Village savings groups have become phenomenal in Malawi to the extend they are handling significant volumes of cash in circulation. They are now being encouraged to adopt the culture of banking which is significantly low in Malawi.
In Dedza district, for example, some Village Savings Loan Groups are able to mobilize over ten million Kwacha in cash. This is cash at risk of theft as it is mostly kept in the homes.
In a bid to safeguard the villagers' hard earned cash, the villagers are now establishing savings and lending groups. The idea is to eventually get to be banked with established financial institutions.
Desk Officer for Economic Empowerment, Dalitso Ndinda, told Zodiak Online Tuesday, as it is at the moment, there is no security for most Village Savings Loan Groups as they are a target for possible attacks.
"That is why we are encouraging the groups to save their money though banks or SACCO," Ndinda said.
Dedza district alone has a total of 2,921 Village Savings Loan groups which has a membership of around 58 thousand people.
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Last modified on Tuesday, 03/12/2019