By Louise and the KTD196 Dream Team | Jack of all trades, master of none!
What am I so excited about?
Well, a couple of things really but first and foremost, what Covid has revealed more than ever is the economic vulnerabilities of the people that we work with. Most of our children, 90%, come from single mother-headed households. The mother is usually the income-earner or the families are relying upon government grants such as the Child Support Grants, Disability Grant, Aged Grant (in the case of Grandparent headed households), or the Orphan grant. In most families, approximately 95% are relying upon grants for survival.
Most families survive on what is known as "PEACE JOBS"! Small little jobs that add up such as washing, gardening, ironing, cleaning, etc. Little bits of money from many sources, none of which are stable or assured, and during Covid, these jobs, due to lockdowns, were the first to disappear.
At KTD196 we are forever looking to create new ways of bringing food security, such as food garden development, community garden development, Epap, and as a last resort Food Parcels when absolutely necessary. Financial Security is something we have also been looking at and wondering how we can venture into this area without distracting from our core business which is working with children.
Finally, after 4years of looking at different models, different best practice opportunities, we applied through a sponsor to participate in the development of Self Help Groups (SHG's) which targets the poorest of the poor in a savings system which becomes an overall empowerment program particularly for women but not limited to. In South Africa, we have an informal savings scheme called Storkvoels (pronounced strokfells). This is where a group of people get together and give a certain amount so, at the end of the year, the money is then distributed amongst the participants. Some can draw on the money that is available and then return with interest.
So, the scheme we are looking at different in that the money is not distributed at the end of the year, instead it remains in perpetuity which is very different. The groups of 20 ladies, in particular, donate 2Rand a week (equivalent to 15c $USD or 20c $AUD) and then people use this money and return at interest rates of 10% which is far cheaper than the money lenders. This form of compound interest builds substantially over time. The best thing is that it is not a heavy financial burden on the group weekly and that the interest rates are far cheaper and therefore much more sustainable and economical.
I saw this program in operation in KwaZulu Natal over 4 years ago and fell in love with it. I went to one Self Help Group of grannies, all caring for orphans after the deaths of their children. Over a period of 15yrs each granny had, using local labor and skills, built extra rooms on their homes for the assorted grandchildren; started small businesses such as bakeries; fish or chicken farms; spaza shops (local mini-supermarkets) or some such business and were now drawing a living wage from the initial donations of R2 per week.
Not just increasing their household income but also buying labor and employing others in very rural and marginalized communities.
IT DOESNT STOP THERE!
A number of the SHGs join together to form a Cluster with stronger economic bargaining power and also political power. For example, they could negotiate more substantial discounts from service providers as a group than as individuals. The members could take money from the SHG group to purchase stock and return with interest once the stock had sold. This means they will always have a cash flow, which is the usual downfall of many businesses.
Another example I was shown was when a Cluster decided they wanted/needed a clinic in the local village. They approached the government and negotiated their way into having a funded clinic built. The Cluster identified a local orphan girl and sponsored her dream to become a nurse, she since has returned to the village to take up employment in a clinic funded by the Department of Health.
The skills developed included business skills, conflict management, and negotiation skills, advocacy and project planning and management skills. Eventually, Clusters will join together to form Federations with far more political power to demand rights set out in the Constitution such as the provision of basic services such as electricity, water, security, etc to the rural villages often forgotten about. The groups become self-sustaining at the micro and macro levels.
Can you sense my excitement? Over time this can become a PEOPLES MOVEMENT where they are no longer dependent on handouts but with a hand up, they can do for themselves. I AM SO EXCITED about this opportunity for the people we work with.
We have already identified the staff required, the training of the staff starts in June and we have a 7month contract to initiate the project as a pilot and if we are successful, then we will continue with the process for 6years.
Watch this space as I share our successes and our challenges.
All this is made possible through our partners including you! Thank you for enabling us to make such a difference in our communities. We have secured interim funding for this project already, however, there are always extras that are required and your ongoing support is essential to ensure this continues. You are making dramatic changes in the lives of the people we serve in Limpopo.
THANK YOU SO MUCH!
Blessings
Louise
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