SHG

I had a really interesting day at work yesterday and of course I didn’t have my camera! I must remember to bring it with me because I never know what I’ll see. I think I mentioned in a past post that while Imbita works in some ways as a micro credit agency (with a focus on savings) I didn’t understand how it helped the really really poor. Yesterday I learnt about a whole other division within Imbita that I wasn’t aware of, the division that helps the really really poor.

They have a program called Self Help Groups (SHG). This program is set up to help those who aren’t able to save enough by themselves in order to be eligible for a loan. Basically SHGs consist of a minimum of 10 rural women who pool a weekly savings together. They are then able to borrow money from the pool they have collected. Once (or if) they reach a certain level, they can open a bank account a start a proper account. If they do not have an account, each member holds onto the money for one week, until the next weekly meeting where they pass on the money and chairperson responsibilities to someone else. These groups teach leadership, budgeting and decision making skills.

Most groups ask each member to save between E1 and E2 each week (roughly $0.02). For some even E1 is too much however we met one group who were able to save E7. The women then devise a system for how the money can be loaned. Most work on a priority/number system. At each meeting they see if anyone has an emergency (i.e. illness) and needs to borrow the money. If not, they go in sequence; if number 5 received a loan last week they see if #6 needs one, if not #7 and so forth. They also collect loan payments (with interest rates decided by the group) and the weekly contribution.

We visited 3 groups yesterday. I thought I had visited rural Swaziland before but I swear I have never seen such remote ‘communities’ in my life. I felt like we came from such different worlds and I’m not sure if I’d ever be able to live in an area like that (especially after visiting the ‘toilet’). One group was particularly talkative and with through my translator (i.e. co-worker) I was able to ask them many questions. I asked how they had benefited from the loans. The women described how they were able to pay for school fees, buy cooking utensils, materials for sewing and so forth. One woman had been living in a home made from sticks and stones. She had purchased supplies for making cement and was currently making bricks to build a new home. It was so interesting. AND I COULDN’T TAKE PHOTOS!! The women could not speak highly enough about this program and how it had made their lives better. Some stated that first they were sceptical but couldn’t believe the results. The meetings were all held under a big tree in the middle of the dusty land. Currently my work doesn’t have any involvement with SHGs but I’m going to try and work in a project with them. Am I really leaving in a few months? So much I want to do and experience.