Village Savings and Loan Association (VSLA) Groups Support

Overview

Under the KOICA-funded project Building Climate Resilience for Food Security in Somaliland, the Somaliland Community Action Network (SCAN) is currently supporting 34 Village Savings and Loan Association (VSLA) groups. These groups are composed primarily of rural women who lack access to formal financial institutions, and the initiative is designed to build their financial resilience and improve their livelihoods through structured savings and lending mechanisms.

Support Provided to VSLA Groups

SCAN provides the following support from WFP to each of the 50 VSLA groups:

End-of-Cycle Grant

Upon completion of their savings cycle, each VSLA group will receive a grant to support and expand their livelihood activities. This grant is specifically designed to benefit rural women who are largely excluded from formal financial services, providing them with access to capital that will enable them to invest in income-generating activities, strengthen household food security, and build long-term economic resilience.

Expected Outcomes

• Strengthened financial literacy and savings discipline among VSLA members.
• Improved governance and management of community savings groups.
• Increased access to financial resources for rural women.
• Enhanced livelihoods and household food security through end-of-cycle grants.
• Greater economic independence and resilience among women in target communities.
• Sustainable community-based financial systems beyond the project period.