SHGA Savings Group
Thank you for your support,we really do appreciate you, you are so important to us, I know other people probably tell you that, but I mean it. The fact that you have supported the children, that you read the reports and the letters I send out, man that just blesses me. Did you know approximately 40% of my reports are read by our supporters! That is amazing, that tells me that so many people are keen to hear about our successes, our challenges, the kids stories, and the impact we have with the ladies. That is just awesome, it is more than just donating, it is a heart connection, so thank you.
This report is about the SHGA process and why we have chosen to implement this project. Covid exacerbated the vulnerability of the ladies we work with, we as staff, are often confronted with extreme poverty affectiving the children, and their families, and communities, the causes are many and varied:
- Loss of income resulting in hunger
- Increased poverty related to job loss
- Increased food insecurity
- Increased fear and hopelessness.
- Increased destitution
Through support from Dlalanathi and Kindernothilfe, we have entered into the 2nd full year of the Self Help Group Approach in Greater Tzaneen. Last year we met the target required to continue the program and in 2023 our target is 25 more groups plus the formation of a Cluster Level Association (CLA). Currently at the end of June 2023 we have 38 groups, that is equal to 611 families being supported out of poverty, out of food insecurity, fear and hopelessness and out of destitution and vulnerability.
We also have our first established Cluster Level Association, which requires more training for the ladies and greater vision, no longer focussed on just their family but now on their communities, ensuring service delivery by the stakeholders such as ward councillors, the local government representatives, provincial and national government. Many of these ladies do not have running water or sanitation for their homes. This will change as they start flexing their political muscles.
This program has the potential to ease all the issues identified above using the Asset Based Community Development (ABCD) model. The ladies are all the poorest of the poor, they save between R5-10 a week, they then borrow the money available at 10% interest which is added to the kitty for the following week. They use the money initially to establish food security and to get out from underneath the macheroni’s or money lenders. The ladies no longer have to go begging for money for school fees, school clothes, food etc. they are the solution to their own problems.
The ladies attend training modules that assist in creating, monitoring and evaluating the SHG’s and empower the ladies to take financial control of their lives.
Module 1: Self Help Group Concept
Module 2: Savings, Loans and Group Capital Management Records
Module 3: Building Social Support and Social Capital
Module 4: Basic Business Skills
Module 5: Individual Goal Setting and Self Assessment
Module 6: Communication and Leadership Skills
Module 7: Conflict Resolution and Problem Solving
Module 8: SHG Goal Setting
Module 9: Cluster Level Association Concept and Formation
KTD196 currently has 38 SHG’s operating with over 611 families represented through the ladies attending the groups. These ladies support 1,525 children. From R10 Savings per week, the ladies have R208,895 in savings generated. From this money that has been loaned out, the groups have generated R365,043 in Total Savings.
Over R1,545,000 has been loaned out since July 2021. This money is cyclical however over R1,5million has been used, collected interest and returned to the SHG groups. This is phenominal, from the Savings cash flow, loans have been made to start small businesses. The biggest issue for any new business is cash flow, through SHGA this issue has been resolved.
- 38 SHGA's
- 611 Women
- Supporting 1,525 Children
- 611 Families
- Savings R208,895
- Total Savings R365,043 (Savings plus fines, plus interest)
- R1,545,464 in loans have been distributed from the Total Savings
Currently, approximately 60% of the ladies have functioning small businesses, and easy access to working capital as well as cash flow. The ladies are claiming their financial independence.
This program will continue for 4more years, 155 SHGA's are going to be formed. The potential for impact is huge, approximately 2,400 families and upto 6,000 children could be touched through SHGA and these families will be able to climb out of poverty. This is just one project you support, the funding we receive does not cover all the costs, so as a supporter you suppliment the short fall. We cant do this work without your support.
That is what makes what we do together so important. Thank you for reading this report, I hope you are encouraged.
Blessings to you