Savings and Solidarity in Crisis

The Village Savings and Loan Association (VSLA) model with its focus on establishing low-cost, self-administered informal financial services - with the ability to link to formal financial institutions where available - has the potential to help address this gap and lay a foundation for future economic recovery. This research confirms that sequencing cash and VSLA in line with the outlined VSLA in Emergencies approach is appropriate and that an operational separation between VSLAs and cash integration should be ensured. It demonstrates how financial services can play an important role in supporting social solidarity and building community resilience that goes beyond VSLA membership, and shows demand for these services, and positive outcomes when linked with cash transfers. 

This report was made possible by a grant from the Implementer-Led Design, Evidence, Analysis and Learning (IDEAL) Activity. The IDEAL Small Grants Program is made possible by the generous support and contribution of the American people through the United States Agency for International Development (USAID).

You can watch a recording of the Village Savings and Loan Associations (VSLAs) in Emergencies: CARE's Pilot in Taiz, Yemen webinar here.