At ADS Northrift, we believe that lasting change begins at the grassroots, within the communities themselves. One of the most effective ways we’ve seen lives transformed is through Community-Based Microfinance (CBM), a model designed to empower rural communities to take control of their financial well-being.
What is CBM?
Community-Based Microfinance (CBM) is a locally-driven financial system where members of a community pool their savings together and provide small loans to one another. It is not dependent on banks or formal financial institutions, making it highly accessible for rural populations.
These groups operate on trust, transparency, and shared responsibility, and are often formed around shared goals such as farming, small business development, or household improvement.
How CBM Works in ADS Northrift
Through our programs, ADS NorthRift helps communities to form, train, and grow CBM groups. We go beyond just mobilization, we equip each group with essential financial tools and knowledge to manage their funds effectively.
Each group receives:
📘 Loan Books – To record individual and group loans, repayment schedules, and interest.
📝 Member Registers – To keep clear records of group membership and attendance.
💵 Transaction Books – To log savings, disbursements, repayments, and fines transparently.
In addition, groups are trained in:
Basic financial literacy
Leadership and governance
Conflict resolution and accountability
Business planning and entrepreneurship
Why CBM Matters
CBM is a catalyst for economic independence and social empowerment. Here’s why it’s so impactful:
✅ Promotes a culture of saving: Members learn to plan and prioritize their finances.
✅ Increases access to capital: Especially for women, youth, and smallholder farmers who are often excluded from traditional banking.
✅ Builds community trust: Group accountability fosters integrity and teamwork.
✅ Supports income-generating activities: Small loans often lead to big changes in farming practices, small businesses, and household welfare.
✅ Prepares communities for formal finance: Many CBM groups eventually grow into SACCOs or cooperatives.
How You Can Embrace CBM
Anyone can become part of this movement! Whether you’re a farmer, a local leader, or part of a faith-based group, CBM is accessible and impactful. Here’s how you can get involved:
Form or Join a Group: Gather with like-minded community members and express your commitment to growth.
Get Trained: Reach out to ADS Northrift for training, guidance, and the necessary materials to get started.
Be Consistent: Regular meetings and disciplined record keeping are the backbone of a successful CBM group.
Think Long-Term: CBM isn’t just about today—it’s about building a better tomorrow for your family and your community.
At ADS Northrift, we see firsthand how CBM is transforming lives. It’s a proven, people-driven model that turns financial exclusion into empowerment. As we continue to walk alongside communities, we are committed to expanding access to CBM, building resilience, and unlocking potential.
If you or your group would like to learn more or get started, please contact us or visit your nearest ADS Northrift office.
Together, we can grow not just crops, but communities. 🌱
