial literacy a nd, most importantly, their ability to put the acquired financial literacy/ competence to good use.

6.0 SOCIAL AND ECONOMIC CHANGES RESULTING FROM THE PROJECT Overall, VSLA membership has produced a positive impact in the livelihoods of households of direct beneficiaries. This fact is attested to by the positive changes in households including acquisition and retention of productive assets, ability to educate children, women empowerment, better health and nutrition, and general improvement in social status among the community.

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6.1 Household Incomes The main sources of income for VSLA member households as revealed by the household survey sample are petty trade business, farming and produce trade, casual/ formal employment, artisan work (tailoring, welding, stone quarrying and brick making), local brewing and food vending.

The majority of VSLA member households interviewed (64%) have diverse sources of income, while 36% depend on only one source of income, as illustrated in the table below.

Figure 2: Diversity of household sources of income

Cumulative Frequency Percent Percent Number of 1 29 35.8 35.8 income 2 26 32.1 67.9 sources 3 20 24.7 92.6 4 6 7.4 100.0 Total 81 100.0

The ability to have diverse sources of income is attributed to the accessibility to loans and share-outs from the VSLAs, which enabled members to invest in small businesses. Out of the households with alternative sources of income, 60.5% reported to have obtained the alternative source because of joining a VSLA, while 39.5% had the alternative sources prior to the VSLA project.

Gender disaggregated data from the survey shows that 67% of the households which are headed women have diverse sources compared to male headed households’ proportion of 63%

6.2 Acquisition and Protection of Assets All VSLA members interviewed reported to have acquired assets following their membership with the VSLA. The assets most frequently mentioned were livestock – mainly goats, sheep and pigs as well as cattle- radios and mobile phones. Nearly all households own at least one hoe, with 4% of the households having acquired the hoe after joining the VSLA. The figure below summarizes household asset endowment before and after joining the VSLAs.

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Figure 3: Types of assets acquired by VSLA members before and after the project

The types of assets acquired point to an improvement in the welfare of households, as the assets can be used to increase either household income directly, or provide access to markets (radio, mobile phones and motorcycles). The general increase in acquisition of assets among member households is an indication of growth in the standards of living.

6.3 Decision Making and Empowerment of Women The project has contributed towards empowerment of women in households, who reported to have gained more respect as a result of their ability to contribute towards household requirements from their VSLA savings. Out of the VSLA members interviewed, 95% reported that women contribute to decision making on issues affecting the household, while only 5% do not. The matters of consultation that were mentioned included how household income was to be spent (consumption, school fees, savings and investments on assets).

Compared to the situation before the project, 60% of the women respondents who now participate in decision making were not consulted in household decisions prior to their membership in the VSLA. After joining the VSLA, this proportion reduced to 5%. The comparative situations are depicted in the figure below:

Figure 4: Women participation in decision making before the project Figure 5: Women participation in decision making after the project

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With regard to ownership of assets, 81% of the households reported that females own assets while the reverse was true for 19% of the households. The types of assets mentioned mainly included poultry and a few livestock, while others reported to own business assets such as sewing machines for use in tailoring. Besides the assets, it was mentioned that most women are engaged in a small scale income generating activity to supplement household requirements.

As a result of their membership in VSLAs and the resultant benefits, female respondents also reported improved relations with other household members- mainly spouses. Of the female respondents, 94% reported improved relations with their spouses as a result of their ability to contribute money for household needs and acquiring assets for the household. Only 6% reported there was no change in the relationship (mainly because they already had very good spousal relationships before joining the project).

6.4 Development and Improvement of Productive Enterprises The main source of income among VSLA members interviewed prior to SUSTAIN II was farming/ produce trade (53%) followed by petty trade/business (23%) and formal/casual employment at 11% respectively. After joining the project, the households that mainly depend on farming as a source of income almost halved from 53% to 27%. Over the same period, there was a marked increase in the number of VSLA households that depend mainly on income from trade and other business activities from 52% to 23%. The two scenarios are represented in the charts below:

Figure 6: Main source of household income before the project Figure 7: Main source of household income after the project

The facts and charts above are revealing: They suggest that VSLA members/ households have significantly moved from informal, non-monetized to formal, monetized economic activities as a result of the project. Among the VSLA members, there has been increased trend in investment in productive enterprises, mainly as a result of access to loan facilities and the share-out money for business capital. During their testimonies and interviews, VSLA members also said as a result of accessing financial services through the VSLAs, they had grown their businesses compared to the state they were in prior to joining the VSLA.

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6.5 Household Investment Capacity For poor households, saving is an absolute pre-requisite for investment. Membership to VSLA groups enhanced members’ capacity to accumulate savings to make investments. Of the VSLA members interviewed, only 16% said they were saving money prior to joining the project, while 84% were unable to save. As a consequence of their membership in the VSLAs, all (100%) now save.

Of the VSLA-members interviewed, 95% reported to have made investments out of their savings while 5% said they have not. The major areas of investment prior to the project were in education of children (38%); purchase of farm implements to practice agriculture (31%) and poultry (12.5%) – all of which are somehow related to consumption. In comparison, the main investments made by the VSLA members after the project are livestock (29%), business assets- including stock and equipment(23%), educating children (13%) and other assets including bicycles, permanent buildings, land, household assets, land and motorcycles – more of investments in profitable/ productive ventures.

The figures below show the types of investments made by VSLA members prior to and during/ after joining the project.

Figure 8: Types of investments before the project Figure 9: Types of investments after the project

Out of the VSLA members interviewed, 73% mentioned that the origin of the money used to acquire the assets was from savings and loans obtained from the VSLA groups. It can thus be concluded that the project contributed towards enhancing the investment capacity of the target communities. A comparison of the two pie charts above also reveals that compared to the situation before they joined the project, the households’ investments after joining the project was more of a productive business nature.

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6.6 Household Health and Welfare As proxy indicators to determine the improvement in household health and general welfare, the number of meals consumed in a day, consumption of sugar, and attendance of school by children of school going age in the household was used. There was a marked improvement in the number of meals consumed by households in a day from the time before joining the project the project to the end of project. Whereas the consumption of one meal and two meals a day reduced from 26% and 63% y to 3% and 43%respectively; there is a marked increase in the households consuming three meals in a day from 11% before the project to 54% by the end of the project as illustrated in the figure below.

Figure 10: Number of meals consumed by VSLA member households before and after the project

While consumption of sugar might be considered unhealthy for the wealthier population, it contributes to better health for the poor, usually under-nourished rural people. There has been improvement in the consumption of sugar among member households after the project, with the percentage of households consuming sugar on a daily basis increasing from 18% before the project to 70% by the end of the project as shown in the figure below:

Figure 11: Household consumption of sugar before and after the project

The findings also show an increase in the number of households whose children of school going age are attending school. Compared to the situation before joining the project when only 63% of the households with children of school going age had all the

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children attending school, 91% of households have all the school-age children going to school by June 2010.

Figure 12: Households with all children of school going age in school before and after the project

Overall, there is a general improvement in household health and welfare.

6.7 Demonstration Effect As a result of the benefits derived from VSLA membership, the effect has been a growing demand for non VSLA members to join groups or form new groups in the event that the existing groups have reached maximum capacity. This fact was mentioned in all sub regions, which affirms the continued relevance of the VSLA model for the region. Both local community members and other development initiatives in the project areas are adopting the model.

