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Jun 27
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Everything Fell into Place: Generations of Saving and Community Participation in Ruo Emoh

By CORC, FEDUP, ISN, News, Savings No Comments

The following narrative is part of a broader and in-depth documentation of the Ruo Emoh project. This documentation includes a video and booklet and is the result of collaborative efforts between the SA SDI Alliance, People’s Environmental Planning, UCT & University of Basel Master students (part of the City Research Studios hosted by African Centre for Cities), and the community of Ruo Emoh. A more detailed description of the Ruo Emoh project can be found here.

Interviewee: Ismaaeel & Mymoena Jacobs
Interviewers and Text: Kaylin Harrison, Lea Nienhoff, Israel Ogundare

The Jacobs (Kaylin, Lea, Israel)

Recently married Mymoena and Ismaaeel Jacobs are expecting their first child -a baby girl- together this year. Having a home in Ruo Emoh came at the most significant time for the Jacobs Family. For Mymoena, it is simply a case of “everything fell in place”. For Ismaaeel, as the first son to get married, he felt he needed this space.  A place of his own and it happened despite all the uncertainty and ups-and-downs of the Ruo Emoh project. The place became available to the growing Jacobs family tree.

“Never mind how small the place is, we got our own space, it’s a home, we can make a home out of this, so, that for me is more important than living in a mansion, or like not appreciating what we have here.” – Ismaaeel

The Jacobs know the burden and expense of renting on someone else’s property since they previously rented in Rylands. They also know what it means to share a house with many family members. In Ruo Emoh, they have a space of their own and Mymoena says, “It’s a nice stepping stone for any new couple.” 
Mymoena was born in Johannesburg and lived there for most of her life. Ismaaeel is from Cape Town and grew up in Lentegeur, where his family still resides. The place is what the Jacobs have constructed and made home for themselves. With Ismaaeel’s expertise lying 
in renovation, tiling and general construction, he took the structure and renovated it into a beautiful home. The beneficiary
 of the house in Ruo Emoh is Ismaaeel’s mother, Jasmine Jacobs. This home plays a significant role in not only the Jacobs currently residing there, but also for any other Jacobs family members. The house may be a home to future generations to come. This is the story of the struggle and the steps taken to finally get the house, in the words of Ismaaeel Jacobs.

It Was Almost Like a Movie

“It is 20 years ago, when the project started, and my mother was there right from the beginning. She was on the board for housing. I was a little boy, when all of this started. Every rand they had put together made a difference at the time. They were raising money with little food fairs. My mother was preparing cakes and boerewors rolls to sell. Later, I became the running guy for her; whenever they were meeting and other things, I would go. Sometimes, I was working, but then you hear at 3 o’clock is a meeting and you have to be there, we had no choice, we just had to move. When I came 
back home from the meetings I told my mother what was happening, what the next steps are, and I also picked up who is trying to run the show. We had so many challenges and everyone of us had their ticks. But nothing major. I remember when I went to the first meeting for my mother. Some of the other members were from around the area and I had known them by face, but not on a personal level. But after going to the meetings more and more, I was befriending people. Obviously, we were going to live together soon. At the time we were hoping to be neighbours soon, but eventually it just went on for a little while. In the recent years there were no fundraisers or these things any more, but when we met we were discussing how things progressed and how we could secure our property, since it was already our land. The challenge was to handle with the delays. Sometimes we needed to put in large sums of money and the committee would promise certain things on certain days, but it just wouldn’t be possible. The issues would linger for a few days, but the committee would sort them out in the end. I respect them a lot for that.”

We Stood Security Ourselves

“We had to put up a fence around the land. But it didn’t take long until parts of the fence were stolen. We had to take it off again. I played a part in that as well. We came in on a Saturday and we just took it off. At some point it was just the two of us, myself and Archie. Then the infrastructure came in and we knew we have to start to stand security ourselves. We came after work, on the weekends, 
to stand security at our grounds – day and night. I think this was when people got a more positive mind-set towards the project again. In the beginning this was an issue, but over time we had the feeling of ‘this is our ground’, we claimed it. If we want to stand security we will stand security because we own this now. Once people heard, once they got the go-ahead that things are happening now, things are going to happen, people had enough of the empty promises. Once things started… I can tell you people were really positive towards everything.”

The hope and aspiration that comes with owning a house, especially after
 a long period of waiting is unmatched. This house has a great significance for Ismaaeel’s whole family. Ismaaeel expresses how he and his brother looked forward to having the house. To both of them it was an aspiration and now it has become a reality, and at the same time a financial security.

Looking towards the future, Ismaaeel hopes to build up the security for the community and can imagine a complex typology. Mymoena has a plan in mind that when the baby arrives and things have settled, she will try to petition for better measures to reduce speed on the roads, for example getting a speed boundary.

When asked about lessons learned in the process the Jacobs responded, “I think to stand more together as a community. Don’t, because you are disappointed by one person, not help the community. That whatever challenges you get, let’s face it together. Don’t leave it to one.”

Sep 28
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When you get a front door, remember to leave it open

By FEDUP, ISN, News, SDI No Comments

This blog  was first published by openDemocracy, on the 26 September 2017. 

By SOPHIE KING 

A Manchester-South Africa exchange reveals striking similarities in the dynamics of urban inequality.

Members of Mums Mart, Lower Broughton Life and the South African Alliance in South Africa, July 2017. Copyright: Sophie King. All rights reserved

“It’s all about trust” said Marie Hampshire, two days into a week-long community exchange with members of the South African Alliance in July 2017, a grassroots movement of women-led savings schemes affiliated to Slum/Shack Dwellers International or SDI. Marie is a member of Mums Mart, a women’s group from Benchill in the British city of Manchester that brings low-income families together around food, monthly markets and, most recently, a new kind of savings scheme.

Each member saves small amounts with the support of their local group, and in the process of coming together the group learns about their needs and challenges and tries to respond collectively. Mums Mart was introduced to savings-based organising after meeting members of the Alliance in Manchester a year earlier. Now, other groups in the city are starting to explore how women’s savings federations could rebuild trust and solidarity in their neighbourhoods.

Joanne Inglis is the Chair of a new association called Lower Broughton Life, one of these groups that is based in another part of Greater Manchester called Salford. After accompanying members of the South African Federation of the Urban and Rural Poor (FEDUP) on door-to-door visits and listening to plans for a new housing development in Cape Town by the Informal Settlement Network(another partner in the Alliance), she urged her hosts: “when you get a front door remember to leave it open.”

Joanne was reflecting on how segregated life has become on estates like hers, where people look after their own affairs and many of the old spaces for communal life have closed down. She was struck that—while the signs of poverty and inequality in South Africa are only too visible in the townships and settlements she visited—poverty in the UK is often hidden from view: “our houses can look the same on the outside,” she said, “but it’s what’s on the inside that’s different.”

