USAid's creating its informal banking system in Zimbabwe?

Communities in Chiredzi district are benefiting from an informal banking system facilitated by the USAid-funded Savings and Internal Lending Committees (SILC) project, operated under the Resilient Anchors Activity. This initiative requires no collateral for accessing loans, aiding beneficiaries in combating poverty amidst challenges like the El Niño-induced drought.

According to a report in the Newsday, participants can secure loans ranging from US$300 to US$900 per cycle, repaid with interest, which helps generate profits for the community. This approach has shielded participants from poverty, with many reporting significant improvements in their livelihoods. Revai Chihanga, chairperson of the SILC project in Village 1, Ward 23, highlighted how the initiative enabled her to acquire cattle, challenging traditional gender norms.

The project is inclusive, benefiting disadvantaged groups and those with disabilities, fostering community development such as constructing toilets and acquiring livestock. Muchaneta Famando noted that the initiative facilitated her children's education, previously deemed unaffordable. Esnat Machipisa praised SILC for preventing villagers from traveling to cities for loans, emphasizing its transformative impact on local development.

The Resilient Anchors Activity underscores the initiative's role in fostering resilience against climate challenges, promoting transparent and trust-building community practices in financial management and development.