Habitat Zambia endeavors to transfer skills
and knowledge of the vulnerable and slum
dwellers to allow them to make informed decisions
We have mobilized slum dwellers to form 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.
#Financial Literacy for All
This program raises awareness of financial risks and opportunities and builds the capacities of communities to make informed choices for effective financial well-being and improving their own living conditions. Habitat Zambia facilitates linkages with various financial institutions. Research shows that financial literacy and formation of saving groups particularly among low-income households is the lifeline of community wealth creation.
Habitat Zambia has so far facilitated the establishment of 149 savings and loan groups with 2,982 members who have collectively given out more than US$35,000 in loans to help members secure land title, improve their homes or, in some cases, start home-based businesses to earn income.
Each savings group consist of about 25 members who save their money together and offer loans to members who do not have access to a safe and secure way of obtaining a loan. The accumulated savings, plus interest, is paid out to the members each year. The annual savings cycle then starts afresh.
These groups encourage members to secure land tenure documentation such as occupancy licenses for their homes. Members also use the microloans for income-generating activities, acquire land and improve their homes.
More 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 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.
