10.03.2023  11:58

In Self-Help Group activities, the process of effective and proper management of the group's funds (internal savings of SHGs) is important. Regular skill development training for SHG members is a necessary process to ensure that they are working in the right direction.

In March of this year, training on the topic “Methods of effective use of internal savings of SHGs” was conducted for 6 new self-help groups in the rural districts of Toloikon, Nariman and Kashkar-Kyshtak. The training was organized within the framework of the WPU Erayim project ‘The Introduction of a Combination of Modern and Traditional Approaches to Prevent the Conflict in the South of Kyrgyzstan’, supported by the German organization Bread for the World and it was attended by 46 women and 1 man.

The purpose of the training is to teach SHG members how to effectively manage the group's internal savings and prevent the misdirected distribution of internal savings among SHG members, as well as offer opportunities and best practices for launching an effective business.

During the training, participants discussed the rules for internal savings approved in the Regulations of SHGs and analyzed the correctness and clarity of compliance with the rules provided for in the Regulations of each SHG. The local SHG coordinator gave examples of how funds from internal savings should be allocated to group members, she also added that funds should be allocated by decision of the SHG meeting, about which minutes of the meeting should be kept, and the movement of funds should be reflected in the accounting books. The experience of groups in other regions that effectively manage the internal savings of SHGs was offered as an example.

As a result of the knowledge gained, members of the Daryger SHG in the village of Osmon, Nariman rural district, opened a bakery based on a warehouse, and members of the Kelechek SHG launched a business producing chuchvara (dumplings) and noodles. They purchased the necessary equipment for the funds allocated from internal savings.

The training ‘Methods for the effective use of internal savings of SHGs’ was also conducted in other villages of the project area. To increase the capacity of members of 3 Self-Help Groups, which will be part of 3 SHG Associations, which were organized in the rural districts of Mady, Shark and Kyzyl-Kyshtak. 63 participants took part in the training courses. As part of this training, participants were able to obtain information about the effectiveness of using internal savings.

At the end of the event, participants asked questions of interest and received satisfactory answers to them.

Erlan Davlatov, Osh OblastErla