We recently followed up with this Kiva borrower; he is a 25-year-old single man from Lebanon. He owns diverse farming machinery, equipment, and tractors and there are lots of land owners asking for his skilled services. With his Kiva loan, he performed the needed maintenance on his agricultural tools. He became able to better serve his clients. He expects more growth in his business during the coming year where he is thinking of getting another loan to increase his revenues. About Vitas:
Vitas was established in 1999 in Lebanon as a micro-credit program funded by USAID, under the patronage of CHF International. CHF is a non-profit organization working in more than 35 countries. Evolving successfully to a separate company, Vitas today is a Lebanese financial institution specialized in microfinance. Vitas's goal is to contribute to the economic and social development of the community.
Vitas provides financial services to micro-entrepreneurs and low-income households to help them develop their businesses and improve their living standards. Vitas offers loans for small businesses, housing and consumer needs. Vitas's beneficiaries work in a variety of sectors and include activities such as handcraft, trade, services, small industries and agriculture to name a few.
Since Vitas's inception, over 41,000 micro-entrepreneurs and low-income households have benefited from its services, with more than 115 million US dollars disbursed representing over 81,000 loans. Supported by a dedicated team of professionals, Vitas currently partners with four local banks in more than 67 branches with an outreach spreading all over Lebanon, from Beirut and its suburbs, to the Bekaa valley, the South, Mount Lebanon and the North.
We wanted to let you know that Jose Adan has another loan posted on Kiva! Here's the description of their new loan:
José wants to make another investment in his business and is applying for a loan to buy vitamins, antibiotics, and other medicines that his customers need. He says that loans help him increase his inventory of medicines, so he has decided to strengthen his business by seeking another loan. His financial situation is improving, and his family is still the same size.
We wanted to let you know that Celia Del Socorro has another loan posted on Kiva! Here's the description of their new loan:
Celia is 39 years old, from a farming family, and completely dedicated to this work. Her husband now works as a construction worker and with this income they support each other with the household expenses. Thanks to God her children are continuing their studies, despite the obstacles that they faced due to the lack of funding for farming. However, little by little they acquired loans and repaid their installments on time.
Today Celia is requesting her eighth loan to maintain a plot of land sown with pineapples by buying fertilizer, urea and insecticides. This will allow her to offer better products to her customers, and in the future to augment her sowing of pineapples to two plots of land, thus make more profits to support her family.
Thank you for lending to Alice. She used her loan to service her van which she uses for transport purposes. She faced stiff competition from her business rivals and that made her lose customers and hence making her profits to decrease. She wishes to have a fleet of vans.
We appreciate the support that you have shown to our client.
Thank you so much for your generous support of Ugandan borrowers through Kiva Field Partner HOFOKAM!
HOFOKAM works hard to connect you (the lender) with borrowers, to screen and monitor loans, and to ensure that borrowers receive the support they need. It's a leading microfinance provider in Western Uganda, focusing on rural areas, and has been a Kiva partner for just over 2 years.
My job as a recent Kiva Fellow was to strengthen the relationship between Kiva and HOFOKAM by troubleshooting and streamlining the processes it uses to post loans to Kiva, and by clarifying and recommending systems and protocols to increase its efficiency and effectiveness.
Because Kiva is so committed to transparency and accuracy, there are many behind-the-scenes processes and systems that must be functioning correctly all at once. To finalize HOFOKAM's systems, I conducted random checks of 10 of its borrowers, verifying that the information posted on Kiva matched the reality in the field.
It was on one of these borrower visits that I met Tadeo (pictured). He's a farmer who lives near Fort Portal, Uganda -- arguably one of the most beautiful parts of the country. During our interview, Tadeo went to grab something to show me. What he brought back was truly a surprise. He had a booklet of projections and plans for the land he wanted to buy, what he wanted to plant, how much the seeds would cost, and even profit estimates. This is pretty remarkable in Uganda, and even the loan officer I was with was impressed. Tadeo's the type of entrepreneur who will go on to employ others, grow his business and ultimately lift more people out of poverty. This is the type of entrepreneur that Kiva is all about!
Tadeo was able to buy the land with the profits that his loan brought in. That way, he wouldn't have to rent it and could realize even greater profits. His business sense kicked in again when he told me that retailing produce was the business he used to be in, but profit margins were shrinking so he moved his focus to farming where profit margins are higher. He also seems to be on track to build a new house for his family. He already had the most expensive part -- the roof -- sitting behind his current house.
On behalf of all the borrowers and staff at HOFOKAM, I want to thank you so much for your generous support of micro-entrepreneurs in Uganda. I would highly recommend visiting this "Pearl of Africa," as Uganda is called, to not only experience the wonderful landscape, treks and animals but also the joy and smiles of the people. For more information on HOFOKAM, please visit its partner profile page. Also, you can help Ugandan micro-entrepreneurs even more by joining the Team HOFOKAM – Uganda Kiva lending team!
Thank you very much for your support of Faulu Kenya on Kiva.
