Thursday, February 05, 2009

Example of a farming/savings setup

Here's a quick example of a farming-based SCA.

The group meets weekly to farm and save. When they meet each week, they rotate to another member's farm to work together there. Each week, 100 RWF from each member goes to the one member whose farm they're all working on. Another 50 RWF goes into an accumulating account just for emergencies.

Once a month, the group gives another savings contribution of 750 RWF each into an accumulating account just for savings and loans. They currently have 26,000 RWF on account.

Farmers do not have the most consistent cash flow; a lot depends on weather, land, workers, and then sales. Monthly is better for regular saving. At the same time, weekly is better for small contributions towards seeds or manure fertilizer. The emergency fund is useful if someone gets robbed or maybe an animal dies or there's just no farm production and one family needs food.

Our groups are given much guidance on how to set up consistent, transparent, and understandable pay-ins and pay-outs, and also how to handle different group situations. Within that training, groups still have a wide variety of ways of making the savings group fit their lifestyles and needs.

1 comment:

  1. Your stories of savings groups throughout Rwanda are very interesting and uplifting. These success stories make me want to do the same in my life. Saving seems to be a lost art in today's society.