Akiba and the Unspoken Need for Savings

Beyond making witty depictions of my whereabouts, I am actually interning for an incredible organization that is making significant difference in the poverty-stricken world. Microfinance has been caricatured as the anti-Christ of development work for far too long, be it because of its interest rates or required repayments. How could you possibly expect poor people to be good stewards of their money? Does the Bible not say to give out of charity to those in need?

Without a doubt, microfinance has caused much distress to the poor. In its original conception, microfinance was to replace abusive moneylenders but sadly some microfinance agencies only added a formal title to these derogatory schemes. However, I would argue that these nefarious practices are the exception to the rule. Microfinance stands out as one of the few self-sustaining non-profit agencies while impacting more than 100 million people worldwide. People should be far more concerned about traditional banking financially excluding those under the poverty line. Lets not forget that the poor are gifted individuals more than capable of handling an income. Conventional handouts create dependency, microfinance is an opportunity for the destitute to lift themselves out of poverty.

If you suspect the biblical soundness of lending money, I would also encourage you to read Leviticus 25 (as my econ prof would say). Blame-shifting in development is easy but solutions are often scarce. Microfinance responds to specific needs of the disfranchised.

Perhaps none of this is unfamiliar. One characteristic of microfinance seems often neglected though, that is the centrality of savings (or akiba in your Swahili 101 course). Lending and savings are complementary financial tools which empower the individual with an income, inculcate hard work ethics and protect households from emergencies.

HOPE requires that at every new loan cycle each client have 10 percent of their forthcoming credit previously put aside. Consequently, compulsory and voluntary saving become logical habits in the mind of the poor. I was baffled by the solidarity group Mont Monrija that saves more money than it borrows in some cases. One maman confidently told me she had saved over $1,700. She holds a loan of $500. For your enjoyment, bellow is a picture of these courageous women.

Everyone seems disconcerted, but it works! 

It remains hard to infuse a culture of savings to people who often live day by day. Nevertheless, these stellar clients and so many others portray the potential that exists in microfinance. I have heard stories about group members eventually abandoning credit altogether and making a living off of their savings. I am humbled and impressed to hear such testimonies.

Altogether, be an open-minded follower of Christ. Microfinance is far from perfect, but it has revolutionized banking through its intricate relation with savings and simultaneously elevated entire communities out of poverty.