Umoja ni Nguvu
Donor
Care International
Project location
Iringa and Njombe
Summary details
Sundy Merchants Co. Ltd is currently engaged by Care International using Chomoka platform as the main tool in a project that target the functionality and strengthening of VSLAs in the Iringa and Njombe regions. The project has both main and specific objectives as follows;
Main objectives is to ensure growth-oriented agriculture investments are made by at least 200 VSLAs groups in the next two years, thus by 2021.
Specific objectives of the project are as follows
- Creation of a capital driven transaction system that is dependent on how much funds the VSLAs have set aside for the sole purpose of agriculture.
- Strengthening of the VSLAs in the two regions through capacity building programs in the areas of VSLA operations, saving for agriculture, negotiations and agreements in supply of inputs and markets as well as in areas of partnerships with different stakeholders in their respective value chains.
- Establishment and strengthening of linkages between the VSLAs and the numerous participants of the value chains including input suppliers, BDS providers, extension officers and off-takers of products.
Implementation methodology
Sundy Merchants Company Limited intends to achieve the above objectives through the following activities over period of one year to September, 2020.
- Capacity needs assessment for VSLAs potential for collective investment and sensitize the same VSLAs on the collective saving and investment.
- Simulate business model for each category of collective investment (inputs, equipment, storage, working capital, marketing) to determine viability and group lending rotations, recommended interest rate, recommended schedule for VSLA.
- Rollout and adoption of the Chomoka by VSLAs including build capacity and incentives of agents to present Chomoka as platform for collective decision.
- Train VSLAs on financial planning, collective investment, operations and maintenance, farming as a business.
- Cluster VSLAs (inter-group investment) geographically and based on investment opportunities.
Support for VSLAs to invest collectively into market-driven, viable agriculture technology, infrastructure, inputs and working capital
project successes
Following our training and follow-up coaching saving groups' in Njombe, Songwe and Rukwa, Sundy has seen tremendous success to on the objectives.
- There have been a large number of groups, which have already set up Agri-funds, were found to be operating these agri funds for the purpose of proper investment in agriculture.
- There are some groups which have been able to reduce the costs of production by negotiating with Agro-dealers to split the cost of inputs supplied into two payment tranches. The agreements enabled the groups to pay half of the total costs of inputs required by farmers at beginning of the season and finalize the remaining amount after the harvest.
- For the case of collective investments there are groups/VSLAs have already started farming together by lease or buying farms for joint investment in Agriculture.
- To realize this key component of collective action Sundy Merchants in collaboration with Care International staffs approached some financial institutions, TPB bank, NMB Bank, CRDB Bank, Vision Fund and Mkombozi Bank . These were approached to see how these saving groups can be linked with these financial institutions for opening bank accounts, which will be used to deposits savings made from Agri funds contribution and later on if possible lend them affordable agricultural related loans.