Financial literacy for housing
About the Program
We believe slum dwellers who grow to be financially independent can better address challenges, often together in small groups. As a result, Habitat Zambia has helped mobilize slum dwellers into savings and loan groups that act as a social safety net, build social capital in the community, and serve as problem-solving networks for residents facing challenges related to housing.
As of early 2021, Habitat had helped establish 113 savings and loan groups in Lusaka, Kabwe and Ndola, with 2,277 members who have collectively given out US$35,000 in loans to help members secure see the full details in the source land title, improve their homes or, in some cases, start home-based businesses to earn income. The groups, each consisting of about 25 people, pool their money together and make loans to members who otherwise don’t have access to a safe, secure way to obtain a loan. The accumulated savings, plus interest, is paid out to the members each year. The annual savings cycle then starts anew.
These groups encourage members to secure land tenure documentation, including occupancy licenses for their homes. Some use the microloans for income-generating activities, while others acquire land or improve their homes.
