The continuing failure of MFIs to reach remote and rural areas, especially in Africa, has renewed interest in finding alternative models of service delivery that can achieve this goal. The Village Saving and Loan Association model promoted by CARE is an accumulating savings and credit association that is timebound, with a periodic action audit at which all the funds are paid out. The approach was implemented in Zanzibar in 2001–2002 and CARE then left the area. This article reports findings from a follow-up study to assess the performance of the groups. The number of groups had grown and overall outreach had expanded to some 4,500 members. The financial performance of the groups was strong with returns on savings of 53 per cent. The context for this strong performance is a relatively well-off and well-educated population that is likely to have favoured strong group governance.

Allen, H. (2006) ‘Village Savings and Loan Associations: Sustainable and cost-effective rural finance’, Small Enterprise Development 17(1): 61-68.

Allen, H. and Staehle, M. (2006) ‘Village Savings and Loan Associations. Programme Guide. Field Operations Manual Version 2.0’.

Grant, W. J. and Allen, H. (2002) ‘CARE's Mata Masu Dubara (Women on the Move) program in Niger: Successful financial intermediation in the rural Sahel’, Journal of Microfinance 4(2): 189-216.

Johnson, S., Malkamaki, M. and Wanjau, K. (2006) ‘Tackling the “frontiers” of microfinance in Kenya: The role for decentralized services’, Small Enterprise Development Journal 17(3): 41-53.

NBS (National Bureau of Statistics) and ORC Macro (2005) Tanzania Demographic and Health Survey 2004-5, National Bureau of Statistics Tanzania and ORC Macro, Dar es Salaam.

Rhyne, B. (2006) Point, Counterpoint: A dialogue on Member-Owned Financial Institutions and Increasing Access to Savings Facilities, http://microfinancegateway.org/resource_centers/savings/experts/_asktheexpertsno8. http://microfinancegateway.org/resource_centers/savings/experts/_asktheexpertsno8

Allen, H. (2006) ‘Village Savings and Loan Associations: Sustainable and cost-effective rural finance’, Small Enterprise Development 17(1): 61-68.

Allen, H. and Staehle, M. (2006) ‘Village Savings and Loan Associations. Programme Guide. Field Operations Manual Version 2.0’.

Grant, W. J. and Allen, H. (2002) ‘CARE's Mata Masu Dubara (Women on the Move) program in Niger: Successful financial intermediation in the rural Sahel’, Journal of Microfinance 4(2): 189-216.

Johnson, S., Malkamaki, M. and Wanjau, K. (2006) ‘Tackling the “frontiers” of microfinance in Kenya: The role for decentralized services’, Small Enterprise Development Journal 17(3): 41-53.

NBS (National Bureau of Statistics) and ORC Macro (2005) Tanzania Demographic and Health Survey 2004-5, National Bureau of Statistics Tanzania and ORC Macro, Dar es Salaam.

Rhyne, B. (2006) Point, Counterpoint: A dialogue on Member-Owned Financial Institutions and Increasing Access to Savings Facilities, http://microfinancegateway.org/resource_centers/savings/experts/_asktheexpertsno8. http://microfinancegateway.org/resource_centers/savings/experts/_asktheexpertsno8

Allen, H. (2006) ‘Village Savings and Loan Associations: Sustainable and cost-effective rural finance’, Small Enterprise Development 17(1): 61-68.

Allen, H. and Staehle, M. (2006) ‘Village Savings and Loan Associations. Programme Guide. Field Operations Manual Version 2.0’.

Grant, W. J. and Allen, H. (2002) ‘CARE's Mata Masu Dubara (Women on the Move) program in Niger: Successful financial intermediation in the rural Sahel’, Journal of Microfinance 4(2): 189-216.

Johnson, S., Malkamaki, M. and Wanjau, K. (2006) ‘Tackling the “frontiers” of microfinance in Kenya: The role for decentralized services’, Small Enterprise Development Journal 17(3): 41-53.

NBS (National Bureau of Statistics) and ORC Macro (2005) Tanzania Demographic and Health Survey 2004-5, National Bureau of Statistics Tanzania and ORC Macro, Dar es Salaam.

Rhyne, B. (2006) Point, Counterpoint: A dialogue on Member-Owned Financial Institutions and Increasing Access to Savings Facilities, http://microfinancegateway.org/resource_centers/savings/experts/_asktheexpertsno8. http://microfinancegateway.org/resource_centers/savings/experts/_asktheexpertsno8

Allen, H. (2006) ‘Village Savings and Loan Associations: Sustainable and cost-effective rural finance’, Small Enterprise Development 17(1): 61-68.

Allen, H. and Staehle, M. (2006) ‘Village Savings and Loan Associations. Programme Guide. Field Operations Manual Version 2.0’.

Grant, W. J. and Allen, H. (2002) ‘CARE's Mata Masu Dubara (Women on the Move) program in Niger: Successful financial intermediation in the rural Sahel’, Journal of Microfinance 4(2): 189-216.

Johnson, S., Malkamaki, M. and Wanjau, K. (2006) ‘Tackling the “frontiers” of microfinance in Kenya: The role for decentralized services’, Small Enterprise Development Journal 17(3): 41-53.

NBS (National Bureau of Statistics) and ORC Macro (2005) Tanzania Demographic and Health Survey 2004-5, National Bureau of Statistics Tanzania and ORC Macro, Dar es Salaam.

Rhyne, B. (2006) Point, Counterpoint: A dialogue on Member-Owned Financial Institutions and Increasing Access to Savings Facilities, http://microfinancegateway.org/resource_centers/savings/experts/_asktheexpertsno8. http://microfinancegateway.org/resource_centers/savings/experts/_asktheexpertsno8