From Survival to Strategy: How Dollo-Ado Women Are Building Financial Resilience through VSLAs

May 15, 2025

By Abdirahman Ibrahim|Consortium Communications Coordinator|BORESHA-NABAD

A quiet transformation is underway at the heart of the Mandera Triangle, Dollo-Ado, a town shaped by migration, informal trade, and resilience. 25 women from Al-Qamar Village Savings and Loan Association (VSLA) are shifting from informal survival strategies to engaging productively in the local market economy.

For years, many women in Dollo-Ado operated on the economic margins, selling fruit, borrowing informally, and navigating the daily pressures of household survival. Lacking access to formal financial services, they relied heavily on traditional ayuuto systems, rotating savings that provided temporary relief but lacked long-term impact. Financial literacy, access to credit, and asset building remained elusive.

Enabling Economic Participation through Structured Finance

Sumeya Maalim Jaafar, a fruit vendor and mother of four, recalls how her daily income rarely translated into financial stability.

“I used to be in an ayuuto group. But it wasn’t a real saving. The money came and went,” she says.

That changed when she joined Al-Qamar VSLA through the BORESHA-NABAD programme, funded by the European Union and implemented by the Danish Refugee Council (DRC), Ethiopia. Designed to strengthen resilience and facilitate local market participation, the initiative connected women to a structured saving mechanism, an entry point into more formal economic activity.

Through targeted training on financial planning, group governance, and income diversification, Sumeya and her peers began saving 250 birr weekly. It may seem modest, but collectively, they’ve mobilised over 166,000 birr, capital that is now circulating locally, supporting small enterprises, and reinforcing community-level financial flows.

“I borrow to restock my fruit stall and repay it without pressure. It’s not a handout. It’s sustainable. It’s ours,” Sumeya explains.

Governance, Trust, and Systemic Change

The VSLA’s model emphasises transparency and accountability as foundational principles for building trust in financial systems. Their metal savings box, secured by three locks and three custodians, symbolises shared responsibility. With a constitution, member passbooks, and formal registration facilitated by the local cooperative office, Al-Qamar is now integrated into the broader financial support structure.

“We didn’t think women could manage money collectively. But structured training helped us create systems. Now, we have bylaws, records, and oversight. We’re part of something bigger.” Chairlady Arfon Osman Abdille notes

The group has introduced three savings components: regular contributions, an emergency fund, and a long-term investment fund. This segmentation reflects a shift from reactive to proactive financial planning, which is a key element in enabling inclusive, sustainable market engagement.

Expanding Financial Access and Market Linkages

The initiative has also addressed systemic barriers for women, especially those from marginalised clans and vulnerable backgrounds. Lul Mohamed Gelle highlights how the group now provides a safer, low-risk alternative to predatory borrowing.

“We operate like a women-run bank, not with interest, but with purpose.”

Farhyia Abdirahman Galla, a disabled vegetable seller and single mother, underscores the inclusive nature of the VSLA.

“For the first time, I feel included. My daughter is learning that saving is about opportunity, not just survival.”

Crucially, the group is now positioned for vertical linkages. With guidance from cooperative officers, Al-Qamar is preparing to engage with microfinance institutions (MFIs) and agribusiness actors. Their long-term goals, leasing land for vegetable farming and launching a clothing enterprise, signal a pivot from micro-activity to microenterprise development.

Building Resilience through Systems Thinking

Al-Qamar’s story exemplifies how targeted, inclusive market systems interventions can catalyse change. By embedding savings culture, building local capacity, and facilitating formal linkages, these women are improving household resilience and becoming active participants in Dollo-Ado’s local economy.

“We used to think women couldn’t lead or build something bigger,” Arfon says. “Now we know better. We are shaping our future with systems, not just hope.”