Muskan Chopra recently spent 10 weeks working with the organization as a Kiva Fellow. During her time a Faulu, Muskan visited Josphat, a teacher, farmer, and Faulu borrower on Kiva. You can see his profile here: http://www.kiva.org/lend/353624
Muskan interviewed Josphat about his Kiva loan, and this is what he had to say. Your Kiva loans help entrepreneurs like Josphat reach their goals, support their families, and empower their communities.
You can read about more about Muskan's experiences on the Kiva Fellow's blog here: http://fellowsblog.kiva.org/author/muskanchopra/
Ibrahim has requested a loan from Al Majmoua in order to purchase agricultural supplies for his work.It was his first time to apply for a loan.
With your help Ibrahim offered good quality products.
In the future, he plans on expanding his business by purchasing a plot of land next to his and will plant other type of fruits and vegetables.
We wanted to let you know that Jose Adan has another loan posted on Kiva! Here's the description of their new loan:
José is asking for a new loan because he needs to invest in the purchase of a motorcycle for transportation for selling medicine in different areas of the department. This loan will help pay for the expense and make the purchase. With it, he will be transporting in a faster way to the areas where he needs to be.
The effect that the previous loan had was to help him grow his business by buying medications. It has allowed him to create a good clientele and improve his financial situation in his family.
We wanted to let you know that Alfred has another loan posted on Kiva! Here's the description of their new loan:
Alfred is currently applying for another Kiva loan because he wants to strengthen his business more each time and plans to use this loan to purchase a refrigerator, install electricity at his house, and add to his food stock for his cafe. With his Kiva loan he will make the investment successful and this is why he’s very competitive when he sells his cooked food and earns more each time.
Don Héctor tiene 41 años de edad, vive con su compañera de hogar en el departamento de El Paraíso en el oriente del país. Hace muchos años se dedica al cultivo de café que es su fuente de ingreso.
Este préstamo fue invertido en una pequeña planta solar.
El impacto que tuvo fue notable ya que la energía solar es muy importante para realizar trabajos por la noche en su casa de habitación del cual gracias a este préstamo es que está gozando de estos servicios.
Don Héctor ha cancelado su crédito de manera satisfactoria y espera que en los próximos años su finca siga creciendo para su sustento y en un tiempo no muy lejano solicitar un nuevo préstamo para mejora de su finca y así obtener mayores ingresos y comprarse una planta de mayor capacidad.
Alice has been busy with her loan. With the extra money she was able to buy more second hand clothes in bulk, which she resells at her store. In addition to selling clothes, she sells shoes, and handbags. Her store is well stocked and merchandised. One interesting note is her more popular items that she sells is croc shoes. When asked about her plans for the future she wants to get another loan so she can expand her business even more. She explained that being able to buy a greater diversity of goods, helps her increase customer traffic, thereby expanding sales. Her dream is to save enough money to buy land to build her own house.
Dear Lenders,
Kiva Partner Ameen s.a.l. has been funding loans on Kiva.org for over 3 years. Ameen s.a.l.'s Kiva loan program has grown significantly in size and scope during that time, helping borrowers access convenient loans to grow their businesses, fund higher education, and meet family needs.
Due to a very productive pre-holiday period, Ameen s.a.l. finished the 2011 holiday season with a great many loans on kiva.org. Now, some of these loans are facing expiration. For this reason, we are getting in touch to encourage Ameen s.a.l.'s previous lenders to support Ameen s.a.l.'s currently-fundraising Kiva loans (http://www.kiva.org/lend?partner_id=115&status=fundRaising&sortBy=Most+Recent). We would like to sincerely thank you for your support of Ameen s.a.l. borrowers in the past, and for any support you can offer now and in the future.
Best regards,
Ameen s.a.l. and Kiva
La Sra. Jessica es socia del banco comunal Corazón de María, vive por la parroquia del Valle, está situada al sureste de Cuenca, es famosa por su importante producción de maíz, gran parte de su territorio está dedicado a los cultivo de ciclo corto (maíz, fréjol, papas). Entre sus atractivos podemos destacar la laguna de Cochapamba (llenas de totoras), su gente mantienen la cultura y tradiciones de sus padres.
Doña Jessica se encuentra feliz ya que está bien en su salud al igual que su hijo y familia. Nuestra socia se encuentra estudiando la carrera de veterinaria y también se dedica a trabajar en una veterinaria, en estas actividades le va bien, su crédito lo ha invertido en la compra de codornices y le va bien en este negocio, en el pago de su crédito no ha tenido ninguna dificultad. La banca comunal le gusta por la facilidad del crédito.
No tenemos foto de nuestra soocia ya que en ese momento no deseaba que le tomemos una.
To celebrate the New Year, Ameen s.a.l. and Kiva would like to share one Ameen s.a.l. borrowers' success story with you. Ameen s.a.l. is very proud of the support that their Kiva loan product provides for Lebanese small- and micro-entrepreneurs. Ameen's Kiva loan is disbursed quickly (often in 1-2 days) and is smaller than many of their other loan products, with initial loan amounts between $ 300 and $ 1,200. This makes the Kiva loan particularly well-adapted to small business owners, who cope with unstable commodity prices, evolving client needs, and sudden, short-term business opportunities. Samir's story exemplifies the hard work and ingenuity of Ameen s.a.l.'s clients.
