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community development

Self Help Groups improve women's economic independence, enabling whole families to benefit.  Venkata Lakshmi (left and centre) from Andhra Pradesh, India, is a member of a Self Help Group and now runs her own small shop. 

Other group members, like Rama Lakushamma (right), are now able to buy livestock to help them earn a living.

The problem

Having a strong economic base helps a community to grow and develop. A reliable means to earn a living and the ability to manage household finances are both vitally important. Yet, in the areas where MRDF partners work, many community members, particularly women, lack the skills or resources to achieve economic independence.

Many are illiterate and have never had a bank account or any training in how to manage money. They have no access to affordable credit to invest in a business or to help cope in a family emergency. Private lenders charge extortionate rates of interest and are almost impossible to pay back.


What are MRDF partners doing?

MRDF partners, like Christian Weaker Section Development Society (CWSDS) in India, organise Self Help Groups for women and young people. The Self Help Group elects its own leaders and has a bank account into which everyone contributes a small amount each month. Additional capital provided by CWSDS enables the group to give out small loans, of about £30 each, at low interest to its members, starting with the most needy.

Training in managing money, as well as in business skills and marketing, helps to ensure that the money is invested wisely. Often the loans are spent on developing micro-enterprises, such as a roadside stall, or on buying livestock like goats and chickens. The proceeds are used to pay back the loan and increase the loan fund so that others can benefit.

Many other MRDF partners, like the Presbyterian Rural Training College in Cameroon, organise Self Help Groups as part of their community development work. These groups also provide a forum for education in HIV/AIDS prevention, reproductive health and good nutrition.

 

"Before, when we borrowed money we had to pay heavy interest. Now, this money is blessed money. It has changed the whole lifestyle of the group. Having this money has increased the food on our tables, now we can take children to hospital. We cannot express our joy. We will always remember this money you gave us."

Agnes Ngam, President of Unity Women Farming Group, Cameroon.

 

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