By Phil Donnell | Funding manager
One of the main economic benefits of being a member of a Self-help group (SHG) is the training received in income-generation and small business activities as well as having access to loans to start or expand your small business. Here are stories of SHG members in South Africa who have recently had success in their small business activities.
Members form Ingomusa lethu SHG in Sokhulu, KZN, formed by Amangwe Village in 2015, recently attended a one-week training on baking at the Umfolozi Municipality. They learned how to bake bread and scones and also received a baking wood stove and baking utensils. The women took loans from their group to buy baking ingredients. They have now established their own business and started baking bread and scones for the community. Brown or white loaves are sold at R10 each and scones are R3,00 each, which are affordable process for community members. They bake daily so that they sell fresh products.
Sesikhona SHG was formed in April 2013 in Tafelkop, KZN, with 15 members. The SHG’s initial attempt at generating income was selling laundry bar soap among themselves. Through this small business, they were able to build-up their group savings and after 5 months they decided on a long term goal of making and selling bricks. At this point the SHG had accumulated R1500 in their savings. The SHG came together and decided that they would borrow money from their group savings to start this business. The brick making business was launched with R700.00 for sand and R600.00 for cement. One of their members donated a piece of land for them to use as a place for making bricks. As a group, they agreed to work two days in a week. At the beginning of the business, they all worked together as one group, but as the business grew they divided into two working groups, with each group having one day a week to work. Currently the SHG makes 100 to 150 bricks a day. The selling price of a brick is R5.50. The SHG usually gets customers from their community and due to a large number of orders they have employed two young people who help them with making bricks. They have now opened a bank account and currently have saved over R10 000.00 of profit from this brick-making project. The SHG is supported by Zimele Wethu Foundation.
Mam’ Msomi (not her real name), 65 years, is a member of Khulakancane SHG in Mankwathini, KZN, formed by Amangwe Village in April 2015. She is a married and has five children. She loaned money from her group to start a poultry business. She rears 50 chicks from her home and sells chickens in her community for R75 each. She says that heavy rain and limited space have been challenge, however, she is planning on building more space for her chickens and to grow her business.
Many thanks for your interest in and support of Sinamandla and its work with women in SHGs. Please would you consider a donation to Sinamandla in 2017 which will be greatly appreciated!
You can subscribe to our E-newsletter via the Sinamandla website, like us on Facebook at sinamandlaselfhelpgroup or follow us on Twitter @sinamandlashg. Our SHG book, “Moving ourselves out of poverty”, is available for $30.00 including postage – to order directly from Sinamandla email info@sinamandla.org.za.
By Phil Donnell | Funding manager
By Phil Donnell | Funding manager
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