CODERT in partnership with Helvetas in Morogoro Region, United Republic of Tanzania is implementing the Rice Post Harvest Management project. Among the projects trainings being offered to Rice Smallholder Farmers alongside VSLA (Village Savings and Loans Associations) methodology is SPM (Selection, Planning and Management of IGA’s)
Here are the success stories of 2 SPM graduates who have benefited from SPM Skills. The Success stories were captured by the CODERT- RIPOMA and KUWAKI (Empowering Women Through Irrigated Vegetables Production and Marketing) Program Manager during the monitoring and supervision visit conducted in June 2019.
- HALIMA ALLY GUMBO.
Halima Ally Gumbo is 38 years old. She is married and she has 6 siblings who are between 5years old and 20 years old. Halima lives in Kilimanjaro village, Sungaji ward in Mvomero district.
Her journey to join the Jikombowe Kwayambi VSLA group begun when CODERT in partnership with Helvetas launched the RIPOMA project in Mvomero district in Morogoro Region.” The approached me and educated me about RIPOMA project in our village, I was convinced and joined the VSLA group through which the other RIPOMA products will be delivered through.”
“Just it is done in VSLA activities, I begun saving with the rest of the group members and took a loan of Tzs.250, 000.00 and leased 2 hectares where she grew cabbages and maize neither with the help of formal training and experience, eventually I succeeded and managed to support my family.
“To my relief, one day, the CRP invited as to attend business skills training which she was offering to group members. She informed us that the trainings will be delivered for 45 minutes per day for 2 weeks and she also assured us that the training will provide us with the best needs in trading skills which will empower us with the right knowledge to identify and capitalize on local opportunities that can motivate us
start businesses or grow our businesses and Good Agricultural Practices.
Halima received training in SPM (Selection, Planning and Management of Income Generating Activities) for two consecutive weeks. She received couching in 5 key SPM courses, Experience and skills, marketing, profits, capitalization and family expenses.
“After the training, I went back with new inspirations and confidence by practicing what I had been taught. I marked 4 tins which I would deposit savings after each day, the first tin is for capitalization, the second tin is for savings, the third tin is for loan repayments and the fourth expenses.”
Halima now keeps track of her business by keeping records and her business has expanded. She can calculate profits from sales. She earns sales worth Tzs.33, 000 .00 and profits worth Tzs.17, 500 per day from her tea room. Her monthly earnings have increased to Tzs.525, 000.00.
“I have spend the profits in repaying my first loan and by expanding the business by buying 7 light bicycle taxis which I hire out to people who are making short journeys, each bicycle when hired out, nets in an income of Tzs.500 per hour, on a good day the income from bicycle hire can earn.Tzs.10, 000.00 and 8,000.00 on a bad day.”
Apart from expanding business, Halima is also repairing her old house, she recently put modern windows in her house at a cost of Tzs.300, 000.00.She also spends the other money in providing school materials for her children and also in improving her family dietary needs. She also spends some by hiring labour in her rice fields and also in buying inputs, something which has seen the growth of rice production. Having witnessed the success of SPM, she is also mentoring other women to improve their own business.
“I am proud that CODERT- RIPOMA and KUWAKI as are hand in hand with us to make sure poverty levels in our village are eliminated through VSLA and horticulture and Cereals production.”She concluded.
Women Empowered through Village Saving and Loans Associations (VSLA):
A case Study of Tabu Peter Mganga
Tabu Peter Mganga (46 years) a married woman with five children, is a member of Chawahe rice producer group in Hembeti village at Hembeti ward in Mvomero District.Her group is among the 100 rice producer groups supported by the RIPOMA projectwith the aim of improving farmers’ technical know-how on good agricultural practice (GAP), postharvest management (PHM), marketing, business and integrated community based microfinance through Village Saving and Loans (VSLA) activities.Tabu joined Chawahe rice farmer group in November 2017.
