Community savings thrust women to economic empowerment

For years, Podge Nankhonde stayed in her matrimonial home with little influence on decisions made there. This was particularly specific to those revolving around the economic aspects.

She would approach her husband supplicating if she needed to do anything involving money. As a housewife, she did not have a personal source of money and this was the genesis of her status as a beggar in a home she called her own.

Traditionally, what this woman from Wells Mwambelo Village in Karonga was doing is normal. It is viewed as nothing of a problem if women – in their thousands – rely on their husbands for anything that needs money to acquire, a complete sign of economic powerlessness.

But you will easily smell a change in her economic fortunes if you talked to this 28-year-old mother of three today. Her language is that of hope, and you will easily conclude that she has somehow been empowered economically.

“I bought what I thought would make my home look good including dining utensils like food warmers and my visitors no longer eat cold food when they pay us a visit,” said Nankhonde in an interview while flashing a smile.

“Now I am looking forward. I want to start buying bales of second hand clothes for reselling. But I am maintaining the business that I started and grew with.”

Prepare to get the worst condemnation if you ever thought Nankhonde’s miraculous turnaround in economic fortunes is something that has lasted ages. It is something that only started in April last year.

She got wind about plans to start a village saving scheme, under the Community Savings and Investment Promotion (Comsip), in her area. She asked for her husband’s permission to join and along with the permission came K1,500 she was to start with.

But first, Nankhonde felt she should start a business that her membership to the group would be fuelling. She settled for selling mandasi which she baked herself, and she did that at Mwenilondo trading centre close to her village.

“I bought shares in the group with an initial fee of K1,500. And I have been borrowing from the group to boost my business. I bought what I couldn’t before I joined the group and have paid school fees for the children,” she adds.

The group Nankhonde referred to is the Nkhongono Comsip Group of Mlare in the district. Nkhongono means power and the group’s name should give you an idea what its 37 members, all of them women, stand for.

Like Nankhonde, the other members of the group have seen their levels of economic empowerment grow with their being members of this group.

“A member is allowed to borrow up to double the value of their shareholding in the group and many members have boosted their economic activities, hence their economic muscle, in the process,” says Nellie Kamendo, chair of the group.

“Members repay what they borrow at 10 percent interest. And the more the shares one has and the more borrowing they do, the more dividends they get at a time we share them.”

Kamendo says the group closed its doors to new members and urges those willing to chalk benefits like those members of her group get to form their own.

Save for a K155,000 starter pack Comsip gave the group at its birth, everything within it was generated by members. And Kamendo stresses that although the grouping has a Treasurer, there is no time when the group’s money lies idle. She says it is lent out to members “to work” as soon as it is repaid.

“A member pays a mandatory fee of K100 per month and can buy as many shares as possible at K100 each. Members also pay K40 every month for social activities,” she adds.

“More shares mean more money one can borrow. And if a member borrows K5,000 they pay back after a month. If they borrow K10,000-K15,000 they pay back after two months and they will repay the loan in three months if they borrow K15,000-K20,000.”

Kelly Mhone, Karonga District Social Development Officer, says currently there are 169 such groups in the district with most of them drawing membership from both men and women. About 75,000 people are estimated to be benefitting from such initiatives across the country.

The idea of mobilising such groups, says Mhone, is to foster a saving culture among communities in rural settings, something that not only covers up for their being unbanked but also grants them quick access to their money in case they wanted to use some for an economic activity.

While the Comsip idea was to generally reach out to those unbanked, women participation in the initiative is outscoring that by men. And it is such zeal that has left Nankhonde with the economic muscle that she feels would help her contribute something to her family.

While Nankhonde’s activity at such a local setting would easily go unnoticed, it would definitely contribute a lot in as far as the attainment of Millennium Development (MDG) 1b and 3 is concerned if replicated countrywide.

MDG 1b seeks to achieve full and productive employment and decent work for all, including women and young people, particularly outside the agriculture sector, while MDG 3 seeks to promote gender equality and empower women. Economic empowerment through activities like Nankhonde’s is key.