Village savings not being used for investment - report

Savings generated in the year by existing saving groups are often consumed in December and little is used for investment purposes, a new report has shown.

It comes at a time when village saving groups are already planning how to distribute their year-long savings, typically used to buy meat , drinks  and other entertainment during the festive season.  

The report released by Emily Awily, the household grants specialist in the Office of the Prime Minister, said the savings should be used to increase production, productivity, and reinvestment and diversify livelihoods to do business and generate money.

The report also notes that members of the saving groups often borrow and payback at a high interest rate of 10% per month, sometimes leading to loss of family assets, conflicts and family dissolution.

Awily said under the NUSAF3 component of Sustainable Livelihood pilot (SLP), such groups will be supported with regular training and capacity building, as well as provision of continuous technical support.