Samir is a Lebanese married man living with his wife and two kids in Borj Hammoud, a crowded area in the Matn region. He sells spare car parts since 1990, and has been working in the field for more than 20 years. Back in the early nineties, Samir had a BMW car and wanted to sell it, but the selling price was unsatisfying to him. After conducting a market research, he found out that disassembling the car and selling its spare parts would give him a better return, and so he did exactly that.
This was his first step in the business of selling spare parts. As years passed, he further expanded his business, opening his own shop and establishing a good reputation in the field. But with successes come setbacks. As new technologies invaded the market, traditional car mechanics found they were unable to adapt with the emerging market needs and many had to close up shop. This negatively affected Samir's business, since his main clients are mechanics.
In order to face these challenges, support his business and ensure the sustainability of his income, Samir needed to diversify his business offerings. However, to do that, he required capital. During a door-to-door promotion by an Ameen s.a.l. loan officer in the area, Samir was introduced to the Kiva loan product in 2010, to which he applied with the aim of fulfilling his need to diversify his business' offerings.
With the $ 1,200 loan Samir received, he purchased engine oils from bulk retailers at discounted prices and proceeded to benefit from their resale value, making a return on investment of $ 2,000. Thanks to the loan, he was able to diversify his inventory and consequently reboot his business with the profit earned. Nowadays, Samir is studying the possibility of opening yet a second shop and is optimistic about the future once again.
Greetings from La Paz, Bolivia. I arrived as a Kiva Fellow to work with Kiva partner microfinance institution Emprender. My work with Emprender focused on assisting with improving their processes from interviewing the Kiva Borrowers to posting loans onto Kiva.org. Emprender, which means Undertake in Spanish, tailors their products toward the economically active poor in La Paz, Cochabamba, and Santa Cruz, which are the three largest towns in the country. Focused on promoting first time business startups and solidarity lending, Emprender offers their clients the ability to take the first step toward economic activity, which is so vital to their livelihood. More established clients have the opportunity to take out larger loan amounts and "opportunity loans," used specifically when a business-changing opportunity is available for a brief moment of time. Emprender operates fourteen branch offices from the urban, semi-urban, and rural areas to reach the gamut of clients who need their services.
Non-Financial Services
What I found impressive while at Emprender was their dedication to non-financial services. Two medical doctors work fulltime in two Emprender branch offices. From my experience as a Kiva Fellow I have seen MFIs who offer great loan products, but I non-financial services offered are nearly just as important. Medical care is available in Bolivia, but a large divide exists surrounding cost and care between public and private hospitals. Emprender's Mission is to "improve their [client's] quality of life," and providing free medical consultations for clients and non-clients is a key factor in achieving that mission. The doctors provide in-house medical consultations, which includes a blood pressure check, ear/nose/throat check, and vital organ check – all of which are free of charge. The doctors also provide medical trainings to group loan clients. These group meetings cover issues related to women's health, breast cancer, nutrition, vaccination, anti-parasite medication, contraception, and family planning. In 2010 Emprender provided over 900 medical exams and provided around 50 training sessions each month to Emprender clients. Next year Emprender would like to expand their medical operations to another branch office in a lower income area outside of La Paz. One of the main ways that Emprender can afford to offer free health care, to both clients and non-clients, is by using the interest saved from Kiva loans (*How Kiva Works: Lenders receive repayment of their $25 loan, and the MFI receives the interest paid from the loan. This interest is a great benefit to the MFI and is used to fund other projects at the MFI or lower MFI interest rates, etc.). Part of the success and expansion of the medical program depends on the collected interest Emprender receives from these Kiva loans.
Story of a Borrower
Beyond the medical services provided, I would like to share with you a client who I was able to meet and interview. His name is Hugo, and he is a puzzle maker in El Alto, Bolivia. With his Kiva loan he purchased a skill saw to cut the intricate shapes of children's puzzles. Previously he was cutting all the shapes by hand using a small tricky saw. It would take him hours to complete just one puzzle, but now he can cut multiple puzzles in those hours. This loan essentially transformed his business from a small-time production to a main supplier for shops in El Alto. Hugo's dream is to purchase another skill saw and hire an employee (who would become his apprentice). He says there are plenty of people who want to work in his area and there is also high demand for his puzzles. Not only did his loan from Emprender boost his production, but it also got the momentum going in his business toward the growth he previously thought was impossible.
So, why fund loans through Emprender? With most clients not being able to take loans from traditional banks or financial institutions, due to high collateral requirements and credit worthiness, microfinance institutions are a significant part to the sustainability of businesses. Emprender is able to offer their clients an alternative to large banks and personally help their clients mitigate over-indebtedness through teaching programs on how to live a financially healthy life.
A loan made to an Emprender client ensures transparency and a dedication to the wellbeing of the client. Kiva Lenders are not only funding a client, but also (through the interest collected by Emprender) funding the non-financial services Emprender offers. One of which includes a soccer program for very low-income boys and girls in La Paz and El Alto. Loans also give borrowers the opportunity to take their business and life into their own hands and many economic barriers are lifted.
