What Fatuma Did with $138: A Savings Group Case in Mkanga II

Before receiving DMDO support, the UPENDO savings group - like many informal groups - faced challenges in managing funds effectively. Fatuma Malimusi, a widow from Mkanga II with five children, had been contributing regularly since 2022. But without a clear approach to capital use, returns were limited, and loan terms were inconsistent.

Fatuma Malimusi with her Children

In 2023, following her husband’s death, Fatuma continued participating in the group while trying to support her family through small-scale farming and goat keeping. She had three goats and farmed maize and sesame. At this point, the group lacked the tools and structure to turn weekly savings into reliable returns.

DMDO provided training on financial management, share structures, group rules, and loan-based investment strategies. This helped UPENDO to refocus: instead of only saving, members began to borrow with clear repayment terms and invest funds into activities that would generate profit.

Fatuma quickly put this into practice. She borrowed and reinvested in livestock—expanding her goat stock from three to five—and improved inputs for her crops. At the end of the 2024 savings cycle, Fatuma earned $138 as her share of the group’s profit distribution. She reinvested $79 in three more goats and used the remainder on farming inputs and household expenses.

Fatuma taking care of her Livestock

She has since sold one goat for $33 (a 1.25x return within months), using the proceeds to pay school fees and purchase pesticides for her crops, demonstrating how savings group participation now supports both short-term liquidity and long-term asset growth.

“The education we received opened our eyes. Before, we were just saving money without a clear direction, but now we understand how to invest and grow. My life and our UPENDO group have completely transformed, and we are financially secure,” says Fatuma.

The model works because Fatuma is not simply receiving money. She’s contributing capital, accessing loans from the pooled fund and generating a return through livestock and farming. The group provides the financial structure; Fatuma applies it with discipline and foresight.

Fatuma with her UPENDO Savings group members

Her goals are now focused on growing the livestock business and encouraging other women to participate.

“I want to inspire other women in my community by showing them how joining savings groups can transform lives.”