Unlocking the Future through Savings Groups

 The sun shone bright today after God brought some much needed rain on Thursday.

Try to imagine every Tuesday afternoon a group of men and women sitting on a tarp surrounded by mud huts with straw roofs conducting a financial business meeting. We were able to witness to this remarkable event Thursday. It was the Women's Savings Group, which consists of 33 members, both men and women. This group holds mandatory meetings each week. The meetings are very structured with fines for late arrivals and missed meetings.

The Savings Group sets the interest rate that their savings will earn. This particular group had set a 10% interest rate. The interest is earned as various members take out loans from the total group savings. Everyone also contributes weekly to a Welfare Fund in the amount of $200 shillings ($.06). This can be borrowed and repaid without interest.

World Vision has provided the group with training, a lock box, savings books and ledger books. The lock box is a solid square metal box that has locks on 3 sides. Three different members hold the keys. This group was well trained and reaping the benefits of their newly developed knowledge and skills.

Loans could be given for up to 3 times the members savings and must be paid back in 3 months. Of course there was a penalty if a loan was not paid back and the members held one another accountable.
The members shared testimonies of how they have been helped  by the welfare fund to get needed medical care and how their lives have been impacted by starting businesses. Some were using the loans to plant larger gardens and selling the produce, or to begin or expand their efforts raising bees, chickens or goats. Many shared with pride that they were now able to send their children to school. 

World Vision shared that the Savings Group transforms the culture to a focus on planning for the future, using their own skills and resources. This savings group is changing the future for a whole community of children and we got to witness it first hand.

Submitted by Tami