Making use of saving groups to raise capital


ZAMBIANS should take advantage of savings groups as a way of raising capital for a business or any project.
A savings group is a member-owned institution composed of a small number of people that is comprised of 15-30 self-selected individuals who save together and take small loans from those savings. Savings groups provide members the opportunity to save frequently in small amounts, and access to credit on flexible terms. These same groups are owned, managed and operated by their members.
Saving money as a group is important as it helps lower income earners accumulate a larger amount of money more quickly by pooling their savings in a common fund which can then be used by the group or a member of the group for productive investment. Such savings set-ups can start off as an informal group and then maybe move towards a semi-formal set-up.

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