From savings to food security

15-10-2024

Written by Rebecca Agelle, Cooperative Advisor Ghana

In the vibrant community of Janga, in the Northeast region of Ghana, 34-year-old Rahinatu, a mother of six and a dedicated member of the Magsunsim Shea cooperative, has transformed her family's life through the power of savings and entrepreneurship.

The Magsunsim Shea Cooperative's VSLA Approach

The Magsunsim Shea cooperative, supported by the Agriterra under the Acting Now project, implemented financial service business units (FSBUs) using the Village Savings and Loan Association (VSLA) approach. This initiative has opened doors for women like Rahinatu, providing them with opportunities to save, access credit, and invest in their futures.

Rahinatu's Path to Success

Rahinatu’s livelihood comes from collection/picking and selling shea nuts to cooperatives, which generates income. She supports her family with the yearly income she makes from the sale of shea nuts.

According to Rahinatu, 2024 has been one of the worst years for shea production in her shea business due to a prolonged drought that prevented the trees from fruiting. Despite this setback, Rahinatu embraced the VSLA program with determination, consistently saved part of her earnings. Her discipline and financial planning soon paid off, allowing her to make strategic investments that improved her family's situation.

Before the shea picking season, Rahinatu took out a loan of GHC 600 to start a small peanut snack business. The income from this venture helped provide meals for her husband and six children. She continues to save weekly and repay her loan using the profits from her business. Rahinatu is especially proud that, despite a poor shea harvest this year, she was able to support her husband's maize farming by contributing GHC 400 towards purchasing fertilizer to improve soil nutrients for a better harvest. With her accumulated savings, Rahinatu made two key investments:

1. Peanut Snack Business: She started a peanut snack business, creating a new income stream and contributing to local food production.

2. Agricultural Inputs: She purchased inputs to support her husband's maize farming activities, hoping to boost the crop yield.

The Impact: Enhanced Food Security and Economic Stability

Rahinatu's strategic use of her savings has had a profound impact:

• Household Food Security: Income from her business has ensured a stable food supply for her family of eight.
• Community Food Security: Her peanut snack business contributes to local food availability and dietary diversity.
• Economic Empowerment: The new business provides additional income, enhancing the family's financial stability.
• Agricultural Productivity: Investments in inputs, improving crop yields.

In Rahinatu’s own words, “If I had not joined the cooperative, I would not have received this support from which my family now benefits”.
Rahinatu’s success is a powerful example of how financial empowerment through cooperatives can drive long-term agricultural and economic development.