The poverty experienced by the majority of people living in countries in Eastern Africa is at an alarming level. This poverty is characterized by the lack of access to basic needs such as food, education, health care, and shelter. Inabilities by regional governments to provide citizens with adequate social amenities, the lack of sufficient human and financial resources in learning institutions, and high levels of illiteracy all have compounded the poverty situation. Also, regional conflicts and personal security concerns have diverted people’s attention away from economic activities. As a result, many people focus on daily survival rather than focusing on economic development.

As some of the main hindrances to economic development are inadequate business training and the lack of access to financial capital, CWSEA and its implementing partners attempt to address these situations through training women’s groups in small scale business management, financial planning, and savings.

After the women participate in business management training, their groups function as savings and loan organizations for the group members. On a weekly basis, each participant in a group makes her contribution to her individual savings fund. These savings funds are combined into a group fund that is then “topped up” with addition money from CWSEA. In turn, members of the group may access loans out of the group fund as related to the amount of their individual savings (3x their savings, for instance) to put to use in economic activities. The group acts as its own collateral, for each member is responsible to the rest of the group to contribute her funds and to repay her loans. These loans are paid back with interest, so the group fund (as well as each individual’s savings account) continues to accumulate over time.

For women making less than a dollar a day, these trainings and the small financial boost offered through CWSEA often are all that is necessary to help move them from a situation of economic helplessness to economic empowerment. Through their savings and loan groups, women are able to access capital in order to jumpstart their business, expand their business operations, or pay for periodic expenses such as school fees—activities that formally would have seemed impossible.

Functional Adult Literacy

For program participants who are illiterate, Improved Livelihoods projects may be supplemented with functional adult literacy classes. The functional adult literacy curriculum teaches participants how to read and write by focusing on “functional” topics such as basic health care, HIV/AIDS information, personal hygiene, reproductive health, and nutrition. These classes also serve as an entry point for the introduction of basic business management and savings principles meant to assist the participants in planning managing their livelihood activities.