CHAPTER 7: THE GENDERED ASPECTS OF ACCESS TO AND UTILISATION OF
7.2 Access to finance
7.2.1 Financing through Income Savings and Lending schemes (ISALs)
For women, both married and widowed, the most common method of raising money was through the Income Savings and Lending schemes (ISALs). Savings and loan activities were not simply an end in themselves, rather they were a means to strengthen community processes so that people can work together to achieve their multiple and diverse needs. Savings and loan
143 activities could play a critical role in bringing communities together, helping them to address their needs in a very practical way. Experiences in many countries, including Thailand, have shown that savings and loan groups tend to come together to pool their resources into larger and more flexible funds, and receive support from others engaging in similar activities, which adds greatly to these activities. These networks open up community processes to checking and cross-referencing and also draw together groups facing similar problems, such as a lack of land tenure, or those working in the same trade (Boonyabancha, 2001).
ISALs, as a means of income generation, were very popular means of generating finance.
According to a ZIMSTATS report, a total of 53% households were members of agricultural extension groups, whilst 28% were ISAL and SACCO members and 17% were in commodities associations. The group method was seen to be important as it meant pooling resources together. Lizzy had this to say,
We prefer to work amongst ourselves as women. When we are in groups, we generate and share a lot of ideas and we encourage each other. We put our money together and lend out to each other and charge each other interest. At least we trust each other.
(Lizzy, female participant, date of interview 21 May 2015).
For ISALs, the women explained that they organised themselves into groups of between 15 and 20 members. They each contributed different amounts depending on financial ability.
Some groups were contributing $1 each per week. They loaned out the money amongst themselves and paid back with an agreed interest of usually between 10 and 20%. At year end, they bought groceries, which they shared amongst themselves. The $1 contribution, on the women’s admission, was really negligible and the groceries they bought at the end of the 12 month cycle did not last for even half the year. Some of the participants belonged to another group, which had 42 members. This particular group had managed to save and distribute to each member US$ 150 in the previous year after having been contributing $5 per month.
Rutendo explained,
I belong to two groups because the groups serve different purposes. One has members that contribute more money so this allows me to access more money as well. The other one, the women have less money but are keen to grow. I belong to both because I know the women look up to me so I have to identify with all the different groups of women.
(Rutendo, female participant, 21 May 2015)
144 Funds raised were spent on kitchen utensils. None of the funds were spent on inputs. All the married women felt this was “their” money and that they should buy items associated with their space. This also correlated with the findings of the ZDHS (2015) which reported that about one-third (32%) of currently married women who receive cash earnings decided for themselves in terms of how their earnings are used, while 62% indicate that the decision is made jointly with their husband. From the same report, only 5 percent of women reported that mainly their husband decided how their earnings were used.
However, the widowed women had a different view. Sarudzai, aged 41 years, was considered a young widow. She explained that,
As a member of an ISAL, I have been able to save money towards purchasing kitchen utensils and on one occasion I was able to save enough to pay for my children’s school fees. This was after saving over 6 months. Just because I am a widow it does not mean that life stops. I have to find ways of sustaining my family. I cannot rely on people because they have their own problems, even if they are family members. (Sarudzai, female participant, date of interview, 28 May 2015).
ISALS tended to be very limited in that the groups hardly raised enough to purchase maize seed and fertiliser for a hectare. Men, on the other hand, did not participate in ISALs as they considered these to be too time consuming, compared to the gains derived therefrom. The women found the ISALs to be advantageous to them as they could regulate the money they generated. There was also an element of networking, sharing ideas and general cohesion building. According to Kariuki and Place (2005), men tend to participate in production oriented groups while women tend to join for household asset building and social capital. A 2010 survey by the World Bank and International Food Policy Research Institute (IFPRI) and by an earlier study of 304 rural households in the Philippines found that women generally join women’s self-help groups, whereas men tend to socialise in cooperatives or other producers’
organizations. This explains the affinity the women had for ISALs in which they felt secure, whilst men tended to be more inclined towards higher volumes of money. Lucas explained,
We have to allow women to have some activities for themselves such as these ISALS.
We don’t want to interfere with women because these ISALs are for them. Besides, if we want to do these, we would contribute much more than women. We are more concerned about the big projects that make us real men. (Lucas, a male participant, date of interview, 13 June, 2016).
145 This suggests that the ISALs are a social activity rather than a business venture. Men, on the other hand, do not participate because they prefer enterprises that generate money that they can
“spin” and grow. Men preferred to sell cabbages, potatoes and other crops in season that they could buy in bulk and sell. Tinotenda, a widowed woman noted the following,
I enjoy spending time with other women in the ISALs, it’s a time to relax, laugh and to forget about family problems. It is good for us as women especially for some of us who are widowed. (Tinotenda, female participant date of interview 6 June, 2016).