Mwanza Rural Housing  Programme
"Shirika la Nyumba na Hifadhi ya Chakula Vijijini"

Shirika La Nyumba na Hifadhi ya Chakula Vijijini


Savings and Internal lending communities

Savings and Internal Lending Communities (SILC)

Discussions with farmers revealed that one of the issues hindering successful farm development was lack of appropriate tools. Few farmers have access to an ox plough, which is a far more effective method of preparing the ground than any hand implement. MRHP encourages farmers to set up Savings and Internal Lending Communities (SILC) of about 20 households, members of which agree to save a regular weekly amount, usually less than US$1. After the fund has built up, participants can apply for micro loans ranging from $20 to $40, which will be paid back with interest, or the group together can decided to purchase a major item like an ox plough. It also means that members can borrow from the fund when they are in need of small amounts of money, instead of selling their crops for cash. The crops can then be retained until the price is higher, when they can easily  pay back the loan from the profit.

SILC is entirely run by the communities, although MRHP offers encouragement and assistance in SILC group formation, and training in financial and administrative skills like record keeping and fund management.