Context
Women make significant contributions to the rural economy in Liberia, make up on average about 40 per cent of the agricultural labor force. However, rural women face more constraints than men in accessing key productive resources such as land and to services such as credit, extension and social protection.
The Intervention:
Working in rural villages, VOSIEDA collaborated with Oxfam UK to train 43 groups of women to save regularly, borrow from their group’s fund, and repay loans with interest. The total groups membership put together was 1,500 rural women, majority of whom are head of households. At the end of a saving cycle—generally a year—the fund is divided, and each woman receives her savings plus a share of the profit. Groups schedule distribution for a critical time, such as the onset of the lean season, when money and resources are scarce.
Saving for Change (SfC) was created in 2005 by Oxfam and key collaborators, Freedom from Hunger and the Stromme Foundation, to provide basic financial services to women around the world – innovating on the traditional microfinance model by starting with savings instead of credit and by delivering financial services through small savings groups rather than financial institutions.
Results
Post program assessment found that SFC model provided benefits not only to its members, but also to the whole village where groups were found. Overall, the assessment showed that SfC reaches the most vulnerable (82% of members live with less than $1.25/day), members tend to save and borrow more than non-members. Majority were able to invest more in smallholder agriculture and other non-farm businesses. Overall, we saw the food security gap closing in villages that benefited from the SFC scheme. All these factors contribute to building resilience, especially when we add the social capital built among members.
Key facts
Sector: Women empowerment.
Domain: Livelihoods, Gender Equality and incomes generations
Benefiting zone: Liberia
Nature: Grant
Duration: 2009 & 2010
Status: Completed