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Self Help Groups Use Microfinance to Improve Their Lives
by Daniela
2 May 2011 Today we visited one of the 26 Self Help Groups which have been formed under the Lulisandla Kumntwana ministry. The women welcomed us with singing and dancing, and invited us to show our own dancing abilities which caused some good laughter. Then they showed us how they make mats and baskets and gave us each a turn.
This group is made up of women from a certain community who are unemployed, the poorest of the poor. Some are already in Foster Support Teams, others are not. Some are Christian, some follow Shembe. The Self Help Groups first receive training in an array of modules covering life skills, HIV/AIDS, financial management, planning and more. During the first six-months they just grow to know each other, learn to trust, share problems or happy moments, and simply gather for encouragement. Every week each person contributes 2 Rand (South African currency) to build up the fund. This microfinance fund is then loaned to one group member to improve some aspect of their life. Examples so far have been repairing their house, setting up a business, and buying school uniforms for their children. This loan gets repaid at 10 percent interest. This particular group thus far has a fund of approximately R14,000 of which R1360 is interest, R40 is late payer penalties, and R12,600 was gathered from the weekly R2 contribution. After six months they are encouraged to start an income generating activity to support themselves further. This is only done after six months so that they first get to know one another, build relationship and experience responsibility. The result? It’s working very well! They gain confidence, satisfaction, spiritual nurture, and practical skills. The Community Developer facilitates them to talk through problems to increase their capacity to be there for each other. For some it is the only place they can talk candidly and about their problems. Each meeting is a time of sharing, praying, singing, sharing a recipe, and discussing the group’s finances. And all of this is done whilst creating baskets or floor mats. If you would like to contribute to the ministry of Lulisandla Kumntwana, please contact your nearest SIM office and designate your gift for project #97398. Thank you! Lulisandla Kumntwana blog
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