Thank you again for you loans to Emprender clients. I hope that you continue to lend through Emprender and to Kiva entrepreneurs in the future!
Sincerely,
Eric Rindal
KF15 Sierra Leone, KF16 Bolivia
For more information on my work in Bolivia, you read about my experiences on the Kiva Fellows Blog.
As a Kiva Fellow, I was placed with AFODENIC, one of Kiva's Field Partners in Nicaragua. My work was to provide support and transparency into the Kiva lending process. As you may know, all entrepreneurs on Kiva's web site are supported by local Field Partners, or micro-finance institutions (MFIs) like AFODENIC, who are Kiva's liaison between Kiva lenders and Kiva borrowers. MFIs choose which of their clients are eligible for Kiva funding, write and upload borrower profiles, disburse loans, collect repayments and write journal updates. AFODENIC is one of six Kiva Field Partners in Nicaragua and offers interest rates lower than many other institutions in the country.
You are receiving this e-mail because you have made a Kiva loan through AFODENIC and we thought you might be interested in learning more about this Kiva partner. AFODENIC is one of Kiva's most innovative partners in the region and they offer a wide variety of loan products to address client needs and mitigate poverty. AFODENIC's loan products are individualized to client's needs and range from typical business loans to Agricultural, Student, Institutional, and Housing loans. A large part of my job as a Kiva Fellow is visiting clients to both gather information and ensure transparency in the lending process. I found these borrowers' stories and loan use especially inspiring and evocative of the micro-loan products offered by AFODENIC.
AFODNIC offers a variety of Agricultural loan products with different repayment plans and loan amounts depending on the agricultural activity and preference of the famer. Francisco cultivates 1 Manzana (about 2 acres) of land in prime Pineapple growing territory. Pineapples are a major cash crop in Nicaragua but Francisco was barred from entering the lucrative market because of the costly inputs and long-term investment that a fully mature pineapple crop requires. The upfront investment for Pineapples is much more costly than other crops because they are grown from 'hijos' or small starter plants and require large amounts of fertilizer. Another challenge to a small farmer like Francisco is the 18 months Pineapples take to mature. AFODENIC has addressed the needs of pineapple farmers by offering bullet repayment plans, or loans designed to be paid back in a single lump sum after the harvest. A Kiva microloan of $225.00 enabled Francisco to invest in a pineapple crop and maximize the economic potential of his land. Francisco does not have to worry about paying back his loan until after he harvests his pineapples. AFODENIC offers agricultural loan products that understand the crops grown and design payment plans to maximize the success of small farmers.
AFODENIC also offers more traditional business loans to help entrepreneurs overcome investment costs, increase product inventories, or improve their technological capacity. Juana Ortega has been a seamstress for 40 years. She sews new clothes, makes clothes to order, mends, alters and fixes clothing for people in the surrounding community. She used her Kiva loan to purchase a commercial grade sewing machine that allows her to improve the variety and quality of clothes she can produce. Juana can gradually repay her loan from the increased profits that the new sewing machine allows her. Juana explained to me how she timed her loan to coincide with the holiday season when there is more demand for her services. The improved sewing machine has already allowed Juana to meet the increased demand and take on more work. A loan from AFODENIC enabled Juana to continue growing her seamstress business, respond to seasonal demand and overcome the technological barrier of a new more modern machine.
Housing loans are a very popular product from AFODENIC. Most families in Nicaragua build their home in stages and gradually improve their homes as money is available. Many families long term goal is to improve their home and it is one of the more tangible ways a family can measure their progress out of poverty. Managua was flattened by a 1972 earthquake and hit hard by hurricane Mitch in 1998. The city is slowly being rebuilt and housing and infrastructure loans have played an important role. Melania is a long term AFODENIC and Kiva borrower. A series of loans over an 11 year period has allowed Melania to gradually improve her home from a cardboard box to a spacious and comfortable home. To build her home Melania has invested loans to increase profits from her sewing and cosmetics selling business and also invested loans directly into home improvement projects. She used her last loan to begin construction on additional rooms she can rent out for extra income. Melania has come a long way from humble beginnings and microloans have been integral to her home building project and the greater security and comfort for her family.
Institutional loans, or loans backed by employee's salaries, are also an important part of AFODENIC's Kiva Portfolio. Institutional Loans automatically take repayments out of the borrowers monthly pay check and so are guaranteed by the borrower's place of employment. Institutional loans allow low paid salaried workers to access loans through a much simpler process and without much collateral. Aquiles Adalberto works for the city of Juigalpa as a dump truck driver and is currently working to repave a major city road. Though he has stable employment as a municipal worker he is still unable to use the high loan amounts and massive amounts of collateral and documentation required for a loan from a commercial bank. Aquiles is on his second institutional loan from AFODENIC and the loans have helped him both to improve his home and respond to life's challenges. He used a large part of his last loan intended for home improvements, to pay the hospital bills of his wife who is sick and requires gallbladder surgery. Because his loan repayments are guaranteed by his employer Aquiles has been free to use his loan to respond to shocks that have confronted his family. With his next loan he hopes to get back on track to improving his home.
