Mpendulo believes that everyone has skills and talents. We start with what our community members have and build on what they know. We look for what is strong in the community - not what's wrong! We inform leaders in the community about our program and ask for people to come forward with a savings group of members they choose themselves. We provide training where the group creates their own constitution and then we mentor them for an 18-month period. After this, if all goes well, the group is then able to manage independently. This frees up our human resources to reach more groups.
Our saving methodology is based on the traditional South African stokvel - but we strengthen systems so that there is transparency and discipline such that trust becomes a solid foundation. Group members agree on a minimum savings amount per month and then from the pooled savings they offer loans to their own members - and never to anyone outside the group. The member must pay the loan in three months and a 10% interest is charged per month. This interest stays with the group. Mpendulo does NOT take any money to groups nor do we ever give money to groups.
At the end of the savings cycle (10 - 12 months), the group members liquidate their accumulated savings and interest. Each person gets their savings back plus a portion of the interest - based on how much they've saved.
Mpendulo offers Financial Peace Champion training so that members can manage their finances effectively. We also provide basic business management training - however when a member's business is ready to expand, we link them to a registered business services organization so they can receive expert assistance.
Our members have achieved amazing things; dramatically improving their living conditions, eradicating debt, sending children to high quality schools, starting and expanding businesses. In short, Mpendulo changes lives by helping people reach their dreams.