Savings and Credit Groups for Small Businesses in Mali
A Development Cooperation Pilot Project
The Road to Self-Employment
Proactive young women and men in Mali are given the opportunity to build up their own income-generating businesses, so that they become able to make a living and provide for their families. Craftsmen and farmers who have completed their vocational training thereby take top priority..
The project is closely tied to the activities of Swisscontact that are conducted in the service of the Swiss Agency for Development and Cooperation (SDC). These activities include the promotion of professional education and of the local economic development in Mali..
WASA Savings and Credit GroupsThe WASA savings and credit groups are based on a Kenyan model that was developed and successfully put into practice by Swisscontact in 2006. The project enables people and groups of people who usually only have limited access to financial services to finance their own business plans.
10 to 30 people typically unite to form a small WASA group (Wasa means "Saving leads to Gratification“ in the local language Bambara). Each member saves a predetermined small monthly amount. The group regularly meets for inpayments and outpayments, so that a pool of collective savings accumulates, from which the group awards loans with fixed interest rates and repayment terms. .
Strengths of the ProjectThanks to the savings and micro credit system WASA, thousands of people are given access to savings options and loans: Since the project launch, 227 WASA groups involving 5,231 members (4,096 resp. 78% of which are women) have been founded. As a result, group members have been able to:
- establish their own income-generating business activities;
- create permanent employment for themselves and their relatives;
- afford school fees, health care, and clothing.
Strengths of the WASA System
- Transparency of fund management: Decisions are made unanimously and members are informed about the destination of each credit that is granted;
- New business activities: 95% of funds are invested in business opportunities that initiate new activities;
- Collective activities: Groups may invest their funds in collective activities, such as the purchase of agricultural supplies (seeds, fertilizer, etc.) or investments in cereal stocks;
- Formation of new groups: Group leaders instruct other groups.
WASA BrochureIn 2013, the Hirschmann Foundation cooperated in compiling a WASA brochure about the project. The brochure describes the mode of operation of WASA groups, as well as their advantages, limits and perspectives. The aim of the brochure is to give alphabetized group instructors something at hand that allows them to form and accompany new groups in the future – independently from Swisscontact. The brochure was published in French and in the local language Bambara. .
PartnersSwisscontact accompanies the buildup of savings and credit groups. The Hirschmann Foundation contributes an annual fund of 100,000 CHF during eight years (2010 - 2017).
2008 - 2020 in cooperation with Swissuniversities Chamber of universities of applied sciences
2018 - 2021 in cooperation with EMPA/EAWAG, Pädagogische Hochschule Luzern, Suissetec
2008 - 2020 in cooperation with Verein Integration in Aktion
2012 - 2020 in cooperation with Swiss Youth Music Contest Foundation, Zurich
2018 - 2020 in cooperation with Ana Aqra Association, Luminos Fonds und UBS Optimus Foundation
2018 in cooperation with Zentrumbildung Wirtschaftsschule KV Baden
2013 - 2020 in cooperation with Verein Lernwerk
2017 - 2019 in cooperation with LU Couture Luzern
2018 - 2020 in cooperation with Swisscontact
2017 - 2019 in cooperation with Swiss Centre of Expertise in Human Rights (SCHR), Univesity Bern
2014 - 2021 in cooperation with KOF Swiss Economic Institute, ETH Zürich
2014 - 2020 in cooperation with Gehirn- und Trauma-Foundation Chur and University Hospital Zürich
2016 - 2018 in cooperation with the association foraus
2016 - 2018 in cooperation with Paul Scherrer Institute PSI and novatlantis
2016 - 2018 in cooperation with Henry Doubleday Research Association Garden Organic
of the Hirschmann Foundation