Student Loans are an increasing part of AFODENIC's Kiva Portfolio. Student loans are used in a variety of ways by AFODENIC borrowers from buying supplies such as a laptop or school uniform to paying fees and tuition at Universities. Demand for Higher Education loans is especially high in Nicaragua because huge titling fees are levied on students before they can graduate and receive their degrees. Marisela requested her eighth loan so that she could buy a laptop computer and pay the processing and titling fees associated with her law degree. With her degree Marisela has been able to transition from working as a civil litigation clerk to working as a fully certified attorney. Marisela is a single mother of four boys and has used a series of loans and hard work to get where she is. Aside from student loans, Marisela has also used loans to improve her home and purchase materials to increase her income from a side business working as a seamstress. Marisela is a great example of both the resilience of Kiva borrowers the versatility in loan products offered by AFODENIC.
AFODENIC is constantly innovating and looking ahead. With your support they continue to expand their loan products and improve upon their goal to improve the conditions of poverty in Nicaragua. I hope you will continue to support AFODENIC's great work. Keep an eye out for AFODENIC Green Loans on Kiva coming in the New Year!
It has been an honor working with Kiva and the entrepreneurs in Nicaragua.
Thank you for lending to Lylian. She had requested for a loan of 20, 000 Kenya shillings to import clothes from Uganda. She repaid her loan and exited from Faulu Kenya because her group members would not meet on weekly basis as expected.
Therefore, she was not available to give us more information about her business.
As my time winds down here in Leon, Nicaragua, I wanted to reach out to you, as Kiva lenders, for a couple reasons. First, hopefully I can paint a clearer picture of the country and microcredit environment that you have been supporting; and second, I would like to give you some more information about the Kiva field partner, Fundación Leon 2000 (FL 2000), that manages the relationships with the entrepreneurs that your kindness is assisting.
Truth be told, Nicaragua was not my top choice for a country placement as a newly minted Kiva Fellow (my initial focus was much further south in the Americas). I had visited Nicaragua once before, and felt that I was familiar with what I was heading towards. Of course, visiting for a week of vacation is one thing; living and working in a country for almost four months is quite another.
As I was before arriving here in May, you are likely aware of the recent (and not-so-recent) history of Nicaraguan struggles. However, the result has been a country left with the second highest level of poverty in the western hemisphere (after Haiti).
When I signed on for my second placement as a Kiva Fellow (which will be in Guatemala), my first choice was to stay in Nicaragua. The country I have come to know is one with an exceptionally rich culture filled with an extremely intelligent,open, and friendly populace. Nicaraguans have been subjected to many injustices, both from external and internal sources, but they remain a very proud people.
As Kiva has shared on its website, the microfinance industry in Nicaragua has faced some significant headwinds over the last several years. At the forefront is 'No Pago', a movement led mostly by farming groups in the north that have refused to pay back their microcredit loans, and that are looking for relief from the government, the microfinance industry, and anyone else that can potentially provide it. The other major challenge to the microcredit industry in Nicaragua has been the global financial crisis in 2008 and overall stagnant economy since then.
Kiva's field partner, Fundación Leon 2000, has weathered both fronts relatively well. Concerning the former, FL 2000 has very little direct exposure to the delinquencies associated with the 'No Pago' movement. To that point, the delinquency rate for Kiva loans through FL 2000 is approximately 1.50% and the default rate is de minimis. However, the news surrounding the 'No Pago' movement has hurt the ability to raise external capital in the last several years. Additionally, the overall global financial environment has added to the fundraising difficulties. As a result, FL 2000's client roster and loan portfolio have decreased markedly in recent years. Nonetheless, FL 2000 has tightened its fiscal belt by instituting cost cutting measures such as a reducing its staff and minimizing the use of utilities in its offices and thus has been able to maintain a strong position in its seven principal markets (Leon is the main office, and then there are six branches, primarily northwest of Managua) and be well-positioned for growth as the environment becomes more stable.
While the current economic backdrop has indeed exacerbated an already challenging small business climate, there are still a considerable number of stories that confirm how helpful your loans are to these entrepreneurs. One of Fundación Leon's clients that I was fortunate to meet provides an outstanding example of what a small amount of capital ($300, in this case) and a lot of hard work can accomplish. Roger Antonio of Nagarote started several years ago as a tailor's apprentice, learning a trade that he hoped would help him support his family. With a small loan from FL 2000, he was able to branch out on his own to build his own clientele in the local markets. Now after a pair of subsequent loans (which he used to buy fabric, threads, needles, scissors, sewing machine oil and various other tools) and hiring two employees to assist mostly with selling the dress shirts he sews, Roger Antonio has plans to expand out of his home and into his own shop. While he consistently works long hours, six or seven days a week, Roger Antonio not only is able to provide for his family, but he does so feeling a great amount of pride in the business he is successfully building.
Of course, there are many other clients of FL 2000 that have similar stories like that of Roger Antonio. On behalf of the scores of Fundación Leon clients that I met, and the thousands that I didn't, I would like to thank you for your generosity and giving these entrepreneurs an opportunity to improve their lives and those of their families.
