The Malawi Red Cross Society (MRCS) has transformed the lives of 20 women in Yesaya Village under Sub-Traditional Authority Kapichi in Mangochi District, turning a struggling Village Savings and Loans (VSL) group into a model of economic empowerment.
Through financial literacy and business management training, as well as support to strengthen the group's operations, the MRCS with financial support from the Danish Red Cross and Icelandic Red Cross through Community Resilience Project being implemented in Mangochi and Chikwawa has helped the women become homeowners, livestock farmers and entrepreneurs who are now able to educate their children, support their families and pursue even bigger ambitions.
The women formed the Matiti Village Savings and Loans (VSL) group in 2020 with 25 members to improve their livelihoods. However, with limited knowledge of financial management, the group suffered losses, experienced unpaid loans, collapsing of businesses and five members eventually dropped out.
Everything changed in 2023 when the Malawi Red Cross Society trained the women in financial literacy and business management, refresher trainings, continued monitoring of the groups and provided a secure cash box for their savings. The intervention restored confidence, strengthened the group's operations and laid the foundation for sustainable economic growth.
For 50-year-old Lucy Stanford, the training marked the beginning of a life-changing journey.
She started a small tomato and vegetable business using money borrowed through the VSL. As profits grew, she invested in goats and eventually owned 80. She later sold the goats to build a descent house and used part of the proceeds to buy cattle. Today, she owns six cattle and comfortably pays private secondary school fees for her children.
"After acquiring 80 goats, I decided to sell them and use the money to build a house. I also used part of the money to buy cattle and I now have six. As I speak, I am able to pay school fees for my children, who are attending a private secondary school," she said.
For 28-year-old Serah Njanje, joining the group also brought financial independence.
She started a clothes business and has since accumulated 20 goats, four cattle and built her own house. Beyond the material achievements, she says the VSL has given her confidence and reduced her dependence on her husband.
"Since becoming a member of this group, I no longer depend entirely on my husband. In fact, I often support him financially. We appreciate the Malawi Red Cross Society for the training it provided us in 2023 because the skills we gained have transformed our lives," she said.
The group's secretary, 45-year-old Fainala Jotama, has a similar story.
After joining the savings group, she built up a herd of 35 goats. She sold some of them to construct a house and is now planning to buy a motorcycle for her son so he can start a transport business and generate income for the family.
The transformation is also reflected in the life of the group's chairperson, Nelled Stanford.
She now owns seven cattle, has harvested 20 bags of maize and lives in a decent house built through proceeds from her VSL activities. She recalls that before the Malawi Red Cross Society's intervention, the group lacked direction
"The training completely changed us. Red Cross comes from time to time to monitor what we are doing. We now understand how to save, invest and grow our businesses," she said.
With all the 20 members now owning decent and strong houses and livestock, the women have shifted their focus from individual success to community development.
Their next ambition is to purchase a minibus within two years. The vehicle will operate as a business, with profits supporting orphans, widows, elderly people and persons with disabilities in the area.
Community-Based Trainer (CBT) chairperson Busili Alli says the progress achieved by the women demonstrates the power of financial literacy and community-led development.
He praised the Malawi Red Cross Society for equipping community trainers with the skills needed to mentor savings groups under Sub-Traditional Authority Kapichi. There are currently 15 CBTs serving the area which has over 100 Village Savings and Loan Groups.
Members meet twice every month. Each woman buys a minimum of five shares at K2,000 each, contributing K10,000 per meeting. Together, the 20 members save K200,000 every meeting and K400,000 each month.
By the end of the annual savings cycle, the group generates nearly K8 million, which is shared among members according to their savings while part of it is reinvested into businesses and farming activities.
Malawi Red Cross Society District Manager for Mangochi Linda Mpanang’ombe said she is impressed with the project achievements this far. “I am very much optimistic the project will achieve all its targets at the end of the project implementation period.” She said.