Training on the establishment of Village Savings and Loan Associations (VSLAs), conducted in Kilindi, Handeni, and Pangani district councils in Tanga Region, is bringing positive change to communities, transforming lives in ways that were previously unheard of.

According to Michael Nilongo, a forest-based enterprises officer at the Tanzania Community Forest Conservation Network (MJUMITA), the training is part of the Integrated Forest Biomass Energy Solutions for Tanzania (IFBEST) project. 

Presenting an assessment of the project's progress to planning officers, district forest officers, environmental officers, and other local officials, Nilongo highlighted the project's achievements in offering alternatives to deforestation-driven income generation.

The training, provided by the Tanzania Forest Conservation Group (TFCG) and MJUMITA, aims to reduce the community's dependence on cutting down forests for income. Instead, it encourages them to establish income-generating projects through VSLAs, which allow members to access financial services and start small businesses.

In Kilindi District, groups like Sinyati and Oreto in Lusane Village, Pesa kwa Wote and Ukombozi in Mapanga Village, and Upendo and Cheka Nao in Mswaki Village have formed VSLAs. These six groups, consisting of 191 members—153 women and 38 men—help members save money, access loans, and receive financial education.

The initiative has been made possible through the three-year IFBEST project, funded by the European Union with a 5.4bn/- - investment, implemented via the Ministry of Finance, TFCG, and MJUMITA.

In Lusane Village, the Sinyati and Oreto groups have invested 3.75m/- from their savings, contributing 890,000/- - to a community fund. Similarly, in Mapanga Village, the Pesa kwa Wote and Ukombozi groups invested 2.7m/- - and contributed 760,500/- to their community. Upendo and Cheka Nao groups from Mswaki Village have invested 2.74m/- and contributed 680,000/- -.

These groups were established in July 2024, following community meetings that engaged village councils and general assemblies to select group trainers, who were later sent to Tanga Region for further VSLA management training.

"We are thrilled to see these achievements because both men and women are now engaging in income-generating activities, transforming their lives," Nilongo said.

Residents have become involved in various trades, including grain trade, sustainable charcoal production, running small shops, livestock trading, and selling forest products. As a result, they have begun to decrease their reliance on forest resources for income.

To date, 4.7m/- in loans has been issued to 13 members, enabling them to start or expand income-generating activities. 

The EU-funded project has provided 12 groups with record-keeping materials and trained 157 members in Kilindi District on VSLA management, project selection, and business planning. Additionally, 11 people involved in sustainable charcoal harvesting were trained in entrepreneurship skills through the VSLA model.

In Handeni District, four VSLA groups have been established in Mkalamo and Genda Genda villages. Groups such as Vijana na Mazingira and Upendo, with 44 members in Genda Genda, and Umoja ni Nguvu and Tunaweza, with 35 members in Mkalamo, have invested a combined total of 5.06m/-, contributing 864,000/- to the community fund.

Over 12 weeks, the Handeni VSLA groups have invested shares worth 9.19m/-, contributing 2.33m/- to the community fund. 

Before TFCG and MJUMITA's intervention, community members were solely reliant on farming, with limited means to generate additional income. Now, the opportunity to access loans from VSLAs has significantly transformed their economic and social lives.

While in the past, loans from financial institutions came with high interest rates, the low-interest loans provided by the VSLA model have allowed community members to engage in more sustainable businesses. Nilongo praised the EU for its financial support, which has helped people develop businesses while preventing deforestation in their villages.

Despite these successes, some challenges remain. Nilongo noted that many community members still lack financial literacy and understanding of how to manage VSLAs. In particular, there is low awareness among men about joining savings and loan groups, and many community members have limited knowledge of microfinance services.

In Pangani District, two VSLA groups have been established in Mseko Village, with 76 members—56 women and 20 men. These groups have already launched income-generating activities in their locality.

 The Umoja ni Nguvu group, with 27 members, has invested 1.1m/-, contributing 216,000/- to the community fund, while Ushirikiano group, with 29 members, has invested 1.18m/- and contributed 130,500/- to the community fund.

Seven individuals engaged in sustainable charcoal production were also trained in entrepreneurship skills, while four trainers have been equipped to manage the VSLA groups.

Nilongo called on IFBEST project implementers in Kilindi, Handeni, and Pangani Districts to continue their efforts. He emphasized that the project is already showing results, as community members who once relied on deforestation for income are now engaging in alternative businesses.

IFBEST project manager Simon Lugazo added that the three-year project (2023–2026) aims to enhance environmental sustainability through sustainable forest management and wood-fuel production in Tanga Region. 

The project is being implemented in eight villages across the Handeni, Pangani, and Kilindi Districts, including Gendagenda, Mkalamo, Mseko, Lusane, Mmbogo, Mapanga, Nkhobole, and Msaki.

The project's ultimate goal is to promote sustainable livelihoods while ensuring environmental conservation in the region.