How Village Savings Groups Are Empowering Women in South Sudan
by Jessica Markwood, Women’s Entrepreneurship Program Coordinator
August 27, 2024
Breaking the Cycle: How Village Savings Groups Are Empowering Women in South Sudan
Imagine a group of 45 women in a rural South Sudanese village, breaking into song as they celebrate a milestone that seemed impossible just a year ago. These women, part of a Village Savings and Loan Association (VSLA) in Agor-baar, had collectively saved over $36,000 - more money than they had ever seen in their lives.
As I sip my coffee in Nashville, effortlessly paying with a quick tap of my wallet, I'm struck by the stark contrast. The seamless transaction I barely think about is a luxury that 2 billion people worldwide can't access. In Sub-Saharan Africa, a staggering 45% of people are "unbanked," with countries like South Sudan seeing less than 6% of the population having access to a bank account.
The Unbanked Reality
The reasons for this financial exclusion are complex:
Geographic barriers
Lack of capital or collateral
Missing documentation
Economic instability
These challenges are even more pronounced for marginalized groups like refugees, ethnic minorities, and women. In Jonglei State, South Sudan, where 70% of households are led by women (many of them widows), the need for financial inclusion is critical.
Rhoda Yar Bol
A Grassroots Solution
Enter Rhoda Yar Bol and her organization, Awake for Women and Children's Empowerment (AWACE). They're tackling this massive problem with a surprisingly simple yet effective tool: Village Savings and Loan Associations (VSLAs).
How VSLAs Work
Formation: 10-25 community members form a group
Regular Meetings: Members save money together and can take out loans
Self-Management: The group creates its own constitution and elects leaders
Transparency: A locked box and multiple locks ensure security and trust
The Impact
The results have been nothing short of transformative:
Economic Empowerment: Women like Rhoda Njong, who started saving just $19 a month, received nearly $800 at the year-end payout.
Business Growth: Participants are starting new ventures, expanding existing ones, and even hiring other women.
Education: More girls are enrolling in and finishing school.
Social Status: Women report increased respect and decision-making power within their families and communities.
A Ripple Effect of Change
AWACE's VSLAs currently serve 300 women, benefiting 1,500 household members. This summer, they anticipate paying out over $171,000 - all of it generated by the women themselves, not donations. There’s a huge demand for even more women to be involved, and $500 has the ability to launch and coach a new VSLA that could change the trajectories for 30 more families.
The beauty of this model lies in its simplicity and sustainability. It's not just about money; it's about dignity, empowerment, and breaking cycles of poverty.
As Elizabeth, a widow in the program, put it: "Now I am strong." In a country where large-scale initiatives often struggle, these grassroots efforts are creating real, lasting change.
The demand for more VSLAs is growing as communities witness their neighbors' success. It's a powerful reminder that sometimes, the most effective solutions come from within the community itself.
By investing in local leaders and putting people first, a flourishing future is possible for South Sudan. And it’s possible when we pursue it together.