Before RIPOMA project interventions, Tabuand other group members were without formal financial services such as credit and savings products from financial institutions. One of the challenge they faced in accessing loans is the lack of collateral and high interest rates which proves to be difficult for the rural poor to afford major expenses and invest in agriculture or income generating activities.When in need of money to invest in agriculture for example, Tabu used to get loan from business men/women who would in turn demand high interest rates. They used to give a loan of TZS 30,000 in exchange of one bag (100kg) of paddy which would be sold between TZS 70,000 – 80,000.On this issue Tabu said,
“As a smallholder farmer I was unable to access credit from any financial institutions due to lack of collateral. The only option was through business men and women who operate in our area. When in need of money, I used to get a loan from these business men and women in our area who in turn would demand to be paid one bag (100 kgs) of paddy per every TZS 30,000 given as loan. This did not help me much because most of my rice produce would go to the business person who offered me loan.”
The VSLA enabled Tabu to have easy access to credit and invest on various activities particularly rice production and income generating activities. She first accessed loan of about TZS 120,000 to support her in improving her business booth where she sells beer and other beverages. She then acquired another loan of about TZS 250,000 to increase her investment in beer business and part of the loan she invested in agriculture.
“The VSLA enabled me to access loan with affordable interest rate of 5%. This is a huge relief compared to what I used to repayto business men and women. I first got a loan of TZS 120,000 which I used for maintenance of the place where I sell beer. I then acquired a second loan of TZS 250,000 to expand my beer business while part of it I invested in rice production specifically buying fertilizers and paying casual workers for weedingof my half-acre paddy farm,”said Tabu.
Through the application of good agricultural practice, a knowledge gained through a group lead farmer who cascaded the training to group members who participate at demonstration plot established by the group, Tabu was able to harvest 15 bags (100 kgs per bag) of paddy in half an acre she cultivated (before Tabu used to harvest between 9 – 15 bags of paddy per one-acre). She immediately sold the paddy at the rate of TZS 50,000 (Since there is no space in her house to store her paddyand the warehouse in the village is under rehabilitation). She then invested the money on domestic utensils and kitchenware business which she sells at the village local market and other local spot markets. The trainings she received on entrepreneurship and SPM facilitated by RIPOMA project have helped her a lot in planning and managing well her businesses.Tabu would get a profit of about TZS 10,000 - 15,000 for every set of kitchenware she sells. She would also get a profit of about TZS 8,000 for every create of beer she sells in her bar.
“The training on SPM, loan management and entrepreneurship which I received from the group community resource persons, who were facilitated by RIPOMA, has helped me a lot in managing my businesses and in making sure I repay my loans in time. Both the kitchenware and beer businesses are enough profit to enable me and my family acquire the daily basic needs. Through these income generating activities, I have been able to pay school fees and other expenses for my children. I really thank the RIPOMA project for the initiatives to empower smallholder farmers especially women. I also hope the warehouse in which its rehabilitation is supported by the project will be of help to me as I will be able to store my paddy and wait for a good price to sell,” said Tabu conclusively.
IGA PROVIDES HOPE FOR GRACE.
She started by saying “I want to share my success story with you, my name is Grace Robert, I am 24 years Old, I am a single mother of one child who is nine months old, I live in Katoro township in Bugayambelele ward.
I joined Bugayambelele VSLA group in September, 2017, my neighbor invited me to the group. The start of my personal story is very sad but the end is sweet, my boyfriend who had promised to marry, deserted me when she discovered that I was pregnant, he didn’t want to bear the responsibility of fathering up the baby. My mother came for my rescue and took me up home, I felt dejected and start to undergo depression due to the fear of rearing up my coming baby as a single mother, I am just a primary school leaver and have no meaningful work to do. My most fear was that my child, without mother with a stable income, will one day join worst forms of child labour or be a chokoraa (street child)
After a thorough moment of soul searching about my future, I went to my neighbor for consultation, she conducts small trades in town and she leads a decent life, I opened up to her and shared my plight with her, after sharing with her my ordeal, she sympathized with me and offered to assist me, she took her time to explain about VSLA and the benefits and the objectives of their VSLA group and that as a vulnerable young woman, I will benefit much from VSLA. She convinced me to join the group, the biggest challenge was where to get money for share purchase, she then asked me, “do you have any valuable asset?”Yes, I answered, I only have an android phone which my man had left me with. She then told me,”fahari wako ndiye atakaye kuokoa (Your bull is the one to save you). Since I didn’t have money for share contribution and social fund, I decided to sell my android phone, the phone fetched Tzs.225, 000.00.I deposited some of the money in my M-PESA Account and went with some to the HISA group in the next meeting. She introduced me to the group and the members admitted me after an interview, I begun participating in the group’s activities just like any other member. I would withdraw the money and purchase shares and social funds from my M-PESA account. In March this year (2018), the group paid out, the total value of the group was Tzs.7, 000,000.00, my cumulative earnings were Tzs.540, 000.00.
