AKDN's Community-Based Savings Programme in Tanzania empowers 100,000s of women like Asha by providing a safe way to save money and take out loans to pay for household costs, healthcare and education, or to open their own businesses using small loans on flexible terms.
With a loan taken from her savings group, Asha has been able to expand her hair salon in Lindi, allowing her to generate additional income for her and her family.
In 2009 the Aga Khan Foundation (AKF) established the Community-Based Savings Programme (CBSG) to promote community-managed financial services in the disadvantaged communities where it works. This built on decades of experience with community-managed microfinance approaches, but offered a less cost-intensive approach. CBSGs respond directly to the financial service needs of the remote and rural poor by providing a secure, convenient place to save and take small loans on flexible terms. The CBSG savings opportunity is particularly well suited to the remote rural poor.
CBSGs are self-managed groups of 15-25 people and systems are kept simple and transparent to promote independence from AKF, and maintain transparency for members. There are more than 400,000 AKF CBSG members, of which 73% were women, saving more than $13 million per year.
Check out AKF’s CBSG dashboard for the latest numbers and locations of AKF’s CBSG programme.