Imagine working tirelessly to save your hard-earned money, only to store it in a box under someone’s bed—a method prone to theft, record-keeping errors, and limited access to financial opportunities.
This has long been the reality for many Village Savings and Loans Associations (VSLAs) in rural Sierra Leone. However, through the Transformational Energy Use for Sierra Leone (TEUSL 1) project, co-financed by the European Union and BMZ (German Federal Ministry for Economic Cooperation and Development), EnDev and AVSI are bringing an innovative solution to these challenges by digitizing VSLAs with the MiKashBoks app.
A digital safety net for hard-to-reach communities
VSLAs are essential community-based savings groups, offering financial access to people in remote areas where banking systems are either absent or unattainable due to high prerequisites for loans. While traditional VSLAs provide critical financial support, they also come with several challenges: the risk of fraud, human error in record-keeping, and difficulties in scaling up to formal banking services.
The MiKashBoks app is transforming this landscape. This secure mobile ledger, which even works offline, is revolutionizing VSLAs in Kenema and Kono by:
- Reducing fraud risks and improving transparency
- Simplifying record-keeping and financial tracking
- Opening doors to formal financial services, enabling access to external financing
Why this matters: secure and transparent financial management is a catalyst for economic growth
When communities trust their financial systems, they can make informed investment decisions. Families can purchase solar appliances, micro-businesses can thrive, and entire villages benefit from improved incomes and livelihoods.
Our goal for 2025 is ambitious: to train and reach 4,000 active VSLA members by mid-year
So far, we have:
- trained 68 VSLAs and 12 community coaches on VSLA methodology (governance, leadership, financial literacy, among others) and the MikashBoks app
- positively impacted about 2,700 people
- enabled members to invest their savings in solar freezers, TVs, and lighting systems
Transforming lives with MiKashBoks
Ngoyeila Village Savings and Loan Association
Ngoyeila is a village savings and loan association group of 25 members that started its current cycle in August 2024. Before this cycle and the introduction of the digitalization of the group's operations with the MiKashBoks application, members struggled with various challenges, including governance issues, poor financial literacy, and inadequate record-keeping. The record keeper at the time was unable to track loans and repayments effectively, leading to confusion, mismanagement, and financial losses.
After receiving training from AVSI, the group has unanimously decided to elect a new record keeper who was more competent and trustworthy. Since then, Ngoyeila has been operating smoothly, with no more misplaced or mismanaged funds, ensuring greater trust among members.
Previously, members would distribute their accumulated savings at the end of each cycle, but with the knowledge gained from AVSI’s training, they decided to start reinvesting their savings to expand their financial base and strengthen their businesses. This shift in approach has not only improved their financial security but has also encouraged more sustainable economic growth.
Another major issue before AVSI’s intervention was the high rate of absenteeism among members, which hindered decision-making and group progress. The enforcement of by-laws and the introduction of the MiKashBoks application have significantly improved meeting attendance and engagement. Members now have a clearer understanding of their financial standing, and transparency has increased as everyone can track savings, loans, and group funds more easily.
One of the members, a businesswoman, shared how the MiKashBoks app has helped her manage her business better. Before using the app, she found it difficult to track her debtors and outstanding payments. Now, with the digital tool, she can efficiently manage her records, which has improved her business operations and overall livelihood.
A future of financial inclusion
The MiKashBoks digitalization initiative is bridging the financial gap for VSLAs, ensuring security, transparency, and accessibility. By expanding digital financial inclusion, we are helping communities break the cycle of financial insecurity and build sustainable economic opportunities.
As we continue to train more VSLAs and empower local coaches, we look forward to seeing even greater transformations in Sierra Leone’s rural communities.
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