The Resilience of Credit Unions after a Disaster

On Boxing Day in 2004, a devastating Tsunami impacted the coasts of South Asia, Indonesia and East Africa. This disaster required international and domestic efforts to rebuild the affected areas. Following the immediate recovery period, Cufa worked in Sri Lanka to reconstruct and rebuild local credit unions. The Tsunami had enacted a devastating toll on the local credit unions, with over 200 destroyed in Sri Lanka. 

In 2006, Cufa worked with the World Council of Credit Unions (WOCCU) to undertake the project, welcoming the expertise and funding Cufa brought to the project. WOCCU responded rapidly to the disaster, having an extensive history in Sri Lanka, conducting a wide-ranging consultation process with communities impacted by the disaster. By doing so, a plan was developed to rehabilitate and rebuild the credit unions. As part of this plan, Cufa conducted a monitoring visit, interviewing project beneficiaries across Sri Lanka. 

Cufa saw an enthusiastic comeback by the credit unions, with the credit union in Kosgoda seeing a 50% increase in membership. Their assets increased totalling R 2.6 million, up from R 1.6 million before the Tsunami. Cufa also assisted in the reopening of eight credit unions