SAVINGS FOR CHANGE MODEL: A MEANS TO ECONOMIC DIVERSIFICATION AMONG SMALL- SCALE FARMERS

By MAIWASE ZULU HANTUMBU“THOUGH

I am old and widowed, I am proud of myself because I have managed to fulfill my dream of acquiring an oxcart and taking care of my children,” Elizabeth Sibulowa of Jan’gulowa village in Kazungula district explained.In rural livelihoods, an oxcart is a major asset as it facilitates transportation of inputs and produce, it is used to transport the sick to health facilities and can be hired to enable owners earn extra income.Ms Sibulowa testified that it was from her savings group’s share-out in the year 2020 that shemanaged to collect K3,400 to which she added a K3,100 from her maize sales and was able topurchase an oxcart.She said through the savings group, she has also been able to get loans and invest in otherbusinesses such as rearing chickens and goats, as well as vegetable production which hasenabled her take care of her children’s school fees and clothing.Ms Sibulowa is one of the beneficiaries of the Savings for Change programme under theStrengthening Climate Resilience of Agricultural Livelihoods in Agro-Ecological Regions 1and 2 in Zambia (SCRALA). World Food Programme (WFP) is implementing Savings forChange under the SCRALA project which is funded by the Green Climate Fund (GCF) throughUnited Nations Development Programme (UNDP).According to WFP, Savings for Change is aimed at encouraging households to be able to savesmall amounts and initiate lending among group members.Meanwhile, Chairperson of Tujane Savings Group, Christine Mahau, explained that the savingcycle runs for nine months with the minimum amount members are allowed to save per meetingplaced at K20.Ms. Mahau also stated that the group currently has 26 members and money is raised fromindividual savings, fines, social fund, membership and interest on loans.“I am delighted to say that the group is doing well so far and as at today we have raised K76,000,” she said. Ms. Mahau also explained that the group decided to have share-outs done in September ofevery year to enable members purchase farming inputs on time. Ms. Mahau further said that members through loans and savings are able to engage in different businesses, pay school fees, buy clothes, and take care of daily household needs and hospital fees. In the meantime, Joel Mabeta, a member of Together We Can Savings Group of Namusonde community in Namwala district, pointed out that savings groups discourage laziness as one isrequired to save during each meeting and also to pay back with interest on loans. Mr. Mabeta also said that there was no room for back biting and gossiping in the community because everyone is busy doing something productive. Head Teacher at Kauwe primary school, Webster Hambulo, observed that the Savings group initiative has empowered the women in the area. “There is money in circulation in Kauwe from the time these groups started. These women are now able to pay school fees on time and now I can also testify that starvation is a thing of thepast here,” Mr Hambulo said. Speaking during a joint monitoring mission of savings groups held in Masompe area of Namwala district, Senior Community Development officer for Southern Province, Felistus Mubukwana, advised members of Nguzu and Ntubana savings groups to learn their savings group’s constitution with the utmost seriousness it deserves as it is the only one instrument that brings sanity in the operation of savings groups. “The next time we visit, each and every member of your group should be able to sing the song that spells out your constitution by heart,” Ms Mubukwana said. Ms Mbukwana also encouraged them to invest in metal boxes that have provision for three locks as they are more secure when compared to the ones with one lock. And Provincial Agricultural Coordinator for Southern province, Max Choombe, encouraged members of saving groups in Kazungula and Namwala district to ensure that savings groups unite them to work together. Dr Choombe also advised them to be transparent in their operations and ensure that every member of the group knows how to calculate the formula used to arrive at share-outs.He also highlighted the need for members to get the COVID-19 vaccine and to also host theirmonthly meetings with strict adherence to COVID-19 guidelines. Southern Province Provincial staff from Ministry of Agriculture, Ministry of Community Development and Social Services and WFP Mazabuka Field Office recently conducted joint monitoring of savings groups aimed at providing on the spot technical support in view of the roll out of Savings for Change initiatives under the SCRALA project