However, in other ways there are striking similarities between the dynamics of inequality and deprivation in both countries’ cities.  All are dealing with sharply rising property prices which push those on lower incomes further away from the city centre, and the concentration of deprivation in particular neighbourhoods which can manifest in gang-related crime and the absence of opportunities for young people. Unequal access to decisions on how public services are delivered perpetuates the disadvantages that low-income people have to deal with on a day to day basis.

 

Just as importantly, the different groups were also bound together by their experiences of strength and struggle as women and mothers regardless of where they live. During their visit to the UK, the South Africans were shocked to discover homeless people living in tents in the centre of one of the richest cities in the world, which gave rise to questions about the wisdom of looking to the global North for pathways to collective well-being.

For their part, members of Mums Mart and Lower Broughton Life reflected repeatedly on people’s pride and self-organisation despite living in highly challenging circumstances in South Africa. Both gained a fresh perspective on the possibilities of organising collectively in response to poverty.

As a member of FEDUP attested (echoing Marie), “the only thing that makes a person active is when you have trust and belief.” The members of the groups also gained confidence in one another as joint travellers on a journey of discovery—watching each other learn, adapt and embrace the experience (including some fantastic ululations!). People saw that some of the South African ideas might just work in Greater Manchester, and that they might be the ones to make this happen.

The trust they gained in South Africa by staying in people’s homes, accompanying them in their work and being part of their lives (even for a short time) meant that they were comfortable enough to share their doubts and fears—and to be open to the doubts and fears of their hosts in return. As Rose Molokoane from SDI shared:

“We are still doubting ourselves saying how can we keep driving this forward…it’s too big for us…especially because we are informal but the outside world wants to see us being formal. Most of our members are not educated; you have to create enough time and enough space to educate people about what you are.”

Rose also explained the significance for the older black South African activists of sharing their homes and their organising tools with white British women after living through apartheid, and as women continuing to struggle for justice in a highly segregated society.

The exchanges seem to have come at a critical time for the British participants. Combined with rising living costs, public service cuts and welfare sanctions, low-paid work, under-employment and unemployment are fostering severe precarity in post-industrial inner-city neighbourhoods. Thirty per cent of British children (and one quarter of children in Salford) are now classified as living below the poverty line, with two thirds living in families with working parents.

Manchester looks set to become the next beacon of social cleansing after London, with luxury high rise flats and the privatisation of the city centre making it increasingly difficult for individuals and families on low-incomes to find affordable accommodation. People in low-income areas around the edges of the central business district live in constant fear of relocation as they watch rents skyrocket in the plush developments that now surround their estates.

In many of the city’s low-income neighbourhoods, social and economic changes and cuts in public sector funding mean that people don’t come together in the ways they used to through faith-, place- or work-based forms of voluntary association. Libraries, pubs and community centres have closed down, making it almost impossible in some areas for groups to find somewhere to congregate together regularly. Rising living costs and cuts in benefits are pushing people towards pay-day loans and credit-based living, leaving them drowning under the burden of debts they struggle to repay.

The surge in support for the British Labour party under Jeremy Corbyn’s leadership (which is particularly visible in urban centres) suggests that increasing numbers of city-dwellers believe it is indeed, ‘time for a change.’ But how will low-income communities organize themselves and enter into movements ‘for the many and not the few’ in the years to come? That’s where networks like SDI can play an important role by inspiring new forms of mobilisation, and by linking local action into international networks for learning, advocacy and mutual support.

The savings groups they nurture are encouraged to federate, enabling them to have more influence over city and national governments in ways that are grounded in real experience. Members survey, map and profile their neighbourhoods, turning invisible challenges into concrete evidence and locally-proposed solutions. The South African Alliance, for example, has successfully advocated for a more progressive housing policy that has led to over 15,000 permanent new, affordable homes being constructed.

The SDI network used to have members in 37 countries. Thanks to a group of mums from Manchester, it may soon be 38.

Jul 13
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The importance of saving: the pillow maker in Samora, Cape Town

By FEDUP, Savings No Comments

Compiled by Carmen Cancellari (on behalf of CORC)

Through the Federation Income Generation Programme, FEDUP savers have an opportunity to establish small businesses to generate income through accessing and repaying loans. 

The financial aspect is crucial, but how can the Federation contribute to building solidarity and sharing among FEDUP business women? The experience of Patience, a resident in the informal settlement of Samora in Philippi, Cape Town, gives us some insights about the impact of FEDUP in the life of women.

My name is Patience and I live here in Samora, Philippi.  For a living I have my own business, I make pillows. Now it’s been 7 years that I have been doing this. The first time I heard about the Federation it was in 2013, and that is also when I got my first loan.

What changed after receiving the FIGP (Federation Income Generation Program) loans was mainly in relation to the stock for my business. In fact, I was able to increase stock for my business and this also resulted in the increase of my profit. This helped me at home because I was responsible for my child’s education fees, who was studying at University of Western Cape, and since I could pay for her studies, she was able to continue and she graduated last year. So this is what was important, because my intentions and priorities have always been helping her to finish school.

Even at home I was able to fix some of the things. For example I managed to extend our house, I added two rooms and I saved some of the money… if it wasn’t for the loan I can say it was almost impossible to do all of this because I did not make enough profit from my business.

My business grew already a lot but I don’t want to stop here. At the moment, I am busy saving so that I can be able to buy a container. In fact now I cannot employ someone to help me because there is no space for both of us to work. Instead, I want someone who is going to help me because making pillows is very difficult and my business really needs me to hire someone. As a result of the stock which has increased in fact, my job has also increased and this is why I need someone to help me.

With my savings I think I will be able to buy the container next year January. And I do not want to rush it and end up having debts that I will not be able to pay back…I just want to save and know that I will be able to buy it.

Savings in fact is the heart of the Federation. My business improved a lot because through the Federation I learnt a lot about saving. Nolwando, one of the Federation coordinator, always teaches us about saving on top of the loans, and this way I have learnt how to save. There were times where I did not save at all and I was using my money on useless things.

I remember when I was working in Tsusa, there was a lady working with us who used to buy meat on a regular basis. She would make three orders a week! So one day I told her, as a person who was taught how to save, that she could save the R60 that she was spending on buying meat by, for example, eating cabbage and meals that she had prepared at home!

So the federation has helped me because now I am able to save and I can also help other people. And even today that lady has not forgotten me because I really helped her.

Patience (left) with FEDUP loans facilitator, Nolwando (centre)

 

May 05
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Seeing from the South: an international exchange with South African shelter activists

By CORC, FEDUP, ISN, Learning Exchanges, SDI No Comments

By Dan Silver, Diana Mitlin and Sophie King (crossposted from the Global Development Institute at the University of Manchester)

“We are poor, but we are not hopeless. We know what we are doing”.

This is Alinah Mofokeng, one of three activists from the South African alliance of community organizations and support NGOs affiliated to Shack / Slum Dwellers International (SDI) who came to visit Manchester last month. The three came to explain their approaches and to exchange knowledge with local organisations through a combination of visits around Manchester and Salford, and a half-day workshop drawing together activists from around the country.

