Establishment of the Village Saving and Loan Association (VSLA) has shifted farmers’ mindset towards business opportunities. It has enabled farmers to start small businesses and enhanced their wellbeing.

Mang’oto is a village in the southern highlands of Tanzania. The village has a population of 3700 people and is 2000m above sea level. The village is part of the Makete region, which struggles with poverty.

VSLA’s establishment was supported by the Tanzania Tree Growers Associations Union (TTGAU), which is one of FFD’s parterns. The loan program has been designed so that a group of people save money and then individuals can take loans when they need them according to agreed processes. Loans are only given to those who don’t have any other loans. TTGAU offers mentoring and coaching services to groups to ensure sustainable development and fair financials services to everyone.

Before joining VSLA, Mang’oto residents didn’t have enough capital to etablish businesses. Now families can take short micro loans to enhance their farming practices. Loans may be taken to purchase animals like pigs, goats and chicken, to buy chain saws to cut trees or to expand their business.