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Empowering Communities through HES and VSLA

Empowering Communities through HES and VSLA

Empowering Communities through HES and VSLA

Empowering Communities through HES and VSLA

To reduce the poverty level among vulnerable households IHVN is currently implementing Household Economic Strengthening (HES) activities for Income Generation.

The Household Economic Strengthening is a portfolio of interventions delivered to reduce the economic vulnerability of families and empower them to provide for the essential needs of the children they care for, rather than relying on external assistance (PEPFAR working definition, 2011). HES is implemented through:

Financial literacy training: IHVN engaged resources persons to educate 254,000 caregivers on financial literacy and management. The training empowered beneficiaries who received HES to budget, keep accurate records of sales, brand their products, network, and expand their businesses. 121 Young women at risk of early marriage were targeted for economic activities to empower them. Peer support to promote learning and knowledge sharing within the target population was encouraged. This resulted in informed financial decisions, reduced dependency and assets and savings building

Income-generating activities: IHVN implemented cash transfer strategy based on need to provide adequate support to caregivers and older adolescents to establish, boast and manage their income. This approach has enhanced their economic status and reduced their vulnerability. Through regular monitoring, mentorship visits and financial literacy, challenges were easily identified and addressed. Community leaders were involved in disbursement of resources to beneficiaries for accountability. CBOs facilitated access to microfinance for caregivers with viable Income Generating Activities (IGAs). Proper record keeping of business growth was maintained by each group leader who served as a buddy (Mentor- Mentee). A total number of over 2,000 caregivers were empowered with IGA.

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HES and VSLA

Women from the Lord is my Shepherd Village Savings and Loan Association utilizing their jointly owned cassava processing equipment to make local foods for sale.

Vocational training: IHVN has empowered and linked over 1,000 adolescents and young persons with different skill (ICT, Robotics, Web Creation, Photography & Videography, Make-up Artistry, Fashion Design etc). Over 700 adolescents that successfully graduated were provided with start-up kits

Linkage to Village Savings and Loans Associations: The HES implementation stimulates the creation of savings group within the communities working with community-based organizations supported. Savings groups are self-selected and self-managed groups of 15 to 25 individuals who meet regularly (usually weekly or fortnightly) to save, and borrow for a short period, paying monthly interest at a rate set by the group.  After approximately 12 months, all savings and earnings are distributed back to group members. Loans can be taken to support emergencies within the family. Village Savings and Loans Associations aim to increase household financial assets and decrease household vulnerability to financial and other shocks/stresses. As a result of the huge success of this activity more VSLA groups were established across supported communities. Between 2023-2024, IHVN has supported the establishment of 3,502 functional VSLA groups with visible impact as seen below:

Program Outcomes EUR
Total Number of functional VSLA Groups  3,502  
Total number of VSLA Members  4,457  
Total Savings  N50,923,387 €   28,395.30
Loaned Provided to members  N17,201,110 €   9,591.48
Shares out by members  N23,980,559 €   13,371.5

Orphans and Vulnerable Children Team