Strengthening resilience: Savings and loans groups help farmers in Timor-Leste tackle El Niño

By Armandina M. Amaral, Communications Officer, World Vision in Timor-Leste

Jamie and other members of his community’s Savings and Loans group harvest chillies. IMAGE: Armandina M. Amaral/World Vision in Timor-Leste

In the rural areas of the Bobonaro district, Timor-Leste, where agriculture is the backbone of community livelihoods, farmers can face immense challenges during prolonged droughts, which have been exacerbated due to El Niño events. Water scarcity has become a critical issue, forcing farmers to manually collect water from rivers for irrigation. This arduous process not only limits their ability to plant crops but also leaves their livelihoods vulnerable to an increasingly unpredictable climate. 

Through the existing partnership structure established via the Disaster READY program, the Australian Government has investing $3 million to help Timor-Leste and the Pacific prepare for and respond to the early impacts of El Niño. In Timor-Leste, World Vision has used these funds to support rural farming communities. One of the program’s most impactful initiatives has been the introduction of Savings and Loans Groups, empowering communities to build resilience against disasters and climate-related challenges. Like many in his community, local farmer Jaime Pinto’s productivity and income were severely hampered by the lack of proper resource.

“Before the Savings and Loans program started in our village, I had to carry water from the river in buckets to irrigate the crops in my backyard,” Jaime said. “It was incredibly difficult because I lacked a practical way to access water. I had to rely on World Vision for support.”

Jaime, now a member of the Saving for Transformation Ukalori Group, has experienced a transformative change in his life. “With access to credit from the AHP-supported Savings and Loans Group, I was able to buy a water pump. This pump makes it easy to water my backyard crops, and as a result, I earned over USD $500 this year from selling vegetables like lettuce, cabbage, and chili. The income has not only allowed me to repay my loan but also taught me to manage my money and save,” he shared. 

The impact of these groups extends beyond individual success stories. Januario, the President Ukalori Group, highlighted the collective benefits: “We are grateful to World Vision and the Australian Government for funding this disaster readiness project. The Savings and Loans Group in our village has taught us the importance of saving money from our farming activities and has provided easy access to credit for members.” 

Jamie and other members of his community’s Savings and Loans group harvest chillies. IMAGE: Armandina M. Amaral/World Vision in Timor-Leste

The Ukalori Group, established by World Vision through the AHP project last year, now includes 22 members (14 women and 8 men, including one with disabilities). Over the past year, the group has collectively saved USD $5,515 and distributed USD $969 in loans. These loans have been crucial in supporting a range of needs, from purchasing food during crop failures to investing in agricultural tools that enhance productivity. Manuel and Januario, for instance, pooled their individual loans to purchase a motorbike together, which has provided them with a means to transport their products beyond their villages and expand to new markets.

Martinha, another group member, expressed her gratitude for the initiative. “Thanks to our group, we now have access to loans, something that was difficult before. These loans help us buy food during crop failures and purchase seeds. The profits we earn allow us to repay loans and strengthen the group’s fund. We have even set up a seed reserve to ensure sustainability when World Vision’s agricultural support concludes.” 

The significance of this initiative is further emphasized by Domingos, a staff member from World Vision’s Bobonaro Area Program. “Previously, the community faced significant challenges in accessing credit. The Savings and Loans Group has addressed this gap, enabling members to purchase water pumps and food during drought periods. This year, during El Niño, the group’s unity and effective management have been instrumental in helping members respond to the prolonged drought,” he explained. 

Through the Disaster READY, World Vision and its partners have empowered rural farmers to adapt to climate challenges while building financial stability and resilience. The introduction of water pumps, improved irrigation methods, and access to credit has enabled farmers to maintain their livelihoods even during difficult times. 

These initiatives also foster a sense of community and shared responsibility. Members are not only improving their own circumstances but also contributing to the group’s collective growth. With savings mechanisms and seed reserves in place, the program ensures sustainability even beyond World Vision’s direct involvement. As prolonged droughts and the effects of climate change continue to pose a threat, the resilience demonstrated by farmers in Bobonaro serves as an inspiring example of how combining financial empowerment with practical solutions can transform communities.