We Effect, a non-profit organization, prioritizes financial inclusion as the key to unlocking women’s economic potential in southern Africa. Operating across Zambia, Zimbabwe, Malawi, and Mozambique, we integrate financial inclusion as a central pillar in all our programs.
Our five-sphere women’s economic empowerment model emphasizes access to financial services as crucial for their economic advancement. These spheres encompass:
- Social: fostering social connections and networks.
- Individual: building self-confidence and agency.
- Material: acquiring and managing resources.
- Environmental: adapting to and managing environmental challenges.
- Legislative: advocating for laws and policies that support women’s rights.
Beyond financial services, we believe in providing comprehensive resources for effective change, including knowledge, access to information, and essential inputs and assets. Our extensive experience in the region includes:
- Tailor-made insurance for farmers: Mitigating risks and ensuring financial security.
- Village Savings and Loan Associations (VSLAs): Building a collective foundation for financial empowerment.
- Savings and Credit Cooperatives (SACCOs): Providing larger-scale financial services for diverse needs.
These financial services empower individuals and contribute to the social and economic resilience of communities, especially those vulnerable to climate change in rural areas.
Focusing on VSLAs, our experience reveals a high female membership due to the model’s:
- Financial benefits: Enabling savings, access to credit, and improved financial management.
- Collective voice and agency: Building confidence, promoting leadership, and fostering collective action.
A notable example is the Lundazi District Women’s Development Association (DWDA). Since 2019, We Effect has supported the DWDA as an entry point for reaching rural women. The DWDA’s membership has grown by over 20% since joining the program, now serving almost 4,000 female farmers. The “pass on the gift” system and VSLA establishment are identified as key components of this successful program.
Women in Lundazi highlighted specific benefits from VSLAs:
- Addressing financial challenges: Accessing essential goods and managing emergencies.
- Savings and financial control: Building savings accounts and managing expenditures effectively.
- Business development: Accessing capital to invest in businesses and agricultural inputs.
VSLAs also offer additional features:
- Inclusive and accessible: Working with existing resources and requiring no external funding.
- Sustainable: Offering long-term benefits beyond annual share-outs, including training and income generation support.
- Entrepreneurship platform: Fostering innovation and idea exchange among members.
The impact of VSLAs goes beyond finances:
- Leadership and agency: Creating opportunities for women to take on leadership positions.
- Reduced burden of care: Enabling women to hire help and pursue other income-generating activities.
- Social protection and resilience: Providing a safety net for emergencies and climate change impacts.
- Collective support: Promoting collective action and community-level change.
- Affirmation of dignity and integrity: Building pride and self-worth through collective success.
On the 22nd of February 2024, We Effect Southern Africa Regional Office and Zambia Country Office launched the the Global VSLA Report (https://issuu.com/weeffectsouthernafrica/docs/vsla_report ) as well as a Case Study o Financial Inclusion in Lundazi. (https://issuu.com/weeffectsouthernafrica/docs/financial_inclusion_in_lundazi_a_working_paper)
Various institutions attended the event and amongst them were Care International, Heifer International, USAID, District Women Associations, Fight Inequality Alliance, The Ministry of Local Governement to mention a few.
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