The last few days we’ve been in the field visiting rural villages around Comé, in southwestern Benin, speaking with the women and youth saving groups there. We observed their meetings and had brief interviews with each community agent (who leads the group) and some of the members. The days are 70% driving around to the villages and 30% spending time with the groups, but that 30% has made the whole experience incredible.
Each savings group is a part of Freedom from Hunger’s Savings for Change program, implemented locally by an NGO called BUPDOS. The idea behind the groups is that everyone contributes a certain amount of money each week to the group savings box. Members can then use that money to take out individual microloans with an agreed upon interest rate, typically around 10%. Loans average between $10 and $20. Everyone holds their neighbor accountable and there are fees for missing meetings or payments.
Nearly all the women and children are illiterate so they mentally keep track of everything – fees, deposits, loans – it’s really impressive. Some use chants or songs, which were really inspiring to watch. All of the groups speak local languages so we had translators help us understand the meetings and ask questions.
The women all use the microloans towards income generating activities such as selling food at roadside stands or running small shops (bread, hairdressers, tailors). It’s pretty amazing because this is money that really goes back into the communities and really helps whole villages improve their ‘niveau de vie’ (standard of living).
We’ve met with youth savings groups also which were always fun. The kids, ranging in age from 10-20, tend to be pretty shy of us onlookers, but they joke and laugh freely during their meetings. They use the money to develop small enterprises as well, or buy schoolbooks or clothes. Everyone is incredibly nice and welcoming. Some women even gave us fresh coconut and pineapple!
For the rest of our time in Benin and Burkina Faso we will be meeting with a number of different NGOs and microfinance institutions to evaluate the current environment of savings and loans programs in the two countries. We’ll also be looking for feedback and interest in the types of technologies that Freedom from Hunger is currently piloting in their Savings For Change program in Benin.
Daniel Quinn, graduate student, International Agricultural Development and Michaela Lee, undergraduate student, International Relations & Economics, UC Davis
Women's savings group meeting |
Each savings group is a part of Freedom from Hunger’s Savings for Change program, implemented locally by an NGO called BUPDOS. The idea behind the groups is that everyone contributes a certain amount of money each week to the group savings box. Members can then use that money to take out individual microloans with an agreed upon interest rate, typically around 10%. Loans average between $10 and $20. Everyone holds their neighbor accountable and there are fees for missing meetings or payments.
Nearly all the women and children are illiterate so they mentally keep track of everything – fees, deposits, loans – it’s really impressive. Some use chants or songs, which were really inspiring to watch. All of the groups speak local languages so we had translators help us understand the meetings and ask questions.
The women all use the microloans towards income generating activities such as selling food at roadside stands or running small shops (bread, hairdressers, tailors). It’s pretty amazing because this is money that really goes back into the communities and really helps whole villages improve their ‘niveau de vie’ (standard of living).
We’ve met with youth savings groups also which were always fun. The kids, ranging in age from 10-20, tend to be pretty shy of us onlookers, but they joke and laugh freely during their meetings. They use the money to develop small enterprises as well, or buy schoolbooks or clothes. Everyone is incredibly nice and welcoming. Some women even gave us fresh coconut and pineapple!
For the rest of our time in Benin and Burkina Faso we will be meeting with a number of different NGOs and microfinance institutions to evaluate the current environment of savings and loans programs in the two countries. We’ll also be looking for feedback and interest in the types of technologies that Freedom from Hunger is currently piloting in their Savings For Change program in Benin.
Daniel Quinn, graduate student, International Agricultural Development and Michaela Lee, undergraduate student, International Relations & Economics, UC Davis
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