We wanted to let you know that Irene Wanjiru has another loan posted on Kiva! Many borrowers take out successive microfinance loans, meaning that after they have repaid one loan, they take out another loan to continue to grow their business. Some borrowers also take out simultaneous add-on loans along with their primary loan, and these loans are typically smaller and serve a different purpose than their primary loan.nnIf you're interested in lending to Irene Wanjiru again, you can see Irene Wanjiru's new loan at http://www.kiva.org/lend/348536.nnBecause of the way Kiva's billing system works, Irene Wanjiru may have fully repaid the previous loan to the Field Partner, but you may not have received the final repayments on that loan yet. If you have any questions about this, please email Kiva Customer Service at contactus@kiva.org.
Dear Kiva Lender,rnrnGrateful greetings from Costa Rica!rnrnBelow is a link to a detailed update on FUDECOSUR's village banks, and the lives they are changing for the better - THANKS to YOUR support!rnrn Bank-O-Mat Under a Hot Tin Roof: rnhttp://fellowsblog.kiva.org/2011/10/06/bank-o-mat-under-a-hot-tin-roof/rnrnMANY Warm Thanks and Pura Vida from Costa Rica!rnrnJulie KerrrnKiva Fellow, Class 16rnFUDECOSUR (Foundation for the Development of Southern Communities)rnSan Isidro, Pérez Zeledón, Costa Rica
Akylbek expresses his gratitude to all Kiva lenders who helped him by financing his loan. With the help of the loan, he was able to restart his activities and partly reach his last year level. It also allowed him raise his shop's sales and obtain new clients. Akylbek is full of energy and ready to continue his business activities with optimism and confidence.
Mol Bulak Finance would like to provide you with an update on your group of borrowers. For your convenience, we have prepared an interview with the leader of the group, along with an English translation of their responses. If you have any questions or comments, please feel free to respond to this update. Your comments are welcomed and are regularly reviewed by our staff.rnrnTo learn more about Mol Bulak and view a Video presentation about the organization, please visit: http://www.kiva.org/about/aboutPartner?id=135. If you would like to support and learn more about Kyrgyzstan and micro-finance in Central Asia, please join our Lending Team - Supporters of Kyrgyzstan - at http://kiva.org/team/kyrgyzstan rnrnrnInterviewer: What exactly did you use the loan for? rnBorrower: With money received from the loan I purchased potato seeds and fertilizersrnrnInterviewer: Do you think that the loan helped you?rnBorrower: Yes, the loan really helped me. I planted two hectares of potatoes, a hectare of wheat and a hectare of carrotrnrnInterviewer: What plans do you have for the future?rnBorrower: In the future I want to provide my children with a good educationrn
Visitamos a Violeta, por lo que su actividad económica es la venta de mercadería en general, ya que aquí son muy comunes para realizar las compras diarias que se necesitan en el hogar para la elaboración de comidas y otros productos que ofrece.rnrn Con las ganancias obtenidas ha mejorado sus ingresos y por lo que afortunadamente es muy importante para los ingresos necesarios. Ahora desea seguir dedicándose esta actividad.rnrnElla ha logrado aprender mucho de esta actividad, pues le ha dado la experiencia que tanto ha solicitado para mejorar cada día en los ingresos necesario de sus productos.rnrnDesde entonces tiene mayor comercialización le reconforta ya que sus ingresos aumentaran. Es así que muestra su agradecimiento con cada uno de las personas que le apoyaron siendo de mucha importancia el préstamo, con el tiempo ella espera tener más ganancias.rnrn Por favor, siga este enlace si desea aprender más sobre la Fundación León 2000http://www.kiva.org/about/aboutPartner?id=96rno para apoyar a otros empresarios con la Fundación León 2000 en este enlace http://www.kiva.org/app.php?page=businesses&partner_id=96&status=All&sortBy=New+to+OldrnTambién puede seguir el trabajo de la Fundación León 2000 en Twitter: @FundacionLeonrnY, por último, si esta actualización de la revista es en otro idioma, por favor siéntase libre de utilizar un traductor en línea como www.translate.google.com rnAnd lastly, if this Journal Update is in another language, please feel free to use an online translator likernwww.translate.google.com
Gracias al dinero del préstamo, Hermenegilda pudo comprar más abono y plantas de plátanos para incrementar sus plantaciones. Con el arduo trabajo que realizó, hizo que sus tierras se vuelvan más fértiles y productivas, lo cual le ha ayudado a mejorar la calidad de sus cultivos y ahora tiene mucho más compradores que antes. Asimismo, desea agradecer a MFP por el crédito obtenido, ya que sin el dinero del préstamo no habría podido mejorar sus cultivos. Considera que su banco comunal la apoyo bastante en el desarrollo de su negocio. En adelante continuará trabajando arduamente en sus cultivos, con el único fin de convertirse en una de las principales productoras de su pueblo.rn
