A new concept promotes growth

Alice Gubudu is not really confident when she attends our partner organization's information event for new savings and lending groups. After all, she had already pinned her hopes on such a group a few years ago. But Alice was disappointed, the expected success largely failed to materialize.

A new attempt

Alice explains why the first attempt at a savings and lending group in her village, which was not run by our partner organization, failed: "Because the written records were not kept properly, there was a lack of transparency. This gave many members of the village community a bad feeling." One reason why Alice wants to give it another try is the new concept: "Everyone gets their own savings book." This makes it easier to monitor and strengthens trust within the group.

Savings are growing

Alice realizes after just a few weeks that her membership is paying off. She can now do small businesses and make a profit. Alice is particularly pleased that she is able to pay the school fees for her three grandchildren, whom she looks after.

Benefit together

One thing is certain: for a savings and lending group to work, it needs many members. They must all pull in the same direction. Regular training sessions are held to ensure that this succeeds. In the Dedza district, 763 people have joined a savings and lending group in the current project phase. Many of them use small loans from the joint "savings bank" to set up their own small businesses. However, there are also groups that pool their money to start a larger business. One thing remains the same for all members of the groups: they experience how their savings grow.