For Mudeya Martha Madyenkuku, a Community Development Assistant in Chikankata District, Southern Province, Zambia, the path to becoming a Master Trainer in the Master Trainer Programme(MTP)Savings Model began with purpose.

 “My journey started from my job as a community development assistant under the Ministry of Community Development and Social Services where I was implementing the Girls Education and Women Empowerment Livelihood Project, funded by the World Bank. This is where I recognised the vital role of savings in creating sustainable change,” Mudeya explained.

Over the past five years, Mudeya has guided 13 savings groups in rural Zambia, helping communities strengthen their financial resilience and explore alternative income sources. Her experience offers valuable insights into how these groups function, their challenges and their transformative potential.

Building From the Ground Up: How Savings Groups Take Shape

Establishing a village savings group follows a structured approach designed for long-term sustainability. “The first step is to ensure that group members have voluntarily identified themselves and agreed to be part of the savings group,” Mudeya explains.

“From there, the community elects a committee consisting of a Chairperson, Secretary, Treasurer and two Money Counters who are trained on their specific roles. The group then develops a constitution outlining membership criteria, meeting procedures, savings contributions, loan terms and conflict resolution mechanisms” Mudeya adds.

Mudeya says financial literacy training is then conducted with members learning how to save regularly, issue loans responsibly, and maintain accurate records.

Mudeya notes that the group begins its first savings cycle and at the end of the period (usually one year), holds a share-out meeting where members receive their savings along with accrued interest adding that the process, while seemingly straightforward, requires careful facilitation and ongoing support.

“Savings groups require at least a year of mentorship to ensure sustainability. To provide grassroots support, Community-Based Trainers (CBTs) guide members locally, while facilitators visit monthly to monitor adherence to savings and loan processes,” Mudeya says

The Secret Ingredients of Successful Savings Groups

“Strong leadership ensures that group members follow the constitution and adhere to established rules, particularly regarding savings contributions and loan repayments. Leaders who resolve conflicts fairly maintain group harmony, while transparent in financial management builds essential trust,” Mudeya adds.

On the other hand, struggling groups often suffer from poor leadership and a lack of cooperation.

“When leaders fail to enforce rules or remain disengaged, members become less committed, leading to disorder and financial mismanagement,” Mudeya adds.

Mudeya emphasises the need for leaders to possess integrity, empathy, fairness and strong conflict resolution skills.

Mudeya said unfortunately, in some cases, individuals assume leadership positions due to cultural norms rather than their ability to lead effectively resulting in weak governance and mismanagement.

The Gender Dimension

Women are often the primary participants in rural communities, managing household finances while lacking access to formal banking services. These groups offer them a sense of empowerment and an opportunity to pool resources for personal and family needs.

“In some groups, women assume leadership positions, contributing to the group’s cohesion and success. However, in communities where men traditionally hold power, women may struggle to take on leadership roles, impacting decision-making and overall group functioning,” Mudeya observes.

“Women in savings groups often experience increased financial independence, leading to improved decision-making power within the household, better access to healthcare and education for their children,” notes Mudeya adding that women-led groups tend to focus on community-centered goals, such as improving family livelihood, paying school fees, or investing in small businesses.

From Savings to Success: Real Transformation Stories

The impact of these groups extends far beyond financial transactions. Mudeya shares several success stories that highlight their transformative potential:

One savings group successfully registered as a women’s club, allowing them to access a community grant from the Constituency Development Fund. With this funding, they started a poultry business rearing layer chickens.

“The commitment of their leadership and cooperation among members contributed to their success, enabling them to move beyond savings and loans to a self-sustaining business model,” Mudeya explains.

In another community, savings group members who previously depended on charcoal burning and rain-fed farming transitioned to livestock farming.

“Through their savings, they began rearing goats and pigs, which provided them with an alternative source of income. This change reduced environmental degradation and helped them diversify their earnings, improving their financial security,”Mudeya Narrates.

Mudeya that beyond economic benefits, these groups strengthen social ties and promote community solidarity adding that members often use the groups as support networks where they discuss domestic challenges, children’s education, and health concerns.

Navigating Challenges

Despite their benefits, savings groups face significant challenges. According to Mudeya, common issues include loan defaults, failure to follow constitutional rules, and inconsistent savings due to unstable income sources.

“When members default on loans, groups engage them through open dialogue, reminding them of the importance of adherence to rules. Some groups implement fine systems for late repayments, while others may restrict future loan access until debts are cleared. Regular peer pressure and group solidarity help members remain committed to contributing and repaying loans,” Mudeya notes.

Seasonal cash flow challenges related to agricultural cycles present another obstacle. To address this, groups employ strategies such as flexible loan repayment terms, creating emergency social funds and encouraging diversified income-generating activities.

“Some groups use staggered loan disbursements to ensure that funds are available during the peak agricultural season. This helps prevent all members from needing loans at the same time, easing cash flow pressure,” Mudeya adds.

Innovations and Improvements

Based on her experience, Mudeya has identified several modifications to the standard MTP Savings Model that enhance effectiveness.

“One beneficial modification has been introducing flexible loan repayment terms to accommodate different income-generating activities. Allowing grace periods and structuring repayments based on income cycles has reduced default rates,” Mudeya narrates.

Mudeya adds that technological innovations are also beginning to play a role.

“Mobile money platforms have been integrated into some savings groups in Zambia. The mobile transactions have reduced the risks associated with handling cash, making it easier for members to deposit savings and repay loans safely,” Mudeya says.

Mudeya however bemoams the limited adoption in rural areas with poor network coverage or for members unfamiliar with digital transactions.

The Path Forward

Through the dedicated work of trainers like Mudeya and the commitment of group members, these savings initiatives are building resilience and creating opportunities in areas where formal financial services remain limited. Their success is demonstrating that when people come together with a shared purpose and clear structures, they create powerful vehicles for change – one savings group at a time.

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Author: Rabecca Mwila

Rabecca Mwila is a passionate advocate for sustainable agriculture and environmental stewardship. With a background in climate change and communications, she has spent years telling the untold stories of the realities of climate change, environmental and climate injustices and how they affect vulnerable communities in Africa and beyond.