In the remote village of Mphinde, a successful harvest didn't always mean a full table.
Without access to a local bank or a fair way to save, many families found themselves trapped in a cycle of "debt-stress." When faced with school fees or medical emergencies, their only option was to turn to informal lenders. These lenders charged interest rates so high that they often demanded repayment in grain rather than cash.
By the time the debt was settled, a farmer’s granary was often empty. They weren't just losing money; they were losing the food they had worked all season to grow.
"The only resort was to pay by exchanging farm produce," says Davious Nyimbili, a local leader in the community. "It left most of them with food deficits."
In 2022, the village decided to change the rules of the game.
Through our partner ROCS, 25 members formed the Yazenga Village Loans and Savings Group. They didn't wait for an outside bank to arrive; they became their own bankers. By pooling their savings and setting their own fair interest rates, they created a safety net that belonged to them.
But they didn't stop at savings. With a sharp eye for business, the group registered as a formal enterprise and secured a grant to purchase two hammer mills (maize grinding mills).
Now, the village no longer loses its grain to distant lenders or 30km journeys. They process their own maize locally, and the profits from the mills are reinvested back into the community.
For Davious, the shift is clear. "My children go to school well-prepared and fed," he says. "Being part of this group has enabled every member to have a business and ensure adequate food at home."
The money lenders didn't disappear because of a handout; they disappeared because the people of Mphinde led their own change and built a system that made exploitation impossible.
“The community has developed because of the hammer mill business. It is creating employment opportunities for group members and other residents. Being part of this group has enabled every member to have a business, build better houses, and ensure adequate food at home.” – Davious Nyimbili
Life is not a straight line. For people living in poverty, one setback can easily undo the progress that has been made. That’s why our partners work with the community for the long haul, supporting them as they work to lift themselves out of poverty.
Long-term change takes long-term commitment, and we’re grateful for your partnership with us.
Related projects have received support from the Australian Government through the Australian NGO Cooperation Program (ANCP).