6.8 What the Non-VSLA Members Missed Interviews with non VSLA members (the control group) in Arua district revealed the following testimonies that members felt they had missed out on: • Opening up and running businesses, which they see their peers advancing in • Building houses using loans and accumulated savings from the VSLA • The ability to educate their children from their savings. • The ability to afford a decent meal and acquire household assets

A typical response is captured in the following quote “When I wanted to join a VSLA, I got discouraged when I heard of someone who had borrowed from a group and run away instead of paying the money. I was just like someone who refuses to go to church because there is one sinner there. But I paid heavily for it because I see all my friends in VSLAs who used to be like me but are not better off – they pay school fees, have businesses, have bought mattresses, cows, goats and bicycles. I have not done any of these” Phoebe in Arua.

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PART 3: APPROPRIATENESS, SUSTAINABILITY AND REPLICABILITY

7.0 APPROPRIATENESS OF THE MODEL For an initiative that only helped people to mobilize themselves in groups so as to pool/ utilize their resources and access training, the beneficiaries’ intensity of passion and keenness of ownership is positively unusual. This is best explained by one attribute: the unique model. For the goal of the intervention (improving the livelihoods of poor and marginalized households in Northern Uganda), the model has proved to be appropriate and very effective. More than 116,000 people accessed highly responsive financial services, improved their economic activity, improved the household wellbeing, acquired business skills, and improved the quality of their social lives both within the family and in the community.

7.1 Responsive Financial Services The project introduced financial services that are easily accessible. The poor and less educated sections of the population are usually intimidated by the sophistication and formality in banks. They are also put off by the high and often complicated pricing structures of the microfinance loans as well as charges against their savings. The project addressed all these: low/ no overhead costs, absolute transparency and collective decision making (facilitating deeper understanding by all), charge-free savings and dividends from the loans. Subject to the limit of the cycle period, loan terms are fully flexible. Top among the respondents’ list of the benefits they have reaped from the project are better savings culture (encourages by the vivid advantages people see in becoming part of the VSLA groups). Typical statements in the responses were “ I learnt how to save and invest”

7.2 Improved Economic Activity Owing to the peer pressure to save, encouragement by other group members during the meetings, training from the CBTs and ready availability of start-up capital, most VSLA members opened and/ or expanded businesses. Among the business that the sampled respondents opened and now run are shops, eateries, micro-scale agro-processing, boda-bodas (motorcycle/ bicycle transport), farming/ animal rearing, fishing mongering, tailoring/ draperies and market vending.

Because of the discipline of weekly meetings and savings, many beneficiaries say they have adopted better working disciplines and habits since they joined the project; people now work harder, keep time better and deliver on their word. The project therefore effectively provided both financial and emotional facilitation for people to move from being idle to being very productive and busy.

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7.3 Improved Household Wellbeing and Gender Equity Remarkable improvements in the household welfare are reported by the project beneficiaries (VSLA members). Related to this, the women say they have now been empowered and work more as partners with rather than subordinates to their husbands. The main aspects cited to support these are that since joining the VSLAs:

i. They have acquired household assets like furniture, beds, bicycles and radios ii. They have built better houses (brick walled) and are thus enjoy a better dwelling place iii. There is more income for the family because of new or expanded business activities y the women iv. They have more harmony at home because of consultations resulting from financial contributions by both husbands and wives v. They feeding their families (number of meals, sugar, meat, eggs etc) and they can also afford better dressing and medical care vi. They pay school fees with little difficulty vii. Women are also decision makers at home – a great leap in their empowerment - and this has improved domestic relations tremendously. There is more peace and harmony at home. Some of the reported that as a result of learning to articulate their views in the VSLA meetings, they are now also involved in local political leadership

7.4 Business Skills Multi-skill business training by the CBTs equipped the beneficiaries. Among the areas of benefit in this regard is better knowledge on how to handle money; discipline in savings, budgeting and spending as well as how to choose and run businesses. A number of the respondents reported that in addition to the training, they acquired good business skills and advice from fellow VSLA members. In addition, several of the VSLA groups were trained in business management by other development partners like Christian Aid

7.5 Improved the Quality of Social Lives A vital but perhaps unintended benefit from the project has been the enhancement of social connectedness in the villages where the project works. There is more social cohesion in these villages (particularly among VSLA members) because regular VSLA meetings bring them together, and there they can discuss many other things informally with each other. This promotes peace, unity and understanding at the local level.

7.6 Inbuilt Seeds of Continuity, Sustainability and Replicability The most peculiar aspect which makes the project tick better than most other donor projects is that within its design are the strong seeds of sustainability. This is largely due to the complete beneficiary-ownership, ease of use and overall simplicity. As an indicator that the project design has sustainability ingrained, nearly all the graduated

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groups have regrouped and continued with business. As already explained, the project has (because of its high desirability and simplicity) lent itself to involuntary replication by local people.

8.0 SUSTAINABILITY AND REPLICABILITY OF THE MODEL 8.1 Stakeholders’ Views on Project Necessity All the local leaders, VSLA members and IPOs assert that the project was and still is very necessary. The main reason, which is very strong from the viewpoint of rural development, is that the project empowers people to mobilize their own resources to improve their livelihood and household economies with no external cash injection. The other reasons are that the model is responsive and easy to understand.

8.2 Emerging Signs of Impact Sustainability The model’s sustainability is already showing in:

a) Willingness of the VSLA members to continue on their own . In all the districts/ IPOs visited, the graduated groups have regrouped and continued as before. All VSLAs and their members interviewed are willing to continue with or without the program In the West Nile region, for instance, there are 872 VSLAs of which 684 were already graduated by the time of the survey. All the graduated groups have regrouped and are operating as intact VSLAs b) Readiness of some graduated groups to part-pay for IPO services . In some cases like most of Nebbi and Arua, the groups are even willing to pay modest fees for some training and other critical services from the IPO. SUSTAIN I (predecessor project) groups of Nebbi and Arua, for example, are still in their groups and some are making payments for training and support purchase of stationery c) Financial sustainability . Because of their low (almost no) overhead operations, all the VSLAs are profitable and financially sustainable. 10 d) Vision bond among group members. Each group has a vision although this is not always succinctly stated 11 . Group vision binds the members together and all members of the group usually subscribe to it. Furthermore, the groups also embrace the project purpose in their adapted versions. e) Resilience of the groups: Among the groups formed by the project, there is no reported failure/ collapse yet f) Signs of sustained impact after the project. This can be inferred from both the tangible impact of the project among the members/ households and from the fact

10 Although operationally, they cannot be said to be sustainable since the model involves a complete winding up the VSLA at the end of each cycle 11 This is an area of improvement for future follow-on projects: each group should be helped to develop a vision expressed in easily understandable slogan

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that groups have decided to continue even after they are graduated/ weaned off. The model did not create the kind of dependency typical of most donor projects. g) Women empowerment impact . More women are now engaged in business, giving them financial independence and the opportunity to contribute towards meeting household needs, and contribute towards household decision making.

8.3 How Could Impact Sustainability Have Been Better Enhanced? The inbuilt aspect of sustainability in the project design arises from the model’s simplicity and member-control. The flipside was in the winding up of operations during the action audit and having to start anew in the subsequent cycle. It was appropriate that the project not be made complicated (as this might have negatively affected members’ understanding, ownership of and benefits from the group). This notwithstanding, sustainability could have been made firmer if the action audit paid out say 70% of the money in the cash box and the following cycle started with some money carried forward.

Project sustainability could also have been enhanced by incorporating a component aimed at equipping VSLA members with business skills training to enhance their commercial orientation/ business culture. A similar project run by Christian Aid in the sub regions of Teso and Acholi promoted group activities for the SLAs to promote sustainability and yielded impressive results. Some groups run group farms where they planted crops, semi processed them and sold them in bulk, and the returns were used to boost loan capital, and later distributed amongst the members upon sharing out of the savings.

