According to research conducted by FINSCOPE UGANDA 2023, 60% of Ugandans are actively engaged in both formal and informal saving practices. However, it is concerning that 39% of these savers primarily save to meet their regular expenses. This can, to some extent, be attributed to the savers’ lack of clear financial goals or focus. As a result, the accumulated savings often end up being used for unexpected or unplanned events, leading to a depletion of the saved funds.
Kyomugisha Regina, a member of Rushango Central Farmers VSLA in Kabambiro Sub County, Kamwenge District, diligently saved her money and shared each saving cycle over time. However, she never seemed to see tangible results, as her savings were consistently depleted by various expenses tailored to her previous spending lifestyle. The 36-year-old Kyomugisha, who is married with four children, used not to have clear saving goals, which resulted in uncontrolled borrowing from the VSLA to buy expensive clothes, gifts for her relatives, unplanned visits, food, and other household needs. This unplanned spending resulted in sharing little money at the end of every saving cycle and even remaining in debt.
After participating in a training session on savings targets organized by KRC-Uganda with support from Humundi, everything changed for her. Empowered with a clear understanding of the importance of setting specific savings goals, Kyomugisha began a transformative journey. With unwavering determination, she successfully saved enough money to purchase three female goats, marking a significant expansion of her farm. Kyomugisha envisions having an integrated farm with goats, a banana plantation, and kitchen gardens for organic vegetables and poultry. Her story serves as an inspiring example of how VSLAs and savers can change their mindset towards focused savings strategies and witness tangible results.
By: Mugisa Kamurungi Charles
Microfinance officer–KRC-Uganda
