Formation of community savings and lending group using the Grassroots building Our Wealth (GROW) Self Help Groups(SHGs) model. SHGs are groups of not more than 30 people derived from poor households who have a common background, are facing similar financial constraints and are interested in improving their incomes. This model harnesses the practices of group savings in a way that requires no outside capital, only a lockable metal cash box, financial recording books, three keys and basic financial training.
These groups thrive on trust, accountability, and transparency in all transactions. As members pool their savings on a regular basis, this forms a collective fund that is then rotated as credit amongst the members through a system of self-generated rules and norms.
When the COVID-19 pandemic struck, Rabbecca’s world turned upside down. At 38, with two young children aged 4 and 7, she watched her family’s income shrink to almost nothing. Her husband could barely provide for his family as he lost his job during the pandemic.
One day, Rabbecca heard her community friends talking about Grace GROW SHG. With hope in her heart, she joined the group and started saving from the little she earned through her ‘Salaula’ (used clothing) business at the market.
Her first cycle in 2021 ended with K3,500. By 2024, her savings had grown to K8,200. In the most recent cycle, she achieved K16,400.
Today, Rabbecca can:
“I used to think life had limits, but now I know there’s no limit to what I can do as long as I stay disciplined.”
Dorothy Syamwendo, a 52-year-old resident of Ipusukilo compound in Kitwe, is married to Martin Kabambi, 60. They have eight children — 4 are their own and 4 are adopted. Dorothy and her husband earned their living through selling small fritters as their main source of income. Life was not easy for them and their children, whom they struggled to support.
In 2016, Dorothy received a visit from her friends, who introduced her to the GROW SHG. They explained how they greatly benefited from investing, saving, and borrowing within the savings group. With hope, Dorothy joined the GROW SHG in the same year.
First Cycle (2016): She contributed K10 weekly, accumulating K1,000, and received K1,900 at the end of the cycle. With this money, she rented land and started gardening, planting 50 beds of various vegetables. She earned K500 every 10 days from sales, selling 12 times over a three-month season and making K7,200.
2017: Dorothy saved K2,000 and received K2,500 at the end of that cycle, which she reinvested into her gardening project.
2020: She saved K800 and borrowed K2,000 to purchase half a lima plot, where she now grows 200 beds of vegetables.
Today: Dorothy cares for four orphans in her household, ensuring they have enough to eat without worrying about daily living needs. She can afford to pay for her children’s school expenses, food, and medical needs.
“I am so grateful to PLAEP for introducing the GROW SHG in our community; the savings groups are really helping us to provide for our families.” — Dorothy Syamwendo