Posts Tagged ‘Savings for Life’
Serving the Most Vulnerable in South Sudan: Nama’s Story
Nama is a mother of four and a member of a local savings group in South Sudan. She first attended one of the weekly meetings with some of her friends. âWe felt challenged to save our money,â she said. âAt the moment, we did not see the money to save.â
Nama first believed that a humanitarian organization would provide loans to members of the group. When she and her friends found out that members actually loaned money to one another from within their own pooled resources, several people declined joining. Nama, however, wanted to learn more.
She was sick at the time but could not afford treatment. âOne needs about SSP 100-150 to get proper treatment,â she said. That cost is the equivalent of about $30 USD.
âWe started saving our income little by little with the hope that we could give assistance to ourselves.â Said Nama. âBy this time, we had given up all the initial thinking that we would get any money from the organization.â
When borrowing began, Nama was the second to receive a loan from the group. Two others applied for loans on that day but declined and agreed to wait in order to protect Namaâs health. She was approved to receive SSP 100 for her treatment. In the same time period, she lost a relative and the group gave her SSP 25 as a form of condolences.
Nama has been repaying her loan since January. She says that the group not only gave her access to the resources she needs, but a group of new friends. âThe group members kept on visiting me when I was sick,â she said. âThey comfort me and I feel I have brothers and sisters.â
When asked about her future plans, Nama said her health will give her new opportunities. She plans on devoting time and energy to her garden and using her savings in eight months to start a kiosk so she can sell goods after farming.
Savings for Life – Empowering the Poor in Rwanda
Rwanda is a small country with one of the highest population densities in Africa (USAID, 2013). It is also one of the poorest countries, but it has made significant progress since the 1994 Genocide against the Tutsi that killed nearly 800,000 people (USAID, 2013). Poverty has dropped from 56.7 percent in 2006 to 44.9 percent in 2011, a developmental trend worth celebrating (USAID, 2013). Still, Rwandaâs poorest are often excluded from formal financial institutions and basic financial services because of fees and geographic barriers. Less than half of the population is formally banked. Lack of access to savings makes these people more vulnerable to economic shocks and it prevents personal investment for future development.
Local churches in Rwanda are well-positioned to address poverty in their communities. They typically respond by providing food and money to the poor, a well-meaning effort that fails to address root causes of poverty. Often, these churches lack the skills and tools to be agents of transformational development, a holistic approach to poverty that involves
sustainable changes in attitudes and behaviors. World Relief is responding by empowering the local church to deliver basic financial services and education to Rwandaâs poorest through the Savings for Life⢠program, which makes access to savings and loans possible for the most poor and vulnerable. World Relief trains church volunteers who, in turn, train savings and credit groups in the communities. Special emphasis is placed on savings mobilization methods, Biblical stewardship, financial integrity, overcoming poverty, effective asset use and group government and management.
The impact of Savings for Life⢠extends beyond economic empowerment as Savings Group members discover that they already have the resources necessary to advance their lives and those of their children. The community becomes more resilient as members help each other set aside money for emergencies. When World Relief concludes its work, these self-sustaining groups continue to meet and holistically transform the lives of members. Groups provide an opportunity for people to work together for a common financial goal and serve as a safe place of social support. World Relief has been implementing Savings for Life in Rwanda since 2010. There are currently 682 groups and 14,535 members across four districts.
Courtney OâConnell is World Reliefâs Senior Technical Advisor for the Savings for Life program. She will be speaking at the University of New Hampshireâs Carsey Institute of Sustainable Microenterprise Development Program in a class titled âSavings Groups Post-Project: Evolution, Sustainability, Enrichmentâ Nov. 18-22, 2013 in Arusha, Tanzania. The following interview was conducted on Oct. 28, 2013.
Courtney, what is your history with transformational development,
World Relief, and as Senior Technical Advisor for the Savings for Life program?
C: I joined World Relief in 2011 after having already lived in Africa for three years. My earliest work in Africa heightened my understanding of the need for transformational development to be truly holistic. I believe that just focusing on one area of life, physical, for example, ignores so many other areas of a person that need to be addressed: spiritual, social, emotional, financial. Joining World Reliefâs Savings for Life team, then was a perfect fit for me as we try to address communities in a holistic way,
In which countries is this program currently being implemented?
C: We started our Savings for Life (SFL) program in Burundi in 2008, then expanded to Kenya and Rwanda in 2008 then to Malawi (2011), Congo (2012) and South Sudan (2013).
To date, do you know the total amount of Savings Groups and
members?
C: Currently we have 104,857 members across all 6 countries.
Why does Savings for Life and the Savings Group model work so
well? In other words, what about this model is different from other existing
financial services and institutions offered either by countries or other NGOs?
C: The essence of the SFL program is this: groups of 10-25 community members come together and save their own money, use that common pool to make loans to each other charging an agreed upon interest rate. Then, after about 9 months, the members get back all the money they saved plus their share of the interest, or profit, the group made. This money that theyâve accumulated, generally $75-140, is usually the most amount of money these community members have ever had in their hands. And, itâs all theirs! The empowerment they take from this method is remarkable. Members are able to put children in school, buy health insurance for the very first time, invest in a business, or make tangible improvements on their homes. Itâs such a huge change in a relatively short time.
