July 10, 2025
News
Thanks to a savings group, Zambian farmer Lawrence has not only improved his business but also paid for his children’s schooling. Through these groups, Caritas Czech Republic spreads financial literacy and helps small entrepreneurs move toward financial stability.
Lawrence invests his savings in the farm and in his children’s education
Lawrence lives with his family in the town of Monze in southern Zambia. He makes his living mainly by growing maize. As a co-founder and former trainer, he helped establish the savings group that now keeps his farm running and finances his children’s education.
At the end of each savings cycle, all the money in the cashbox is shared out among the members according to the number of shares they have saved. On one occasion Lawrence walked away with 36,000 kwacha (about €1,200).
“My savings helped me grow my business. I bought seed and fertiliser, and my children were able to go to school,” he says proudly.
How savings groups work
In rural Zambia, people earn a living mainly through small-scale farming or micro-enterprises - from food stalls to tailoring shops. To grow these ventures they need capital, yet they often cannot access regular banking services.
That is why Caritas Czech Republic supports so-called savings groups, which operate in communities as simple “community banks.” Members meet once a week, deposit small amounts into a metal cashbox with three locks, and then borrow from the shared fund at a fair interest rate to pay school fees, buy seed, or expand a business. The interest stays in the group and further grows its savings.
Caritas Czech Republic trains members in bookkeeping, helps them set rules, and manages a social fund for unexpected expenses. It also supplies the necessary equipment and provides regular mentoring during the first months. Thanks to this support, people without access to formal financial services gain a safe place to save and borrow, along with practical financial-literacy skills that help them stand on their own feet.
Caritas Czech Republic in Zambia
For more than a decade, Caritas Czech Republic has been improving lives in Zambia. Working with partners such as the Czech Development Agency, we focus on empowering refugees and vulnerable communities by providing skills training and livelihood support. Our efforts help individuals launch sustainable businesses and increase their chances of employment, fostering self-reliance and long-term development.
