The Role of Self-Help Groups in Enhancing Urban Livelihood Assets: A Case of Lideta- Kirkos Sub-Cities’ Self-Help Groups

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Date

2016-12

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Addis Ababa University

Abstract

Urbanization is taking place in Ethiopia with rapid urban population expansion, and poverty becomes more urban. As more of the poor live in large urban centers of the country, there are high levels of poverty, unemployment, and social vulnerability particularly in Addis Ababa (the capital city). Shocks and stresses such as price rise of food items and HHs’ income reduction impact the city’s poor more severely due to preexisting vulnerabilities, social inequality and lack of opportunities. On the other hand, with local ownership and control, the People’s Institution also called (Women) Self-Help Groups (SHGs) Approach is considered as an ideal model for enhancing livelihoods of their women beneficiaries who are often excluded from livelihood opportunities. Yet, the role of SHGs as livelihood assets and as initiative of economic empowerment hasn’t been properly designed and implemented by the regulatory and policy organs. Basically, there is very limited empirical evidence on SHGs’ contribution of livelihood assets. With these premises, the study has explored the role of women SHGs in improving urban livelihood assets of beneficiaries (mainly poorer women HHHs). Data required for the study were collected from both primary and secondary sources. The study employed qualitative and quantitative research design and data collection methods. The approach for data collection was a case study on women SHGs operating in Lideta and Kirkos Sub-cities in Addis Ababa, and the study also employed panel HH beneficiaries’ survey data drawn from Lideta-Kirkos SHG survey conducted in 2013 and 2015 by LCO (SHG implementing NGO in the two Sub-cities) in collaboration with other institutions. The assessment revealed that the initiative has indeed improved livelihood assets of the beneficiaries mainly by building skills of beneficiaries, strengthening their social network, creating access to finances and IGAs, improving housing and HH furniture, and promoting grassroots decision-making. Yet, SHGs are not panacea by themselves and faced some barriers such as: members’ low level of literacy and commitment as well as absence of formal registration as legal entity. The study concludes that the SHG Approach has proved to enhance livelihood assets of the beneficiaries in the study area and has become way-out for addressing vulnerability to poverty of the beneficiaries despite the barriers they encountered. The study calls for interventions that scale-up and replicate the positive lessons and solves the barriers to SHG initiatives

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Keywords

Self-Help groups

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