Rural Unity for Development (RUDO), a community-based partner of Catholic Relief Services/Zimbabwe's STRIVE project, pays the school fees for orphans and other vulnerable children in Zimbabwe's Gutu district. The challenge RUDO faces is that many of these children lack the notebooks, pencils and rulers necessary to succeed in the classroom, and often miss school days earning money to purchase these supplies. To meet this challenge, RUDO is supporting the expansion of children's internal savings and lending groups, which were pioneered by one of the schools with which it works.

One day, remembers Oscar Majore, the deputy headmaster of Mukaro (Pfungidzo) Primary School in Zimbabwe, some students arrived at school singing a new song. Moving their legs as if climbing a mountain, the children sang, "We are now stepping on top of money because of IS&L activities." This lyric has become an anthem for the more than 100 Mukaro students who participate in an internal savings and lending (IS&L) group,
many of them orphans or other vulnerable children.

Joining a group is voluntary, and the children - ages 8 to 11 - choose their own cohort. They elect a chairperson and executive team, and work with their teacher to develop a group constitution. Children contribute a small amount of money to their IS&L group at its monthly meeting, where they also can request the group's approval to borrow money. Borrowers then repay their loan, with interest, in instalments.

"The good part of group lending is that you can do the things you want as long as you can pay the money back," said one student. Added another, "The beauty of it is that you no longer have to worry your parents or guardian. You cease to be a problem at home because you have another means of getting money."

Children, like adults, acquire greater access to money as IS&L group members, and they use this money to buy important inputs. In the case of children, the inputs most vital to their economic future are pencils, notebooks and rulers.

Mukaro's IS&L initiative began in 2003, when Majore helped 20 students form a pilot group. He and his fellow teachers were familiar with how adult IS&L groups strengthened the economic safety net of their drought-affected Gutu-district community, and thought that such groups might also assist children.

"Adults had IS&L groups, so we at the school thought we could try to have groups with children," said Majore. "The teachers help the groups coordinate their activities, but leave room for the children to do things on their own. Parents are supportive of the children's groups because they know about IS&L and understand where the money is going."

The success of the children's groups has helped address a key challenge identified by Rural Unity for Development Organization (RUDO), a community-based partner of Catholic Relief Services/Zimbabwe's STRIVE project. Although RUDO pays the school fees for orphans and other vulnerable children in Gutu, these students may sit at their desks for weeks without notebooks, pencils, pens and rulers - or miss school entirely - until they can purchase the necessary items. At Mukaro, students' most common reason for requesting a loan is to purchase school supplies, and they now attend class well-equipped to learn.

Recognising the success of children's IS&L groups at Mukaro, RUDO is actively nurturing children's IS&L groups throughout the district. This year it trained teachers at 20 schools in how to support children's IS&L groups. These capacity-building efforts build on RUDO's experience supporting the establishment of more than 90 adult IS&L groups in Gutu.

"It is very important for children to engage in entrepreneurship development at a young age and to learn how to be financially independent," said Eliam Mahohoma, RUDO's director. "This is especially true for orphans and other vulnerable children, who may inherit money from their parents."

RUDO is one of three STRIVE partners that currently supports community IS&L activities aimed at strengthening communities' economic capacity, with an emphasis on their capacity to care for orphans and other vulnerable children.

"By expanding the IS&L methodology to include children as active participants, RUDO and the staff at the Mukaro (Pfungidzo) Primary School are broadening the benefits of an already-successful model," said Washington Masikati, STRIVE's program manager for economic strengthening. "Children, like adults, acquire greater access to money as IS&L group members, and they use this money to buy important inputs. In the case of children, the inputs most vital to their economic future are pencils, notebooks and rulers."

Majore has noticed that IS&L activities are helping his students in ways even beyond their new financial acumen and ability to acquire school supplies.

"The small amount they pay to the IS&L group is doing wonders," Majore said. "It inculcates a sense of responsibility and teaches the students how to plan ahead. In addition, the students in the groups seem to have increased self-esteem and confidence."




The children have come across challenges, such as how to deal with bad debtors.

"Some children borrow and spend their money, but fail to pay it back," said one IS&L member. "We continue to track them, and can drop them from the group. Sometimes we go to our teachers for help."

When the students approach them about bad debtors, Majore and his colleagues investigate the reasons why the borrowers have failed to repay their loans. Often, the children want to repay their loans, but have been unable to find a way of raising the funds. In such cases, Majore and other teachers will give the students a small job at the school so that they can earn the required amount of money.

Despite such challenges, the students at Mukaro would recommend that other children start IS&L groups, with the support of their school and community.

"I would tell another child that it is good to join an IS&L club," said one member. "It is good to have easy access to money. Then, if you don't have money, you can go to your group."




Story contributed by Carolyn W. Fanelli (CRS/Zimbabwe). Copyright Catholic Relief Services/Zimbabwe 2005. An earlier version of this story appears in Issue 5 of STRIVE TIMES, a publication of Catholic Relief Services/Zimbabwe's STRIVE project.

To read another Global Envision Success Story about Zimbabwe, see A Center for Women.



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