The Jaksally Development Organization is a non-governmental organization that focuses on creating wealth through the Village Savings and Loan Association (VSLA) methodology. The VSLA approach has demonstrated that poor people especially women are capable of effective financial management. They invest wisely not only in income-generating activities but also in the welfare of their families.
A Village Savings and Loan Association (VSLA) is a group of people who meet regularly to save together and take small loans from those savings. The activities of the group operate in cycles of one year, after which the accumulated savings and loan profits are distributed among the members. The purpose of a VSLA is to provide simple savings and loan facilities in communities that lack easy access to formal financial services. A VSLA is a transparent, democratic, and structured version of the informal savings groups found in many parts of the developing world. The VSLA methodology emphasizes accountable governance, standard procedures, and simple accounting systems that everyone can understand and trust.
After sensitizing the Fufulso community on wealth creation and the establishment of individual and group businesses, Jaksally facilitated the formation of a group known as “Kpaal-akoso,” which means “if you depend on someone, you cannot make positive gains.” The group is mixed, comprising ten men and twenty-four women, making a total of thirty four members. As a first time savings group, they officially began saving in March 2023. Every Friday was designated as a savings day.
The system adopted was simple but produced powerful results. Members saved varying amounts depending on their individual capacities, within established minimum and maximum limits. The minimum share value was GHS 5.00, while the maximum share value was GHS 40.00. The minimum number of shares purchased by a member was 70 shares at GHS 5.00, and the maximum was 260 shares at GHS 40.00. These translated into savings of GHS 930.00 (USD 69.64) and GHS 15,797.00 (USD 1,148.87) respectively.
The savings cycle lasted fifty two (52) weeks, after which the group conducted a final share out. As a first cycle group, it was expected that the group would achieve a maximum interest rate of 30%. However, the group exceeded expectations and recorded a profit margin of 59.1% in its first cycle.
In total, 7,065 shares were purchased, translating into actual savings of GHS 70,652.00 (USD 5,138.32). At the final share-out held on May 10, 2024, the group realised a total income of GHS 107,319.00 (USD 7,805.02), resulting in a profit of GHS 36,667.00 (USD 2,666.69).
This was an incredible profit made by 34 members within a one year cycle. The success is partly attributed to the varied purchase of share values, the resulting increase in savings, and the flexibility of the lending system. Members are able to borrow small amounts up to three times the value of their savings with a maximum repayment period of three months. Loans may be repaid in flexible instalments at a monthly service charge determined by the group. This flexible repayment system is a decisive advantage when compared to the rigid repayment demands of many microfinance institutions.
As part of its commitment to wealth creation and environmentally friendly programmes, Jaksally promotes partnerships, collaboration, positive leadership, group cohesion, and community mobilization. The organization has a strong capacity building culture aimed at achieving its long term objectives. Through the continuous support provided by Jaksally, the “Kpaal-akoso” group has proven the initiators of the VSLA concept wrong. Kudos to the Kpaal-akoso group. Asŋ ne kusung.