Building Better Futures: The Transformative Power of VSLA
Qadan Xirsi Maxamed’s Journey to Business Revival
For months, Qadan Xirsi Maxamed faced an uphill battle to keep her small shop afloat. Limited inventory and dwindling resources made it difficult to meet the needs of her family. Every day was a test of resilience as she struggled to balance the competing demands of running a business and providing for her loved ones.
Everything changed when Qadan joined the Village Savings and Loan Association (VSLA) seven months ago. The VSLA initiative in her community is supported by SomReP’s European Union funded project, Boosting Resilience and Adaptation to Climate Change (BREACH). The project aims to enhance the resilience of displacement-affected communities in Burao and adjacent locations through access to durable solutions driven by a rights and needs based approach. Through this activity, she was able to secure a loan of 890,000 Somali Shillings ($89). This financial boost was more than just money, it was an opportunity to rebuild her dream.
With the loan in hand, Qadan set to work, restocking her shop with essential goods that had long been out of reach. But financial support wasn’t the only resource she received. As part of the VSLA program, she also underwent training in financial literacy. The training equipped her with vital skills in budgeting, resource allocation and strategic planning for both her business and household needs.
The impact was transformative.
“My shop, once a struggling venture, grew to become one of the most utilized stores in the entire community”
Her shelves, once sparse, were now filled with products that met her customers' daily needs. The steady foot traffic through her doors was a testament to her hard work, perseverance, and newfound financial acumen. She even repaid her loan within a few months.
Today, Qadan’s story stands as a beacon of hope for others in her community. It’s a story of how access to financial services, coupled with education and support, can turn struggle into success. Her journey reminds us that with the right tools and opportunities, individuals can not only sustain their livelihoods but also thrive as vital contributors to their communities.
Saado: The Determined Entrepreneur
Saado Maxamed Cawil, a determined entrepreneur from Boodhlay village in Burao joined the VSLA group just six months ago. Like Qadan, Saado's participation was supported by SomReP’s European Union funded project, BREACH. Despite her resilience, she faced significant financial struggles.
“I had a long struggle to keep my small garment business afloat, facing challenges such as limited inventory and insufficient funds to procure goods”
Through the VSLA group, Saado accessed a loan of 500,000 Somali shillings ($50), a turning point that transformed her circumstances. With the loan, she strategically invested in her business, enabling her to import garments directly from Southern Somalia. This crucial step not only diversified her product offerings but also boosted her competitiveness in the local market.
The impact of this support was immediate and profound. Saado stabilized her business, paid off her outstanding debts, and focused on growth. Her hard work and the financial training she received helped her make smart business decisions, eventually generating a profit of 650,000 Somali shillings ($65) after covering all expenses. This success has not only improved her financial standing but also inspired others in her community to see the potential of participating in the VSLA group.
Saado’s story is a testament to the transformative power of access to financial resources and community-based support systems. It highlights how even small investments can create significant change, empowering individuals to overcome challenges and achieve sustainable success.
Saynab: The Resourceful Livestock Entrepreneur
Saynab Saleebaan Axmed, a resourceful woman from Isku-roon village in Burao, has been a member of the VSLA group for seven months. Through the BREACH project, Saynab accessed a loan of 800,000 Somali shillings ($80), which became a pivotal moment in her life. With a clear plan in mind, she invested the loan in purchasing livestock, which she later sold for a remarkable 1.6 million shillings ($106).
This success was not only financial but also deeply personal.
“Prior to joining the VSLA group, I faced challenges in managing my finances and lacked access to the resources needed to improve my livelihood. However, the financial literacy training I received as part of the program changed my perspective and equipped me with the skills to make sound economic decisions”
With her first venture a success, Saynab promptly repaid her debt, an accomplishment that filled her with pride and confidence. She is now determined to continue growing her small livestock reselling business, using the knowledge and skills she has gained to empower herself and support her family.
Saynab’s journey is a powerful example of how access to financial resources and education can create lasting change. Her story underscores the transformative potential of community-based initiatives like the VSLA group, which enable individuals to unlock their potential and pave the way for a brighter future.
VSLA: A Game Changer for Resilient Hodan
Hodan C. Laahi Geele, a resilient entrepreneur and a member of the Koosaar IDP VSLA group, has experienced a significant transformation in her life and business through the support of the program. For the past 10 years, Hodan's small shop had been operating modestly, its success largely dictated by unpredictable circumstances and whatever income it could sporadically generate.
Seven months ago, Hodan joined the VSLA group, Through the program, she accessed a loan of 400,000 Somali shillings ($40), a lifeline that brought much-needed financial relief. With this support, she was finally able to restock her shop, something she hadn’t been able to do for quite some time. The loan provided her with the capital to not only improve her inventory but also revitalize her business, making it more competitive and reliable for her customers.
This newfound financial stability brought tangible improvements to Hodan’s life.
“The loan enabled me to better manage my family’s needs and provided me with a step towards the sense of independence I had long sought”
While it didn’t entirely change her circumstances, it marked a significant step forward, giving her hope and a renewed sense of purpose.
Hodan’s story is a testament to the power of financial inclusion and community support. Her journey highlights how even modest financial assistance, combined with determination, can uplift individuals and provide a stable foundation for future growth. She remains optimistic about continuing to build on this progress, both for herself and her family.