While South Africa and the UK might initially appear to be worlds apart, previous discussions between low-income communities in the global North and South had identified commonalities in their disadvantage. Potentially there are approaches that can be drawn upon and adapted in order to resist marginalisation and improve local communities, which can work across different places and contexts. This was the basis for Sophie King (UPRISE Research Fellow) and Professor Diana Mitlin (Global Development Institute, University of Manchester) inviting the South African Alliance to meet with UK community groups in March, drawing on a long history of community exchanges. This coincided with the Alliance participating in the Global Development Institute’s teaching programme with community leaders lecturing on their experiences and methods.

Alinah Mofokeng (Federation of the Urban and Rural Poor), Nkokheli Ncambele (Informal Settlements Network) and Charlton Ziervogel (CORC) all talked about their experiences of being part of the South African Alliance of SDI. This alliance has pioneered people-centered development initiatives by and of people in poverty since 1991. Their foundations are established in the grassroots, working on issues that emerge from the daily experiences of poverty, landlessness, and homelessness to bring immediate improvements and long-term inclusive citizenship within cities.

SDI’s approach to organizing is grounded in women’s led savings schemes, in which each member saves small amounts and does so with the support of their own collective savings group, so they are able to improve their own lives, and that of the wider community also. Solidarity is central to their approach and savings schemes are encouraged to federate to have stronger influence on city and state government. In the process of coming together they learn about their respective needs and challenges and respond collectively. If one member’s family does not have enough to eat, the group may decide that week’s savings will be spent on putting bread on their table. Once one savings scheme is formed, they share their learning with other marginalised people around them and support others to form schemes of their own that can join the network.

This extends beyond initial collectives to direct community-to-community learning exchange at city, national, and international levels. From here, they are able to show that they are together and are capable, which means they can influence the government from a more powerful basis – as Nkokheli said, they have been able to say to the politicians: “you are eating our money and not doing what we want. We say, enough is enough!” Nkokheli said that once the community shows that they are capable, for example through building their own toilets in the informal settlements and developing savings, politicians are more likely to listen.

The exchange of different ways of doing things between the South African Alliance and UK organisations certainly had an impact – showing us that the exchange of ideas about solidarity, a self-reliant ethos, and having a long-term vision for more inclusive cities is powerful enough to make sense across continents. One of the participants in the meeting was Ann from a group called Five Mummies Make, which is a self-help group in Scotland who have come together to sell handmade crafts, put on events and contribute to local charities; through meeting every week, the women have improved their own well-being in the process.

After the workshop, Ann was inspired to make a bigger difference than they were already achieving, saying that:

“If we bring together a bigger group, a federation, we can make such a bigger difference within the community, so not just small differences for individuals…I want to go back now and make the changes in the community, without having to go cap in hand asking for help constantly, but saying – this is what we want…”

Alinah, Nkokheli, and Charlton visited the United Estates of Wythenshawe for an extended lunch to meet people involved in Mums’ Mart. Mums’ Mart was started by a group of parents who came together after speaking to each other in the playground at their children’s school in Wythenshawe. Through chatting, they realised that they shared experiences of feeling isolated, and that their kids weren’t getting to take part in everyday activities. To address these problems the mums now meet every other week to have a meal while their children play, and they organise ‘market days’ to bring people from the estate together and raise money to take their families away somewhere fun for a day or a week.

After the exchange, members of Mum’s Mart have begun to emulate the SDI savings model and are holding weekly savings meetings, alongside their income-generating activities and monthly committee meetings to review progress; they also have ambitions about how over the long-term they can bring practical social change beyond their immediate group.  Sharon Davies, the group’s treasurer, told us that since the visit Mums’ Mart have set up their own savings scheme and it is going well, and that they “have loads of really good ideas as to where we are going to go with Mums’ Mart from now on”.

This was certainly not just a one-way street of learning from the SDI approach. Nkokheli, who was initially surprised that poverty existed in the UK after visiting a homeless group in Manchester, told us that: “The exchanges are very important to us, because it mobilises the community…and also [helps] to train communities to do things, [to see] what other people are doing for themselves. Here in Manchester, I learnt a lot…The systems are not the same, but the look of things are the same – there are things we can learn from Manchester, and there are things Manchester can learn from us”.

Through this exchange then, there have been concrete changes that have already taken place. It also shows the value of bringing together groups who might be marginalised from politics and from economic opportunities, to share ideas, tactics and strategies. There is most certainly scope in the UK to build on the approach that SDI take: developing a more self-reliant social action approach; coming together, initially in close supportive relationships between neighbours, but with a view to wider solidarity across groups and between areas; and showing the government through practical activities the capabilities of people living in low-income areas and the direction that poverty reduction strategies should take.

As Alinah said, “we are not hopeless. We know what we are doing”.

[vimeo]https://vimeo.com/164289875[/vimeo]
Apr 22
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Reflections on H3 Pretoria: Can we Implement Progressive Outcomes?

By CORC, ISN, SDI No Comments

by Ava Rose Hoffman, Yolande Hendler and Skye Dobson (on behalf of CORC)

From 7-8 April 2016, the SA SDI Alliance together with Shack/Slum Dwellers International (SDI) participated in the United Nations Habitat III Thematic Conference on Informal Settlements in Pretoria, advocating for the inclusion of  the voices of the urban poor in crafting the “New Urban Agenda” (NUA).

SDI Team

SDI Team

The Problem of Mass Housing, The Potential of Informal Settlements

In his opening address, Dr. Joan Clos, emphasised that informal settlements and housing should be “put at the centre” politically and physically. Mass housing projects on the periphery of cities would need to be diminished because without economic activity and mixed (land) use they become dormitory neighbourhoods for the poor. Clos suggested that urbanisation needed to be used as a tool for socio-economic development through well-planned and managed cities, proposing that the following three dimensions of urbanisation need to be considered:

  • The Legal Dimension (requiring new rules and regulations)
  • The Physical Dimension (spatial planning and land use)
  • The Financial Dimension (enabling economic design and finance)

While Clos noted that each dimension requires strategic instruments to address the “proliferation of slum dwellers”, we wonder where the “Social Dimension” featured in this discussion. The absence of shack dwellers as central agents and decision makers in planning, implementation and access to finance produces limited and brittle results. The South African Minister of Human Settlements, Lindiwe Sisulu, alluded to this effect: “We [the Department of Human Settlements] experienced challenges from time to time because we did not always understand the environment we were going in to. We are looking to adjust this legislation.” Whereas adjusted legislation carries some impact, the underlying value lies within the experience that informs strategic contributions of slum dwellers themselves.