8.4 Replicability of the Model The reasons that made the model easily understood and embraced (simplicity, responsiveness and user/member control) also made it easily replicable. The IPOs explain that after forming the first few groups, it increasingly became easier to form the subsequent ones. In most places, locals in the neighbourhood of established VSLAs formed groups out of their own initiatives and just called the IPOs to start the training and other processes for integration into the project. As already explained, VSLA operational methodology has already replicated/ imitated in some places. Some people are starting their own replicas of VSLAs in Tara sub county of Maracha district, for instance. There are similar replications in Nebi, Kitgum, Apac and other project districts. Now that the model has been tested and proven with some lessons learnt, its replication should have little difficulty.

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9.0 LESSONS LEARNT

i) Grassroots project design and management determine its success A key question that microfinance and other development experts have for long sought the clear answer to is: can communities harness their meager resources to significantly improve their economic welfare and livelihood? The SUSATIN II project has answered this question with a clear “Yes” in a practical way that defeats doubt and argument. The poor have money to save and they can be effectively helped to mobilize their savings and gainfully invest. ii) People believe, change their minds and join progressive development efforts when they see benefits for themselves. There is an abundance of testimonies of local leaders, business people and other locals who were extremely sceptical but who, after seeing and understanding what the project does, became passionate enthusiasts of it. iii) Impact sustainability of a grassroots development project is enhanced to the extent that it is easily replicable. Replicability of a responsive project attracts constructive imitation from other projects and the local population. As they imitate, they inadvertently extend the frontiers of the project’s impact iv) Simplicity is key to local ownership and sustainability. If a project needs an expert to manage the operations at the lowest local level, its influence would most likely stop when the project ends. SUSTAIN II has demonstrated how this can be avoided v) Depth of poverty outreach with financial services requires innovative, non- conventional approaches. The VSLA model has been effective in reaching where banks, MFIs and SACCOs could not reach.

10.0 CONCLUSION AND RECOMMENDATIONS In conclusion, the project was well focused and has attained its goal and purpose: poor marginalized people have access to financial services, useful lasting skills have been imparted to both beneficiaries and CBTs, the groups have demonstrated ability and eagerness to work beyond the project life, there are vivid improvements in the economic and social livelihood of VSLA households and the demonstration effect is multiplying project impact far beyond the project scope.

To expand the outreach and impact of this model, the following recommendations are made: i) To strengthen the sustainability and effectiveness of the model:  Include community level training and TA in business skills or “business culture enhancement”. In all the focus group discussions and interviews held, respondents without any prompting mentioned that business skills training is a critical needs

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 Create structures for sustainability, retaining the leanness of the overheads and the core tenets that make the project excellent.  Strengthen the internal regulations and possibility of legal recourse for the VSLAs by making LCI, II, III Courts and other local authorities all endorse the group constitutions. This will deal with the problem of impudent defaulters who sometimes get freed wrongly.  During the preparatory training and TA, help each group to develop a vision in the form of a vernacular slogan that depicts the group’s common ambition. This sounds mundane but can be strategically powerful in longevity and cohesion of the groups. Visioning and mission should be included in the training, and repeated often.

ii) To perpetuate the impact of SUSTAIN II project:  IPOs should continue offering residual help needed from the them by the graduated groups in three key area: action audit, arbitration and training of new members/ refresher courses  Money collected by IPOs under the project for the cash boxes should be physically left to the IPO but as a liability to all the VSLAs served on pari passu basis. This should be used to access services of the IPO (the IPO recovers appropriate portions of the liability to its income time it renders a service to the VSLA) till is exhausted  Subject to the contracts, project assets should be left to the IPO for onward residual support to the graduated groups. This could also be treated in a similar way to the money collected for cash boxes (explained in the immediate bullet above)  More training for new members who joined later and refresher training in areas mediation, provision of accounting/ technical services, conflict/ friction resolution and action audits.

iii) To popularize the model beyond the project boundaries:  Solicit 12 funding for the next phase to expand geographical coverage to the rest of the country  Conduct a comprehensive Impact Assessment after about a year, and use it to prove sustainable impact and thus popularize the approach/ model among development partners. The impact assessment should concentrate on empirical comparisons between the VSLA members before and after the project on the one hand, and on comparing VSLA beneficiaries to peer persons who did not join the project. At least a number VSLA participant respondent’s equivalent to that covered in the Baseline Survey and a similar number of non-VSLA members in the control group should be covered.

12 Care

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iv) To design future monitoring and evaluation framework that takes into account gender analysis issues:  Conduct a gender analysis to establish the likely impact of the project on women and men and on the comparative economic and social relationships.  Design a monitoring and evaluation tool that tracks changes (positive and negative) in the lives of males and females with regard to the aspects including but not limited to the following: • Comparative participation by and benefits to men and women • Gender relations within the home- including self confidence and status of women • Ownership and/or control of assets • Role/responsibility in generation of household income • Decision making on spending of household income • Respective roles in household decisions • Decision making and control over loans obtained from the VSLA • Ability to interact effectively in the public sphere- including participation in non family group and community activities.

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APPENDIX I: DETAILED TARGETS AND OUTCOMES INTENDED RESULT SITUATION AS AT MID 2010 COMM ENT Target Actual GOAL : To improve the livelihoods of poor and marginalized households in Northern Uganda

Indicator 1: Poverty 50% (2009/10) No poverty head count has Not a project - head count for been conducted for the region specific Northern Uganda since the national population indicator and housing census in 2006 PURPOSE Exceeded (No. To improve access to financial services for Beneficiaries: 116,231 of 100,000 poor and marginalized households in beneficiaries) 13 northern Uganda by July 2010 through 4000 Groups: 4,328 VSLA groups INTENDED RESULT SITUATION AS AT MID 2010 COMMENT Target Actual Indicator 1: Number of Male: 30,000 Male: 34,159 Exceeded members (men/ women) Female: 70,000 Female: 82,072 (Aug 2010) ( June 2010) Indicator 2: Total: 260,000 Total: 340,410 Met Cumulative number of Male: 78,000 by June 2010 (no gender loans (men/women) Female: 182,000 disaggregated data) (Aug 2010) Indicator 3: Average At least Ush 41,000 Ush 81,387 as at June 2010 Exceeded cumulative savings per (Aug 2010) (no gender disaggregated member (men/ data). women) OUTPUT 1 : To establish 4,000 self -managed VSLAs in the districts of West Nile, Karamoja, Acholi, Lango and Teso sub-regions. Indicator 1: Number 4,000 by Aug 2010 4,328 VSLAs by June 2010 14 Met of VSLAs formed Indicator 2: Ush 4.4 billion Ush 9.4 billion Exceeded Cumulative savings (Aug 2010) by June 2010 Indicator 3: At least 30% 33% Exceeded Percentage profit on (Aug 2010) as at June 2010 members savings for active groups OUTPUT 2 : To enhance technical capacity of implementing partner organisations to implement the VSLA methodology in Northern Uganda. Indicator 1: Percentage 80% (Aug 2 010) All CBTs (100%) were able to Exceeded of CBTs meeting deliver work plans and meet performance targets their project targets by June

13 Whereas the overall purpose is stated as the no. of households, the indicators disaggregate these into male & female. Furthermore the MIS tracks no.s of beneficiaries and not house households- thus by implication, each beneficiary is assumed to represent a household. 14 Of which 1,742 are saving, 2,392 have graduated and 194 are undergoing training.

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2010 , although so me are more apt than the others Indicator 2: Number of 2,000 2,392 Exceeded groups that graduate then (Aug 2010) by June 2010 reform OUTPUT 3 To create VSLA knowledge base for use by policy makers and other stakeholders for the benefit of poor and marginalized households.

