South Sudan’s financial infrastructure remains significantly underdeveloped, with access to banking and financial services primarily concentrated in urban areas. This disparity leaves rural communities, which make up a large portion of the population, with very few options for savings and credit. In these underserved regions, Village Savings and Loans Associations (VSLAs) have emerged as a vital and innovative solution, fostering local economic development through community-driven financial services.
VSLAs, which are built on principles of mutual trust and collective responsibility, enable their members to save money, access affordable loans, and establish social funds that support various community welfare initiatives.
SPREAD: Peace & Resilience
SPREAD is an EU funded project that straddles the borders between Ethiopia, Kenya and South Sudan where more than a dozen different pastoralist and agro-pastoralist groups live.
SPREAD focuses on conflict resolution and peace buildign as well as making sure that food production is sufficient while increasing the capacity for entrepreneurship and income generation.
These grassroots associations provide essential financial services to individuals who are often excluded from formal banking systems, including microfinance and traditional banking institutions. By facilitating financial inclusion, VSLAs empower community members to take control of their economic futures and have sustainable homes.
As part of the SPREAD project, the South Sudanese NGO Root of Generations (ROG), actively supports the establishment and strengthening of VSLAs across Budi County in Eastern Equatoria State. As of mid 2025, 250 VSLA members, organised into 10 groups, have undergone comprehensive training. This training covers vital topics such as business and financial Management, record keeping, group dynamics, and leadership skills, alongside providing them with VSLA kits and ongoing mentorship to ensure their success and sustainability.
A notable example of this initiative is Loturi Pio, a dedicated member of Hagamith Helem VSLA Association. This group consists of 16 members – 8 women and 8 men – residing in Nesitu village in Homiri Payam on the outskirts of Chukudum, the Budi County capital.
The majority of these members are smallholder farmers who cultivate various crops, and they have found the VSLA model to be an effective strategy to diversify their income sources. For Lino Narumo the access to loans has given him the opportunity to expand his husbandry activities.
“Since joining the VSLA in 2023, I have bought six cows: one female cow, which has given birth to five calves, and five bulls that I acquired through VSLA loans. I took four of these bulls to Uganda for sale, and these animals have significantly helped me pay off unpaid bills for my children and cover a medical expense,” says Lino Narumo.
Additionally, it has proven to be a crucial lifeline in addressing the climate challenges that increasingly threaten their subsistence farming livelihood, such as erratic rainfall and changing weather patterns.
A clear objective unites the Hagamith Helem Association: to improve collective savings while enhancing community welfare through shared resources and mutual support. The transformation of lives within this group illustrates the powerful impact of VSLAs in empowering individuals and fostering resilient communities.
For his part, Aurelio Simon Chopee, the secretary of the group, highlighted the impact of the loans on his agricultural activities. He reported that the loan facilitated the cultivation of two large farms of SimSim, yielding a harvest of 10 sacks weighing fifty kilograms each, as well as two gardens of groundnuts. “This VSLA has enabled the expansion of my farming activities,” he stated.
Aurelio further observed improvements in life for both himself and his children, particularly regarding their diet. He noted, “In the past, I couldn’t enjoy a cup of tea in the morning, but now I can start my day with tea.” This experience illustrates how the VSLA contributes to financial stability and improvements in the overall quality of life for its members.
Beyond monetary benefits, VSLAs provide strong social support networks that foster a sense of community cohesion and resilience. Aurelio Simon Chopee, the secretary of the group, explains:
“These local VSLA initiatives are not just about savings and loans; they are driving long-term development goals and ensuring no one is left behind. Through these efforts, communities in Budi County are enhancing their economic welfare, strengthening social ties, and building a more sustainable future through Village saving and Association.”
The SPREAD Project set out with a primary objective to foster sustainable economic growth in rural areas by enhancing community resilience and promoting sustainability throughout Budi County. This initiative involved a comprehensive approach, focusing on developing local resources, improving infrastructure, and supporting small businesses. By implementing training programs, the project aims to equip community members with essential skills in sustainable agriculture, renewable energy, and eco-friendly practices.