Opening address by Joan Clos, Executive Director of UN Habitat

Opening address by Joan Clos, Executive Director of UN Habitat

Where Planning Falls Short…

However, what purpose do master plans render if they are not implemented? And, how do we rethink the relationship between living spaces and workplaces? In a panel on the role of urban planning and land use, Julian Baskin (Head of Program Unit at Cities Alliance) emphasised that the urban agenda was not only about housing but how we access cities and livelihoods. Slum dwellers are no longer waiting for government, Baskin explained, but are organising themselves, forming their own plans and collecting their own data.

Slum dwellers are arriving at local governments around secondary cities saying, ‘We have our own information, partner with us’. When you have people in communities who understand plans and how to control their own development, you suddenly gain multiple planners….National governments need to build enabling legislation for cities, between local governments and communities, so that planning can be transferred to slum dwellers themselves.

Informal Settlements: Productive Centres for Resident Organising and Livelihoods

In two side events, community leaders affiliated to SDI spoke of the connection between informal settlements, livelihoods and mobilisation strategies through savings and data collection. The conversation was grounded by the very personal account of Catherine, a young mother from Johannesburg who spoke of her experience as a waste picker and recycler. In a soft, and, at moments, shaky voice, she recounted,

“I am a waste picker because this is how I support my children. This is how my mother supported us. I mainly work with cardboard and scale it every day. For 1Kg I am paid 90c.”

Catherine

Catherine

Based on Catherine’s account and a further presentation by SDI partner movement, Women in Informal Employment: Globalising and Organising (WIEGO), it was evident that daily life in informal settlements significantly co-exists and intersects with livelihood activities such as waste picking, street vending and home based work. Therefore,

  • Informal settlements are spaces of productivity and economic activity: homes are productive assets that contribute to economic livelihoods.
  • Basic services are inputs for informal workers’ productivity and function as a direct link to livelihoods.
  • Informal settlements are intricately connected to economic migrants and livelihood opportunities.

Rose Molokoane, Coordinator of FEDUP and Deputy President of SDI spoke about the broader involvement and mobilisation of shack dwellers in global discussions on development:

“As informal settlers we ask ourselves, what was achieved by the MDGs discussed twenty years ago ? Will the SDGs really attend to the needs of poor people in informal settlements? People who are planning for us without us are making a mistake. Informal settlements keep growing because most of the time we are taken as the subject of discussion without including us in the discussion… We use the power of savings and information about our informal settlements to organise ourselves, to reach out to our communities, to do something and to allow government to meet us half way” (Rose Molokoane, SDI & SA SDI Alliance)

Victoria Okoye (WIEGO) and Rose Molokoane on the left,

Victoria Okoye (WIEGO) and Rose Molokoane on the left,

As a collective of global movements, WIEGO, SDI and the Huairou Commission seek to ensure that the NUA promotes inclusion and produces equitable social and economic outcomes. Some of these include:

  • Recognition of all forms of work, both informal and formal
  • Greater access to affordable financial services, training new technologies and decent and secure workplaces for all women and men
  • Adequate, safe and affordable housing and basic services
  • Security of tenure for the urban poor and a stop to all forced evictions

Know Your City: Community Collected Data for Collaborative City Planning

With panelists clad in Know Your City T-shirts and the presentation of a KnowYourCity explanatory video set to an upbeat soundtrack, the mood was set for a different kind of panel. Thus far, the voices of informal settlement dwellers had been sparse in the conference. That was, until the Know Your City side event.

SDI’s Know Your City (KYC) campaign emphasises that the “data revolution” is central to the New Urban Agenda (NUA). It constitutes a true data revolution as shack dwellers are organised across the Global South not only to gather invaluable data on informal settlements, but to use it as the foundation for partnerships and collaborative urban planning. While “partnerships” between communities and government are widely accepted as critical to the success of the NUA, the mechanisms for actually realising productive partnerships are poorly understood. The KYC campaign has proven a highly effective strategy for catalysing such partnership and sustained dialogue between communities and government.

Mzwanele Zulu and Joyce Lungu, community leaders of urban poor federations in South Africa and Zambia, spoke of their experience profiling, enumerating and mapping their cities. Joyce spoke of the Zambian federation’s work to profile Lusaka through the strong organisational capacity in slum dweller communities. While the challenge for non-residents concerned entering and gathering reliable data, the power this information constituted for residents was evident when it was shared with government partners in the city council to identify incremental upgrading of settlements through prioritising needs and projects.

Mzwanele Zulu appreciated the large audience at the event, but gave an impassioned plea for more government officials to make the effort to attend the panels of informal dwellers. He highlighted the critical role of household level enumerations in organising his community in Joe Slovo, Cape Town.  Initially, the government claimed there were too many shack dwellers to accommodate in the planned upgrade and advised on relocations to the outskirts of the city. The enumeration revealed the actual population to be far smaller and negotiations with government resulted in an agreement to undertake an in situ development. The enumeration data was also vital to the beneficiary registration process – something often mismanaged in upgrading projects, often at the expense of the poorest residents.

SAMSUNG CSC

Joyce Lungu, Zambian Federation Leader

Julian Baskin (of Cities Alliance) reminded the audience that a tremendous change is required to create an environment that catalyses the efforts of the urban poor to improve their communities instead of simply “controlling” urban poor communities. He applauded the efforts of organised slum dweller communities in SDI to gather critical data, plan for settlement improvements and seek partnerships with government. To meet the demand of informal settlement upgrading in the Global South, partnerships that bring the efforts of a billion slum dwellers to the service of city development will be essential.

CORC Deputy Director, Charlton Ziervogel, wrapped up the discussion by explaining the process undertaken by the SDI network to standardise profiling data. Such standardisation makes it possible to aggregate data at the regional and global level which is currently hosted on SDI’s Know Your City online platform. In South Africa, FEDUP and the Informal Settlement Network (ISN) are working on two government tenders to gather data on hundreds of informal settlements in the Western Cape. Affiliates in Uganda and Kenya are making similar progress. These cases serve as powerful examples of authentic government partnership and a data revolution that chooses communities over consultants to gather data and serve as the foundation for inclusive, collaborative planning.

SAMSUNG CSC

Know Your City Side Event

How Can we Implement Progressive Outcomes? 

The two day thematic meeting ended with the adoption of the Pretoria Declaration on Informal Settlements, which is considered as official input on informal settlements to the New Urban Agenda. UN Habitat also launched its “Up for Slum Dwellers – Transforming a Billion Lives’ campaign, hosted by UN Habitat’s Participatory Slum Upgrading Program (PSUP) and the World Urban Campaign with the aim to bring about a new paradigm regarding global responses to slum upgrading.

In its current version, the Pretoria Declaration presents progressive and people-centred recommendations that relate to embracing the importance of in-situ participatory slum upgrading approaches, pursuing a focus on people-centred partnerships as suggested by “People-Public-Private Partnerships”, using participatory and inclusive approaches to developing policy, strengthening the role of local government and recognising civil society as a key actor in participatory processes. The Declaration also emphasises that the NUA should be action-oriented and implementable.

