VSLs Can Fuel Poverty If Poorly Managed - Expert
An expert in Village Savings and Loans (VSLs) says if poorly managed, VSLs have potential of fueling poverty among their members especially those in credit base.
But the expert, Boyce Mafeni, who is also a VSL trainer, says VSLs can turnaround the country’s economy and individual household economies as some are able to buy farm inputs, livestock and pay school fees for their children.
“Some people join many VSL groups and end up accumulating huge debts which they struggle to remit as time to share the profits draws closer,” said Mafeni.
Mafeni has since asked members to understand the concept of VSL before joining any group.
Almost every year end, both mainstream and social media are awash with stories of some individuals losing their property, others committing suicide after failing to remit their debts to VSLs.