What leads to the success of sustainable investment in rural settings through Village Savings and Loans Associations? The experience of the CARE-WWF Alliance

Abstract

This study explores the changes brought by collective sustainable investment (CSI) model through Village Saving Loan Associations (VSLAs) in Tanzania. The CSI model aimed to minimize the impact of environmental degradation and climate change following the longstanding overexploitation of the Great Ruaha River catchment. The study employed qualitative designed and was guided by Lewin’s three stage model. Twelve focus group discussions (FGDs) with women, men, and youth farmers from 2 selected villages in Mufindi and Iringa Districts were conducted. In addition, key informant interviews (KIIs) were conducted with project implementers, village leaders, conservation leaders, community based trainers and Local Government Authorities (LGAs). The collected data were analysed by using latent content analysis. The findings show that adherence to the VSLA constitution by members, the evaluation of environmental impact of the project by VSLA members and the encouragement of non-farm activities investment by members are major reasons for the success of VSLAs in Tanzania. Furthermore, the study concludes that the CSI model can help in achieving sustainable investment whereby farmers are assessing the impact of investment on environmental and biodiversity before issuing of the funds.