Makeni Women Traders Credit Circle
- Makeni, Sierra Leone
- 2021
- DWA FOUNDATION
ADVANCE established a savings and credit circle for women market traders, combining group lending discipline with business record keeping and supplier negotiation support.
The challenge
Traders financed stock through daily lenders at rates that consumed most of their margin. Formal lenders required documentation and collateral they did not hold, and previous grant programmes had created dependency without building repayment capacity. Trust in outside financial schemes was low following earlier failures.
Our approach
ADVANCE worked with existing trader associations rather than forming new groups, adopting their own membership and accountability practices. Contributions, lending rules and default consequences were set by members and written down. Practical sessions covered stock costing, separating business and household money and negotiating supplier terms collectively. Records stayed with the group, with ADVANCE providing oversight rather than control.
The result
Members financed stock from group funds at terms they set themselves, displacing daily lending for regular purchasing. Collective supplier negotiation improved buying prices for participating traders. The circle continued operating under member governance after programme support concluded, with new members admitted through the group's own rules.
Outcomes
- Member governed savings and credit fund
- Daily lender dependence substantially displaced
- Collective supplier terms for members