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The amazing transformation of microfinance in Burundi: How does CECM help women break the shackles of poverty?
In Burundi, a country with poverty and poor economic environment, microfinance has provided a glimmer of hope for many people. Caisse Coopérative d'Epargne et de Crédit Mutuel (CECM for short) was founded in 1995 to provide savings and loan services to low-income people, especially women. This organization driven by women is quietly changing the country's economic landscape and helping women break the shackles of poverty.
Historical review
CECM was originally initiated by the Association for the Economic Advancement of Women (APEF) and was approved in 1995. Initially, CECM received financial support from the Canadian NGO Desjardins for International Development (DID). However, after DID withdrew from Burundi in 1996, CECM developed on its own and merged with APEF to further expand its business.
By the end of 2003, CECM had more than 16,000 members, 75% of whom were female. This shows its importance among women. With the expansion of its business and the introduction of microfinance regulations, CECM received approval from the Central Bank of Burundi in 2006 to become a formal cooperative savings and mutual credit fund.
Goals of CECM
The purpose of CECM is to encourage personal savings, especially among women, and to allocate funds to support activities that help reduce poverty. In addition, CECM provides financial and non-financial services such as technical advice and management training to promote the development of the overall economy.
The basic principle is to save first, then borrow.
Women’s financial freedom
CECM's loan services are especially targeted at women, and loans are usually provided in groups. Past reports show that female borrowers account for 70% of all CECM borrowers. This shows that CECM is not only providing funds, but also changing women’s control and participation in the financial system.
To obtain a loan, women must first open a savings account and be a member for at least six months. This requirement not only encourages women to save but also improves their economic capabilities within their families and society.
At CECM, the amount women can borrow is usually between 100,000 and 200,000 BIF, with a low interest rate of 8%.
The challenge of addressing funding needs
CECM faces the challenge of loan demand exceeding members' savings. In order to meet this challenge, CECM not only relies on members' savings, but also relies on funding from external donors and maintains good cooperation with international non-governmental organizations (such as the United Nations Development Program, etc.).
In addition, CECM has signed a cooperation agreement with the internal non-profit association Twitezimbere, which not only improves the effective use of funds, but also provides support in the loan recovery process. In this way, CECM can rely on Twitezimbere's resources when funds are tight to ensure continuity of service to customers.
Future Outlook
With the launch of the latest product "CECM Ni Akaravyo", CECM has extended its services to the mobile terminal, providing members with more convenient financial services. Through the mobile app, members can now conveniently carry out operations such as deposits, withdrawals and transfers.
This not only improves the accessibility of financial services, but also allows women to better control the use of their funds. Whether it is small loans or fund management, CECM adapts to market needs through continuous innovation and focuses on improving women's economic status.
In the future, CECM will continue to strive to enable more women to have financial freedom and autonomy.
CECM’s transformation and development are not only the epitome of microfinance in Burundi, but also part of the global women’s economic empowerment movement. Through these efforts, women are not just economic players but agents of social change. Will they be able to eradicate poverty and achieve greater economic independence?
