Anyway, back to the main story… How CARE helps Zimbabwean women Learn key skills to help them Earn a better living.One of the most astounding programs we are running in Zimbabwe is the Group Savings and Loan programs (GSL) in the Masvingo district. CARE helps form groups of (mostly) women who have a common interest in starting to save money. Savings are pooled, and withdrawn by group members from time to time. Members use the funds for a wide variety of uses, anything from investing in a micro-enterprise, to paying school fees, or covering the cost of a trip to the clinic, or just buying an essential household item. The existence of this pool of cash enables group members to have access to more cash then they could generate on their own – and in fact, it serves the same purpose as my credit card.
When I have to pay for my children’s day care expenses, I use a credit card because the day-care expects the money at a specific time, and that may or not be at time when I have enough cash in my bank-account. I don’t want to have to sell my computer to pay the fee, otherwise one of the key assets I use to earn my living would be gone (not to mention that the computer actually belongs to CARE!). The existence of these group savings means that if a Zimbabwean family needs to pay for 
antibiotics to treat African tick-bite fever, they don’t need to sell a sewing machine or cut back on meals in the household or take a child out of school. They borrow from the group members and pay the money back over time. By simply borrowing a larger amount, families can buy goods at bulk rates, another way of saving money over time. By no longer having to sell productive assets, families retain their ability to earn a living.
The groups do charge interest, but unlike my credit card they pay the interest to themselves – so the money doesn’t leave the community. No external money is added to these communities so no one is taking on external debt. The groups are finding ways to pool and use existing capital in more effective ways. The accounting and financial literacy skills are imparted directly to the participants giving them key life skills, which is an important and legitimate source of pride. GSL programs are specifically designed to cater to the financial needs of the very poor, and in many ways, GSL is the misunderstood cousin of micro-finance.
antibiotics to treat African tick-bite fever, they don’t need to sell a sewing machine or cut back on meals in the household or take a child out of school. They borrow from the group members and pay the money back over time. By simply borrowing a larger amount, families can buy goods at bulk rates, another way of saving money over time. By no longer having to sell productive assets, families retain their ability to earn a living.The groups do charge interest, but unlike my credit card they pay the interest to themselves – so the money doesn’t leave the community. No external money is added to these communities so no one is taking on external debt. The groups are finding ways to pool and use existing capital in more effective ways. The accounting and financial literacy skills are imparted directly to the participants giving them key life skills, which is an important and legitimate source of pride. GSL programs are specifically designed to cater to the financial needs of the very poor, and in many ways, GSL is the misunderstood cousin of micro-finance.
I would dearly love to see these programs expanded throughout Africa. CARE has nearly 1.5 million women already enrolled in GSL programs in 10 African countries, but we have set a goal of expanding this to 30 million, in 30 countries. The day I spent with GSL graduates in Masvingo was all the proof I needed to convince me that GSL programs are meeting a real need and should be offered to every community we can reach.
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