Indicator 1: Functionality Timely and up -to - 8 out the 11 IPOs produce Met of M&E unit date information reliable, timely MIS reports and (Aug 2010) the other three all produce the reports but usually with less timeliness and accuracy Indicator2: Number of Three lessons One lessons learnt paper Somewhat documents on best learned papers shared. Care has now met practices and lessons shared with Uganda documented the VSLA learned Microfinance methodology, put them on CDs community (Aug and availed them to all 2010) development partners and other stakeholders who need them. Also uploaded onto the Care website for free access. During ToTs, Annual Review Workshops and meetings with local leaders, lessons learnt are freely shared by the project (IPOs) with local stakeholders Indicator 3: Number of 14 (A ug 2010) 7 meetings held by June 2010 Not fully met meetings attended by CARE staff members where VSLA lessons were shared OUTPUT 4 . To integrate VSLA methodology with relevant development initiatives for wider adoption and scaling up. 15 Indicator 1: Number of 600 (Aug 2010) 559 groups formed in former Not fully met groups formed in parishes RALNUC sub counties where voucher for work schemes are/ were in place Indicator 2: Number of 15,000 (Aug 2010) 15,600 clients benefiting by Met voucher for work clients June 2010, of which 3,000 are benefiting from VSLA RALNUC members.

15 This output was defined too narrowly: to refer to former RALNUC groups instead of capturing all other programs that use or integrate the VSLA model in their operations

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APPENDIX II DOCUMENTS REVIEWED Mid Term Review of Scaling Up Savings to Augment Income Nationally (SUSTAIN) Phase II Project, CARE International in Uganda, November 2009

Scaling Up Savings to Augment Income Nationally (SUSTAIN) Phase II Project Implementation Report for July – September 2009 (7 th Quarter)

Scaling Up Savings to Augment Income Nationally (SUSTAIN) Phase II Project Implementation Report for January - March 2010 (9 th Quarter)

Village Savings and Loan Associations: The Roll-Out in Uganda 2006-2007- An Evaluation and Lesson Learning Study of the CARE Uganda, SUSTAIN Project, December 2007

Scaling Up Savings to Augment Income Nationally (SUSTAIN) Program Impact Assessment Report, January 2008

Proposal for Scaling Up Savings to Augment Income Nationally (SUSTAIN) Phase II: A Village Savings and Loans Association (VSLA) Programme in Northern Uganda, CARE Uganda, 31 January 2008

The Socio-Economic Situation of VSLA and Non-VSLA Clients in Northern Uganda: A Baseline Study Conducted by CARE Uganda, November 2008.

SUSTAIN II Project MIS Files- March 2009

SUSTAIN II Project MIS Files- March 2010

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APPENDIX III: ENABLING FACTORS Enabling factors that facilitated project success I. Clarity of the methodology and vivid benefits from share-outs, attracting high levels of community interest II. Keen follow up of and technical assistance to VSLA groups by the CBTs (in turn reinforced by keen TA and supervision of CBTs by IPOs and TA/supervision of IPOs by Care) III. Effective training at both Care-IPO and IPO-CBT levels, which ensured that the project personnel were competent IV. Scarcity of financial services in the project area (especially the Karamoja sub region) V. Collaboration with local governments (district and sub county) who helped with mobilisation and acceptance of the project by the community VI. CBTs were natives of the communities within which they operated making acceptance of the project easier, since they facilitated in local languages and context..

Comparitive geographical areas – what affected group performance • Other financial services - Exceptional performance in Karamoja was influenced by the absence of financial services in the region, which also attracted members outside the original target group (civil servants) to form VSLAs. • Community/ cultural attitude - Moderate performance in Teso was attributed to negativity among community members especially at project inception leading to a slow start, as individuals were suspicious about the project following the loss of savings to somewhat similar initiatives in the past. Performance gradually improved after the graduation of the first groups. • Natural occurances - Drought/ flooding also in TESO also affecting the saving ability of some members leading to moderate group performance. • Level of business awareness and skills • Social stability – Areas affected by return of people fromm IDP camps could have done better • Type of IPO chosen – Generally, the more private/ corporate and business oriented type of institutions (private sector development companies) had a business aproach which added value to the groups. The NGO and association type generally took a project appraoch focused on doing what is contracted and not necessarily adding more value.

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APPENDIX IV FINAL PROJECT LOGFRAME (MARCH 2010) PROJECT TITLE Scaling Up Savings to Augment Income Nationally Project GOAL Indicator Baseline + Milestone 1 Milestone 2 Target + year year To improve the Poverty 60.7% 50% livelihoods of headcount for (2005/06) (2009/10) Northern region poor and Source marginalised households in Uganda National Household Survey 2005/06 northern Uganda Indicator Baseline + Milestone 1 Milestone 2 Target + year year

Source

PURPOSE Indicator Baseline + Milestone 1 Milestone 2 Target + Assumptions year year

To improve Number of 0 / 0 19,271 / 44,033 30,000 / • No civil way in access to members (men (June 2009) 70,000 (Aug Northern financial services / women) 2010) Uganda • Other for 100,000 poor Source and marginalised organisations promote VSLAs households in IPO reports and group records, CARE quarterly reports, MIS northern Uganda Cumulative 0 / 0 131,580 (no 260,000 by August 2010 number of gender (78,000 / through 4000 loans (total / disaggregated 182,000) VSLA groups men / women) data available) (Aug 2010) (June 2009)

Source IPO reports and group records, CARE quarterly reports, MIS

Indicator Baseline + Milestone 1 Milestone 2 Target + year year Average 0/0 57,283 (no At least USH cumulative gender 41,000 / savings per disaggregated USH member (men / data available) 410,000 women) (June 2010) (Aug 2010) Source IPO reports and group records, CARE quarterly reports, MIS INPUTS (£) DFID (£) Govt (£) Other (£) Total (£) DFID SHARE (%)

INPUTS (HR) DFID (FTEs)

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OUTPUT 1 Indicator Baseline + Milestone 1 Milestone 2 Target + Assumptions year year

To establish 4000 Number of 0 (July 2008) 2624 (June 4000 (June 4000 (Aug • Competition self-managed VSLAs formed 2009) 2010) 2010) from other agencies like VSLAs in the Source districts of West MFIs and peer organisations do Nile, Karamoja, IPO reports and group records, CARE quarterly reports, MIS not interfere Acholi, Lango and Indicator Baseline + Milestone 1 Milestone 2 Target + with VSLA Teso sub-regions year year activities Cumulative 0 (July 2008) USH 3.1 billion USH 4.4 savings (June 2009) billion (Aug 2010) Source IPO reports and group records, CARE quarterly reports, MIS

IMPACT Indicator Baseline + Milestone 1 Milestone 2 Target + WEIGHTING year year 40% Percentage 0 (June 28% (June At least 30% profit on 2008) 2009) (Aug 2010) members Source RISK RATING savings for active groups IPO reports and group records, CARE quarterly reports, MIS Med INPUTS (£) DFID (£) Govt (£) Other (£) Total (£) DFID SHARE (%)

INPUTS (HR) DFID (FTEs)

Score 1

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OUTPUT 2 Indicator Baseline + Milestone 1 Milestone 2 Target + Assumptions year year

To enhance Percentage of 0% 84% (June 80% (Aug • There is technical capacity CBTs meeting 2009) 2010) demand for VSLAs of implementing performance Source partner targets • IPOs will be organisations to IPO reports and group records, CARE quarterly reports, MIS, committed to promotion of implement the Advisers’ reports VSLA VSLA methodology Indicator Baseline + Milestone 1 Milestone 2 Target + methodology in Northern year year Uganda Number of groups 0 298 (June 2000 (Aug that graduate and 2009) 2010) then reform Source IPO reports and group records, CARE quarterly reports, MIS, Advisers’ reports IMPACT Indicator Baseline Milestone 1 Milestone 2 Target WEIGHTING (date) 30% Source RISK RATING High

