SaveAct Savings and Credit Groups
and Small Enterprise Development
7th October 2014
What does SaveActdo?
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
A stepped-approach, with self-selection ‘filters’
Mobilisation of
Savings & Credit
Groups:
•Savings as a ‘glue’
stimulating social
capital
•Social fund
•Platform for
efficient & effective
support strategies
Savings & Credit
Financial education
•Enhances
awareness of risks &
opportunities
•Economic literacy
•Improved coping
strategies
•Consumption
smoothing
•Improved capacity
to take risk
Enterprise
development
•Stimulates
formation of
enterprises
•Incubated in
savings groups &
commodity
interest groups
(CIGs)
•Fed by savings &
credit, share-outs,
Isiqalo Training
•Improved
capacity for self-
reliant action
People
choose to
participate
in a
structured
process
with
rewards ...
What to do?
Towards more sustainable livelihoods & financial services for the poor
How SaveAct supports enterprise
development
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
Participatory value chain assessments with more mature
groups to decide on commodity focus areas
Set up Commodity Interest Groups (CIGs)
Start up business training for commodities of interest
for participants (Isiqalo)
Improved systems throughjoint discussion and action in
•Input supply: bulk buying,access, transport,types of input....
•Production efficiency: farmer innovation and experimentation,
training and mentoring support
•Marketing: support for joint activities around local marketing
Flow of enterprise support
activities to SCG members
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
1. Savings Groups
2. Clustering the
economically active
across SGs for
commodity ranking
3. Commodity Interest
Groups (CIGs) formed
4. Isiqalo(enterprise)
training
5. CIGs mentored &
Participatory Value Chain
Analysis (PVC)
conducted
6. Business plans
developed (factoring in
share-outs/ loan capital
& collective opportunity,
eg bulk buying)
7. Business plans
implemented
8. Business plans tracked
with mentorship across
the value chain
PVCA: participatory value chain
assessment
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
❖Helps to prioritize commodities of interest for the area based on criteria developed
by participants. Includes local ‘’market assessment”
❖People interested in business start up training chosen from these groups –
members belong to a number of local SCGs
Commodity Interest Groups
(CIGs)
❖CIGs set up in Matatiele for potatoes, vegetables, maize,
sheep, cattle and pigs
❖Bergville CIGs have a focus on maize, beans, livestock
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
CIGs (set up and support): Sthathi, Khubetsoana,Mpharane,
Moyaneng,
CIGs and CA (Set up and support):Thinana/Ghobo
Khubetsonana,Mpharane, Moyaneng, Nkosana, Mapeng,
CIGs only (reduce focus):Thafa,Mehloloaneng, Nchodu,
Hebron
CA (reduce focus): Lubisini
Scaling out with CIGs
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
Farmer Centre –
Pontsheng;inputs,advice,
access to tools for sharing,
hiring, etc.
Sekhutlong
- CIG
- CA learning group
-5 new farmer-based trials
Mapheng
- CIG
- CA learning group
- 2-3 farmer-based trials
Pontsheng
-CIG
- CA learning group
- 7 CA farmer mentors 2ndary level
experimentation
- 35 Farmer participants linked to farmer
mentors
Nkau
- CIG
- CA learning group
- CA farmer mentor with 5
farmer volunteers
Benefits of the Approach
Initial research suggests the following:
❖Peer learning and support amongst farmers
❖Improvedaccess to information
❖Achieving efficiencies in farmer support systems (training/
mentorship)
❖Bulk buying of inputs, with lower costs and delivery to
site
❖Improvedbusiness practices: Reduced debt-based
transactions (high risk and high costs avoided arising from
training)
❖New & diversified markets locally (e.g. pension points,
savings group meetings, coordinated sales)
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
Inputs supply and access
❖Bulk buying: vegetable seedlings, potato
seed, poultry inputs
❖Potatoes - >300bags
❖Seedlings - ~25 000 (Jan-April 2014)
❖Poultry (chicks plus inputs)- 300
❖Livestock feed –4 bags
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
0
2
4
6
8
10
12
14
16
Bulk buying Matatiele N=40
Seed Potato
Vegetable
Seedlings
Poultry
Package
Breeding
Stock
Business start up training: Isiqalo
❖Linked to the CIGs and commodities
of interest
❖4-day training leading into CIG
process of mentoring and production
support
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
Isiqalotraining summary (2013)MatatieleBergvilleTOTAL
Isiqalo trainee days10252 154
Improvement of current business (based on
business plans submitted)
40 (n=69)30 70
New businesses (Based on new business plans
submitted)
16 (n=69)31 47
Isiqalo themes per training group: Maize1
Poultry: broiler production1
Sheep: meat and wool1
Vegetable production and sheep management1
Vegetable production and poultry2
Production support
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
❖Training through local and other
specialists e.g. pig production
❖Mentoring:short and practical
sessions on issues of concern in a
commodity,e.g. Grading of wool
for sheep production
❖Farmer innovation:tackle a whole
production system and issues of
efficiency,e.g. Conservation
Agriculture
❖Include stakeholders in market
chain,e.g. Seed suppliers,
agribusiness (Grain SA and
Poultry SA)
Thank you
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
Marketing
❖Local marketing mainly:Joint discussions around the issues –oversupply at
certain times,developing niches, different types of crop (e.g. different
varieties of potato seed or planting at different times),joint activities such
as joining together for pension days
❖New ideas –e.g. Local milling,production and supply of animal fodder –
different types:teff, lucerne
❖Some individual marketing intown, or buyers coming to them
❖Still the best option –becomes more of an issue as production increases
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
Involvement in CIGs:
improvements and issues
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
Has not
improved
16%
Income
improved
5%
Inputs
cheaper
29%
Inputs
easier to
access
2%
Knowledg
e gained
14%
Markets
found
3%
Other
7%
Productio
n better
19%
Working
together
with
communit
y
members
5%
Business improvement
through involvement in CIGs:
Matatiele N=85
Credit
3%
Inputs
25%
Knowledge
1%
Market
4%
No issues
18%
Other
12%
Production
factors
18%
Weather
19%
Present business issues:
Matatiele, N=85
Livelihood concerns
❖Track the complex
interactions between
multiple and diverse
livelihood activities
and their contribution
towards overall
livelihoods
❖Track increases in
production,
enterprise activities
and income through
involvement in CIGs
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
0
2
4
6
8
10
12
14
Number of People
Average Monthly Income
Income Distribution of Respondents: Bergville
N=40
CIG Member
Non-Member
>R6 000
2%
Don't know
2%
R1001-R2000
55%
R1-R500
5%
R2 001-
R3000
17%
R3001-R4000
4%
R4001-R6000
1% R501-
R1000
14%
Income distribution of CIG members in Matatiele
N=100
E-survey for livelihoods
assessment
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
Livelihoods tracking
❖E-surveys (Dooblo) –for
tracking CIGs, Isiqalo and
livelihoods outcomes
❖Uploaded and analysed in
Excel
❖Individual reports with
photos and GPS points
possible.
