Although developed in many ways Ghana is still home to children who live in poverty. Having traveled around the country for over a month we have often been shocked by the disparity of wealth here. Whilst the growing tourist industry and recent oil boom have brought prosperity to some, many have been left behind. In some communities basic needs are still not met and infrastructure remains surprisingly poor for a country that promotes first class tourist attractions.
Plan’s work in Ghana since 1992 has been key to improving the lives and livelihoods of many people with their forward thinking initiatives often paving the way for government policy. We visited the emerald Eastern Region where Plan Ghana began work in 1994. Kofi Debrah, the Programme Unit Manager, and a snazzy dresser, introduced us to the work they do. Plan tackle many issues simultaneously to maximise their effectiveness including health, education, water and sanitation, child advocacy and enterprise. An ethos which makes their programmes sustainable is a commitment to evaluation which means their projects keep evolving and do not stagnate.
We saw this in action when we visited a micro-finance group. Micro-finance has been introduced by Plan in the form of VSLA – Village Savings and Loans Associations. Before VSLA Plan had started another micro-finance service with the local banks. This service however was too slow and capital flight saw interest leave communities on the motorbikes that brought it. In contrast VSLA’s are completely run by the communities themselves and as the banks are not involved all benefits stay within the area. The new programme has proved so popular that word has spread from village to village (often via market gossiping) and Plan are contacted by people wanting to start groups of their own.
By using this enthusiasm micro-finance meetings have also become a springboard for dealing with other issues within the communities helping to promote Plan’s other aims. Their micro-finance initiatives have been so successful that Plan Ghana have trained other NGO’s, further spreading the reach of VSLA. Rhetoric falls on deaf ears when people have hungry stomachs and money is a powerful incentive in engaging communities. VSLA runs alongside other projects to support their work and has been recognised as fundamental to their continuing success.
By giving communities access to financial services Plan creates an opportunity for them to manage their own resources. It removes the necessity for continuous hand outs allowing Plan to focus it’s own resources on longer term infrastructure and social change. Previously Plan Ghana supplied school materials and uniforms yearly, now parents are able to provide these essentials themselves because of VSLA, a move towards greater sustainability.
We had seen micro-finance in action before with Plan Benin and our visit with Plan Ghana was another example of just how successful the VSLA scheme is. The meeting we visited was kicked off with a song, dance and a prayer which immediately indicated to us the sense of community that exists here. Unlike in Benin, this association was made up of both men and women who ranged from 20 to 75. It was in its third year and no longer required Plan Ghana’s mediation at its weekly meetings. When this group had been created they had written their own constitution giving them complete ownership over it. At each meeting every member must recite one law making sure everybody has a sound knowledge of the rules (20 pesewas fine for not knowing!). Every individual has the right to hold the group accountable, each transaction is stated aloud and the recorder announces the amount of cedi in the box at the end of the meeting, allowing for complete transparency.
There was no doubt that this was an extremely successful group. Before we had even heard from the group members themselves the fact that they were able to meet and save weekly, rather than monthly, was a clear marker of their prosperity. Each meeting follows the same pattern; members are required to pay 50 pesewas into a social fund at the beginning and can then save a minimum of 2 cedi, this represents one share. The members can purchase between one and five shares and they get this money back with the corresponding interest at the end of the yearly cycle. This group was able to double the price of one share after a year, another sign of their success.
After the third week members are encouraged to take a loan increasing the amount of interest generated. These loans can be applied for once a month, a member can borrow up to three times the amount they have saved, with an interest of 5% and this sum must be paid back within three months. A constitutional rule states that each month some of the loan must be paid back. This ensures that the amount of interest is ever decreasing as the 5% is relevant to the amount left to pay.
With transactions done and dusted we questioned the group on how they had individually benefited from VSLA. One woman of formidable stature described how she was able to expand her petty trading business, increasing her revenue from sales in the local market. A smaller woman with just as strong a voice told us she no longer worried for her children’s education as she could pay school fees outright. The oldest member of the group, a wiry smiling farmer recounted how before VSLA he had been concerned about his livelihood as old age reduced his physical capability. Now he is able to hire labour, new hands combined with his experience have greatly increased the productivity of his land and ensured his future. The local mill grinder beamed as he told us that he no longer thinks about being put out of business as he can now afford to fix and maintain his machinery. Last but not least a wise older woman who was sitting with her grandson said very simply that she had learnt to manage money, a skill she is sharing with the rest of her family.
The group had not only benefited as individuals but they were keen to tell us how they had also seen the advantages of coming together. Discovering a new sense of community they were no longer just people who lived side by side but were now friends. The social fund, contributed to weekly embodies them as a collective. It supports members through expensive social occasions surrounding birth and death which are an important part of Ghanaian life. The fund does not need to cover illness as they had decided as a group to each takes loans to purchase health insurance. At the end of each VSLA year what is left of the social fund is spent on group resources such as plastic chairs and matching t-shirts which they proudly wear as a symbol of their unity.
Their success both financially and socially is exemplified in their communal snail farm which represents the community choosing to work and profit together. Three times the size of French snails even after being told they are delicious in soup we remain dubious! We ended our visit by touring the farms that surround the now prospering village. The pride of the villagers is reflected in the pristine and manicured rural surroundings. This is one of the first places we have seen in Africa where flowers were planted for their own sake and a plastic sachet of water was nowhere in sight. A kind and welcoming community it was a pleasure to meet grandmothers, taste freshly toasted gari (cassava) and commute (15 minute stroll through idyllic greenery) with the farmers to their land.
The Plan staff who accompanied us Priscilla (our favourite dandelion girl) and Godwin both clearly have an excellent rapport with the community. When Priscilla told us she did the job for the people not the money we knew Plan’s ethos would be impossible to achieve without their local staff and the passion that drives them. They say money makes the world go round and while it is clearly not the only axis spinning factor it is one that puts food on the table and teachers in classrooms. Without economic security it is hard for parents to provide the lives their children deserve.
Micro-finance is at the heart of changing this by revolutionising financial services in the developing world. Giving people the chance to save and the ability to take loans means communities can safeguard themselves and plan for their own futures. Not only does VSLA bring about economic security but it also strengthens other initiatives from education to agriculture. The benefits go beyond the financial, in Ghana VSLA has established an environment where men and women are seen as equals and this has had a ripple effect on gender equality throughout the community.Â
Our visits with Plan in both Ghana and Benin have shown us the difference these services make and the possibilities they create. Granting villages full ownership over their financial services has made the benefits truly sustainable, through an ethos of evaluation Plan have ensured their work continues to make a lasting difference.  Find out more about Plan International UK on their website.