Although the declaration indicates that action should be concentrated at the local government level and that UN Habitat support to states occurs through tools such as the PSUP (See Point 9 in the Declaration), “the how” remains a strong concern for members of the South African SDI Alliance, and SDI network. While the SDI network and “Know Your City” approach was characterised by a strong presence and the message of “plan with us, not for us” was well received the mechanisms for implementation remain unclear:

“We have this beautiful constitution, but how will South African municipalities act? Politicians and officials talk very nicely – I hope that they will open doors for us when we engage them. Since I joined ISN in 2009 we are battling to sign Memoranda of Understanding (MoUs) with municipalities for upgrading. We only have the MoU with the City of Cape Town and eight provincial agreements with national government, but those are for the People’s Housing Process and not for upgrading. Do we know what is really happening on the ground or are we just becoming advocates of theory?” (Mzwanele Zulu, SA SDI Alliance)

“The highlight for me was making sure that our voices and messages were heard. Part of my concern was when I looked at the expenses of this event. There are a lot of people who don’t have and here is our government spending so much money on this event. But when you go and ask them to assist poor people you don’t get that response” (Melanie Manuel, SA SDI Alliance)

Watch Rose Molokoane’s input to the NUA on behalf of SDI here.

Feb 29
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From Nairobi to Cape Town: Learning about Upgrading and Partnerships with Local Government

By CORC, FEDUP, ISN, Learning Exchanges, SDI No Comments

By Yolande Hendler (on behalf of CORC)

From Ghetto informal settlement in Nairobi, the Kenyan SDI Alliance together with an official from the nearby Kiambu County Government visited the South African SDI Alliance on a learning exchange in Cape Town from 22 – 25 February 2016. Community leaders and an official from Ekurhuleni Municipality, near Johannesburg, also joined the group.

The purpose of the exchange was to share experiences regarding informal settlement upgrading, partnership formation between community movements and local governments, project planning, preparation and mobilisation processes. Kenya’s Federation, Muungano wa Wanavijiji has been supporting Ghetto community in obtaining tenure security and identifying housing beneficiaries. Currently the settlement is set for the final phase in a government-upgrading project that requires re-planning its public spaces and houses, a familiar process that the South African Federation of the Urban Poor (FEDUP) and Informal Settlement Network (ISN) call “reblocking”.

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Priscilla, community leader in Sheffield Road speaks about reblocking

With introductions and an overview of the SA SDI Alliance on the first day, the visitors shared their key learning interests as relating to

  • Partnership Formation between communities themselves and between communities and local governments
  • Upgrading Processes – how communities organise themselves during upgrading, how technicalities in construction and implementation are dealt with, the role of project funding and community saving

Savings and Income Generation

With savings as the core practice of the SDI network, the afternoon visit took place at a FEDUP savings and income generation group in Samora Machel, Philippi. The group explained how its FEDUP membership enabled individuals to access small loans from the Federation Income Generation Program (FIGP). With a particular set of criteria for loan access, repayments and additional loan cycles, the group had established a number of small businesses such as beading, second hand clothing, fried chicken or locally tailored clothing.

The meeting sparked an animated discussion on how savers could maintain their momentum and interest in savings, especially after receiving a house or an informal settlement upgrade upgrading can be seen as fulfilling the “immediate savings purpose”. A loan group member explained that she viewed saving as valuable backup to draw on when problems arose. In Kenya, members became tired of “saving for nothing” – they therefore began using their savings in smaller projects while waiting for larger projects to occur. The Kenyan visitors further noted the value building trust between members through administering loans to small groups of five savers.

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Mary Wambui (Kenya SDI Alliance) and John Mulia (Kenya Official) look at FEDUP savings book

FEDUP Income Generation businesses in Samora Machel

FEDUP Income Generation businesses in Samora Machel

Reblocking in the City of Cape Town

Over the next two days the group traced re-blocking projects and informal settlement upgrading projects in the municipalities of Cape Town and Stellenbosch.

In Cape Town the SA SDI Alliance used its first re-blocking projects in Joe Slovo and Sheffield Road settlements to build a partnership with the City of Cape Town to jointly pursue future upgrading and reblocking projects. As a result the City adopted reblocking as a policy, an indicator of increased intent to engage with community-led processes. In Sheffield Road the group saw how reblocking establishes access routes, courtyards, increased space for communal water and sanitation installation as well as safer public open spaces. Since reblocking, the community has successfully negotiated for electricity installation.

Courtyard in Sheffield Road after reblocking

Courtyard in Sheffield Road after reblocking

In Sheffield Road: Rashid and Samuel (Kenyan Federation) in discussion with Lulama (ISN leader for Philippi region)

In Sheffield Road: Rashid and Samuel (Kenyan Federation) in discussion with Lulama (ISN leader for Philippi region)

Mtshini Wam was the first settlement that was reblocked in partnership with the City of Cape Town in 2013. While walking through the settlement the group noticed the improved differences between the projects: the layout of Mtshini Wam enabled 2 households to share water and sanitation facilities. Noticeably, a number of residents had self-built a second storey on to their structure after having participated in a community design process for double storey units as further development after upgrading. Through persistent negotiations after reblocking, the community received municipal electricity and ground levelling to mitigate flooding. ISN National Coordinator, Mzwanele Zulu, explained that such incremental upgrading contributed to incremental tenure security.

Double storey structures in Mtshini Wam

Double storey structures in Mtshini Wam

In Flamingo Crescent, the most recently upgraded settlement (2014), community leader Maria Matthews introduced the group to the settlement’s reblocking experience: engaging fellow community members to save, planning meetings with the City and community participation during reconstruction. Due to its enumeration figures and the reblocked layout, the community succeeded in negotiating for individual service installation and electricity per re-blocked household (1:1 services). Flamingo’s site was levelled with all access roads paved and named before erecting the reblocked structures. The visitors saw that for the SA Alliance, upgrading / reblocking is a cumulative experience, with consistent improvements in new projects based on past project learning.

“Reblocking made a big difference, but upgrading is far from over,” Maria Matthews explained. “We have many social and health problems remaining here.”

(Maria Matthews, Flamingo Crescent Community Leader)

Arrival in Flamingo Crescent

Arrival in Flamingo Crescent

After reblocking in Flamingo. 1:1 Services per household.

After reblocking in Flamingo. 1:1 Services per household.

Upgrading in Stellenbosch Municipality

In Langrug the group encountered an example of partial reblocking in a settlement about ten times the population size of those in Cape Town, with about 4000 residents. Community leader, Trevor Masiy, traced the settlement’s partnership with the SA SDI Alliance and the joint partnership agreement with Stellenbosch Municipality, which informed the settlement’s upgrading initiatives in drainage and storm water projects and two Water, Sanitation and Hygiene Facilities. Trevor also highlighted the challenges experienced by disrepair of past upgrading projects. He therefore emphasised the value of community involvement not only in project planning and implementation but also in maintenance.

