Microloans and a Savings Bonus Changes Lives

Written by: Jenn O’Neill

We’ve been coming to Rwanda for years but today we had a village experience that our team will never forget. We did a follow up visit with the women’s group in Kagugu. In 2022, The women walked 3 miles one way to attend church service at Harvest Christian Church in Kimironko and met with Heidi. They received a savings bonus.

Today, we traveled to their village on the outskirts of Kigali. It was quite the ride! At some points, it was more like a pathway up and around the hillside. Then, we hiked down (a steep decline at times) about a half mile to the church’s meeting place where the women were singing for us.

The church rents this space from a member who offers it at half price. They are still working with the government to be able to hold service here due to the building’s condition and one of their prayer requests is to buy land so they can build a church.

Pastor Jean welcomed us with a message about hope. “If you lose your hope, you are dead. Never lose your hope. If you know Jesus you can’t lose your hope. When Jesus lives in you, he is the one who will lead in everything,” he says.

In 2022, the women’s group had 13 members and with the savings bonus, they each received $50. Each member gave 1,000 Rwandan francs each week to the group’s savings and the same amount each week (which totaled 13,000 Rwandan francs) to give to a different woman each week to help with her capital. This group is very much about helping each other.

Today, they contribute the same amount but there are only 9 women who participate in savings. Other members have joined, which gives them a total of 20 members, but they do not contribute money to the group yet.

The women’s businesses range from selling milk, fish and clothes to farming. They impressed us with the amount of their personal savings. They say one of their biggest challenges is inflation. The cost of goods is more expensive now.

Apoline sells fish at the market. She buys 1 kilogram of fish for 2500 francs and sells it at 3000. Her personal savings is 8000 francs each week. Her dream is to have a small shop one day.

Since it is a small group, we shared a special activity with them. We brought a custom puzzle that has the Rwandan flag, Africa Women’s Hope Initiatives and the different regions of Rwanda that we serve. On the back of each puzzle piece is a bible scripture, picked out by members of our church as well as donors. The idea is to have the women read the scriptures and complete the puzzle together.

One by one the women picked up a puzzle piece and then we read the scripture together. They loved it! Once they complete the puzzle, they will pass it on to another women’s group to complete.

This was a great fellowship activity and they promised to send us a picture once they complete it!

After another bumpy ride and great skill from Alex (our very skilled driver), we were on our way to our next stop of the day.

Written by: Heidi Kittredge

This afternoon we met with a women’s cooperative group from Kiminronko. There are 2 groups in Kiminronko. In 2022 and 2023, we met with Group A, This year we met with Group B. Last year, they received $50 microloans.

The group’s gaol is to save more money as a whole group so that they can “prove themselves to the church and to AWHI.

There are 31 women in Group B. Within Group B, there are 5 solidarity groups. Solidarity groups are smaller groups (4-6 women) and are part of the larger cooperative group. They are accountable to each other. If one woman in the solidarity group is unable to make a weekly loan payment, the solidarity group as a whole is responsible for the weekly payment.

The president of the cooperative group reported that each member of the cooperative paid back their loans on time and has received another $50 loan which allows the women to buy more capital and to build their businesses.

Prior to receiving the initial microloan, the women had no food for themselves or the family and some were “chased” out of their rented homes. If they borrowed 10,000 Rwandan Francs ($10.00 U.S) from someone, they could not pay it back.

This group has 3 buckets of savings they contribute to on a monthly basis. Group savings, capital improvement savings and personal savings. Each women has faithfully contributed to the group savings, the capital improvement savings. Some women still find it difficult to maintain a personal savings due to the increase in the cost of living and the size of the family as the women pay school fees for their children and food for the family.

We expect as the women continue to build their businesses, they will be able to to maintain a personal savings.

These women are determined to break the cycle of poverty. AWHI looks forward to seeing these women achieve this goal.