Our approach is different from most other NGOs who do savings programs. First, we strive to deliver a high quality, technically sound savings program. It improves upon the indigenous forms of savings that have been present in rural communities for generations and generations. Most importantly, however, World Relief is working in and through the local church. Our desire is to see the church own this program and, towards that end, have volunteers from the church that help to form and train new savings groups. Groups pray with each other and support each other in times of need. We also have a Bible Study the groups can do to supplement their savings activities. In all these ways weâre trying to address the spiritual and the financial lives of the members.
Can you share a recent story from the Savings for Life program in Rwanda?
C: In the Nayamasheke district, Savings for Life empowered the Tuzamurane Savings Group (below) with the ability to address other areas of need in their lives. The members identified that each one needed a mattress at their house, as some were still sleeping on dirt floors. So they took turns buying mattresses from their collective savings until everyone had one. They were so proud of what they did, they bought matching âuniformsâ so that the entire community would know that they were empowered and could do fantastic things!
Savings For Life: Financial Opportunity for the Worldâs Most Vulnerable
The worldâs poorest have a tremendous capacity and willingness to save and protect assets when financial institutions cannot serve them. They save to meet social obligations, to prepare for emergencies, to start or expand small businesses and to respond to seasonal changes in cash flow. However, the lack of banks in rural areas often leads to high fees and unattainable minimum balance requirements, leaving savings vulnerable to loss and theft.
Since piloting the Savings for Life program in 2008, World Relief has empowered more than 100 thousand participants across six countries through the facilitation of effective and impactful community-based savings and credit groups. After years of testing and expanding, World Relief has developed a program that offers safe and reliable financial services to people who are otherwise excluded from formal banking institutions. Through regular savings and access to appropriately sized loans, group members can meet daily household needs and establish their own income-generating activities.
The Savings for Life program, like other World Relief initiatives, is also one of spiritual transformation. It is integral to the fulfillment of World Reliefâs mission to âempower the local church to serve the most vulnerable.â Churches are the point of contact in communities where World Relief is present and pastors work to identify the most vulnerable within those communities. Church volunteers serve as field agents to mobilize and train the savings groups. Finally, World Relief promotes Savings groups because of its commitment to the holistic Gospel of Jesus Christ, a message that leads to transformation in every area of life.
Often, World Relief implements the Savings for Life program alongside other interventions. In Burundi, care group volunteers who bring life-saving health messages to more than 30 thousand mothers every month are invited to participate in Savings for Life groups. In Rwanda, Savings for Life is combined with leadership training so that church and community members can take initiative to meet the needs of vulnerable neighbors with their own resources. In the Democratic Republic of Congo, farmer group members involved in Savings for Life can buy better seeds and fertilizer with their own resources to produce greater yields.
Some of the most vulnerable in Kenya have also benefited from Savings for Life. Compared to other countries in East Africa, Kenya enjoys the largest, most diversified economy (USAID, 2013). Because of its location, the country serves as a place of transport and therefore plays a vital role for much of sub-Saharan Africa. However, decades of unjust governance have stunted economic development. About 60 percent of Kenyans live on US$2 or less per day (USAID, 2013). Kenyans facing poverty often lack access to the most basic financial services. Supplementing the life-impacting work of economic development, Savings for Life groups in Kenya educate members in managing their own savings. As savings accumulate, group members have access to appropriately-sized loans with which they can finance business or personal needs.
In 2011, a womenâs group registered with World Relief in Kenya and Fadhili Trust to participate in a village savings and loan association in Ongata Rongai in Kajiado North. Group members save and lend their funds among themselves and also contribute to a social fund to assist with emergencies. When the group began to grow, the women registered with the Ministry of Gender, Children and Social Development to be recognized by other institutions and gain negotiation power for development. Now, they plan to begin using savings to purchase land for various group members. In the last two and a half years, not one of the members has defaulted on a loan or payment. This is the story of just one of several groups operating in seven regions across Kenya.
The groups also provide discipleship for members through regular Bible studies. World Relief believes that Godâs restorative plan for mankind includes, among many things, character development with regard to stewardship, personal finance and attitude towards work. The goal is not wealth, but worship â pointing the most vulnerable to a right relationship with God through Jesus Christ and empowering them to live in a way that brings Him glory.
âThe thief comes only to steal and kill and destroy; I have come that they may have life, and have it to the full.â John 10:10
Savings for Life⢠is Changing Lives in Burundi
In Burundi, World Reliefâs Savings for Life⢠program empowers the most vulnerable in communities that lack access to even the most basic financial services. Savings helps the worldâs poorest, who have shown tremendous capacity and willingness to save, build and protect their financial assets in climates where financial institutions canât serve them.One of the members, Judith Niyonzima, shares how the program has affected her and her family’s lives:
My name is Judith NIYONZIMA. I am 40 years old and live in Makamba province. I am married and have 6 children. Two of them are in secondary school.