INPUTS (£) DFID (£) Govt (£) Other (£) Total (£) DFID SHARE (%)

INPUTS (HR) DFID (FTEs)

Score 2

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OUTPUT 3 Indicator Baseline + year Milestone 1 Milestone 2 Target + year Assumptions

To create VSLA Functionality of No M&E unit M&E unit Timely and • There is an knowledge M&E unit established updated interest by base for use by (June 2009) information policy makers and policy makers (Aug 2010) stakeholde and other Source rs in the stakeholders knowledge for the benefit base of poor and Indicator Baseline + year Milestone 1 Milestone 2 Target + year marginalised households Number of No No One lesson Three lessons documents on documentation documentation learned learned best practices of lessons of lessons document papers shared and lessons learned learned (June shared with with Uganda learned 2009) Uganda microfinance microfinance community community (Aug 2010) (June 2010) Source CARE quarterly reports, project documents

IMPACT Indicator Baseline Milestone 1 Milestone 2 Target (date) WEIGHTING 20% Number of 0 6 (June 2009) 14 (Aug 2010) meetings Source RISK RATING attended by CARE staff CARE quarterly reports, copies of presentations Low members where VSLA lessons were shared INPUTS (£) DFID (£) Govt (£) Other (£) Total (£) DFID SHARE (%)

INPUTS (HR) DFID (FTEs)

Score 2

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OUTPUT 4 Indicator Baseline + Milestone 1 Milestone 2 Target + Assumptions year year

To integrate VSLA Number of 0 194 (June 600 (Aug • VSLA adds methodology with groups formed 2009) 2010) value to other development relevant in parishes Source development where voucher initiatives initiatives for wider for work IPO reports, CARE quarterly reports, MIS adoption and schemes scaling up are/were in place Indicator Baseline + Milestone 1 Milestone 2 Target + year year Number of 0 4,500 (June 15,000 groups formed 2009) (Aug 2010) in parishes Source where voucher for work IPO reports, CARE quarterly reports, MIS schemes are/were in place IMPACT Indicator Baseline Milestone 1 Milestone 2 Target WEIGHTING (date) 10% Source RISK RATING Low

INPUTS (£) DFID (£) Govt (£) Other (£) Total (£) DFID SHARE (%)

INPUTS (HR) DFID (FTEs)

Score 3

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APPENDIX V: PROJECT LOGFRAME (DEC 2009) GOAL Indicator Baseline Milestone Milestone Target end 2010 2008 1 2009 2 2010 To improve • Acquisition 0 50,000 50,000 100,000(70,000F;30,000M) the and protection (35,000F; (35,000F: livelihoods of of household 15,000M) 15,000M) poor and assets Source marginalized • Positive Quarterly reports households changes in End of project report in Northern clients Uganda household welfare Indicator Baseline Milestone Milestone Target 2010 2008 2009 2010 • Level of 0 35,000F 35,000F 70,000F members’ 15,000M 15,000M 30,000M social status and self Source esteem Eop report • Level of Project Evaluation report control of Impact assessment report resources by women

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PURPOSE Indicator Baseline Milestone Milestone Target + year Assumption 2008 1 2009 2 s 2010 To improve • At least 25% 0 50,000 50,000 100,000(70,000F;30,000M Security access to annual (35,000F; (35,000F: ) remains financial increment of 15,000M) 15,000M) stable services for members Source Conducive 100,000 poor savings • VSLA annual report and stable and • Saving • IPO reports and group records economic marginalized capacity of • Impact studies environment households 90% VSLA • Case studies in northern members • Final evaluation Uganda by increased • End of project report July 2010 • Indicator Baseline Milestone Milestone Target + year through 4000 + year 1 2009 2 2010 VSLA groups • At least 60% 0 30% 60% 60% of VSLA Source members with • Baseline report diversified • VSLA annual report sources of • IPO reports and group records income by • Impact studies EoP • Case studies • Final evaluation • End of project report INPUTS (£) DFID (£) Gov t (£) Other (£) Total (£) DFID SHARE (%)

1,312,389 51,461 1,363,850 96% INPUTS DFID (FTEs) (HR)

OUTPUT 1 Indicator Baseline Milestone Milestone Target + year 2010 Assumption + year 1 2 s 2009 2010 To establish • Number of 0 2000 4000 4000 People are 4,000 self- VSLAs formed Source willing to form managed • Cumulative • Quarterly project progress reports VSLAs VSLAs in the saving value • VSLA annual report districts of • IPO and Group records Competition West Nile, • Final evaluation from other Karamoja, • End of project report agencies like Acholi, Indicator Baseline Milestone Milestone Target + year 2010 MFIs, peer Lango and + year 1 2 organisations Teso sub- 2009 2010 not to regions. interfere with • % of portfolio 0 50% 60% 60% VSLA utilisation Source activities • At least 50% of • Quarterly project progress reports the VSLAs

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graduate & • VSLA annual report regroup by EoP • IPO and Group records • Percentage of • Final evaluation VSLA clients • End of project report retention rate IMPACT Indicator Baseline Milestone Milestone Target + year WEIGHTING + year 1 2 2009 2010 40% Number of VSLAs 0 300 1700 2000 formed and being Source RISK able to be self RATING sustaining • Quarterly project progress reports Low • VSLA annual report • IPO and Group records • Final evaluation INPUTS (£) DFID (£) Govt (£) Other (£) Total (£) DFID SHARE (%)

925,358 12,865.3 938,223.3 98.6% INPUTS DFID (FTEs) (HR)

OUTPUT 2 Indicator Baseline Milestone Milestone Target + year Assumptions + year 1 2 2009 2010 To enhance • 235 IPO staff 0 176 CBTs, 176 CBTs, 235 IPO staff trained (200 The program technical trained (200 42 42 CBTs and 35 supervisors ) is able to capacity of CBTs and 35 supervisor supervisor identify implementin supervisors ) s s suitable IPOs g partner Source who are able organisation to develop s to sufficient implement Indicator Baseline Milestone Milestone Target + year capacity to the VSLA + year 1 2 promote methodology 2009 2010 VSLA in Northern 80% of CBTs able 0 30% 50% 80% methodology. to effectively Uganda. Source deliver their work • Qualified plans and meeting IPO capacity assessment reports • CBTs are performance Training and field follow up reports • available and targets Quarterly project progress reports • IPO and group records retainable

• Monitoring and follow up reports Membership/client satisfaction with • Final evaluation CBTs, group leadership and VSLA products IMPACT Indicator Baseline Milestone Milestone Target (date) WEIGHTING 1 2 2009 2010 30% Implementing 0 Not less At least At least 60%

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partner than 20% 40% organisations Source RISK being able to run RATING VSLA operations • Quarterly project progress reports Assumption 1 and ensure good • IPO and group records Low quality of work and • Monitoring and follow up reports Assumption 2 continuity of the • Final evaluation High methodology INPUTS (£) DFID (£) Govt (£) Other (£) Total (£) DFID SHARE (%)

164,596.5 12,865.3 177,461.8 93% INPUTS DFID (FTEs) (HR) OUTPUT 3 Indicator Baselin Milestone Milestone Target + year Assumptions e + year 1 2 To create • Number of 0 Not less At least At least 60% Policy VSLA Reliable, than 20% 40% environment knowledge timely and Source is conducive base for use accurate MIS • MIS reports for by policy reports • Quarterly project progress reports engagement makers and produced by • Final evaluation other IOs and stakeholders consolidated Policy makers for the by CARE & other benefit of Uganda stakeholders poor and • Improved are willing to marginalized project M&E utilize the households. unit for information collection and storage of VSLA data Indicator Baselin Milestone Milestone Target + year e + year 1 2 2009 2010 • Best 0 100 copies 200 copies 300 copies. practices and distributed to other lessons learnt stake documented holders and Source disseminated • Quarterly project progress reports ( both • Final evaluation nationally and regionally) • Participation in policy for a Northern Uganda and rural financial outreach IMPACT Indicator Baselin Milest one Milestone Target (date)

