Creating financial security for coastal communities
10% of small-scale fishers in Kenya have access to formal loans, according to a 2022 report by the Food and Agriculture Organisation.
$55,000 in seed capital and venture-building support from the Triggering Exponential Climate Action (TECA) programme.
38 fishermen onboarded onto their platform during their pilot project on Kiwayu Island.
Along Kenya’s coastline, artisanal fisheries form the backbone of many coastal communities, providing both food security and livelihoods. These small-scale fishers, however, face significant challenges that threaten their survival. One of the primary issues is the seasonality of fishing, which results in irregular incomes that make it difficult for fishermen to plan for leaner periods. A report from the Food and Agriculture Organisation (FAO) in 2022 revealed that small-scale fishers in Kenya struggle with low and inconsistent incomes, with many reporting that their annual earnings are not sufficient to meet household needs. Moreover, less than 10% of small-scale fishers have access to formal financial services, leaving them without the necessary resources to manage emergencies or invest in their businesses. On top of these financial challenges, fishermen are grappling with the worsening effects of climate change, such as reduced fish stocks and declining fish quality, which further jeopardize their livelihoods.
VUA Inc., a forward-thinking social enterprise, is responding to these challenges by offering a platform that enables fishermen to save during the high fishing season and access their savings in the low season. This simple yet impactful intervention provides a safety net for the fishermen, allowing them to better manage household expenses and respond to unexpected situations. For example, one fisherman was able to pay for his child’s medical treatment during the low season by using the savings he had accumulated through Vua’s platform. In addition to facilitating savings, Vua has piloted a small-scale loan programme, which provides fishermen with access to essential tools like sustainable fishing reels, enabling them to adopt more environmentally friendly fishing practices. Vua also offers training on good hygiene standards to ensure the fish caught is safe for consumption, further improving the quality and value of their produce. Through these initiatives, VUA Inc. is not only helping fishermen cope with seasonal income fluctuations but is also fostering long-term sustainability in the local fishing industry.
The success of Vua Solutions has been significantly enhanced by the support it received from the Triggering Exponential Climate Action (TECA) programme, a partnership between FSD Africa and BFA Global. As part of the Diani Blue Wave cohort, Vua received $55,000 in seed capital and venture-building support. This funding allowed them to refine their business model, conduct a successful pilot project on Kiwayu Island, and onboard 38 fishermen to their platform. The programme also provided crucial mentorship and networking opportunities, connecting Vua with organisations such as the Climate Collective. Through this partnership, Vua secured additional funding to develop an AI-powered financial literacy tool, which will help fishermen make more informed financial decisions and improve their financial inclusion. This exposure to both financial and strategic support has been invaluable, enabling Vua to scale its impact and reach more fishermen.
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