Families in Bowe village in Malawi used to have only one option for accessing capital: loan sharks.
These loans came with high interest rates that were nearly impossible to repay, trapping many unsuspecting people in a cycle of poverty. When borrowers couldn’t make their payments, they’d have to turn over land, a significant asset, to cover their debt. Sadly, this kind of predatory lending is common in communities where banks are too far away or people don’t qualify for traditional loans or savings accounts.
After years of seeing neighbors fall into debt, the community ached for a better way.
“I used to struggle with financial difficulties with my husband. This resulted in us always being stressed, worried, and uncertain about the future,” says one community member named Dorica.
So, she and several brave women (pictured above) took a step of faith.
Starting something new
Though they didn’t know each other well, Dorica and her neighbors had heard how a savings group in a nearby village experienced amazing results. With training from their local church, they started their own savings group, naming it Malalanje after the abundance of orange trees in their neighborhood.
They began to meet weekly to build relationships, read God’s Word, save, and access loans—at a fair interest rate that they set themselves—to work toward their dreams. Little did they know they’d still be meeting eight years later!
Overcoming obstacles as one
Many of the women in Malalanje didn’t have a relationship with Christ, so it was difficult for the group to experience God’s presence together. Sometimes, conflicts arose between members.
But over time, through gathering each week for worship, Bible study, and prayer, more women got to know Jesus. They began to work through their challenges together.
Within their first few meetings, the women realized they needed to increase their savings. Knowing they could get more done collectively than they could apart, they started taking on day jobs together—and began their own farm!
With a plot of land given to them by the village chief, they planted corn, tomatoes, and peanuts.
The farm now provides additional food for their families, as well as extra income when they sell their crops at market. As their farm flourished, the whole community experienced greater food security.
Stronger together than apart
As members of Malalanje have saved and made loans to one another over the years, many have also started their own businesses, such as a grocery store, a donut business, and raising livestock. Now, members can meet basic needs—like school fees for their children, food, and medical bills—without having to take out risky loans. The group has also created a shared fund for unexpected emergencies, such as medical expenses or funerals. When an unforeseen expense comes up, they have peace, knowing they don’t have to face it alone.
Today, Malalanje even functions as a kind of bank for the community. Whenever the local well breaks down, the community is able to borrow from the group to repair it quickly—maintaining a consistent source of clean water for all.
Slowly but surely, predatory lending is becoming a thing of the past in Bowe village.
“We now experience a greater sense of peace, unity, and purpose. We believe this has come because of God’s presence in our group.”
Rachel, Malalanje savings group member
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