❖Building up over time –
interview the same people
over time,increase number
of people included in
monitoring,provide
baselines through those
involved in SCGs but not in
CIGs
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
Agricultural
enterprise
CIG
member:
Main
enterprise
Non
member
Total
Single
enterprise
Total
no CIG
members involved
in enterprise
Maize
16
16
1
47
None
1
14
15
15
Potato
40
1
41
3
41
Poultry
13
13
11
42
Sheep
2
2
2
12
Vegetables
13
13
8
53
Pigs
-
-
-
-
15
Total
85
15
100
25
MaizeNonePotatoPoultrySheep Vegetabl
es
member 16 1 4013 2 13
non member14 1
0
5
10
15
20
25
30
35
40
45
No of people involved
Agricultural enterprise involvement: main
enterprise Matatiele N=100
Use of SCG loans for enterprise
development over 12-months
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
Agric EnterpriseBasic NeedsEducationHouse
Improvements
Non-agricultural
enterprise
Other: start
enterprise
Other: Pay off
debt Other
Loan 117 15 14 163226
Loan 216 17 10 322003
Loan 3713 561002
Loan 416010001
Loan 514010000
Total 42 55 29 5662212
%21% 27% 14% 27%3% 1% 1% 6%
0
10
20
30
40
50
60
No of loans
Use of SCG loans in 2013 cycle: Matatiele
Livelihoods continued:
E survey example
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
Question
ID
Question:
CIG involvement
Answer
50
What activities have you been involved with in your
CIG
Meetings, Learning sessions,
Implementation,
Joint
action
51
Describe any new activities you have been involved
in
CA trial
52
How has your business improved since you have
been involved with the CIGs?
Inputs cheaper, Inputs easier to access
,
Production better, Knowledge
gained
53
What are your present business issues?
Weather, Knowledge, Moleson
potatoes and
insect pests
54
What further support would you like to receive?
Training on production as well as home remedies
in dealing with pests as chemicals are expensive
and difficult to follow properly.
Livelihoods ctd.
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
Ques
tion
ID
ISIQALO: Qu
estion
Answer
55
Have you received Isiqalo
business
training from SaveAct
?
Yes
56
Do you want to receive Isiqalo
business
training from SaveAct
?
57
In what year did you receive this training?
2012
58
Whatwas the theme of your Isiqalo
training?
Vegetables
59
Would you be interested in repeating the
training or have additional similar training?
Yes
60
Did you fill in a business plan?
Yes
61
Why have you decided not to fill in a
business plan?
62
Whatwas the enterprise you filled out the
business plan for?
Vegetables
63
Have you implemented your business
plan?
No
64
Why have you not implemented your
business plan?
She
decided not to follow
through vegetables as an
enterprise. Doesn’t
see viable
enterprise as yet but thinks
maize may be it,
waiting to see
on the
performance.
65
Whathas the income been from THIS
enterprise in the last year?
R
0
66
Please rate the Isiqalo training in terms of
how helpful you found it.
4
Income from Agricultural
Enterprises -Matatiele
❖Incomes increasing incrementally through involvement in AEs and CIGs due
to multiple factors including economic & structural issues of market access
❖Participants mainly use production for household consumption but
contribute around 15% to their overallincomes with these activities
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
05 10
Do not
participate in…
R0
R1001-R1500
R1501-R2000
R201-R500
R3001-R4000
Poultry
Income from Poultry
production
Total
0 2 4 6
Do not…
I don't know
R0
R1-R200
R201-R500
R501-R1000
Vegetables
Income from Vegetable
production
Total
0510 15 20 25
Potato member I don't know
Potato member R0
Potato member R1501-R2000
Potato member R1-R200
Potato member R2001-R2500
Potato member R201-R500
Potato member R501-R1000
Potato member R8 001-R10 000
Potato non member R0
Income from Potato production
Total
Conclusion
❖Unique approach in SouthAfrica
❖Reaches the very poor
❖Offers incubation that are social, economic, financial
and technical
❖Scope is across the whole value chain
❖Underpinned by highly sustainable Savings Groups
with consumption smoothing
❖Strengthens rural livelihoods in a sustainable way
Financial Services & Sustainable Livelihoods for the Poor –Yakha Impilo engcono ngokulondoloza imali!
