- Bugesera District, Rwanda
Murama is a village located in the Bugesera district in eastern Rwanda. The village is one of the poorest regions in Rwanda with an average annual income of under 150.00 USD. It is home to 100 households and approximately 5,000 people. Unlike most of rural Rwanda where individual homesteads are scattered across the hilly landscape, Murama has several umudugudus (settlements) of closely spaced dwellings.
The government built these settlements after the 1994 genocide in order to house genocide survivors and returnees. Only 5 km from the village, close to 20,000 people were massacred during the 100 days of killing. As the country continues its difficult but remarkable recovery from the genocide, Murama is living proof that economic development can play a significant role in the reconciliation process.
Determining the right crop. The tightly spaced dwellings of Murama, make food production and farming difficult. Pilot Light worked with members to determine collectively grown crops with market viability that could enhance unity and provide its members with an income and a stable food source for the community. It all began with a cooperative owned farm that has done so well that local leaders now use it as a demonstration farm for other farmers in the region.
Options and opportunity. Along with the farm, focus is on the Village Savings and Loans Associations (VSLA) methodology, because we believe that the VSLA are the best way for people living in poverty to achieve sustainability of income.Group members are trained in how to save together as a group, give each other loans intended to start or grow their businesses, hold each other accountable for payback with a 2% interest. That interest helps the savings pot grow larger, bigger loans become available, incomes grow and families are transformed. Currently, there are 7 VSLA groups, comprised of 180 members in total.
Support and Outcome. Once we see, through their ability to save, that a new VSLA group is committed, we provide Seed Money to boost the savings pot and make more capital available more quickly. Learning to use each loan as a stepping stone up to the next level of earning and then to the next loan and so on, families are able to eat well, send kids to school, afford healthcare, even buy land.
Enhanced Business Skills/Shared learning. Learning best business practices that can be shared to benefit the entire community.
Community Unity. Common goals and shared prosperity build secure interdependent communities.
Sustainable for the next Generation. Parents pass down their knowledge on the power of saving, taking loans and paying back to their children who then go on to participate in the savings and loans culture and and build their own sustainable businesses.
