Accra: Representatives of over 30 Village Savings and Loan Association (VSLA) groups in the Wa Municipality have undergone refresher training on VSLA management as part of measures to prevent the loss of members' savings and profits.
According to Ghana News Agency, the training was facilitated by officers from the Youth Advocacy on Rights and Opportunities (YARO) and initiated by the VSLA groups themselves to strengthen leadership, financial literacy, and improved financial management. This initiative was prompted by the recurrent loss of substantial amounts of money from some VSLA groups, largely attributed to poor leadership and negligence.
Mr. Salifu Ibrahim, a facilitator, addressed the participants, advising them to exercise diligence in selecting their leaders. He highlighted that effective leadership is crucial to the success and profitability of every VSLA group. Ibrahim revealed that approximately GH?400,000.00 in profits from the VSLA groups was lost annually due to poor leadership and weak internal controls. He attributed these losses to inadequate vigilance by both members and leaders, leading to issues such as members being shortchanged on interest earned from loans and theft by some group officials.
Ibrahim, who is also the Wa Municipal Programmes Coordinator for YARO, stressed the importance of proper management of passbooks, regular monitoring of financial records, and increased vigilance by both leaders and members to help minimize the loss of group funds. He indicated that similar training sessions would be organized for members of VSLA groups under YARO's management to improve governance and financial accountability.
Another facilitator, Mr. David Prenye, took participants through leadership principles, emphasizing that the sustainability of every group largely depends on the quality of its leadership. He urged participants to select leaders based on qualities such as commitment, fairness, confidence, punctuality, and trustworthiness, and to consider the specific qualities required for different leadership roles within the associations.
Participants also received training in financial literacy, equipping them with the knowledge and skills needed to manage their finances effectively, thereby ensuring the sustainability of their groups. Representatives from the Wa Community Cooperative Credit Union (WACCU) and Bayport Savings and Loans educated participants on their financial products and services, explaining membership procedures and encouraging savings for increased profit.
Mr. Peter Sonaa, Credit Manager at WACCU, highlighted the benefits of Credit Union membership, including access to loans at relatively low interest rates, non-collateral loans, and returns on members' shares. YARO has established over 2,000 VSLAs across the Upper West Region to promote financial inclusion, savings mobilization, and economic empowerment among vulnerable households and women.