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WEIGHTING e 1 2 20% Source RISK RATING Assumption 1: Low Assumption 2: Medium INPUTS (£) DFID (£) Govt (£) Other (£) Total (£) DFID SHARE (%)

133,299.58 12,865.3 146,164.8 91% INPUTS DFID (FTEs) (HR) OUTPUT 4 Indic ator Baselin Milestone Milestone Target + year Assumptions e + year 1 2 2010 2009 2010 To integrate • At least two 0 2 2 2 Other VSLA partners have Source development methodology integrated • IPO progress reports and group records initiatives with relevant VSLA • Quarterly project progress reports including development activities into • Final evaluation VFW are initiatives for VFW receptive & wider schemes in able to adoption and Northern integrate of scaling up. Uganda the VSLA Indicator Baselin Milestone Milestone Target + year methodology. e + year 1 2 2010 2009 2010 • At least 600 0 100 500 600 VSLA groups Source formed and • IPO progress reports and group records benefiting at • least 15,000 Quarterly project progress reports • Voucher for Final evaluation work clients IMPACT Indicator Baselin Milestone Milestone Target (date) WEIGHTING e 1 2 2010 2009 2010 10% Number of IPOs 0 At least 2 At least 5 7 IPOs integrating VSLA in IPOs IPOs other development Source RISK initiatives RATING • Quarterly project progress reports Low • Monitoring and follow up reports • Final evaluation INPUTS (£) DFID (£) Govt (£) Other (£) Total (£) DFID SHARE (%)

89,134.8 12,865.3 102,000.1 87% INPUTS DFID (FTEs) (HR)

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Activities Log OUTPUT 1 ACTIVITY 1.1 Mi lestone 1 Milestone 2 Milestone 3 Risks 2008 2009 2010 To establish 4,000 Identification and capacity assessment At l east 14 11 partners 11 partners Competition from other self-managed of potential partners potential partners service providers. VSLAs in the districts of West Activity 1.2 Milestone 1 Milestone 2 Milestone 3 Nile, Karamoja, 2008 2009 2010 Acholi, Lango and Sub granting of selected partners 11 partners 11 partners 11 partners Teso sub-regions. Activity 1.3 Milestone 1 Milestone 2 Milestone 3 2008 2009 2010 Conduct TOTs and refresher courses in 4 TOTS 11MIS courses VSLA methodology, MIS/M&E, 2refreshers 2refreshers 2 refreshers Supervision, M&E and financial 1 ME / MIS 2 TOT 1 Financial management

Activity 1.4 Milestone 1 Milestone 2 Milestone 3 2008 2009 2010 Conduct follow -up monitoring and 33 visits 44 visits 22 visits mentoring visits

ACTIVITY 1.5 Milestone 1 Milestone 2 Milestone 3 2008 2009 2010

Facilitate partners to mobilize, form, 959,262,966/= 894,014,185/= 463, 319, 287/= train and mentor VSLA groups ACTIVITY 1.6 Milestone 1 Milestone 2 Milestone 3 2008 2009 2010 Org anize and carry out exchange visits 5 exchange visits 0 0 for partners and groups

Milestone 1 Milestone 2 Milestone 3 Activity 1.7 2009 2009 2010

Facilitate partners to conduct tailored 0 0 5 trainings for trainings for group committees group committes

OUTPUT 2 ACTIVITY 2.1 Milestone 1 Milestone 2 Milestone 3 Risks To enhance Recruitment and deployment of staff 176 CBTs 176 CBTs 176 CBTs High Turn over rate technical capacity members 42 supervisors 42 supervisors 42 supervisors of implementing ACTIVITY 2.2 Milestone 1 Milestone 2 Milestone 3 partner 2008 2009 2010 organisations to Review and redesign tools used to Training manual Review and implement the provide VSLA technical support i.e. redesign of 7 VSLA training manual, group record keeping M&E tools, 1 log methodology in systems, application of the MIS based frame.

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Northern Uganda. on lessons learnt from Phase I

ACTIVITY 2.3 Milestone 1 Milestone 2 Milestone 3 Conduct program audits including staff 7 Staff appraisal 8 staff appraisal 8 staff appraisal performance appraisals 11 IPO audits 11 IPO audit 11 IPO audit 1 Program report 1 Program report Milestone 1 Milestone 2 Milestone 3 Activity 2.4 2008 2009 2010

Develop and refine monitoring and Training manual Review and support supervision systems/tools redefined redesign of 7 M&E tools, 1 log frame.

Activity 2.5 Milestone 1 Milestone 2 Milestone 3 2008 2009 2010 0 0 5 regional trainings Conduct trainings for staff and groups for committee committee members in application of members the systems/tools

Activity 2.6 Milestone 1 Milestone 2 Milestone 3 2008 2009 2010 33 field visits 44 field visits 22 field visits Conduct routine monitoring program evaluations

Activity 2.7 Milestone 1 Milestone 2 Milestone 3 2008 2009 2010 Conduct national, regional, and 4 regional 1 s take holder’s 1 stake holder’s organizational review meetings launches meeting meeting 1 MTR meeting 1 End of project Meeting 11 IPO meetings Activity 2.8 Milestone 1 Milestone 2 Milestone 3 2008 2009 2010 Streamline channels of communication 6 M& E tools 8 M&E tools 8 tools and feedback on performance developed for accumulated. progress across the different levels reporting and communication OUTPUT 3 ACTIVITY 3.1 Milestone 1 Milestone 2 Milestone 3 Risks 2008 2009 2010 To create VSLA Review and establish M&E systems 6 M& E tools 8 M&E tools 8 tools knowledge base developed for accumulated. for use by policy reporting and makers and other communication stakeholders for ACTIVITY 3.2 Milestone 1 Milest one 2 Milestone 3 the benefit of poor 2008 2009 2010 and marginalized Conduct routine monitoring 33 field visits 44 field visits 22 field visits

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households. ACTIVITY 3.3 Milestone 1 Milestone 2 Milestone 3 2009 2010 11 MIS 1 general MIS 11 MIS reviews Install and train staff including partners installations training staff in the utilization of the global 11 MIS VSLA MIS refreshers Activity 3.4 Milestone 1 Milestone 2 Milestone 3 2008 2009 2010 Train partners staff in data collection, 11 MIS 1 general MIS 11 MIS reviews cleaning, analysis and report writing installations training 11 MIS refreshers Activity 3.5 Milestone 1 Milestone 2 Milestone 3 2008 2009 2010

Conduct client level impact assessment 1 Base line 1 MTR 1 final evaluation studies Study 1 Annual report 1 end of year closure report Activity 3.6 Milestone 1 Milestone 2 Milestone 3 2008 2009 2010 Establish channels for easy storage 11 individual IPO 4 aggregated 6 Aggregated MIS and retrieval of the information MIS reports MIS reports report. captured to feed other outputs

Activity 3.7 Milestone 1 Milestone 2 Milestone 3 2008 2009 2010 Production of VSLA materials and 1 vi deo 300 fliers videos

Activity 3.8 Milestone 1 Milestone 2 Milestone 3 2008 2009 2010 Production and distribution of IEC 0 0 0 materials Activity 3.9 Milestone 1 Milestone 2 Milestone 3 2008 2009 2010 Documentation and dissemination of 0 100 copies 200 copies to other VSLA best practices distributed stake holders

Activity 3.10 Milestone 1 Milestone 2 Milestone 3 2008 2009 2009 Share learning and participate in the 1 TOT in 2 MIS trainings in 1 learning event CARE global VSLA earning and Sieraleone Dar es Salaam knowledge sharing program 1 learning agenda