Thank you for lending to Mongolian entrepreneurs through Credit Mongol, a Kiva field partner. Credit Mongol has been a Kiva partner for one year and recently moved from pilot to active status. As a Kiva Fellow over the past nine months, I have observed Credit Mongol adopting activities to increase their social performance impact. In my opinion, Credit Mongol's implementation of more socially responsible programs is partially influenced by their partnership with Kiva. rnrnCredit Mongol's Chief Executive Officer, Erdenezul Uranbayar, agrees and says: rn"Credit Mongol can gradually see our mission and goals becoming more similar to those of Kiva. Before this partnership, Credit Mongol was primarily focused on financial success which resulted in social performance successes. After working with Kiva for the past year, I'm happy to confirm that we've began to enhance our social performance initiatives as part of our primary goals." rnrnEstablishment of Disabled Persons FundrnrnIn years past, Credit Mongol has occasionally donated money to several disabled persons organizations in Ulaanbaatar. This year, Credit Mongol is establishing a special disabled persons fund where the microfinance institution (MFI) will place a portion of their annual profits. The exact activities this fund will support haven't been officially decided yet, but there is sure to be a detailed action plan associated with this fund. Currently, there are some talks of the different options – possibly offering very low interest loans with unsecured collateral to disabled people to begin businesses or creating a vocational training center for the disabled.rnrnCreation of Green LoansrnrnDid you know that Ulaanbaatar is ranked the world's 5th worst city for air pollution? The World Bank estimates that 60% of the air pollution comes from household heating systems and the fuel used to keep families warm in the winter. 62 percent of Ulaanbaatar residents live in ger districts, areas without access to basic infrastructure like running water, central heating, and consistent electricity. It's going to take large scale involvement from many organizations, like Credit Mongol, to address this problem.rnrnKiva recently announced the official addition of green loans on Earth Day. With access to Kiva's additional funding, Credit Mongol has created a new green loan product to assist in reducing poverty and air pollution in Mongolia. Credit Mongol is encouraging individuals to take action to alleviate pollution and will be offering green loans for a wide variety of purposes, such as:rn- To buy and install solar and wind power kits rn- To replace coal burning stoves with smokeless saw dust briquette stoves or gas stovesrn- To replace the current heating system with gas or electric systems, including installation of boilers, pipes, and radiatorsrn- To replace traditional sheep wool felt cover of gers with a modernized, warmer insulation coverrn- To replace a wooden floor with an electric heated floorrn- To produce or buy organic fertilizers,rn- To dig a water well for irrigation purposesrn- To install a bio-toilet, preventing soil and underground water pollution,rn- To buy a bicycle or hybrid carrn- To make crafts or other products from recycled materialsrnrnOne of Credit Mongol's first green loan borrowers, Tsagaantsooj, says that she's very pleased with this new loan option. Her goal is to make her home warmer for her family and also to drastically reduce the amount of coal her family burns in the cold winters. Last year, Tsagaantsooj began renovating her house but didn't have enough money to complete it because she didn't take into account some unplanned expenses and also the price of building materials rose. She tried to get a loan from a bank, but Tsagaantsooj says that the bank wouldn't offer her a loan because she doesn't have the required collateral, such as a registered, completed house.rn rnTsagaantsooj found Credit Mongol's green loan to be flexible enough to meet her needs. She would like to say thank you to all of the lenders who lent to her through Kiva.org to allow her this opportunity to complete her house in an environmentally-friendly way. rnrnCreation of Ger district Housing LoansrnrnThe past few months, Credit Mongol has been working with local agencies and government departments to develop a specific housing loan for low-income residents of ger districts. As you can see from Tsagaantsooj's story above, when individuals try to build their own home from scratch, they may run into a few problems – shortage of supplies, high cost of building materials, need of free time, need of construction knowledge, and also the building season restriction to warm months. rnrnCredit Mongol has teamed up with many partners, including local architecture design and construction agencies to offer pre-planned homes to ger district residents. When the borrower takes out this loan, he or she chooses which type of home from the pre-made designs, and the construction agency builds it within the summer time frame. The borrower receives an insulated, environmentally-friendly home in a few months and then slowly pays back the housing loan over several years. rnrnThis is an exciting year for Credit Mongol! You can make a loan to a Credit Mongol borrower and join the Friends of Credit Mongol lending team.rnrnWritten by Amber Barger, Kiva Fellowrn
I'm a Pittsburgh native and a public health nut that recently quit her job working in a non profit in Boston, Massachusetts to serve as a Kiva Fellow. And I was fortunate to be placed with Microfinanzas Prisma (MFP) in Lima, Peru at a very exciting moment. This year marks Prisma's 25th anniversary. Founded in 1986, Prisma is celebrating 25 years of providing social and financial services to clients in Peru. MFP, the credit department of the non-profit Prisma, was formed in 1994 "to provide integrated financial and non-financial services to disadvantaged communities to strengthen their capacities and promote sustainable social and economic development." They target the most vulnerable populations living in rural and per-urban areas and close to 30% of MFP's clients are living below Peru's national poverty line. MFP works to help clients increase their income by providing comprehensive services, which include not only financial services, but also non-financial ones, mainly education and training activities.
