Adanech Retu is a member of Wonji Geferessa's Women Savings and Credit
Association (WCS), which was established in 1994 with the support of
Catholic Relief Services (CRS) in Ethiopia as part of its P.L. 480 Title
II development program. Wonji is a town of about 15,000 inhabitants
located about 110 kilometers away from Addis Ababa, the capital of Ethiopia.
Adanech is one of the founders of Wonji's WSCA. The women established
the association to: 1) to mothers to generate extra income to improve
the health and hygiene practices of their families and 2) promote a
culture of savings at the household level. The Association's membership
has increased from 20 founders to 366 members in 2001. The members are
divided into 73 solidarity groups, in which five women agree to be responsible
for the combined debt of their group.
The Association requires women to start off with small sums, so Adanech's
first loan was only the equivalent of US$20. She used this money to
start a petty trade with a local beverage. After successfully paying
back the loan on time, she took a second loan of higher value. Over
the course of seven loan cycles, Adanech expanded her business and even
established a small retail shop, which is now managed by her son. Her
cumulative loans total almost US$850, which she has managed without
any arrears or defaults. At the same time, Adanech and her solidarity
group members each saved about US 75 cents each month as part of the
criteria for securing loans from the association. By June 2001, Adanech's
cumulative savings had reached US$45. (Note: The average annual income
per capita is about $100 per year.)
Membership in the WSCA has had a profound effect on Adanech's life.
In addition to expanding her business, she built a new house with bricks
from the business's profit. Her demonstrated credit worthiness has also
helped her secure new loans of about US$1,175 from the traditional savings
and credit association in Wonji that functions separately from the WSCA.
However, she limits her solidarity guarantee to her current five-member
group. Her gratitude for the WCSA is great: "Without this service,"
she said, "I could not have attained all my achievements. I have
now more confidence, skills and money to manage my business on my own."
Micro-loans from Monetized P.L. 480 Title II Enable Women to Expand Business
