I won’t give in: How savings cooperatives help
“I won’t give up, no I won’t give in ’til I reach the end and then I’ll start again. No I won’t leave, I want to try everything, I want to try even though I could fail.” “Try Everything” by Shakira
“I won’t give up, no I won’t give in,” proclaims Shakira in my current favorite you-can-do-it song, “Try Everything.” When we fall down, it usually helps when someone is there to pull us up again. In Malawi, COMSIP cooperatives are strong community organizations whose members pull each other up to the next level and to a better, more stable future.
COMSIP stands for Community Savings and Investment Promotion. It is a national project in Malawi that is more than a bank. From what I witnessed at a gathering of the Manyamula COMSIP cooperative, they were like a support group as well as a catalyst for economic growth – giving each other advice and encouragement in their endeavors.
“Our members of the Cooperative are entrepreneurs,” said Canaan Gondwe, leader of the Manyamula COMSIP, and a member of the national COMSIP Union Board. “The mobilized Savings form the capital base from which members borrow and engage in various forms of businesses, such as poultry, retail shops, irrigation farming, baking, pre-school and carpentry among others.”
After 3-4 months of saving money from her business, Beauty was able to use the savings as collateral for a larger, low-interest loan from the cooperative. Cooperative members can apply for loans in proportion to their savings shares. Beauty used the loan to buy high-quality feed and medication for her chickens. She knows that the medications are crucial for protecting her investment in the chickens.
Beauty with her daughter.
For Grace Banda, a widow, the COMSIP cooperative was just the kind of encouragement she needed to try again. Before joining COMSIP she had taken a loan from one of the traditional micro-finance lenders in Mzimba, the nearest city and 44km away. When an unexpected event caused her to business to flounder, she was unable to pay back the high-interest debt and had to forfeit her collateral.
Grace in her shop in the Manyamula market.
COMSIP loans are not only low-interest, they also have repayment schedules that are adaptable to the business cycle – with longer terms for farming and cattle rearing. The local COMSIP leaders can work with the members to give them the highest chance of success. Grace’s Kikumala Shop is still going strong, and is a good source of fresh produce in Manyamula.
These are profound ways that COMSIP helps people start again. And the result is that lives are changed. Ninety-five percent of the 150+ cooperative members have improved their housing since joining. Many more can pay medical bills when illnesses arise. Grace Banda can now pay for school for her three children. “Life is continuing to become simple,” she told me with joy and relief in her voice.
This sentiment is echoed in a wonderful article from the World Bank about the successes of COMSIP groups. Gilaselia Denesi, who became responsible for her four grandchildren when her daughter and son-in-law died, shares how joining a COMSIP cooperative in central Malawi has led to positive change in her life. ““Look at me now!” she says. “God be praised, today my grandchildren, are in school, they are not hungry and even I have some time to have tea in my home. Can you imagine that? I am wearing a new dress today and I have some time for tea!””
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After Finly joined the COMSIP cooperative and began saving, he used a small loan to buy improved Red Creole onion seeds for his farm.