Galula Village, located in Songwe District, Tanzania, is home to over 14,000 people who depend primarily on agriculture. Since the 1990s, the community has faced repeated floods and droughts that have severely impacted livelihoods. In 2020, Rikolto began working with local smallholder farmers to enhance resilience and promote sustainable agriculture. These efforts were scaled up in 2024 through the NATURE FUNDI Project, funded by REDAA, which introduced an innovative eco-credit model: a mechanism that offers financial incentives for farmers adopting climate-smart practices. The initiative supports sustainable agriculture, strengthens financial inclusion, and aligns with national food security and environmental goals.
“This project has been well received by the community because it is implemented collaboratively and addresses real social challenges, particularly in economic and environmental matters. What’s important is to ensure that the project is executed effectively within the planned timeframe, and that we learn from its implementation to improve the delivery of similar projects in the future.”
Recognizing the power of community-led action, the project supported the formation and training of Village Savings and Lending Associations (VSLAs) in Galula. Two standout groups—Njooni Tuwalee (50 members: 18 youth, 22 women) and Jitahidi Ilasilo (40 members: 14 youth, 16 women)—were trained in sustainable agriculture, environmental conservation, and financial management.
Through these VSLAs, farmers accessed finance to implement agroecological practices like tree planting and soil conservation.
Within a year, signs of transformation were visible. Soil erosion dropped significantly, and the community's enthusiasm for conservation grew stronger.
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Encouraged by success, the VSLAs launched a plan to plant 200 more trees, including 120 shade trees and 80 fruit trees, in erosion-prone areas such as schools and community zones.
To date, the community has planted:
These fruit trees not only promote reforestation but also enhance nutrition and food security, particularly for schoolchildren and vulnerable families.
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By linking financial services with climate-smart practices, the eco-credit model empowers communities to act. Members receive loans and grants to adopt practices that benefit both livelihoods and ecosystems.
The Galula case shows that Village Savings and Lending Associations are more than financial hubs—they are platforms for change. Rikolto aims to expand the model to other communities and scale the eco-credit approach across the region.
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