Community-based financial institutions are key to realising financial freedom for local communities, according to a Financial Literacy and Consumer Protection Household Survey.
In view of this, Comsip Cooperative Union Limited has embarked on a three-year project to address capacity gaps of community based financial organisations (CBFOs).
The Deepening of Financial Inclusion through Community Based Financial Organisations (DFI-CBFO) project seeks to build the capacity of CBFOs in savings and income generating activities to reduce poverty and improve people’s livelihoods.
In an interview, DFI-CBFO project manager Ernest Jumbe said the project after its completion will strengthen CBFOs with the capacity to design their own products and services to respond to their members’ constraints and needs.
He said: “The DFI-CBFO is a three-year project aimed at empowering community-based organisations to be self-resilient, considering that a lot of them are facing challenges such as limited ability to pool large savings as a result of the low economic activities by members.”
On her part, an official from Talandila CBFO in Mulanje, Ethel Goodwell, said they have started reaping the benefits of belonging to CBFO.
She said financial constraints have lessened in her household since she joined the group.
Through the project, 3 000 new CBFOs will be established.