Being a member of a Savings and Credit Group

Ms Nozamile Magadla is a member of Nomzamo savings and credit group in Ndlambe village, a rural community located near the Great Fish River in the Ngqushwe Local Municipal District of the Eastern Cape. The savings group was established on 12 March 2013 and currently has thirteen members, all of whom are women.


Nozamile is unemployed and receives some financial assistance from her family. She decided to join the savings and credit group when it was established and it gives her the opportunity to save between one and five shares per month at a value of R20.00 per share. This share value was set by the group members based on what they felt they could afford. Nozamile felt it would be a wise decision to make this commitment to saving on a monthly basis so that she could meet the pressing needs of her family.

As she explains in her own words:

“My children told me that they wanted to build another house. I really appreciated that they did make a start but the progress was very slow. Then I thought to myself that this is not an impossible task for me as a woman. I went straight to my savings and credit group and requested a loan to cover some building materials and to pay the builders.

While we were nearly finishing the house (the last thing needed was the plastering) I received a phone call from Plettenberg Bay to say that my son had fallen ill. I went straight to my savings and credit group and requested another loan to cover the transport costs to go to him and to pay for medical costs. Because I had already repaid my first loan on time they were able to approve this. After a week my son passed away.

Even in this darkest time of my son’s funeral the group members supported me fully. I’m happy and very grateful to the group for the help and that I didn’t have to run to loan sharks.

My group share out is on the 11th March and I have 60 shares”.

Two weeks after the group’s share out, the Angus Gillis Foundation asked Nozamile for permission to use her story. The group’s share value had increased to R32.00 per share with the interest generated by repayment of loans. Mama Magadla received R1920.00.

God is great! I have been able to buy 26 bags of cement with my money I have been saving for a year. Soon my house will be finished with the power of my savings and credit group.

My confidence has grown and improved. I’m willing to share my knowledge with the community when they want to know things about savings and credit groups.”