Promoting Inclusive Markets and Financial Systems
The MasterCard Foundation works with visionary organizations to provide greater access to education, skills training and financial services for people living in poverty, primarily in Africa. As one of the largest private foundations its work is guided by its mission to advance learning and promote financial inclusion to create an inclusive and equitable world. Based in Toronto, Canada, its independence was established by Mastercard when the Foundation was created in 2006. For more information and to sign up for the Foundation’s newsletter, please visit www.mastercardfdn.org. Follow the Foundation at @MastercardFdn on Twitter.
This study investigates the role of Saving and Credit Groups (SCGs) in improving the copuing strategies of poor, rural households affected by HIV/AIDS. Today, more than 5.6 million South Africans are HIV positive. Every day around 1,000 of these people die, while at the same time, more than 1,200 become newly infected. With most stakeholders looking to the health sector for solutions there is a lack of practical livelihood strategies for people to weather the debilitating shocks caused by the disease. These shocks force vulnerable households to employ irreversible coping strategies and threaten to trap them in poverty.
This study presents important evidence of consumption smoothing and improved coping mechanisms among people affected by HIV/AIDS who are members of SCGs. Stable levels of consumption among participants suggest that they are more protected from insecure and volatile flows of income and are more able to meet basic household needs. Results indicate that coping strategies have been strengthened, and overall vulnerability to the impact of adverse shocks has been cushioned. With this target group being largely typical of rural populations affected by HIV/AIDS in South Africa, it is likely that the same impact can be achieved on a much larger scale and there is thus great scope for project replication in other areas.