LUSAKA, Nov. 1 (Xinhua) -- Alice Nakazwe, a resident of Kapiri Mposhi district in central Zambia, is getting ready to go for a meeting in a Wednesday afternoon.
"I am the one in charge of balancing the books today," she said as she reached out for a ballpoint in her little purse.
Nakazwe, 57, was a member of a savings group in Material compound, a lower-income community located a stone's throw away from the central business district of Kapiri Mposhi.
Like most vulnerable small-scale traders in Zambia, Nakazwe, who sold a variety of vegetables, depended on savings from a savings group to boost her business.
"For many years, I had challenges accessing finances to grow my business. This affected my entire household, which depended on the business to survive," she recounted while displaying tomatoes in a makeshift store next to her house.
But that sad story ended in 2020 when Nakazwe became a member of a savings group. Her business has not only expanded but also stabilized. She can now buy various vegetables in larger quantities and have better returns.
Namaine Malmbo, who was also a member of Nakazwe's savings group, observed that compared to other formal arrangements, savings groups are making it easier for women from poorer backgrounds to access funds for small businesses.
"Most vulnerable women do not have assets such as land, cars or houses. These are the things that banks ask for when you approach them for a loan to start or boost a business. But with savings groups, one can get a loan easily," added Malambo, 58.
Savings groups or village banks, as they are commonly known in most parts of Zambia, are popular, particularly in lower-income areas of the country.
While membership is open to both men and women, the majority of these groups constitute women.
Members of a community seeking to have some form of banking services usually initiate these groups and take turns borrowing money from the group's savings. A savings group usually comprises a minimum of 10 members and a maximum of 25.
One is entitled to borrow a sum at least twice their savings, and the interest is given back to the borrower or shared amongst members during the share-out day, which usually takes place after six months. The share-out day signals the end of one savings circle and the beginning of another. Some groups, however, choose not to have a share-out day but instead continue saving and borrowing.
Among those that have been helping savings groups to thrive is Tubombelepamo, a local organization. The organization has, since 2019, facilitated the establishment of savings groups in Kapiri Mposhi's most vulnerable communities.
"We recruit women from vulnerable communities and train them to manage savings. We also take them through entrepreneurship and business development sessions and encourage them to set financial goals," said Winter Musonda, Tubombelepamo programs manager.
Musonda revealed that Tubombelepamo has helped establish 70 savings groups for women in five vulnerable communities of Kapiri Mposhi. "The goal is to have 150 women's savings groups in the district's most vulnerable areas by 2025," he said. ■