I am currently the president of a village savings and loans association called Tugirumwete to which I joined in April 2011. Before joining the association, we were living in bad conditions. Our house was covered with grass, and our children hardly got school fees. It was also very impossible to get 20,000 BIF [approximately $12 USD] in the house. It was also difficult to have our children treated when sick.
When I joined the group, life became improved. In fact we saved our money, got credit and made a small business. This makes our family happy. If someone (a member) gets a problem, we help him/her with the social fund. We talk together as members of an association and study HIV/AIDS. At the beginning, my husband could not understand because he was not accustomed to seeing a woman supporting the household.
But at the sharing out [of the money], he became very interested and decided himself to join another association of the area. Now, we have built our house covered with iron sheets.
Learn more how Savings for Life⢠is impacting women like Judith Niyonzima. Check out the post on Malawi’s Savings for Life⢠program by a US Church Partner.
So Much Happening in Twenty-Thirteen…
by Larissa Peters, World Relief Communications Liaison I donât know about you, but I have an especially good feeling about 2013. I admit, I keep a journal, and on the first of every year, I wonder what will fill its pages. The same is true in managing this blog â what will be the stories, reflections, and prayers that fill this year?
So many things are happening at World Relief, and so many great things we get to be a part of this year as more and more stand for the vulnerable! So I thought I would share 13 of the ones that Iâm personally excited about and that others could even join:
In no particular order, here they are:
- Immigration Reform: From publishing the book Welcoming the Stranger in 2009 to speaking at Willow Creek Church and the G92 Summit, Jenny Yang â Vice President of Advocacy & Policy and Matt Soerens â US Church Training Specialist are truly affecting change for the immigration system. We believe this is the year for reform. Want to keep up to date on the issue? Follow Jenny and Matt on twitter at: @JennyYangWR and @MatthewSoerens.
- Peace building in the Congo: Village Peace Committees are changing their communities in the DR Congo. Conflict still abounds, but the grassroots movement of the Church is transforming lives. This is something to be a part of! Follow updates and watch our video.
- Our partnership with Pure Charity: if you havenât checked this organization out and you shop online or use a credit card (which should cover most of you), click here now. Here is a creative way to raise funds: shop and the stores you shop at will give to your charity of choice. World Relief has a few projects of their own there, and youâll find Pure Charity at the Justice Conference. I already wish I knew about them earlier â I have to admit Iâve become slightly addicted to online shopping.
- Fighting the battle of slavery: more and more people are taking on the cause of anti-trafficking. Currently, there are 14,500 people trafficked into the US each year (this is a low estimate). But our offices in Spokane, Tampa, High Point (and even internationally in Cambodia) are fighting to prevent that number from going up. Follow World Reliefâs efforts on twitter and find out how you can promote awareness through races, workshops, or advocacy.
- Church Partnership: Churches around the US have partnered with World Relief with a commitment of investing in a country or program for 3 to 5 years. Building relationships with the field and giving opportunity for long-term sustainable development, partnership is about wholistic mission. More and more churches are signing on, and we are excited about the changes it is bringing! Want your church to be part of this?
- Catalog of Hope: This year, our Catalog of Hope has a new section: fair trade items that benefit refugees in the US, empower women in Burundi, Rwanda, and Indonesia, and provide a monster for children in the US. A monster? Yes! See what this is all about.
- Stand Together Project: The premise is simple: Empowering women who are heroes in their own communities around the world. Check it out here: www.standtogetherproject.org.
- Savings for Life: A woman in Rwanda had never held a 5000 Franc note (worth $8 USD). For the first time in her life this year, she saved up SIX of them because of her Savings group! How much more exciting can that get? Savings for Life is making credit available to those even the microfinance institutions canât consider. Watch a video on what Savings group is here: www.savings-revolution.org .
- Reviving and strengthening marriages in India: There is a quiet and unique program in India. One that is saving marriages, helping couples to be faithful to each other, and actually preventing the spread of HIV/AIDS. Check out the story on India.
- Volunteering with refugees in the US: more and more people are asking, âWhat can I do?â Our US program with refugees provides tangible volunteering. I can promise you that your 2013 will be incredibly enriched by befriending a refugee and welcoming them into your home and life.
- Volunteering with refugees in Indonesia: you have to check this unique opportunity out: living in Indonesia and ministering to refugees from Afghanistan, Iraq, Iran, and Sri Lanka. You can read about some of the volunteersâ experiences here: www.worldreliefindonesia.com .
12 AND 13
Tis the season for conferences! So Iâll have to just wrap them all up into the last two: Churches and organizations are stepping out and bringing awareness to issues of injustice, educating their communities on how to respond. World Relief is privileged to be a part of these conferences with other Justice advocate hall-of–famers:
- Passion Conference 2013
- Ignite Justice: www.ignitejusticeconference.org
- International Wholistic Missions conference www.wholisticmissions.com
- The Justice Conference: www.thejusticeconference.com
- Mission on Our Doorsteps: www.missiononourdoorsteps.com
My hope is that these 13 (and then some) inspire and encourage you. And may this year be full of all that is more than we can ask or imagine!*
*Ephesians 3:20
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