As the sun was setting on Nyarugusu refugee camp in the western region of Tanzania, a young woman walked down a dusty path winding between low-lying houses. In her right hand she held a cluster of synthetic hair, the black strands brushing against her leg.
“I braid women’s hair in the camp for money. For now, that’s the only way for me to earn an income.”
This had become the status quo for 26 year old Ashura since she arrived at the camp 20 years ago with 65000 other Congolese refugees escaping civil war.
“There are very few ways to earn a living in the camp, I just do what I can to survive,” Ashura said while twirling the hair around her finger.
© Market in Nyarugusu camp
Due to the encampment policy in Tanzania’s refugee camps, Ashura is unable to leave the camp and seek formal employment. With the added barrier of no government-issued ID, she is also unable to access formal financial services which would allow her to open a bank account, save or take a loan. What income she does earn by braiding hair she saves with her local savings group. The name of the savings group is ”Umoja” which means unity in Swahili.
“It’s a suitable name you know, I trust all the members in the group. Saving together with other people makes it easier.”
The savings group members meet once a week in a makeshift wooden structure decorated with handmade mats rolled out on the ground.
“Thanks to the savings group I’m focused on setting aside a little bit of money every single week. If I keep this up I will soon be able to buy hair products for my business.”
Being part of Umoja allows Ashura to keep her money in a safe place while also learning about money management. The weekly deposits are placed in a safety box with three padlocks which require three different keys – each placed with a different group member - to be opened. The alternative for Ashura would be to save money in her house, an option that is not as safe and could be too easily accessed and used, or even stolen.
Ashura has been a member of the savings group for four weeks and has already saved 6,000 TZS [approximately $3]. She has hopes that once the group starts giving out loans, she will be able to take a loan that will help her open up her own hair salon.
“I used to walk these paths and think that this was the best I could do. The savings group has given me hope that I can create a better life for myself and my family.”
Although Ashura still has a long way to reach her goal, joining a savings group is the first step to a more stable economic future.
About UNCDF Pilot Program
The UNCDF Tanzania Refugee Access to Finance pilot program aims to enable refugees to access financial services through informal savings groups and develop their financial know-how through financial capability and digital literacy. Since the inception of the pilot in November 2017, UNCDF and its partners; MicroSave, Arifu, Fundación Capital and GNTZ, have managed to reach over 2500 refugees. With the help of the program the refugees have been able to save, borrow and invest in microbusinesses with the goal of improving their economic futures.
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