Ngara, TZ – MVG VICOBA tree nursery is growing well – 31 Aug 2022
The MVG Village Community Banking Association (VICOBA) was established in July last year, and has now started a commercial tree nursery. The nursery team has planted 15,000 tubes that will grow pine tree seedlings, and 1,000 tubes for coffee seedlings. They expect to sell each seedling for 150 TZS to earn 2,400,000 TZS. / US$ 1,040
The MVG VICOBA started with ten members that assist school children to grow and prepare their own daily breakfast. The VICOBA’s aim was to have a group of families that assist each other to preserve the environment around them. Five new families have now joined the group for the second year, making a total of 15 members.
The joining fee of TZS 50,000 / US$ 22 per person, means that the first 10 families built up TZS 500,000 / US$ 220 of capital. Additionally, each member targets to buy 1 share for 20,000 TZS / US$ 9 every month from MVG, so the total number of shares purchased by the first 10 families in the first year was 120 worth 2,400,000 TZS / US$ 1,050. Each member received their 240,000 TZS back after loans were repaid and when the shares were distributed in July 2022.
MVG loans money at 5% annual interest to its members for business ventures. The group has earned TZS 550,000 / US$ 240 from the total amount of money lent during the first year, which has been kept by the group as capital. Members used the loans they borrowed for entrepreneurial projects, for example Shafan borrowed 600,000 TZS / US$ 260 to start a chicken growing and egg laying project. Ester borrowed 500,000 TZS / US$ 220, and bought utensils for a catering service.
The group is looking for solutions to some growth challenges that include limited year to year capital growth from retained loan interest, joining fees, and nursery profits. This is because they are returning the purchased shares at the end of each year. Need for group land for group earning activities, and group transportation for delivering seedlings and visiting member businesses.
MVG VICOBA members are now dreaming of trading tree and fruit seedlings within their community at affordable prices, and providing trees to schools free of charge, environmental education to the community and schools, and increasing the cost of shares to 30,000 TZS per person per month for 2022/2023.
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