Empowerment Through Savings: How Financial Groups Are Transforming Lives in Northern Mozambique
A local community group under the name Ophela De Rerene, in the district of Memba in northern Mozambique is reshaping the lives of its members and the broader community.
The group received a training labelled “Saving for Transformation” and kits from World Vision to start. Through this capacity building effort, members of the group are able to save and manage these savings as a group.
The group is composed of 25 members who are farmers, traders and artisans, with the majority (17) being women. Three youths are also members of this group. Overall, the youth are included in these groups to prevent them from joining Non-State Armed Groups in the nearby province of Cabo Delgado.
The management Committee is composed of five members, three of which are women. These women are: Chairperson, Secretary, and Treasurer and the remaining 2 men are observers.
They say: ´´we prefer women to lead us because women are trustworthy, they are good managers´´. In the group, women and men have equal level of influence and power and can debate openly with mutual respect.
The group is diverse and heterogeneous with members having different religious affiliations.
The group organizes bi-weekly savings meeting during which contribution ranging from 23 USD to 31 USD is made per member. The members also contribute 15 cents at each session which is set aside for social activities.
Members borrow money from the group with a small interest rate to meet their needs. They pay back the principal and interest before the end of the saving cycle This increases the total amount of money mobilized to be shared by members at the end of the saving cycle.
For instance, in the year 2023, the group saved a total of 2,556.62 USD and shared this amount according the contributions of the individual members.
The savings are changing their lives and of the community as a whole.
Through these savings, members are gaining financial independence, improving their lives and investing in the education, protection, and wellbeing of their children.
They say: ´´before, we could not have money to buy food for our children and they would end up getting married early. With this saving, we are able to send our children to school, pay their school fees, buy uniform, and build our houses. Some of children are even at university and technical schools´´.
The savings also improve the overall conditions of their households. They also said: ´´we also buy TVs and Radios, so when our children are back from school they can watch TV and not think about being involved with men´´.
The group also have social responsibility and support orphaned and disable children. They bought uniforms and school kits for one orphaned boy and two girls with disability. They also organize environment and cleaning sessions at nearby schools.
Mr Burak is one of members of the Ophela De Rerene saving group. He has experienced life-transformation. Thanks to Saving trainings and membership of the saving group. The impact can be seen as he demonstrates satisfaction through his capacity to sustain his family livelihood.
He runs his farm and sells part of his harvest to pay school fees for his daughter. Thanks to the savings, he is currently building a modern 6-bedroom house for his family.
The Ophela De Rerene message to the world: ´´ Saving is good, it enables us to help our families, and we take our children to school, so they can have a better future´´.
The Savings Group in Memba district is creating economic empowerment and strengthening community engagement.
Their increased income allows them to focus on educating their children and this is helping the fight against child marriage. Together, they are building a more stable and hopeful future for the entire community.