Instantly, life breathed in me once more, after conducting business survey, I decided to conduct mitumba business, I went to the dealers and bought a grade “A” children rummage mitumba bale at Tzs.490,000,00.I have sold clothes worth Tzs.800,000.00 up to this moment. I conduct my businesses at Buseresere market which nearby home on daily basis. The current challenge is the rainfall, I am planning to hire a stall very soon. I have saved some of the money in the group, my mother is very happy with my new business, my fellow group members are very supportive, the future looks very bright my baby is now well fed and dressed, I am now saving for him for his future school life. I am now all smiles.
I am very happy being in the VSLA, I encourage fellow young women not to despair much, but to join the VSLA group.”Fellow women, don’t sit there in loneliness and idleness, join a VSLA group”. She pleaded.
INTEREST STORY.
YSLA’s CHANGING LIVES OF YOUTH.
One of the benefit of CHILD LABOUR Project is the empowerment on financial capabilities of the beneficiaries especially the youth. One of the YSLA’s where youth have gained financial knowledge on saving and taking loans is Umoja YSLA group in Bwanga Ward, Bukiriguru village in Chato district.
Umoja group was established in 2017.The group has 30 youth, 16 female youth and 14 male youth. The majority of youth range from 12 years old to 21 years old. The majorities are in school and two are former child mine workers who were rescued and enrolled in the Village Based Vocational Training program which is an activity within the CL2 project. The group was gathered by the Village Agent (CRP), Mr. Manota, who after interacting with the youth on several meetings, the need youth agreed to form the group. Just like any other YSLA, the group subscribes to the YSLA methodology. The groups share is Tzs.500.00.The groups cycle revolves at around six months (26 weeks)
The group had their first pay out in December 2017,the groups total value of savings was Tzs.1,025,500.00.The highest earnered received Tzs.75,500.00 and the lowest earnered received Tzs.27,500.00.The members after the pay out in December bought School uniforms,shoes,exercise books and school bags and “tonja’s”( private inner clothes).
The group members are very vibrant and appreciate being in the YSLA, One of such members is Elizabeth Makoye who is 13 years old, she is a pupil at Bukiriguru Primary School, she is in STD 5.This is what she had to narrate.”I joined the group with the rest after the CRP had come to our school, the Head teacher permitted him time to address us on YSLA, I went home and shared with my mum, my mum lent me Tzs.2000.00 for starting shares. I re borrowed the money and went and purchased 1kg of groundnuts, I fried them (processed) and mum accepted to be selling them for me at local market, I also relieved mum after school, the business provided me with money for the next meetings. At the end of the cycle my accumulated earnings were Tzs.35, 500.00.”.
“I bought school shoes, bag and uniforms, I was left with Tzs.10, 000.00.which I bought a bunch of banana which mum ripened, the sales from the bananas have not only benefited me, but also my other members of the family, the banana business has prospered, the business is helping mum feed us and also keep me in the group.”” My greatest desire is to get good grades in school by studying hard and later become a great entrepreneur and assist my family and my fellow youth.” She concluded.
Elizabeth is the sixth born in a family 10 siblings. The Village Agent (CRP) added that the youth are very motivated and never miss the weekly meetings, they appreciate the YSLA methodology. “They are very concerned about the group and they will grow to greater heights, nothing will slow down the group”. He said.