Developing an Effective Financial Education Strategy for Peri-Urban and Rural Savings and Credit Groups

This paper presents the evaluation of the financial education (FE) curriculum used by SaveAct which provides an SCG model to rural and peri-urban communities in KwaZulu-Natal and the Eastern Cape in South Africa. It studies the curriculum's delivery to SCG members to help SaveAct to modify the program for more effectiveness. This report presents the consolidated findings gathered during field research and an assessment of SaveAct's FE against global best practices. Some of the main findings of this field research are listed below:

• SaveAct methodology is built on three pillars, namely the establishment and facilitation of SCGs, financial education (FE) and enterprise development training.
• Need to better manage debt and to avoid borrowing to repay debt, especially from mashonisas (local loan sharks)
• No SCG has completed the intended FE curriculum to have any significant measurable impact in terms of the program's expected results.
• Delivery structures should be easily adjustable to best suit each group's circumstances, while ensuring that FE is not considered optional.

The paper recommends steps to fundamentally embed the concept of financial capability in the SaveAct model and provides a roadmap for the implementation of these recommendations, drafted during a strategy workshop with SaveAct staff.