Figure: Pan Khayay women’s savings and credit group at the end of the first banking cycle meeting

It was a busy day for the Pan Khayay women’s savings and credit scheme group in Konegyi village, located in Magway Region. The five committee members attending the group meeting were carefully preparing presentations summarizing the group’s financial statement for the last six months, including key aspects such as total loans issued, interest rates charged, allocation of dividends, and an honest discussion of both successes and challenges.

As they worked, potential new members arrived, eager to learn about the opportunities available through the group and to consider joining for the upcoming banking cycle.

Observers from FAO Myanmar and its implementing partner CESVI attended the meeting to listen to discussions regarding the conclusion of the last banking cycle. They engaged with the committee members as they shared insights about the group’s achievements, challenges and future plans.

Founding the savings group

In March 2024, a group of women from Magway Region convened with CESVI to establish the Pan Khayay savings and credit group, aiming to improve the overall well-being of members. By saving small amounts biweekly, they created a revolving fund that would enable them to access loans at a low interest rate of 3 percent. This initiative aims to empower women to launch new businesses, leveraging the investments generated from their collective savings.

Each member of the Pan Khayay group had different experiences and expectations.

For group leader Ma Khin Soe, the negative impacts of existing loans were part of the story. “I witnessed the burden of high interest rates from external lenders in my village. This reality drives me to lead the group and strive to create a sustainable and supportive financial environment in my community,” she said.

The accountant, Ma Swe Swe, and the treasurer, Ma Thida shared an expectation of launching a small group-run business that processes oil from locally produced sesame seeds, contributing to the village’s economy while creating off-farm livelihood opportunities for their families. Such expectation came from the formation of women saving and credits group, which allows some small amount of loans to start the business, and business model training and motivations.

Ma San Aye, the group’s auditor, has been inspired by the training opportunities offered by CESVI, including topics such as bookkeeping, accounting and microbusiness management. She believes this new knowledge can bolster her skills.

Among the members, there is a single mother caring for eight children while working as a casual labourer. She sees the group as a crucial financial safety net in case of any health emergencies, offering her support during challenging times. Each story features the diverse motivations that bind these women together on their journey towards empowerment and resilience.

Reflections on the first banking cycle

Group leader Ma Khin Soe reported that the group has been saving MMK 2 000 (USD 0.95) every two weeks, achieving a total of MMK 769 400 (USD 367) as revolving funds within the six-month banking cycle. The group has issued a total of 11 loans, amounting to MMK 1 230 000 (USD 586) (with individual loans ranging from MMK 50 000 to MMK 100 000, or USD 24 to USD 48). The loans are offered at an interest rate of 3 percent and are used to cover expenses related to agricultural inputs and family health.

Ma Swe Swe, the accountant, commented: “Collecting savings from each member and repayments per the schedule from loan recipients is not challenging. However, some members frequently miss the biweekly meetings or arrive late. In these cases, the leader and active members collect a fee to contribute to the group funds.”

Planning for growth

The first banking cycle experience has collectively empowered the women in the group to enhance their financial management capacity. At the end of the first bank cycle meeting, they decided to increase their biweekly savings from MMK 2 000 (USD 0.95) to MMK 3 000 (USD 1.43), and they are also seeking voluntary savings from members in the upcoming banking cycle. This strategy will enable them to boost the loan amounts they are able to offer to members.

Building on this decision, the leader and committee members presented their plans to launch a microbusiness start-up which would focus on oil processing and groundnut-sesame brittles of locally available sesame-groundnut materials. This initiative aims not only to enhance their financial management and economic prospects but also to reinforce their commitment to collective growth and women’s empowerment.