Blantyre-based Stephanos Foundation has urged communities in Ngabu, Chikwawa to venture into village banking to transform their financial status for the better.
Stephanos programmes manager Chimwemwe Hara said this on Wednesday at Ngabu where members of village banking groups shared K2 million they had saved in 2014.
“We pumped in K10 million into the project at the time it was being launched. We have seen the fruits because most families are independent. Even those who were affected by poverty have been liberated,” said Hara.
During the event, it was established that some members have bought farms while other are rearing chickens, using last year’s proceeds amounting to K800 000.
Senior group village head N’gabu advised his subjects to take keen interest in the concept so that they prosper through farming and other business ventures.
He said government would promote the concept considering its plausibility in various countries globally.
A member of Tidala Group, Anthony Jida, said he has used his share to buy goats, chickens and farm inputs.
The introduction of village banking is as a result of what Chancellor College law lecturer Ngeyi
Kanyongolo described as failure by lending institutions to reach out to remote areas.
She noted that most women have the drive to engage in meaningful economic activities, but their efforts are thwarted because of gaps in micro-financing systems and laws to support them.
Recent research conducted reveals that apart from lack of access to loans, women have little information as to how and where to get loans.
Additionally, with micro-finances becoming limited, village savings and loans are said to be the solution.
Meanwhile, Stephanos Foundation has stressed the need for communities to save their finances so that they support their social being financially.