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OUTPUT 4 ACTIVITY 4 .1 Milestone 1 Milestone 2 Milestone 3 Risks 2008 2009 2010 To integrate VSLA Conduct orientation/field visits to 6 visits 4 visits 0 New innovation that may methodology with RALNUC operation areas to lead to dilution of the VSLA relevant understand the program methodology. development ACTIVITY 4 .2 Mi lestone 1 Milestone 2 Milestone 3 initiatives for wider 2008 2009 2010 adoption and Organize and conduct VSLA exchange 3 exchange visits 0 0 scaling up. visits for RALNUC staff ACTIVITY 3.3 Milestone 1 Milestone 2 Milestone 3 Review and desig n strategy for VSLA 1 strategy 1 review meeting 1 final Assessment integration into VFW

APPENDIX VI: LIST OF PERSONS INTERVIEWED No. Name Designation Organization 1. Mr. Oundo Leonard VSLA Advisor Care Uganda 2. Ms. Kaawe Sy lvia M&E Coordinator - VS&L Program Care Uganda 3. Mrs. Majara Grace Program Manager - VS&L Care Uganda Kibombo 4. Mr. Tasenga Nelson CEO APSEDEC 5. Mr. Otim Micheal Project Coordinator SUSTAIN II APSEDEC 6. Ms. Lakwonyero Susan Microfinance Officer APSEDEC 7. Mr. Ochola Bosco Deputy LC V Chairman Kitgum District 8. Mr. Arema Christopher Linkage Banking Officer/ CBT Nyadri, Arua District 9. Mr. Ocaya Stephen Linkage Banking Officer / CBT Arua District 10. Mr. Okello Joseph Asst. District Commercial Officer Apac District 11. Mr. Otim Remison Board Chairman Apac District Farmers Association 12. Mr. Ateng Francis Asst. Chief Administrative Officer Apac District 13. Mr. Okello Basil Secretary for Production Apac District 14. Ms Amoding Grace Ag. Ma nager UWESO North Eastern 15. Ms. Ikareut Betty Senior Probation Officer Katakwi District 16. Mr. Imanut Collins LC III Chairman Katakwi District 17. Mr. Riisa Joshua Jefferson District Commercial Officer Moroto District 18. Mr. Katalemwa Martin Microf inance Officer KPSDPCL 19. Ms Achayo Mary Latuk CBT - Kotido KPSDPCL

Focus group discussions

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No. Group Location 1. Yapi VSLA Pajulu, Arua 2. Hope Women Association Pajulu, Arua 3. Yapi Gender Inclusive VSLA Pajulu, Arua 4. Control Group Pajulu, Arua 5. IPO Staff- Acholi Private Sector Promotion Company Ltd Kitgum District 6. Jing Paco VSLA Kitgum Town 7. Corner Mission Womens Group Kitgum Town 8. Ribe Aye Teko “A” Kitgum Town 9. Ribe Aye Teko “B” Kitgum Town 10. Ribe Aye Teko “C” Kitgum Town 11. Wan Kono VSLA Kitgum Town 12. Poro “A” Womens’Group Kitgum Town 13. Adaari Womens’Group Kitgum Town 14. Tik Gino Okeli VSLA Ibuje, Apac 15. Wek Otem VSLA Ibuje, Apac 16. Aooli Kwach VSLA Ibuje, Apac 17. Ter Can Iporo VSLA Chegere, Apac 18. Pena Ican Mixed VSLA Chegere, Apac 19. IPO Staff- UWESO North Eastern Region Soroti District 20. Anyoutu Ocan VSLA Omodoi, Katakwi 21. Apetosi Ican VSLA Omodoi, Katakwi 22. Asomu- Agogong Group Omodoi, Katakwi 23. Acatu VSLA Omodoi, Katakwi 24. Asianat VSLA Omodoi, Katakwi 25. Atitingoto VSLA Omodoi, Katakwi 26. Ochamunos Mixed Group Ngoleriet, Moroto 27. Mwarubian Mixed VSLA Group Ngoleriet, Moroto 28. Kitopolo Mixed Group Ngoleriet, Moroto 29. Aee Peace Catholic Women’s Group Ngoleriet, Moroto 30. Mothers Union Womens’Group Ngoleriet, Moroto

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APPENDIX VII: GENDER DISAGREGATED TABLES AND CHARTS

Figure 13: Diversity of household income sources by gender of the household

Gender of HH head Male Female Total Number of 1 Count 21 8 29 income Percent 36.8% 33.3% 35.8% sources 2 Count 20 6 26 Percent 35.1% 25.0% 32.1% 3 Count 12 8 20 Percent 21.1% 33.3% 24.7% 4 Count 4 2 6 Percent 7.0% 8.3% 7.4% Total Count 57 24 81 Percent 100.0% 100.0% 100.0%

Figure 14: Acquisition of assets by male VSLA members before and after the project

Figure 15: Acquisition of assets by female VSLA members before and after project

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Figure 16: Investments made by VSLA members before the project by gender

Sex Male Female Total Type of Farm implements Count 3 2 5 investment Percent 50.0% 20.0% 31.3% before joining the Livestock Count 1 0 1 VSLA Percent 16.7% .0% 6.3% Educating children Count 0 6 6 Percent .0% 60.0% 37.5% Business Count 1 0 1 Percent 16.7% .0% 6.3% Radio Count 0 1 1 Percent .0% 10.0% 6.3% Poultry Count 1 1 2 Percent 16.7% 10.0% 12.5% Total Count 6 10 16 Percent 100.0% 100.0% 100.0%

Figure 17: Investments made by VSLA members after the project by gender

Sex Male Female Total Type of Household assets Count 2 1 3 investment Percent 6.9% 2.1% 3.9% after joining the VSLA Farm implements Count 0 6 6 Percent .0% 12.5% 7.8% Livestock Count 6 16 22 Percent 20.7% 33.3% 28.6% Educating children Count 2 8 10 Percent 6.9% 16.7% 13.0% Business assets Count 7 11 18 Percent 24.1% 22.9% 23.4% Bicycle Count 6 1 7 Percent 20.7% 2.1% 9.1% Permanent building Count 3 3 6 Percent 10.3% 6.3% 7.8% Motorcycle Count 1 0 1 Percent 3.4% .0% 1.3% Land Count 2 2 4 Percent 6.9% 4.2% 5.2% Total Count 29 48 77 Percent 100.0% 100.0% 100.0%

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Figure 18: VSLA members who have made investments out of their savings by gender

Sex Total Male Female

Have you made an Yes Count 29 47 76 investment out of Percent 96.7% 94.0% 95.0% your savings? No Count 1 3 4 Percent 3.3% 6.0% 5.0%

Total Count 30 50 80 Percent 100.0% 100.0% 100.0%

Figure 19: Origin of money used by VSLA members to acquire assets by gender

Sex Male Female Total Origin of Profits from sales Count 7 11 18 money used Percent 23.3% 21.6% 22.2% to acquire assets Savings from VSLA Count 14 26 40 Percent 46.7% 51.0% 49.4% Loan from VSLA Count 6 13 19 Percent 20.0% 25.5% 23.5% Grant from NGO Count 0 1 1 Percent .0% 2.0% 1.2% Salary/ wages Count 3 0 3 Percent 10.0% .0% 3.7% Total Count 30 51 81 Percent 100.0% 100.0% 100.0%

Figure 20: Number of meals taken per day by households before the project by gender

Gender of HH head Male Female Total Number of meals One meal Count 14 7 21 per day consumed Percent 24.6% 29.2% 25.9% before joining the VSLA Two meals Count 36 15 51 Percent 63.2% 62.5% 63.0% Three meals Count 7 2 9 Percent 12.3% 8.3% 11.1% Total Count 57 24 81 Percent 100.0% 100.0% 100.0%

