The design of a micro-finance programme in San communities in Western Botswana

Abstract

The objective of this thesis is to examine the need for people and communities to develop liquid assets through a savings programme and to work productively with these savings. It had to be taken into consideration that at least some members of the population could be considered non-monetary in their orientation. In order to achieve this objective a participatory and culturally sensitive micro-finance programme was designed through an Action Research methodology. By combining mainly quantitative baseline information, detailed and more qualitative work with some of the participants and routine output from the programme activities, the study aimed to arrive at concrete conclusions concerning the way a micro-finance programme has worked in San conununities and make recommendations regarding its future. lt was found that the programme has made at least some of the participants more conversant with the handling of cash and also contributed to increased self-respect. Developing liquid assets was most difficult for the poorest participants and the majority of these poorest are women. The San people are the poorest; even among other marginal rural minorities and should receive special assistance. The programme was moderately successful in helping participants to save towards larger needs and to even out income flows. It could not be established whether the programme could make a contribution to the development of long~term assets. Initiatives to establish microenterprises with the capital met with only limited success. The programme was not successful in establishing a savings programme as an alternative to cattle farming and should rather be seen as a complementary strategy for increasing household assets. It was found that the emphasis on savings mobilisation, rather than the creation of debt through credit was valid. Increased incomes will lead to increased indebtedness. A higher influx of cash in a San community is likely to be unevenly spread and is also likely to increase the gap between the wealthier and poorer community members. It was concluded that projects that meet basic and immediate needs such as food, shelter and housing, should be integrated with programmes that address larger needs such as loss of culture and land. A process of empowerment cannot be supported when rural poverty is not addressed.