SHG approach is based on voluntary involvement of women who form homogenous groups; agree on their own by-laws and receive number of practical trainings. Women meet in SHGs usually on weekly basis with the aim to discuss, to share and to save small amount of money. Money is saved in joint account and any women can take a loan from group in order to establish or expand her business. Essential part of the group´s saving is money allocated for social protection fund, i.e. used in case child is sick, school payments, weddings or funerals etc. Women as members of SHGs are becoming empowered and share decision making responsibilities with their husbands.
Self-Help Groups in Ethiopia
Situation of women in Ethiopia
In Ethiopia, about one third of the population (about 30 million people) still lives below poverty line. Women are constrained by socio-culturally imposed limitations, which deny them the right to have access and control over productive resources, such as land and other fixed capital. Added to that is unequal access to services that can promote their productive- and income-generating capacities, unequal access to social services, lower literacy level, lack of decision-making power and their invisibility which excludes them from the social, economic and political processes that affect their lives.
Self-Help Groups Approach in Addis Ababa
To address poverty, with special focus on the empowerment of women, PIN has introduced Urban Social Protection Project (USPE, implemented in 2012 - 2014) in Addis Ababa. The USPE used the self-help group approach and enhanced it through integrating social protection mechanisms, business competitions boosting target communities’ (poor and vulnerable women) economic activity and community-based skill trainings. The project simultaneously integrated focus on personal and family development, community development and policy influence.
The approach is easily adaptable as the community itself participates on the beneficiaries’ selection, SHGs establishment and bylaws development, key decision making and also during the phase out. The project refines existing cultural habits by the use of participatory rapid appraisal techniques, providing straightforward guidelines in order to create a sustainable, culturally-sensitive group structure.
USPE results in numbers
- Creation of strong community-led structures: 461 self-help groups, 48 cluster level associations and 1 federation level association (for a total of 8146 members)
- Improved saving culture: 3,113,478 ETB saved in total (382 ETB per member), total other fund 537,897.75 ETB, total own capital 3,651,375.75 ETB
- Social security system (for households to be able to cope with unexpected needs) developed: 742,230 ETB separately saved for social security
- Effective and responsible financial behavior: total loans of 4,366,840.50 ETB taken; more than 50 % for development of income-generating activities, 35 % for household consumption for improving living conditions
- Income generating activities developed: 520 newly started businesses, 2742 expanded businesses
- Observed social impacts: enhanced self-expression and communication skills, addressing issues including gender based violence, increased negotiation and decision making power. This is evidenced by the FLA taking the initiative to meet with the government and lobby for legalization and various events including one organized at Addis Ababa Stadium without project involvement, CLAs work with local governmental bodies on community development – environmental sanitation, decreasing street violence etc.
PIN welcomes cooperation with like-minded implementing agencies, universities and donors – in the case of your interest, contact us at shg@peopleinneed.cz
Donors and partners: European Commission, Czech Development Cooperation, MCDP, SWAAE, Pro-Pride, Consortium of Self Help Group Approach Promoters (COSAP).
PIN and Self-Help Groups Approach