K19 million earmarked for community revolving fund in Blantyre
BY Memory Chatonda
Blantyre, March 27, Mana: Foundation for Irrigation and Sustainable Development (FISD) in collaboration with Blantyre district council has disbursed K19 million to 24 village Savings and Loans groups in Blantyre.
FISD Savings, Credit and Gender Coordinator Amy Tchongwe told Malawi News Agency on Monday that the Funds seek to economically empower rural communities to engage in sustainable income-generating activities to support their livelihoods.
“The funds amounting to K19,171,160 is meant to be used by the community on a revolving system such that when one borrows the funds, the person will be required to pay back at an agreed period so that others can benefit.
“So, we target VSL groups which are composed of men, women and youth in the Traditional Authorities Kuntaja, Makata, Lundu and Machinjiri,” she said.
Tchongwe said the groups are identified based on their organisation, cohesiveness of the members, group goals, record keeping, and also how FISD and Blantyre district council could recover the loans.
“The successful ones acquire the loans and those that fail are monitored so that they meet the requirement to access the loans. Currently, the loan has an interest of six percent payable for four months,” she explained.
Members of Kasimonje, one of the VSL groups that have accessed the revolving fund in T/A Lundu, underscored the benefit of the intervention in uplifting themselves economically.
Kasimonje group chairperson Kalimwayi Phiri said: “normally youths who are out of school have difficulties to access loans to venture into different businesses for supporting their day-to-day living. So today, we are grateful for this intervention.”
The funds that FISD is disbursing are being managed by Blantyre district council and Area Task Force teams while World Food Programme is the funder.
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