Hershey's Supports Village Savings And Loan Associations To Propel Local Business Growth

VSLAs Help Local Businesses Grow

Madame Coulibaly has lived with her farming husband and 12-year-old son in Lôh-Djiboua, Côte d'Ivoire, since 2012. She opened a shop selling shoes, textiles, fabrics, bed sheets, mattresses, bags and more.

Looking for ways to grow her business, she joined a Cocoa For Good-supported VSLA in 2020. As a VSLA member, she accessed a series of loans of up to $1,000 each, which she used to strengthen her business and find new revenue opportunities.

In December 2022, she added a poultry business with a capacity of 1,250 chicks. This nets more than $2,500 per year in profit. In 2023, she expanded the poultry business to a second site, doubling her profit.

Being able to grow her business, using VSLA finance, has not only stabilized her shop and diversified her offerings, but has also enabled her to bring on an employee to help run it. She is currently working toward becoming a wholesale distributor of goods to supply other merchants in her region.

Village Savings & Loan Associations

VSLAs are championed by international humanitarian organizations as a way to raise incomes in rural areas where formal banking services are typically not available.

These community-based groups build social cohesion and increase economic stability through member-based savings and loans. Through VSLAs, CARE is supporting women and their families to increase:

• Household savings and access to finance
• Entrepreneurial, leadership and financial literacy skills

In 2023, CARE assessed 298 VSLAs in Hershey's supply chain, engaging 690 community leaders. They identified 200 VSLAs as functioning effectively and suited to further capability building. These VSLAs are managing savings and loans effectively, but can benefit from support linking them to the formal financial sector.

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