A case study of a Winning Business Systems project.

Rural Wealth Creation Project (RWCP) in KwaZulu-Natal funded by NOVIB
(Oxfam Netherlands)

Aims of RWCP

• To train 2000 women entrepreneurs over a period of two years;
• To ensure that at least 40% of these women, on completion of their training, would be able to run successful businesses and thus provide employment to others in their communities.

“ Zodwa Kunene shipping container in the background.”

Zodwa, a RWCP student, was unemployed for many years. In 1995 she taught herself to make ironing boards and folding tables. Today she is the only ironing board maker in Esikhawine Township.

A proud moment for our women, Mr. Gwala, head of the Department of Agriculture,
Kwa-Zulu Natal, presents a RWCP certificate to Mrs. Mabena. Our trainer, Mrs. Ndaba (middle) assisted at the graduation ceremony.

Introduction

RWCP is a partnership between Winning Business Systems and Novib to eradicate poverty in rural South Africa.

The RWCP work towards providing women opportunities to access financial resources, we open the doors to technical training that enables poor women to participate in the economy of our country and to support their families. The women who participate in the RWCP are mostly poor, but they are also the sustainers, caregivers of communities, and the backbone of their families and extended families. We work with the Zululand Crafters Association, Bambanani Business Network, and the Department of Agriculture in KwaZulu Natal.

The RWCP also works to strengthen the skills and roles of women in our area of operation so their lives will be more independent and their earning power more significant.

The RWCP wishes to achieve a change in the income situation of a substantial number of female entrepreneurs in South Africa. By providing basic business skills training, supported by a mentoring and after care programme to rural women, the RWCP wants to enable women to start their own businesses or to expand existing business ventures. This, in turn, would enable rural women to increase their income levels and become self-earning and independent.

We hope to achieve an increase in a diverse range of economic opportunities enabling women to move out of poverty through:

• Increased access to markets
• Increased access to sustainable sources of financial services
• Increased access to information technology and networks
• and Increased access to training and skills development in order to develop and enhance people’s capacities to take advantage of diverse economic opportunities

Why do we work in KwaZulu Natal

With 9,4 million people, KwaZulu-Natal is the province with the largest proportion of females than male (53,1%). Sixty two percent of women in KwaZulu-Natal live in non-urban areas (SSA,1996a). In 1995 the province had a non-urban women unemployment rate of approximately 53%, compared to only 34% of men (SSA,1996a). In KwaZulu-Natal 74% of the rural population do not have adequate water supply. About 94% of the provinces rural population do not have adequate sanitation facilities. Rural people depend mostly on wood for energy in their homes, many hours per week is spent collecting wood. The educational situation is worse for women in KwaZulu-Natal, 21% have received no education at all (SSA,1998a). KwaZulu-Natal is also one of South Africa’s three poorest provinces. In addition, it is one of the areas worst affected by the HIV/Aids scourge. Clearly, there is a great need for skills development in the area to counter poverty and provide an income to families losing breadwinners due to disease.

The Rural Wealth Creation Programme, funded by Novib, started in KwaZulu-Natal in January 2003. RWCP focuses, as its name suggests, on the economic empowerment of rural people - rural women in particular. The targeted beneficiaries have been economically marginalized over many years as a result of abject poverty, low educational levels, unemployment and geographical isolation.

Women are seasonal pesticide sprayers on sugar cane fields in KZN. They work long hours in harsh conditions and earn little money. They make and use their own sunscreen with clay to protect themselves during the hot days from the sun. We had a request from the pesticide women to teach them business skills.

“The RWCP is the only project that offers business training for poor and vulnerable people in the target areas where we operate. Most people in our country does not even know that a place such as Hlabisa exists, we cannot leave these people so isolated and cut off from information, nobody comes here but us!” according to our facilitator, Mrs. Virginia Bhengu.

This is where the RWCP provided training in Hlabisa. It was not ideal, no electricity or other luxuries, but nobody complained, all they wanted was to learn how to start a business or how to earn more money to ensure a better future for the family.

The Agricultural shows in the province brought big opportunities for our RWCP groups.

One hundred and seventy five of our RWCP women graduated during the agriculture show in Mtubatuba. Mr. Sgwebela, regional manager for the Department of Agriculture hands over a sheep, as a gesture of appreciation to Inkhosi Mkwanazi.

Our Groups from Zamimpilo, Hluhluwe, St. Lucia, Nkodibe, SoMkhele, and KwaMsane are waiting to receive their certificates.

On the left, Mrs. Gugu Sithebe, RWCP facilitator and Mrs. Virginia Bhengu, at the entrance of the 2 days district agricultural show held in Empangeni. Our students had a great marketing opportunity over the two days and they established very good networks and contacts for their businesses.

Poverty

The prospective entrepreneurs face tremendous difficulty to access start-up capital - even if they need a few hundred rand to buy equipment or raw materials for production purposes. The majority of the participants are very poor as a result of both a poor education and limited job opportunities.

Another dimension of poverty also surfaces due to their isolation from urban areas. They do not have the exposure to develop ideas that would sell outside their own immediate communities. We have worked very hard in 2003 to organize more value added workshops, excursions to take groups to see products at shows and product development workshops.

Crime

Crime is a problem in the area where the programme is at work. Hijackings are common. As a result trainers cannot travel after dark and should not travel on their own. Even the participants suffer as a result of the crime situation.

Trainer Thulani Hlengwa extensively reports the following about the Dondotha project:
“People want to improve their lives and chances on earning money for themselves and families. We have hundreds of people especially the youth in this area that was very excited about the RWCP working in the area. However, crime is a problem...This area is crime infected. In the first five days I was there, I witnessed three fights, two gunshots and many quarrels. Even the trainees are not at ease when they hear a sudden noise.... They have already lost many potential supporters in development because of crime. They are afraid that the RWCP may leave them too... They say even the top officials in the police force have been informed about the crime situation.”

Zululand Crafters Association

The Zululand Crafters Association is being run by Mrs. Kushu Dlamini

At the Rurual Crafters Convention, 67 groups came together to exhibit and trade their crafts.

One of our RWCP students, Mrs. Cingiwe Sibiya with one of her hand made crafts in her hands. The Development Bank of Southern Africa sponsored the event and ordered some of Mrs. Sibiya's crafts as corporate gifts.