Training of communities on informal savings and collective marketing a case of Misungwi and Kwimba Districts
Research findings have revealed a high level of poverty which is caused by a number of external and internal factors such as drought, unreliable market for cash (cotton and chickpeas) and food (maize, green gram and paddy) crops. Therefore, there is a big problem of low income which causes food insecurity and hunger. Due to the fact that 75% of Misungwi and Kwimba community is excluded from savings of any kind, the researcher sees the importance of introducing a household income savings and credit association (SILC) which is globally translated as Village Savings and Loan Associations (VSLAs), agricultural collective marketing at village and ward level which will lead into development of forward contracts with big buyers. These programs will cuter for the following: SILC methodology has a high positive impact in poor communities compared to other informal saving schemes. Use of this scheme will assist farmers’ access or increase number of meals per day. However, capacity building on business skills and savings need to be undertaken. The methodology should not be rigid in nature, it should just be a vehicle towards accomplishing other community development intervention. The researched project has started in Kwimba at a village called Kikubiji where SILC groups have been formed. The groups are increasing at an increasing rate because of spill-over in the villages. These groups will eventually reduce hunger in the areas of Kwimba and finally will reduce poverty.
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