Focus Ethiopia
Introduction
The Meta Robi District of Ethiopia has a population of about 137,233 people. Most live on the sides of a deep valley. Until recently, the only means of travelling was on foot. Many families live and farm on the steep slopes surrounding their homes. Severe erosion is a major problem. Farming land, once fertile, is being washed away and crop yields are diminishing. Changing rain patterns in the area have also resulted in increasing crop failures causing families to plunge deeper into poverty. There is little access to clean water, health care or schools.
In the current economic situation, farmers in this area are facing a 50% rise in the price of fertilizers compared to last year. The cost of food grain has tripled during the last 12 months, benefiting large-scale farmers who produce a surplus. However, the majority of small holders, who have to buy in food from the market to fill the gap in their own production, are suffering. The urban poor and the landless youth, who earn their living from casual labour, are facing severe hardship.
Partner Details
In this difficult situation, which has been made worse by the credit crunch, Tearfund’s partner is the Meserete Kristos Church (MKC). It was founded in the 1940's, establishing a development arm under the title Meserete Kristos Church Relief and Development Association (MKC-RDA) in 1999 to bring both material and spiritual transformation. Today the church has a membership of over 250,000 spread across 1,000 congregations.
Initially, MKC-RDA addressed food relief needs in the district before also setting up an educational programme. Today, an additional focus is supporting communities to establish sustainable livelihoods through micro-credit schemes. Together these initiatives comprise the Integrated Rural Development Programme.
Its work includes:
- Self-Help Groups (SHGs)
The programme organizes and facilitates groups of 15-20 people to start saving a weekly amount of money. Within 9 -12 months, when sufficient savings have been built up, members are able to take loans to start small businesses. Group members are also introduced to financial and business management and other educational materials on subjects such as environmental protection, HIV and AIDS, and hygiene & sanitation. Over 1,400 people (95% of whom are women) have participated in self-help groups and many say that have seen their household income increasing and their families benefiting. - Agricultural and Horticultural development
About 450 households have also been trained on improved agricultural techniques, small-scale irrigation, composting, growing fruit trees and vegetable production. For example families are now using compost and growing fruit trees on farms to increase productivity.
'Credit Where Credit’s Due' — A Success Story
Teje Dinku is a 31 year-old widow. Teje’s husband was the only breadwinner in the family and didn’t leave her any money or assets, making life very difficult for her and her children when he died. With no source of income Teje really struggled, falling deeper into poverty and unable to feed her children or pay their school fees. But when MKC organized a women’s self-help group in her village, Teje joined with other women. They called their group 'Gere Jejebina' or 'Team of Encouragement'.
The women in the group started regular weekly meetings at which each contributed 0.5 Birr, equivalent to £0.030 or €0.035 [Birr = Ethiopian unit of currency]. As confidence grew, they increased their weekly savings to 1 Birr and later 2 Birr per week. In addition, they got to know each other better and shared their visions and their problems as they discussed social issues. They learned how to manage their income and register their savings. After nine months, when the group savings had been built up, they started lending money to those who needed it.
Teje initially received a loan of Birr 200 (£1.20/€1.40), with which she started small-scale trading. Within three months, she was able to earn a profit of Birr 650 (£3.90/€4.50). She used part of the money to buy a pregnant ewe, which gave birth to a lamb. The lamb earned her Birr 125 (£0.75/€0.80) after four months of fattening. Teje’s small enterprise continued to grow as she bought an additional ewe, which gave birth to twins after four months, fetching her more money in the market. She now has chickens for laying eggs and has recently invested in a cow to provide milk for her children.
Through the group Teje has learnt how to weave and spin cotton. As a group activity, members sit together and weave straw baskets to sell them as an income generating activity for the group. This adds to the amount available for loans. The group has a special fund for members who fall ill.
Teje is very happy that she decided to join the group. When asked how she feels about the programme, she says, “My life and that of my children is on the path of change for the better, praise be to God”. She plans to expand her sheep rearing and small-scale trading business in the future.
When we support this year’s 'Credit Where Credit’s Due' World Development Appeal, we:
- Help families buy 3 or 4 egg-laying chickens to generate income.
- Help families purchase sheep or goats.
- Help families start trading in grain to make profits at the local market.
- Help families buy two pair of oxen to start basic agricultural investment at village level.
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