MICROCAPITAL BRIEF: Saving for Change Reaches 85k Members in Cambodia, 680k Worldwide

Saving for Change (SfC), a saving-group initiative that was established in 2005 by nonprofit organizations Oxfam America, Freedom from Hunger and the Stromme Foundation, has grown to serve approximately 85,000 women in Cambodia as of March 2014 since its launch in that country in 2011. SfC was established with the aim of providing group members with saving services as well access to small loans. Since its founding, the initiative has grown to approximately 680,000 members in 13 countries worldwide. In Cambodia, the savings groups generally are made up of 15 to 25 members, with savings of USD 21 and a loan size of USD 51 per member. The loans can be used for health costs, household consumption, agricultural buying inputs businesses and unforeseen shocks. In Cambodia, Oxfam has trained 14 local non-governmental organizations (NGOs) to start new saving groups in the country. The NGOs teach basic business skills intended to prepare members to graduate from SfC loans to formal loan products offered by microfinance institutions.

As of March 2013, UK-based Oxfam International reports GBP 566 million (USD 778 million) in assets. US-based Freedom from Hunger reported total assets of USD 5.30 million as of June 30, 2013. As of December 31, 2012, Norway-based Stromme Foundation reported total assets of NOK 156 million (USD 26.1 million).

By Chikondano Faith Chisala, Research Associate

About Oxfam International: Oxfam International was established in 1995 as a confederation of 15 organizations working to reduce poverty. Oxfam’s name is derived from its founding member, the Oxford Committee for Famine Relief, which began operating in Britain in 1942 by advocating for food supplies to be sent to women and children in Greece during the Second World War. Oxfam International since has grown into a network of member organizations serving 99 countries with disaster relief, advocacy and policy research with the aim of providing long-term solutions for poverty eradication. As of March 2013, Oxfam International reports GBP 566 million (USD 778 million) in assets.

About Freedom from Hunger: Freedom from Hunger is based in the US city of Davis, California. Formerly called “Meals for Millions,” it is an NGO that operates in 23 countries with the aim of alleviating hunger and poverty. As of June 30, 2013, Freedom from Hunger delivered microfinance, education and health service and products to approximately 5.7 million beneficiaries through 181 partners. Freedom from Hunger reported total assets of USD 5.30 million as of June 30, 2013.

About Stromme Foundation: Norway’s  Stromme Foundation was established in 1976 with the aim of alleviating poverty through microfinance and education in developing countries. Stromme Foundation has projects in 12 countries of South America and Southeast Asia. As of December 31, 2012, Stromme Foundation reported total assets of NOK 156 million (USD 26.1 million).

Sources and Additional Resources

[1] Phnompenh Post, “Saving for Change: How small sums drive big advances,” http://www.phnompenhpost.com/national/saving-change-how-small-sums-drive-big-advances

[2] Oxfam America, “Saving for Change, Low Cost, Mass-Scale, Self-Replicating and Profitable Microfinance for the Rural Poor,” http://www.microfinancegateway.org/gm/document-1.9.34515/Saving%20for%20Change-A%20Low%20Cost,%20Mass-Scale,%20Self-Replicating%20and%20Profitable%20Microfinance%20for%20the%20Rural%20Poor.pdf

[3] Oxfam America, Reports, “Saving for Change: Financial Inclusion and Resilience for the World’s Poorest People,” http://www.oxfamamerica.org/explore/research-publications/saving-for-change-financial-inclusion-and-resilience-for-the-worlds-poorest-people/

MicroCapital, February 10, 2014, “Triodos Revealed as Source of Shares of Cambodia’s Acleda Bank Purchased by Orix,” https://www.microcapital.org/microcapital-brief-triodos-revealed-as-source-of-shares-of-cambodias-acleda-bank-purchased-by-orix/

MicroCapital, June 14, 2013, “Final Impact Evaluation of the ‘Saving for Change’ Program in Mali, 2009-2012;” by the Bureau of Applied Research in Anthropology at the University of Arizona and Innovations for Poverty Action; published by Oxfam America and Freedom from Hunger,” https://www.microcapital.org/microfinance-paper-wrap-up-final-impact-evaluation-of-the-saving-for-change-program-in-mali-2009-2012-by-the-bureau-of-applied-research-in-anthropology-at-the-un/

MicroCapital, April 7, 2013, “NGOs, Government Unite in Effort to Increase Savings Group Membership to 50m Worldwide by 2020,” https://www.microcapital.org/microcapital-brief-ngos-government-unite-in-effort-to-increase-savings-group-membership-to-50m-worldwide-by-2020/

MicroCapital, February 23, 2013, “The Debate on Outreach & Impact: What Do We Know and How Do We Know It,” https://www.microcapital.org/microfinance-paper-wrap-up-the-debate-on-outreach-impact-what-do-we-know-and-how-do-we-know-it-by-david-s-gibbons-published-by-global-microcredit-summit/

MicroCapital Universe Profile: Oxfam International, https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=Oxfam+International

MicroCapital Universe Profile: Freedom from Hunger, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=freedom+from+hunger

MicroCapital Universe Profile: Stromme Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Stromme+Foundation

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Chikondano Faith joined MicroCapital after holding various rolse at a commercial bank, where she improved and diversified her skill set by exploring many banking functions including: trading, treasury management, credit analysis and business development. She developed an interest challenges faced by entrepreneurs in emerging economies after taking up a small business development and entrepreneurship course during her undergraduate studies at the University of Pretoria in Pretoria, South Africa. She holds also Masters degree in Strategic Management from the University of Derby, her independent study topic focused on strategies to support Small and Medium Enterprises (SMEs) in Malawi. In working with MicroCapital, she hopes to expand her knowledge of microfinance and to use this internship as a foundation to pursue a career in micro and developmental finance. Chikondano Faith enjoys travel, drawing, jazz music, and improving her French during her spare time.