MALAWI: CADECOM Equips Communities with Entrepreneurial Skills
Stella Zulu
The Catholic Development Commission in Malawi (CADECOM) of the Episcopal Conference of Malawi (ECM), has equipped community members belonging to Village Savings and Loans (VSL) groups in Mzimba and Kasungu districts, with business management skills in order for them to commercialize their groups to make profits and develop their lives.
This has been done through income generating activities and management trainings which CADECOM has given the people in the two districts as part of consultancy activities work with Food and Agricultural Organization (FAO). The activities are aimed at enhancing commercialization capacity of VSL groups under the Marketing Capacity Building (MCB) project implemented by FAO in Kasungu and Mzimba districts.
Speaking during the start of the trainings in Mzimba district, Mr. Mathews Chawinga who is CADECOM Project Coordinator for Mzuzu diocese, said the VSL members need to realize the full potential of their groups and the significant change they can bring to their communities and families if managed as businesses.
“We are training Village Savings Loan group representatives in VSL methodology and entrepreneurial business management to impart them with skills in proper management of the VSL groups as businesses. This is because it was observed that the members lacked entrepreneurial skills to help them manage their groups and realize profits. For example it is common practice for VSL groups to have reduced savings and high demand for loans during various times of the year. In addition, when members have borrowed money from the groups, they do not make enough profits to maintain their savings with the group. CADECOM, through District development Offices, is therefore training the VSL groups in income generating activities management to build their capacity so that they run sustainable businesses,” said Mr. Chawinga
In order to reach out to many groups in the districts, the trainings are happening through networks which were formed with the help of Agricultural Extension Development Officers (AEDOs) and Community Development Assistants (CDAs). The networks will ensure sustainability of the skills learnt as each group has participants who will teach their follow group members in the communities and will also help the VSL groups to learn from each other.
One of the participants in the trainings, Mr. Isaac Nyirenda, Chairman for Muchilapundu network said the training has opened great visions for the groups and they are hopeful for great success in the future.
“We have learnt a number of things necessary for us to realize profits at a group or individual level. For example we did not know the importance of having a business plan and how to implement it, this affected our calculations to determine if we are benefitting or not. We also did not know how to properly share the money at the end of the circle or the loan a member is supposed to get from the group according to his/her savings. This training has made us realize all these and we will utilize the knowledge in order for our group to grow,” said Mr. Nyirenda
Echoing the same sentiments, Lilian Kamanga said the training has helped the groups to have access to commercial business management skills, something which they lacked while trying to develop their lives through the VSL intervention. She therefore thanked FAO and CADECOM for giving them the opportunity which she said will help them to commercialize the VSLs and develop their lives.
About 48 VSL networks have been trained in VSL methodology, business management, business identification, group dynamics, leadership, business plan development, marketing and record keeping among other things. The project is being implemented with financial support from the Flanders Government.