Walking through partially reblocked section of Langrug.

Walking through partially reblocked section of Langrug.

View on to Langrug

View on to Langrug

Water and Sanitation Facility in Zwelitsha section, Langrug

Water and Sanitation Facility in Zwelitsha section, Langrug

Partnership Meetings

Two separate partnership meetings with Stellenbosch Municipality and the City of Cape Town allowed the visitors and two visiting officials an insight into the practical workings of partnership building and project negotiations. The partnership meetings in Cape Town and Stellenbosch focussed on updating all gathered on current project progress and discussions on renewing and continuing the partnership relationships. Discussion highlights included:

Cape Town

  • Alliance emphasises that its partnership focus with the City is not only reblocking but also informal settlement and area-wide upgrading

Stellenbosch

  • The muincipality explained that reblocking is not just about structure upgrades but about enabling basic service provision
  • The municipality spoke about its partnership with Langrug and SA Alliance as fluid, moving towards different ways and means of reaching a common goal
Partnership Meeting with Stellenbosch Municipality in Franschoek

Partnership Meeting with Stellenbosch Municipality in Franschoek

Alliance begins Cape Town partnership meeting in song in Bosasa Community Hall, Mfuleni

Alliance begins Cape Town partnership meeting in song in Bosasa Community Hall, Mfuleni

Reflections and Learnings

On Upgrading:

  • “We have been focussing on permanent houses. This can become strenuous for communities because it demands resources and scaling up. But our thinking has changed when we saw how reblocking has attracted government attention. (Rashid Muka, Kenyan Federation Leader)
  • “In Kenya we always thought that upgrading means erecting permanent structures. I am learning about incremental upgrading – something I’d like to take home” (John Mulia, Kiambu County Government, Kenya)
  • “The value of an incremental approach is that you don’t start with the end product (a house) and impose it on a community. Upgrading is not only housing. You can be in a temporary shack and as long as you have opened up spaces to basic services, then that is upgrading.” (Mary Wambui, Kenyan SDI Alliance )

On Building Parternerships

  • “What is key in achieving a relationship with a municipality? Involving the community, drafting good plans and implementing precedent setting projects that can influence policy, especially if there is no policy yet” (Sizwe Mxobo, CORC Technical Support)
  • “Strong social movements that know what they want are important in building partnerships. They can remind municipalities about their commitments” (Nkokheli Ncambele, ISN Coordinator Western Cape)
  • “We want to pull stakeholders together and understand how to journey together. We want to be able to say this exchange gave birth to some of the lessons we learnt. What has come out clearly is the value of learning by doing.” (Rashid Muka, Kenyan Federation Leader)
Group gathers in a courtyard in Sheffield Road

Group gathers in a courtyard in Sheffield Road

On Community-Led Engagement

  • In this exchange I understood a lot about talking with communities. Government needs to understand the value of partners coming on board. The government of Kenya has made many plans but the community needs to point out what they want and need, not us the government. A project becomes sustainable when it is community driven.” (John Mulia, Kiambu County Government, Kenya)
Sep 04
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Sharing Knowledge from the Bottom-Up: SDI visits Cape Town Learning Center

By CORC, FEDUP, ISN, SDI No Comments

By Yolande Hendler (on behalf of CORC)

Horizontal learning exchanges form a significant pillar of bottom-up knowledge sharing and a mobilisation tool used by informal settlement dwellers across the Shack/ Slum Dwellers International network. Exchanges are a development tool, which

“help people deal with the root issues of poverty and homelessness and work out their own means to participate in decision-making which affects their lives, locally, nationally & globally. In exchange people are not being trained to do things. They decide themselves what to pick up and what to discard, by visiting others in the same boat. It’s learning without an agenda…on-site, direct from the source, unfiltered”

(Tom Kerr, SDI Secretariat)

In recent years the SDI network has streamlined learning and experience sharing from open ended exchange interaction to a city-level focus in which learning, capacity-building and monitoring is concentrated on four city-level centers of learning. These (Cape Town and Kampala, Mumbai and Accra) were identified due to their capacity to operate at the city scale and demonstrate productive partnerships with government. This blog focuses on a recent visit by the SDI management committee to the Cape Town learning centre, and engages with questions raised by community members around the nature of learning and knowledge sharing in the SDI network.

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Joseph Muturi, from the Kenyan SDI Alliance poses a question to FEDUP / ISN leadership.

The first morning saw national community leaders from the SDI Alliances of Ghana, Uganda, Kenya, Tanzania, Zambia, and Zimbabwe join the South African Alliance , SDI President, Jockin Arputham, and deputy president, Rose Molokoane, in exploring the approach of community-driven process in South Africa. The South African community movements, FEDUP and ISN, spoke about their involvements in respective community projects relating to land access and negotiation, People’s Housing Process (PHP), security of tenure, ensuring access to basic services, informal settlement upgrading, and income generation projects.

When asked what FEDUP and ISN see as particular achievements, FEDUP’s regional leader in the Western Cape Province, Thozama Nomnga, spoke of the Federation’s Income Generation Program (FIGP), which is funded through a revolving loan fund established through FEDUP’s national savings. As much as the FIGP funds are drawn from savings, the program also grows FEDUP’s membership and strengthens savings practice as personal savings are a prerequisite to accessing a loan.

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Visiting a savings group and learning about FIGP in Samora Machel.

During the morning, the group visited a savings scheme in Samora Machel township in Cape Town as well as FEDUP’s Vusi Ntsuntsha group. After a warm welcome at Samora Machel, the savings group facilitator, treasurers and collectors spoke about the FIGP, how loan groups are formed, how loans are allocated and the respective finances are calculated. Savings group members showcased their small businesses – ranging from tailored shwe-shwe Dresses, to tuck-shop goods, beaded jewellery and crafts, fat-cakes and chicken. From Samora Machel the visitors travelled to Vusi Ntsuntsha group, hearing about the group’s successful negotiation for land, and the challenges ahead in terms of securing tenure and housing sites. Hassan Kiberu, from the National Slum Dwellers Federation of Uganda (NSDFU) motivated the group to keep unity and hope:

“By unity we win. When you give up you won’t win. We joined the Federation in Uganda because we have so many problems. Like you, there are many that we haven’t tackled yet. It is important that you are firm, don’t lose hope and keep on saving.”

Income Generation businesses by the Samora Macheal savings scheme

FIGP businesses in Samora Macheal.

The remainder of the day was spent in a packed community structure in Khayelitsha where representatives from more than 5 communities had gathered to share their experiences in informal settlement upgrading, community generated data collection, design, mapping, planning and negotiation with local government. The visitors were introduced to an area-wide upgrading approach around a wetland and the accompanying lengthy negotiations with local government. They also heard about a completed reblocking upgrade in Flamingo Crescent informal settlement and the process of planning for reblocking in three additional settlements.

