Their Purpose: To create lasting relationships that foster accountability, support, and encouragement. This group environment promotes shared problem-solving and a mutual commitment to financial self-sufficiency through strategic savings plans.
Adera currently has six SHG groups consisting of 15-20 women each. The women gather monthly to share business ideas as well as challenges, and to encourage one another in their shared commitment to save. Adera incentivizes savings by making a contribution of 10,000 birr for every 30,000 birrs saved ($566 USD).
Savings and Loan Aspect of SHG:
As members build their relationships with one another, they are also building their capital by saving small amounts of money each month. The amount to be saved is a group decision and the money is placed in a common bank account (opened by three leaders of the group). Each contribution is recorded in the member’s passbook and a receipt issued by the leaders of the group.
Members can apply for loans, depending on the amount saved and the agreed-upon timeframe. To take out a loan, the member must provide a written application to the group’s chairperson. The loan committee then determines if that person qualifies for a loan according to the pre-established rules and regulations of the group. All loans must be paid back in the agreed-upon time frame and with interest.
The goal of this program is to break the long-standing cycle of poverty that overshadows the lives of the people of Korah. Adera’s objective is to equip our participants with the tools they need to succeed. Through Open Door, they can raise their expectations and achieve financial independence for the first time in their lives.
These self-help groups are actually group-based programs that allow individuals to be a part of something bigger than themselves. With the help of others, they can dream bigger dreams and cast loftier visions for the future – together.
__________________________________ “May the favor of the Lord our God rest on us, establish the work of our hands.” Psalm 90:17 __________________________________
Pray with us!
- Please pray that our economic development program will continue to provide security for our families.
- Pray for Abeba, who is working alongside our families so that they might fully know Christ and His love for them.
