Nutrition
In many Zambian households, women provide for daily life and keep track of expenses, while fundamental financial decisions are often not theirs to make. Irregular incomes and a lack of savings make it difficult to plan ahead – unexpected expenses can quickly put families in a difficult situation. Thirty savings groups in western Zambia are creating more stability: women regularly set aside small amounts, collectively building up a financial cushion. At the same time, this creates their own autonomy – because the group makes joint, transparent, and binding decisions about how to use the savings.
Savings groups as a reliable framework
In the western districts of Zambia – Mongu, Kalabo, Kaoma, Limulunga and Sioma – new ways are emerging to sustainably improve the economic situation. A total of 450 households with around 2,250 people, about 70% of whom are women, are joining together to form savings groups.
These groups create a stable, transparent framework within which their members regularly set aside small amounts of money. They form independently within village communities or neighborhoods where trust has already developed. They are open to both women and men – yet are often led by women, because for many, this is the first time they have access to their own financial resources.
The regular contributions gradually build up a shared financial reserve that can be used when needed – for example, for investments or urgently required expenses. The group makes these decisions together, transparently, and bindingly.
This results in a total of 30 independently operating savings groups. They represent the interests of their members and create the foundation for small income-generating activities – for example, through internal loans for initial business ideas. They are supported by committed community members who pass on their knowledge as multipliers.
This is an important step, especially for women: they actively participate in financial decisions, take on responsibility, and increasingly gain confidence in handling money.
Financial education as a foundation
To ensure the groups operate stably in the long term, trained field officers support the members from the outset. They introduce clear processes, provide organizational assistance, and teach the fundamentals of transparent and reliable collaboration. At the same time, each group establishes its own rules: What is the minimum monthly savings amount for a member? What are the penalties for late arrival at a monthly meeting? What is the maximum loan amount that can be granted to individual members?
Supplementary training courses address specific everyday situations. They show how to better plan income and expenses, use small amounts strategically, and build up reserves – also with a view to unexpected challenges.
This knowledge has an immediate effect: expenditures are weighed more consciously, investments become possible, and financial decisions become more transparent. Savings groups thus become places where not only money grows, but also trust, experience, and mutual support.
At the same time, traditional authorities and community members are included in the dialogue. This strengthens awareness of gender equality – and women increasingly receive support in their role as economically active and responsible members of the community.
From saving to a shared perspective
Over time, many groups evolve. Once processes are established and trust has grown, some join together to form cooperatives.
A total of 15 registered cooperatives are being established, representing the interests of their members and developing joint economic activities. As formal associations, they can access government funding programs, such as small loans, to implement shared business ideas.
This creates new sources of income – supported by cooperation, reliability, and increased confidence in one’s own abilities. For the participating households, this translates into better living conditions and greater economic stability in the long term.
Funding: The project is 75 percent funded by the Federal Ministry for Economic Cooperation and Development (BMZ).
Implementation: We are implementing the project together with the aid organization of the New Apostolic Church in Zambia, NACRO (New Apostolic Church Relief Organisation) .
Further information about our savings group principle can be found at: https://www.nak-karitativ.de/spargruppen