INVESTING IN EARLY YEARS FOR GROWTH AND PRODUCTIVITY PROJECT (IEYP) SLG COMPONENT
Savings and Loan Groups (SLGs) are an integral part of social protection programs aimed at eradicating poverty as one of priority areas in Malawi's development agenda as detailed in the MGDS III.
Poverty has proven to be a source of exploitation and a set-back to a lot of development initiatives including child development.
It is believed that children who grow up in impoverished environments fail to be supported adequately with their needs .This affect their optimum growth and realization of their full potential.
It is against this background that all the 13 districts running the IYEP supported by the World Bank have the economic empowerment mechanism through the Savings and Loan Groups (SLGs) with the ultimate goal of raising the socio economic conditions of their parents and guardians who in turn assist the children with numerous assistance at the household level and at the CBCC level, nutritionally and economically.
The merits of Savings and loan groups in CBCCSs
- VS&Ls provide insurance against shocks since majority of VSLs have a social fund which allows members to access grants or zero interest emergency loans.
- Promoting social cohesion through the formation of solidarity groups which allow members to work together to address social needs.
- Facilitating financial education for the poor, financially excluded and remote populations unreached by banks.
- Promoting the culture of savings among participating groups that provide ultimately a greater sense of making investments.
