Sitting 40 kilometres away from the nearest town, Kasulu, and covering 1,200 hectares of land, Nyarugusu Refugee Camp is a secluded world of its own, for the 150,000 people living there.

Since it’s creation in 1996, this bare land of red earth has been given life with brick huts, shops, and markets emerging over the past two decades. Among one of the many red brick buildings is a barbershop—equipped with a mirror on the wall, two handmade wooden chairs, and a plastic basin lying in the corner. The owner is 38-year-old man, Olssa, who fled the Democratic Republic of Congo (DRC) 20 years ago.

“I need to attend the savings group meeting later so I am finishing my business early today,” said Olssa. The savings group he is part of is called “Empower Me,” established by Good Neighbors Tanzania (GNTZ), as part of a UNCDF programme that aims to improve refugee’s livelihoods by expanding their access to finance.

When he first started attending the meetings, Olssa was joined by only 6 other members. Seven weeks later, the group has grown to 20 members. Today they will have their regular weekly meeting—also a special day for Olssa.

“I am going to pay back the 30,000 TZS loan that I borrowed from our group a few weeks ago,” Olssa said while counting some notes in his hands. “I borrowed the money to pay for my son’s medical costs.” A mixture of worry and relief flash on his face.

“My son is 8 years old. A few weeks ago, he fell sick suddenly after eating some contaminated food,” Olssa continued, “I rushed to the clinic, but we need to buy medicine from outside [of the camp], which cost 30,000 TZS.” For the refugees who heavily rely on humanitarian assistance, 30,000 TZS (~$13 USD) is a big burden. Even with his own business, Olssa finds saving money difficult— when the business is good, he gets 3 or 4 customers per day; the profit instantly goes towards household items and food for the children. The idea of saving has barely crossed his mind.

“At that moment, I felt desperate. Then, I realized there’s one place that I could borrow money—the savings group! All the members agreed to contribute weekly and will allow each other to borrow loans when they are in need,” explained Olssa.

Indeed, easy access to loans could make a tremendous difference.

Due to the fragile and unstable environments as well as the lack of products and services available to the refugees, they are commonly excluded from the formal financial sector. Without a safe place to save and borrow money, they face yet another barrier becoming more resilient and self-reliant. A step towards better livelihoods, savings groups allow people like Olssa to meet their financial needs in a sustainable and dignified manner.

“I am just a regular person in the camp.”

As a husband and a father of six, Olssa is trying every means possible to provide for the family. “Nyarugusu is my home now. I have built my family here. All I can do everyday is trying to improve our life as much as possible. Thanks to the savings group, now I can see that happening.”