SCGs: Real support for people affected by HIV/AIDS

Recent research suggests that SaveAct-led savings and credit groups (SCGs) are helping HIV-infected and affected women in the Eastern Cape to achieve greater financial security, with positive spinoffs for their health and general wellbeing.

A three-month study (download PDF here) led by British researcher Annie Rose Barber (pictured right) earlier this year and commissioned by Universitas journal and FinMark targeted 53 people, largely women, who were members of SaveAct-led SCGs in four areas in the Eastern Cape.  All participants were either infected with HIV or were caring for family members living with HIV. Most participants were home-based carers or support group members.

The research was aimed at understanding the role of SCGs in helping people to cope with the financial burdens precipitated by HIV-infection. It was also designed to assess the relationship between savings group and support networks for people living with HIV/AIDS and examine the role of savings groups in helping people to improve their health by raising their nutrition levels, living conditions and access to health care and medication.

Barber, who has a master’s degree in International Development and a particular interest in microfinance and gender issues, said she had been surprised by the positive findings that are emerging from her research.  “We deliberately encouraged participants to be critical of the SaveAct savings and credit group model, but about 98% were adamant that they would recommend SaveAct  to other people,” she said.

Barber’s findings reflect significant improvement in the financial security of participants. For example, the study found that SCG membership and access to the collective SCG savings fund had substantially reduced participants’ reliance on usurious loan sharks and loans from family members.  The study showed that only 1% of participants claimed to have used a loan shark this year, down from 19% who said they used a loan shark five years ago. According to Barber, 48% said they had started income generating activities in which they had invested borrowings from the group.

The findings also reflected higher levels of self-confidence among participants  -- particularly around the issue of HIV/AIDS, still the subject of stigma in parts of South Africa – and improved status in their households.

“All participants indicated their willingness to talk to me and others about their HIV status,” said Barber. “I also found that participants were vocal in asking for clarification of questions around the study.”

Barber said that while it was difficult for the study to make a direct link between SCG membership and an improvement in CD4 cell counts, most participants reported improvements in general health as a result of having the resources to follow a nutritional diet and protect themselves from the cold in winter.  “Participants consistently listed an improvement in health among the ‘best three things about SaveAct’”, said Barber.

The study found that the benefits of consumption smoothing or the ability of a household to withstand financial shocks – a key aim of SaveAct’s work – were evident in participants’ increased expenditure on home improvements, medical expenses and school fees.

Said Barber: “We can quite safely assume that because home improvements make up the largest loan usage, people have been able to achieve relative economic stability: if someone can invest in such things as home improvements this indicates that they are no longer struggling to meet basic needs such as putting food on the table.” The fact that a large proportion of loans were also taken for school fees, medical expenses and the repayment of previous debts was also encouraging, she said, as was the emphasis among participants on saving money as much as it was on taking loans from the groups.

“There are clear indications of material and other improvement in the live of participants,” said Barber. “People reported being more productive, and in control of their lives.” - Sharon Dell