In conversations and questions posed throughout the day – a recurring interest occurred among community participants concerning the nature of ‘learning’, the necessity for transparent sharing during  community exchanges and what it means to be an “SDI learning centre”. Joseph Muturi from the Kenyan Alliance’s Federation, Muungano Wa Wanavijiji, raised the value of sharing challenges as freely and as frequently as successes.

“How can we learn from each other if we don’t share our challenges? We know that we can learn from every SDI country. In learning centres there is something specific we can learn. But we don’t expect them to be perfect –there will always be challenges, and we need to learn from them.”

Community gathering in Khayelitsha on informal settlement upgrading.

Community gathering in Khayelitsha on informal settlement upgrading.

On this note, ISN shared the difficulties of navigating tensions between steering committees and communities, the rivalry between different civic organisations, varying levels of co-operation from Councillors and long delays by city councils that cause disillusionment in communities. Kenyan representatives spoke about their ability to secure tenure for 10 000 informal settlement dwellers through bio-metric data collection, using mobile phones – learnt from the interaction between Ugandan Federation members and their City officials. In reflecting on the exchange, Nkokheli Ncambele, provincial ISN coordinator, echoes the value of bottom-up knowledge generation in exchanges:

“It was very beneficial to be exposed to savings and the FIGP businesses – we managed to send a successful message to community leaders in Khayelitsha about upgrading and savings. We learnt how other countries use their profiling data to engage with the City. We need to do the same”.

Aug 21
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Unemployed but Making Money: Income Generation in Port Elizabeth

By News No Comments

By Yolande Hendler (on behalf of CORC)

Bulelwa Msila & her mother sell vegetables in New Brighton, Port Elizabeth

Bulelwa Msila & her mother sell vegetables in New Brighton, Port Elizabeth

As Bulelwa Msila arranges vegetables on a small vending stand on New Brighton’s busy Ferguson Road, a chilly gust of wind ushers passers-by into nearby homes. Due to Port Elizabeth’s winter weather, her mother is not braaiing (grilling) fish that day:

“Actually my mom sells fish but today it’s too cold. This is just a small business that I started with my mom, just to survive. I buy the vegetables from the fresh produce market. There is a lot of junk food that people eat, so we decided to sell vegetables because they are affordable and healthy. People buy from us because we are cheaper than supermarkets. Many come at the end of the month [after pay-day]. I also have another job but this one helps us to earn more. We use the money for our day-to-day expenses like electricity and school fees for my daughter.”

(Bulelwa Msila, Federation Income Generation Program)

Linda Mpako, who oversees FEDUPs income generation program (FIGP) in Port Elizabeth, explains that the program provides tangible access to financial assistance through small-scale loans. In particular it supports people who are not formally employed nor earn a regular income.

FEDUP’s Income Generation Program in Port Elizabeth

FEDUP has registered the FIGP as a micro-finance institution that draws its loans from FEDUPs National Urban Poor Fund (UPF). The UPF is built up through the payment of a once-off membership fee of R750 that is asked of each new FEDUP savings group member. In order to access loans in consecutive tranches, an individual needs to become part of a loan group (of 5 members), be an active saver and member of a savings group. Each province is guided by a FEDUP appointed loan facilitator like Linda, who provides support around loan group formation, loan disbursements, repayment cycles and other needs.  Read more background here.

Linda Mpako, FIGP Loan Facilitator Eastern Cape

Linda Mpako, FIGP Loan Facilitator Eastern Cape

In the Eastern Cape, the FIGP has mostly attracted people who are not yet members of FEDUP-based savings schemes.

“People are interested to find out about us because most people already have businesses but they don’t have finances to sustain them. The FIGP interest is very low – we are the best on the ground. We don’t just issue money to anyone. People need to become part of a savings scheme. The repayment is manageable when over four months you are paying back R 276,67 per month”

(Linda Mpako, Eastern Cape, Loan Facilitator)

Motherwell: Income and Strong Savings go hand in hand

Further outside Port Elizabeth, Vivian Gulwa welcomes Linda into her home in Motherwell.  She is on her third loan cycle, making a success of her beading business.

“I usually buy coffee mugs [ traditional metal mugs] in a pack of 6, decorate them with beads and sell them for R150. You will find that most people love to put them into their display units. Many of us make necklaces and traditional artwork so I had to shift and make something different. As long as you start with a small thing and have the spirit to grow, you can think of anything. I thank God for what I learnt from FEDUP: in savings groups we buy groceries in bulk. We will never go hungry in this programme, we are building each other and encouraging each other”.

(Vivian Gulwa, FEDUP member in Motherwell, Port Elizabeth)

FEDUP members showcasing the work they do under FIGP.

Vivian Gulwa (far right) showcases her beading work financed through the FIGP together with members of her savings group.

Nomsa Dyalom and Busisiwe Tekane are very recent FEDUP members.  Both are seamstresses using FIGP to become more independent in running their business:

“We are a group of 5 women in Motherwell community who make beadwork and sew clothes. We have been working in this field for 5-6 years but only came together as a loan group recently when we heard about FIGP. We are not yet members of FEDUP but we are in the pipeline. The loan group will assist us in getting additional money to make our business more successful – especially since some of us are pensioners. The loan will help us spend our money independently – we will no longer quarrel with our husbands to convince them that we want to use some of the pension money for our business.”

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Nomsa Dyalom and Busisiwe Tekane

Building business strategy to build long term livelihood

In terms of business strategy Linda advises that new loan groups should use the example of people from outside South Africa. Through working together, it becomes possible to buy products and stock the spaza shop [corner shop] more cheaply. Unsurprisingly, one of the main challenges is competition: if potatoes are in season, you will find people selling potatoes in the same street – or sweets and fat cakes. Linda expresses the necessity for training so that people start checking with their community what people need. Overall, she shares:

“In my experience the FIGP is delivering what people need. It helps with unemployment and growing the FEDUP membership. We are seeing how families that have never worked can make money. Because of savings and small business, FIGP is like a survival skill. It shows when poor people use their own skills they can make money without being employed.”

(Linda Mpako, FIGP Loan Facilitator, Port Elizabeth)

Mama Nobom's small business

Mama Nobom’s small business

Mama Nobom sells handmade crafts

Mama Nobom sells handmade crafts

Dec 04
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FEDUP launches livelihood programs: solar lights, funeral scheme & income generation

By FEDUP, uTshani Fund No Comments

By Walter Monyela and Yolande Hendler (on behalf of CORC)

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Sarah Makgopela of Aganang savings scheme in Legonyane (North West province) has started a small business selling hats, water boilers, sweets and other small goods through the income generation program

 

If about 25% of South Africans are unemployed, this percentage is even higher for communities living in informal settlements – a reality that is no different for the members of the South African Federation of the Urban and Rural Poor (FEDUP). Since the early 1990s, FEDUP members have identified their own development needs especially around accessing well-located land, security of tenure, improved shelter, housing and basic services. Through the practice of daily savings and other community organisation tools, FEDUP has built partnerships with government on all tiers and has negotiated access to many of these needs. Yet the lack of income generation has posed continuous instability and hardship on a day-to-day basis.

