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The powerful support behind CECM: How can international NGOs change the lives of Burundian women?
In the heart of Africa, women in Burundi face numerous challenges, including poverty, lack of education and limited resources. To address these issues, Caisse Coopérative d'Epargne et de Crédit Mutuel (CECM) has been committed to providing microfinance services to low-income groups, especially women, since its establishment in 1995. Over time, CECM has become not only an important part of Burundi’s financial ecosystem, but also one of the pillars of international non-governmental organizations (NGOs) supporting women’s development.
“CECM enables women who do not have access to the mainstream financial system to gain access to capital to improve their lives.”
The origins of CECM can be traced back to 1995, when it was initiated by the Association for the Promotion of Women’s Economy (APEF) with initial funding from the Canadian NGO “Développement international Desjardins”. Although funding sources were briefly interrupted in 1996, CECM quickly adapted to the environment and merged with APEF in 1999, starting its microfinance business in Burundi. The success of this model is demonstrated by the fact that the group grew from a few hundred members in its early years to 16,876 members by the end of 2003, 75% of whom were women.
According to CECM, as of 2022, its deposits amounted to 64 billion Burundi francs and its loan balance amounted to 62 billion Burundi francs, showing a strong demand for funds. CECM not only provides basic savings and loan products, but has also developed a new product called "CECM Ni Akaravyo" that allows members to conduct transactions through their mobile phones, improving ease of use and financial inclusion.
“Our main goal is to encourage women to save and provide them with access to credit to fight poverty.”
Services provided by CECM include savings products, loans, and business management and health-related training. The availability of these resources enables low-income women to establish their own small businesses, which not only improves their economic status but also promotes community development. The report pointed out that CECM believes in the principle of "saving first and then borrowing", which reduces the risk of lending to a certain extent.
Although CECM has made remarkable achievements in the field of microfinance, in the face of the challenge of growing demand, CECM still needs external sponsorship to support its continued operations. According to the report, international NGOs such as Oxfam Quebec, Catholic Relief Services, the United Nations Development Programme (UNDP) and NOVIB have been providing financial and technical support to CECM since its inception.
“Thanks to this international support, CECM will be able to give women greater financial freedom.”
Meanwhile, CECM’s partnership agreement with the nonprofit organization Twitezimbere provides a guarantee fund that enables CECM to access additional loans and resources when faced with funding shortfalls. This not only alleviates CECM's financial pressure, but also enables it to effectively meet the growing demand for loans. The report shows that as of 2012, CECM has more than 20,000 members, 80% of whom are women.
CECM is evaluated as a well-functioning microfinance institution with high-quality services and good structure, which impacts the lives of women in many ways. Microcredit is often provided to groups rather than individuals, which not only strengthens women's cooperative spirit but also promotes their status in the community.
Today, CECM continues to bring changes and opportunities to women, whether it is economic independence, improvement of social status or growth of capabilities. As CECM’s services continue to expand, more and more women are beginning to break the cycle of poverty and move towards a future with more hope and opportunities. However, such changes still face challenges, particularly in terms of sustainability and continued access to funding.
When we see that CECM is having a profound impact on women's lives, should we think about whether such a microfinance model can be equally successful in other countries and regions?