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Figure 21: Number of meals taken per day by households after the project by gender

Gender of HH head Male Female Total Number of meals One meal Count 2 0 2 consumed per day Percent 3.5% .0% 2.5% after joining VSLA Two meals Count 24 11 35 Percent 42.1% 45.8% 43.2% Three meals Count 31 13 44 Percent 54.4% 54.2% 54.3% Total Count 57 24 81 Percent 100.0% 100.0% 100.0%

Figure 22: Household consumption of sugar before the project by gender of household head

Gender of HH head Male Female Total Frequency of sugar Daily Count 11 3 14 consumption before Percent 19.3% 13.0% 17.5% joining VSLA Occassionally Count 36 15 51 Percent 63.2% 65.2% 63.8% Never Count 10 5 15 Percent 17.5% 21.7% 18.8% Total Count 57 23 80 Percent 100.0% 100.0% 100.0%

Figure 23: Household consumption of sugar after the project by gender of the household head

Gender of HH head Male Female Total Frequency of sugar Daily Count 39 17 56 consumption after Percent 68.4% 73.9% 70.0% joining VSLA Occassionally Count 18 5 23 Percent 31.6% 21.7% 28.8% Never Count 0 1 1 Percent .0% 4.3% 1.3% Total Count 57 23 80 Percent 100.0% 100.0% 100.0%

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Figure 24: Households with all children of school going age in school before the project by gender of the household head

Gender of HH head Male Female Total All children of school Yes Count 34 17 51 going age in school Percent 59.6% 70.8% 63.0% before joining VSLA? No Count 23 7 30 Percent 40.4% 29.2% 37.0% Total Count 57 24 81 Percent 100.0% 100.0% 100.0%

Figure 25: Households with all children of school going age in school after the project by gender of the household head

Gender of HH head Male Female Total All children of school Yes Count 51 22 73 going age in school Percent 91.1% 91.7% 91.3% before joining VSLA? No Count 5 2 7 Percent 8.9% 8.3% 8.8% Total Count 56 24 80 Percent 100.0% 100.0% 100.0%

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APPENDIX VIII: PERSONAL STORIES 1. HELEN KEBRI (YAPI GENDER INCLUSIVE VSLA, ARUA) –From desperation to comfort My name is Helen Kebri and I am a member of Yapi Gender Inclusive VSLA, Pajulu sub country in rural Arua. I am 47 years old and a single mother of 4 surviving children. In the year 2000, my husband left me in a bitter separation. He left me a poor, hopeless and destitute woman with six children to care for. I fell sick and did not recover for years. I had no income and we survived on the mercies of other people, sometimes doing without food for whole days. Two of my children died and I was so worried and frustrated that I nearly ran mad. My brother with whom my children and I were living chased us away from his home and we became really destitute. I joined the VSLA in August 2008 and started saving the little money I could get from occasional odd jobs like splitting firewood and fetching water for people. With my first loan from the VSLA, I bought dried cassava and millet grain, took for milling and then retailed the flour by the roadside to small buyers. I still have that business and I now also sell soft drinks. All the four of my children are now in school and I have managed to build a mud-brick house from the VSLA share-outs. I buy clothes for myself and my children and we have three meals a day. I really thank Care and the other people who brought us this project of the Cash Box. By now, I would have died with all my children.

Helen Kebri as she tells her moving story: she can now afford a smile

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2. TEREZINA DEBORU – The woman got surprised she could save enough to build I used to believe in the Lugbara saving, “Nyabor Nyabori” which means, whatever is there is to be eaten. I was a poor housewife without any money generating activitiy. So I used to depend on my husband and gossip with other women all day. I joined the VSLA in 2008 and there I got ideas on doing business. I borrowed money and started selling foodstuffs and other petty items in markets. With this, I got money for saving every week. I again got another loan which I used for buying a piece of land and starting a building. When the share-out time came, I got my money and put it in the building. As I speak now, I have a four-roomed house. I also used part of the share-out money to buy goats which we now rear as a side activity. 3. ALI NASUR: Yearning to join a VSLA- Arua My name if Ali Nasur and my wife is Rehema Anguparu. I have missed a lot my not joining a VSLA and I am now determined to join. Before this project started, I had a bad experience for two years with a large MFI. I borrowed money from the MFI and soon discovered that the interest and charges were so high that while I earned well from my work, I was really working for the MFI but not for myself. So I decided that neither I nor any member of my home should ever get involved with any kind of microfinance again. When one day my wife came home to tell me about the VSLA shame, I warned her not to join. The following week, she brought the CBT called Winifred Ajian. I warned her to leave my wife alone and wanted to beat her up. I again warned my wife not have anything to do with microfinance. But she decided to do it quietly and so months later when I learnt that she was attending the meeting, we fought in the house three times over on this. My wife later said she was only attending the meetings and not getting any loans. I allowed that with another warning. But one day I was so surprised when my wife came back home with some clothes for me, for the children, rice, wheat flour, cooking oil and hundreds of thousands of shillings. I was confused and asked what had happened. She just said “we got dividends from the group you did not want me to join”. I was pleasantly surprised and asked her to explain to me how the thing works. She did and because of what had happened (my wife uplifting the standards at home without even borrowing), I started to look for a VSLA to join. It was too late but now I am organizing a new group and we are forming our own VSLA which will be modeled after those in the project. We are so far 15 and we want to make 30. I am absolutely sure that VSLA is the way to go.

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Ali narrating his experience Ali with his soon-to-be CBT

4. STEVEN ORWOTHO – From poverty to wealth I am Steven Orwotho from Pajule sub county in Arua. For years, I was comfortable with poverty because I though that was what fate had decided for me. When I joined the Yapi Gender Inclusive VSLA in 2008, I did not expect much. But the group discipline required compulsory weekly savings, which I managed to raise from my scanty and meagre income. In 2009, I used a loan from the group to buy two boda-boda motorcycles. I ride one and I have hired a young man to ride another. The returns are very good and now I save much. From the boda-boda earnings, I have built two kiosk-shops. One is rented out and I employ a person as the shop keeper in the other. At the end of the last cycle in 2009, I got the pay-out and bough all bricks I need to build my permanent house. Using the earnings from boda-bodas and kiosk, I have been buying cement and other building material. I now have most of the materials needed and soon I am starting to construct my permanent house. This thin is really good. It has made me realize a dream I never even had

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Orwotho near his kiosks Ready to start building The hut Orwotho is about to leave for good

5. ALICE AKELLO: RIBE C VSLA, KITGUM – HIV positive widow with renewed hope I am an HIV positive widow. My husband died of AIDS six years ago and left me with nothing to care for myself and the children. I suffered so much. The only thing I could do to get some money (which was always critically inadequate) was going to the far away swamps to cut papyrus for sale. Because what I could get was not enough even to feed us, I borrowed and begged a lot from my relatives, who soon got tired of me and told me openly never to go to their homes for money. I was so poor and I had children to care for. In Feb 2009, I joined the VSLA and I was encouraged to continue making the weekly savings, which I did with hardship. The same year, I borrowed SH 50,000 and started business of fish mongering. It was so good and my profits built up quickly. I now trade in smocked fish between Kampala and Kitgum and the business is very good. When the cycle ended and the action audit was done, I got a lot of money that boosted my business. I now also sell tomatoes and trade in Kitenge (African fabric made from cotton) from Kampala to Kitgum. That business is also doing well. I now have enough money to save, enough food for the family and school fees for the children. I am very, very happy with this cash box project and I will remain a member of this VSLA until I die.

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Alice Akello telling her story… As other beneficiaries listen

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