IN 2010 Charlotte Nizeyimana and her neighbours formed a credit and savings association with a belief that it would help them beat the trap of abject poverty.

All of the members were in the last category under the social stratification programme, Ubudehe but were determined to reverse the trend.

As a rural woman, she used to struggle along with her husband, to raise their big family of six children.

They survived on tilling their small land which produced so little that even getting food for home consumption was a problem, let alone affording basic needs for the family.

"We couldn’t fend for our children, and they were not attending school regularly,” adds the 38-year-old mother, resident of Gasiza Cell, Cyanika sector in Burera.

Many members of their community lived a similar lifestyle.

Amidst this, together with fellow women from the village, they made a decission to change their way of living for the better and bring hope in their families.

And this was the birth of Ejo Heza, (literally meaning ‘a better tomorrow’) credit and savings association.

The association started in 2010, with support from a local Credit and Saving Cooperative in Agriculture (CLECAM), which is a member of Associations of Microfinance Institutions in Rwanda (AMIR).

Ejo Heza is made up of 30 people who meet once a week.

And, every time they meet a minimum Rwf200 for saving is contributed by every member.

The Rwf200 is basic share. One can have as many shares depending on their financial capacity.

"We are progressing and  there is hope for a better future. I am now practising modern farming,” she said.

Acquiring loans

Through the association, members are able to acquire short-term credit facilities and they invest the money in agriculture.

"I first acquired a loan of Rwf25, 000 which I used to buy fertilisers that I put in my potato plantation. This doubled the production and I was able to pay the loan,” she said.

She says that the second time, the saving group collectively acquired a loan of Rwf1 million from a microfinance institution, of which she got Rwf100,000 that she used to pay school fees for her children.

From the group savings, Nizeyimana got Rwf96, 000 in 2013 as her dividend, with which she bought a cow. The cow, she says, provides milk for her family and also she uses its dung as manure on her farm.

 "Every member of our savings group has at least one cow and other livestock. And as women, we are working hard for self reliance,” she said.

 "We have also been taught how to use modern farming methods by agronomists, this has increased production and we have a surplus which we take to the market,” she says.

Nizeyimana says that through saving and hard work, she always has over Rwf100,000 on her account that she can use in case of an emergency.

She also plans to secure a loan from micro-finance to expand her farming and livestock projects.

Other women speak out

"Our lives have changed for the better, we no longer depend on our husbands but we complement them instead, we have improved our farming methods hence increased output,” said a 39-year-old mother of six.

 "I have improved my farming practice through use of fertilisers, this has boosted production, I have two cows, four sheep and two goats. All these I got after joining the association. I am grateful for CLECAM and I am committed to continue working hard to build a better future for my children,” says Solange Nyirabasirimu, 36.

Innocent Safari Bukamba, the manager of CLECAM in Burera District, says residents in the district have a new mindset and have joined village saving groups.

He said that initially, people were convinced that one could not save, saying that they did not even have enough money to sustain their families on a daily basis.

"This has progressively changed. Members of the saving groups lead better livelihoods,” he said.

There are 32 village saving groups comprising over 1000 members in four sectors of Burera District, namely Kinoni, Gahunga, Rugarama and Cyanika.

About the association

VSLA is a group of people who save together and take small loans from those savings. The activities of the group run in cycles of one year, after which the accumulated savings and the loan profits are distributed among members.

The purpose of a VSLA is to provide simple savings and loan facilities in a community that does not have easy access to formal financial services.

A VSLA is a more transparent, structured and democratic version of the informal savings groups based in villages and slums in many parts of the developing world.