Evaluation of Organizational Development and Income Generating Activities for Women in Tokombia

Background

The Development Fund (DF), jointly with the Norwegian People's Aid, has been funding the Shemshemia training project in Gash Barka since 1996. In 2000, they decided to support complimentary project interventions and consequently agreed on a new project that focuses on women. Since NCEW already had a presence in the area, Tokombia and surroundings was selected as the project site.
The project's main objective has been to contribute to the development of small-scale economic activities in the informal sector at community level based on micro- finance and supporting training activities. Another objective was also organizing the women in small-scale enterprises as workers in the informal sector that could lead to their eventual organization into unions.

Purpose/objective

The main objective of this evaluation was to evaluate and document the implementation of the credit and its economic and social impact on the communities and forward a set of recommendations. The specific objectives of this evaluation were to: 1) assess the impact of the project interventions, compared to the objectives and expected results 2) assess the management of the project funds on transparency and efficiency in meeting the project objectives and 3) serve as a tool in designing the second phase of the project (i.e. 2006-2008).

Methodology

In addition to the review of pertinent documents and physical observation at the project site, a questionnaire was designed to assist in the evaluation of the project at the head office, project area, local administration, women groups and credit and training beneficiaries to address the evaluation issues. The consultant thus made a-ten day field survey in Tokombia, Adi-Nana and Birar in Gash-Barka Region.

Key findings

- Extension of Project time: The actual credit component did not start until May 2004, based on the original plan of starting it in 2002, due to difficulties with finding a project coordinator. To that effect, NCEW and DF decided to extend the first phase by one year.
- Women Beneficiaries: Micro-credit in the sum of Nakfa 440,000 has so far been extended exclusively to 265 poor women organized in Saving and Credit Groups with 3-5 members in each group. More than half of them are heads of households including those married women whose husbands are not living with their respective families because they are drafted. As unanimously witnessed by the interviewed women themselves, the scheme has successfully helped these households to improve their food security, save some money and own ruminants. These women proved to be credit worthy as this was indicated by their nearly zero default rate (i.e. no delays in credit repayment) and by their up-dated re-payment status.
- Project components: The project area is endowed with grazing land for agriculture and livestock raising. Tokombia as town and its surrounding villages are also suitable for trade and service. There are very few who used the credit for sesame production, as agriculture is generally a failure when it is rain-fed.
- Project staff: The project staff in general, and the project coordinator in particular, have performed commendable jobs in: 1) reaching a large number of beneficiaries (i.e. 23% of all the households in project area); 2) management of the funds; and 3) monitoring and follow-up of the scheme.
- Project funds: Although financial reports have not been prepared as required by the project document, independent professional auditors have regularly audited the annual financial statements of 2002-2004.

Recommendations

- Savings and Interests: No decision has been taken concerning the amounts saved by credit beneficiaries. There is a need for a clear policy on the treatment of saving accounts.
- Collateral: All members of a savings and credit group have been receiving the credit simultaneously. This system has so far worked well with a small amount of money and among all women groups. Upon expansion and scaling up of the credit size, it important to note that the collateral system may run the risk of default by one or more of the members of a group in payment. A system of lending to the members after the first one fully pays the loan is therefore advisable in the future for the viability of the scheme.
- Credit Policy and processing: Many women clients who succeeded as the result of the credit scheme are requesting more funds. Increases in loan size can take place when more money is raised from donors and the communities.
- Loan Administration: shortage of efficient communication channels delays instructions from head quarter to the field levels. This in turn delays granting loans and creates lack of confidence among the potential clients. Fixing definite time interval of loan granting system is essential.
- Cash Collections and deposits: Money collected is not deposited in a safe. The field staff members often personally take the money collected from Tokombia to Barentu. It involves high risk to the scheme and the staff. An arrangement must be made with the local administration concerning the safety of money including placing a safety vault at the office.
- Injection of Additional Credit Fund: The number of potential borrowers is more than the supply of funds available for the project. For the alleviation of poverty, solicit additional funds in the form of grant fund to supply new loans within the project area.

Comments from the organisation

Any evaluation is produced within a very limited framework with regards to the composition of the evaluation team, its time available, its access to information and how it analyses the information received. Furthermore, any social reality can be analysed and presented in many different ways, among which an evaluation represents only one. Hence while this evaluation report may be useful as a tool for general learning, it has limited value as a source of information about the particular projects and partners in question. We urge any reader to consult the partners involved or Development Fund before applying this information in a way that may affect the partners and the project.