Village savings and lending schemes are groups formed in poor communities to provide sustainable and profitable microfinance services, especially in remote places without access to formal financial services. The schemes are self-managed and provide members with a safe place to save their money, acquire small loans, and obtain emergency finance. They focus on building savings and assets, and provide credit proportionate to the needs and repayment capacities of the borrower.
The Honde Valley Village Savings and Loan Scheme group is composed of 14 women who have all been equipped by ZRDT with skills on how to save their money through share purchases.
Dream come true
Mary Kanjoka and her husband struggled for many years to provide the basics of food, clothing and school fees for their two children. They took on temporary work when available, for which they received either money or food as payment. “In hard times we would borrow money from money lenders in the village, but at an interest rate as high as 50 per cent, we struggled to repay the loans. In some instances, our household assets would be impounded in repayment of the loan,” said Kanjoka.
“But with the establishment of the Savings and Loan Scheme Group, our fortunes have improved. Today I am a happy woman because my family now sleeps in a house under a roof. For so many years we have been sleeping in grass thatched huts, but now through my savings and loans I have managed to buy metal sheets for my roof,” she proudly said.
“It is like a dream come true. I had always wanted to live this life. As a family we now eat decent meals and my two children are going to school and they have enough uniforms, so this loan and savings scheme has greatly changed my life,” Kanjoka added.
Motor cycle
Her husband, Herbert Kankjoka confirmed that indeed their lives had changed for the better. “I had always hoped to have an iron-roofed house. When my wife joined the scheme it became possible. She has even bought me a second-hand motor cycle, which I am now using for transport to my various casual jobs. This has been a great asset,” he said.
“Prior to this, I was not respected by some of the other villagers, but now I have money and this has improved my status in the community.” The Kankjokas have also been able to extend their home and buy more furniture.
Another member of the scheme, Tarisai Nyabereka, said the programme had given her a new lease of life. “This is the only year for as long as I can remember where my family has not struggled to provide basic needs. Because of my participation in the initiative, we are no longer sleeping on empty stomachs,” Nyabereka said. After doing casual labour, Nyabereka would regularly pay small amounts of money for share purchase during the scheme’s weekly meetings.
The share value for the group was pegged at $0.7 per share and a member was allowed to buy a maximum of five shares per meeting day. “I took advantage of having access to loans from group savings. I have taken loans in the range of $133 – $250, which I have invested in vegetable and chicken businesses and farming,” said Nyabereka. Her profits have enabled her to buy food, groceries and clothing and pay school fees for her children.
Success story
Beatrice Makunike, another member of the group, has also invested her borrowings in farming and expects to reap a good harvest next year. “I hope to have food for the whole year and a surplus which I will sell. This has been a success story for us and I am encouraging other women to join the group,” she said.
The transformation stories of these women are just some of many, where members participating in the programme now own different assets like bicycles, cell phones and radios.
This month, the group's third year of savings cycle comes to an end. The chairperson Taisekwa Juru said they had reached a total cumulative savings of $8921.33, which will be shared among participating members according to individual cumulative savings.
Post published in: Gender Equality