In the Nyangatom community women build the huts and create homes in and around them. They raise children, they cook, and they farm. The men look after the cattle that represent wealth and status in the pastoralist community. The cattle provide an essential part of the diet – milk, blood, and meat. The crops that the women harvest supplement the diet.
Money has never played much of a role in the community. Profit and savings are largely foreign concepts. When you barter you exchange items at similar value. When your crops are ripe, you eat what you harvest – or exchange crops for whatever goods that you need. Dowry is paid in cattle.
A changing climate fuels conflict
But things are changing – and have been for a while. Climate change is disturbing the balance within the Nyangatom community and has soured the relationship with neighbouring tribes. Some grazing lands for the cattle are flooded – some are depleted by drought and overgrazing and have been taken over by thorny bush. Some cattle die during drought – and conflicts erupt over access to the remaining grazing land.
Simple farming techniques depending on predictable rain patterns often result in little or no yield when rains are irregular. When it rains too little or too much the value the community hopes to extract from the ground withers or is washed away before it ripens.
As part of the EU-funded SPREAD project and with support from DanChurchAid and Catholic Caritas Ethiopia the Nyangatom women are now trying their hand at alternative ways to create an income, enabling them to buy essential items and feed their families.
Making money, saving money
It starts with Village Savings and Loan Associations (VSLAs). When the groups are formed they receive saving boxes, padlocks, and calculators – and support to determine frequency and size of savings, loan size and interest rates, as well as the establishment of governance structures. The VSLA’s get support for keeping the books – and overall mentorship for running the VSLA throughout the SPREAD project cycle.
There are about 20 women in a VSLA – and with five groups in the Nyangatom community some 100 women are in a VSLA. For each woman a household stands to benefit. And the transformation the groups are making is starting to weave into the fabric of the community – one thread at the time.
“We did not have a culture of saving – because we didn’t have an income before,” says the Chairperson from the ‘Turte’ VSLA and continues “Now the women collect firewood, sell it and make monthly contributions to the VSLA of 10 birr. So far not one has missed a contribution,” she says.
Below you can meet some of the women who have become part of a VSLA – and hear their thoughts on the benefits.
Longoko VSLA – Chairperson
“We would like to fatten goals – that is the goal for the group.”
“We have have given loans to seven members. The members save 1/3 of what they need and then we can give a loan of the other 2/3. The members present their case to the group that then decides. So far we have not denied anyone a loan.
The members have used the money to buy maize flour or cooking oil and then they have resold it in the community.
Our savings are growing and we plan to give more loans so that more women can start businesses and make a profit. Eventually – when our profits are big enough – we want to start a joint business as a group – something bigger than what one person can do.”
Achama VSLA – Chairperson
“We are Achama. We have 20 members.
We received a saving box and calculator as well as support to organise ourselves from Caritas Ethiopia and DanChurchAid.
Five of our members have accessed loans that have been used for starting small businesses, while others have spent it on school fees and materials.
Everyone managed to pay back their loans and the excess was spent on school materials.
We can now start and maintain income generating activities – and we have learned a culture of saving.”
“One woman took a loan of 3,000 birr (16 EURO) and she bought maize flour with the money. After selling it in the community she made a profit of 1,200 birr (6.5 EURO).”Chairperson of the Turte VSLA
Contributions
Each VSLA has its own bylaws that define their contributions.
Accordingly, the weekly contribution to the group is:
- Weekly Contribution to the group – 10 birr (0.05 EURO)
- Social contribution – 5 birr (0.025 EURO)
- Weekly Personal Saving -10 birr (0.05 EURO)
Amna VSLA
“After our group was established one of the women gave birth. So, we went to her house with food stuff and household things that we bought with the money from the group.”
“Socially, we help each other in cases of sickness or pregnancy by offering our labour or contributions in kind,” the chairperson explains.
But the women in the Amna VSLA are also there for business.
“Four women from the group have taken loans so far. I personally took a loan of 3,000 birr and bought 100 kgs of maize flour. I sold it and made a profit of 1,800 birr.”
Ala Kara VSLA
“We are very happy with thr VSLA. A member gave birth and the combined help from other members of the group made a big difference.
Because of the savings we have made we can offer immediate support to people in our group who is in need,” explains the chairperson of Ala Kara.
“Four members have take loans so far. They all bought cooking oil and then resold in the community. There hasn’t been any competition among the members – we all work in harmony.
Socially the contributions in the community have changed after the VSLA was formed. It has strengthened the sense of community.
We are now more people to help, we can offer more and we have a forum for discussing issues in the community,” she says.
About SPREAD
‘SPREAD: Peace & Resilience’ (SPREAD) is a project designed to prevent and mitigate conflicts, reduce and manage the risks associated with natural disasters, and build resilience within cross-border communities in Ethiopia, Kenya, and South Sudan.
Objectives:
- Enhanced capacities of formal and informal cross-border stakeholders in conflict prevention and management and social cohesion building, with particular focus on women.
- Enhanced access to income generating opportunities and shared natural resources for borderlands community members.
The ‘SPREAD: Peace & Resilience’ project is funded by the European Union and the Danish Ministry of Foreign Affairs.
