An evaluation of the extent to which housing group savings schemes facilitate housing improvements for low income groups within the Umsunduzi municipality area.

Abstract

Savings Schemes have assisted club members to improve their housing conditions. The study argues that funds from savings clubs for housing can make a tremendous contribution in assisting club members to improve their housing. The study established that club members experienced a problem of being unable to complete their housing improvement. This was due to the fact that funds from their savings were insufficient to allow them to complete their housing improvements and consequently club members had to obtain small loans from Agishana Credit Company in order to buy roofing material. The study therefore assumes that funds from savings clubs can work better when supplemented by small loans. The study uses three core-housing approaches, namely self-help housing approach, enabling approach and incremental approach. All these approaches call for housing beneficiaries to mobilize their financial resources to improve their housing conditions. According to these approaches the principal role of the state is limited to provision of basic services and infrastructure and necessary support. The study established that in order for housing group savings schemes to be more effective they need to supported by municipalities, nongovernment organization and other relevant housing role players. In the two case studies for an example, the withdrawal of municipality at BESG from supporting savings clubs for housing crippled the small functioning of savings clubs.