Over the last years, therefore, FEDUP has identified the need to strengthen the income generation opportunities of its members and in 2014 launched several livelihood programs. While these programs assist members to start their own small businesses and the movement as a whole to generate its own income and build its own assets, they are at the same time initiatives that reinforce the importance of the rituals of Shack/ Slum Dwellers International, such as daily savings.

The livelihoods programs underway are

  • Total Solar Lamps by Awango
  • Funeral Policy known as South African FEDUP Funeral Scheme (SAFFS)
  • Loan Program known as the Federation Income Generation Program (FIGP)

Total Solar Lamps by Awango

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A member of Aganang savings scheme in Legonyane (North West) reselling Awango solar lights by Total South Africa

Total South Africa (TSL) introduced solar lamps by Awango and entered a contractual partnership with uTshani Fund to provide FEDUP members with economic opportunities of buying Awango solar lights from uTshani Fund and selling them to potential buyers e.g informal settlement communities and businesses. Although the emphasis is on FEDUP members this opportunity is also open to non-FEDUP members who are keen to do sales. This year a total of 314 people (307 FEDUP members) in seven provinces were trained as resellers.

Training includes a presentation on the available products, how they operate, durability and logistical aspects of the business. After training each reseller ideally buys at least one of each type of solar light (3 in total). The solar lights business is aimed at members who already run an income generation initiative and are seeking to diversify their products – this would provide the financial platform for securing the first stock.

Amidst successes, the program experienced challenges in terms of sellers lacking sufficient start-up capital as well as insufficient sales experience. In response FEDUP members are devising strategies to support the growth of businesses and sellers’ capacities such as exposing sellers to more in-depth training in sales skills and exploring the potential of connecting with the Small Enterprise Finance Agency (SEFA) around increased support for start-up loans.

Funeral Policy (SAFFS)

The South African FEDUP Funeral Scheme (SAFFS) grew out of a desire expressed by FEDUP to bury its members with dignity and honour. SAFFS started its full operations in March 2014 and operates as an understudy to Imbalenhle Burial Society (IBS). It is underwritten by TransAfrica Life Funeral Policies, who are registered with the Financial Services Board of South Africa (FSB).SAFFS currently works in association with IBS to learn how to administer a funeral scheme with the intention of going solo. FEDUP members sell the funeral scheme to own members as well as the public and have sold an estimated 600 schemes to date. Sellers are compensated per policy sold.

Loan Program (Federation Income Generation Program – FIGP)

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“I have used the Federation Income Generation Program to sew graduation gowns as a business. This helps me support my family”

 

The loan program is a formalisation of the loans that FEDUP members access at individual savings scheme level. While this practice will continue, the FIGP is an initiative to expand the scope of these loans to support FEDUP members in income generation activities of their choice.

FEDUP has therefore registered with the relevant financial bodies (via uTshani Fund) and has started up a legal and formalised microfinance institution through which members can access group loans from their own Urban Poor Fund, instead of external financial institutions.The criteria for accessing a loan is:

  • Formal FEDUP membership (complete UPF payment)
  • Active member of a FEDUP savings scheme
  • Experience as small business entrepreneur for at least 6 months
  • Be part of a group of 5 to access a loan

These criteria ensure that members continue saving and support one another in the development of their respective businesses because individuals can only receive loans when they are in a group of five. The whole group must also make repayments as one overall sum. Therefore individual success depends on group success.

In this way FEDUP broadens the scope of its livelihood programs, strengthens its membership base and positions itself toward financial sustainability within the next five years. The year 2015 will definitely mark FEDUP as another recognised, fully registered and compliant microfinance in South Africa. Through this initiative FEDUP will also be able to approach funders and private organisations to leverage further resources.

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” I have used the FIGP to buy shwe shwe material and sew dresses” – Elizabeth Motaung, FEDUP members in Orange Farm Gauteng

At the heart of the matter

What lies behind these varying income generation initiatives? On the one hand, FEDUP’s step towards financial sustainability to ensure continued existence in the case of decreased donor-funding. On the other hand, and at the heart of the matter, lies savings, the engine of FEDUP that enables poor women to come together, share their experiences – struggles and triumphs – and find solutions.

Sarah Mulaudzi, North West co-ordinator for FEDUP recently shared that

“In our savings groups we have R300 000 worth of savings from our members who are doing income generation programs. Through the income generation program our savings are really growing!”

As the income generation programs require savings and start up capital they strengthen FEDUP’s savings practices. Strong savings in turn build a strong group and a strong community, which widens opportunities within the income generation programs themselves.

The small business of Sarah Makgopela and Elizabeth Moletese of Aganang savings scheme in Legonyane, North West province.

The small business of Sarah Makgopela and Elizabeth Moletese of Aganang savings scheme in Legonyane, North West province.

 

 

Oct 22
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Khayelitsha groups fire up bread ovens

By CORC, FEDUP, ISN, uTshani Fund No Comments

By Walter Fieuw and Thandeka Tsabalala

An emerging focus area for the SA SDI Alliance is sustainable social enterprises and creating more options to access livelihoods opportunities. Informal areas are characterized by a diversity of income generating activities. In Khayelitsha, Cape Town, FEDUP and ISN have opted to investigate the feasibility of baking breads with an innovative oven and pre-mix design a supplier called Mama Mimis. 10 ovens was pre-finances with the view on recovering the costs as baker groups start making profits on their goods.

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Between 7 and 8 October, ten groups from across Khayelitsha gathered at FEDUP member Mama Darkie’s crèche in Makazha. The groups were in high spirits as their assembled the components of the Mama Mimis oven, which is known for its robust design and heat retention. The oven is but a means towards a sustainable business in a group context. The group dynamic of the saving scheme is a particular intervention of FEDUP and ISN, to ensure that the value created stays in a group rather than accruing with one person. This requires fine planning to ensure that everyone receives benefit from the business, but also creates an opportunity to rotate the baking function, and to focus on the value chain of business activities: marketing, producing more products (sandwiches, pizzas, sweet treats, etc)

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The groups each had a chance to make bread dough, prime it in the pre-heated oven, and then bake the breads. Various scenarios were presented and the groups had to come up with a solution to the problems. For instance, imagine a busy taxi rank where there are a number of traders. How will the group sell their bread among the competition? One group responded by saying that the key will be to have a consistent product at a good price. Their proposed product was a half-bread with polony and mayonnaise, which they could sell at R12, making almost 100% profit.

Image courtesy of Mama Mimis

Image courtesy of Mama Mimis

The groups have started their bakeries by now. Some groups are fairing better than others, due to careful considering of location, product offering, and consistency. FEDUP and ISN have created exchange programmes to help struggling groups learn from groups performing better. Going forward, this support will be continued until the groups are all realizing the potentials of the business opportunity.