Bhasikiti Ratizirai: How NGO Policies and Donor Demands Impact Savings Groups

Bhasikiti Ratizirai: How NGO Policies and Donor Demands Impact Savings Groups

Today, as I reflect on the current state of community development across Africa, I’m compelled to address a troubling trend affecting long-standing savings groups. Over the past two decades, the concept of savings groups has transformed communities, with many groups maturing to the point where they manage their own affairs without external support. These groups have proven their resilience and ability to foster economic empowerment at the grassroots level.

However, a concerning pattern has emerged, which I refer to as "Bhasikiti ratizirai, uku rinorukwa uku richirudunurwa". This Shona expression—"the basket is unraveled; while it is being knitted, it is also being undone"—perfectly captures the issue we are witnessing. Rather than supporting and strengthening these mature savings groups, NGOs often dismantle them in the process of creating new ones, mainly to meet donor targets and reporting requirements.

The ideal approach for NGOs would be to first understand the challenges that these well-established groups face and help close any gaps. But instead, many organizations identify their project targets from within these groups and force members to join newly created ones, often made up of people handpicked by the NGO itself. In doing so, they dismantle groups that have already stood the test of time, groups with strong governance, trust, and shared experience.

Sadly, these newly formed groups often don’t last. They lack the cohesion and trust that are crucial for success, and are sometimes formed for the sake of convenience rather than through the organic, self-screening processes that have allowed savings groups to thrive. Even worse, many NGOs lack the resources to support these new groups to maturity. A typical savings group takes at least 18 months to reach a sustainable level, but many projects are funded for just one year, leaving the new groups without the necessary support to succeed.

This process of dismantling established groups to create weaker ones that won’t last is incredibly wasteful. It squanders financial resources, duplicates efforts, and makes it hard to accurately assess how many functioning savings groups there really are. In essence, we are building and destroying at the same time.

At Inclusive Digital Solutions, we recognized this problem early on and developed My Savings Companion as a solution. Our platform allows NGOs to monitor and report on both project members and non-members separately, ensuring that established groups remain intact while still allowing NGOs to meet their donor requirements. This approach respects the long-term work of these groups and prevents the unnecessary disruption of their progress.

Instead of tearing down what has been built, we should focus on strengthening the solid foundations that exist within these communities. There is so much potential in these mature savings groups, and with the right support, they can continue to grow and empower their members. The future of community development in Africa depends on our ability to build on the success of the past two decades, rather than starting over again and again.

Let’s start a conversation about how we can ensure community development efforts truly support the long-standing progress made by savings groups. I’d love to hear your thoughts on this issue. Together, we can work toward creating a sustainable future where community empowerment builds on what has already been achieved.

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