You are receiving this update because you have loaned money to a client of Microfinanzas Prisma. Kiva works with field partners, or microfinance organizations, around the world. Once a partnership is established, this organization can then post client profiles to the Kiva.org site and then you can carefully read through and select which client you want to lend to. MFP has had a successful relationship with Kiva for almost 4 years, making it one of the longest running partnerships on Kiva.org. During this time MFP has uploaded $5,948,250 worth of loans to Kiva with a 1.41% delinquency rate and a 0% default rate.
Kiva Fellows are paired with microfinance organizations for three to four months to fulfill a variety of tasks, all of which help to promote transparency between the field partner, Kiva, and you, the lender. During my fellowship I worked to complete a borrower verification (BV) for MFP. A borrower verification is like a mini audit that happens twice to once a year depending on the length of the relationship with Kiva and the default/delinquency rates. Kiva selects a random sample of ten clients that represents an organization's portfolio and sends it to us fellows. We, in turn, visit each and every client on the list to verify that they are who they say they are, that they indeed received a loan for the amount posted on Kiva's website, and to talk to them about their business and loan use.
Unlike your traditional auditor, I have not been passing my days sitting in offices shuffling through paperwork. Instead, I have spent my three months been traveling deep into the Andes and the jungles of Peru to find the clients. I rode my first motorcycle to travel two and a half hours into the Andes, I took shared taxis that drove through rivers in the jungle and spent my days and nights traveling by bus between the headquarters in Lima and the branch offices that do the ground work of vetting and interviewing clients to appear on the website, take their photo, and write up their story.
I have met a number of amazing MFP clients during my time as a fellow, but I will never forget meeting MFP client, Rosa Vargas, in Lima my first week as a Kiva Fellow.
Rosa is 56 years old and preparing to open her own restaurant in her house in the next year. How many of you would embark on a new business in your 50's? I don't know that I would. But as Rosa explained, she had been washing clothes for neighbors. The job was physically demanding on her and not very profitable. And she believed she had great recipes to share with everyone, "recetas muy ricas" [very tasty recipes] as she described. So, she did what anyone wanting to start her own business would do. She asked around about where she could get some start up money. And she got connected with PRISMA.
I talked to Rosa in the kitchen of another building because her house was under construction. The walls were being painted and she hoped to put in tiling and tables and chairs for her customers to sit and enjoy their meal. She invited me back to her kitchen as we continued to talk. And I snapped a few shots and showed her the photos I took. She laughed and grabbed my arm as she covered her mouth with her hand. Her happiness was overwhelming for me.
I will never forget my meeting with Rosa. Part of what drew me to KIVA was the idea of female empowerment that Rosa embodies. That women, with the help of MFIs like PRISMA, can realize their dreams of owning their own business at any stage in their life and attain the financial independence to care for themselves and their children. After meeting Rosa this idea I had became a reality.
Thank you all for supporting the hardworking clients and staff of MFP. To get more involved join MFP's lending team "Friends of Microfinanzas Prisma" to receive more updates from the field.
Pat has fully repaid her kiva loan and she is happy because kiva loan has made her business boom with customers and profits. she has fully repaid her kiva loan and she says thanks to all Kiva lenders that made this loan possible.
Abdukayum is thankful that his business was chosen to be supported by KIVA lenders. According to him, he used the loan to buy additional cattle and fodder for them. He hopes that his business will continue to grow to generate higher income. Abdukayum would like to personally thank Kiva and especially all his lenders for the support given to his business.
Thank you for supporting entrepreneurs in Paraguay. My name is Carlos Cruz Montaño and I recently concluded my work as a Kiva Fellow with Fundación Paraguaya (FP) in Asunción.
I have to confess that before this trip I had very little knowledge about Paraguay; my first web searches returned only information about the national soccer team but little information about the country. As compared to its neighbors, Paraguay is not a tourist destination and you probably won't find a travel guide solely dedicated to the country. Its main sector, the one that creates the most wealth, is agriculture and the majority of its exports are cotton fibers, soybeans, vegetables oils, flours, cereals, meat, and wood.
If you were to visit, you would notice on one hand that roads are not great, there are no trains in the country, there are not very many high-rises in the city and just a few look to be in good shape, and at many traffic lights people and children clean windshields or do tricks to earn a few coins.
On the other hand, you would notice that people are warm, welcoming, hard working and are finding ways to make a living, either by learning a trade and offering a service or by selling something.
This is where Kiva, FP and the loans you are funding come into the picture. The entry-level loans for "Comités de Mujeres Emprendedoras" enable groups of women that may have no credit history or income but want to start something to provide a better future for their children, with the help of relatives, friends and neighbors. FP's methodology requires women to work and learn together as a team; every loan cycle they receive training on topics ranging from gratitude and happiness to personal budgets and savings. Through several visits I was able to witness the progress of established groups like Grupo Prosperidad and Comité Tesapeará. Prosperidad had a president/leader that encouraged every member to rotate through administrative posts; through these rotations the women learned to help and respect each other for the roles and responsibilities they take. With Tesapeará I witnessed how close the group had become when one of the members thanked the group with tears in her eyes for supporting her while her husband was hospitalized.
At the individual level, many entrepreneurs are accomplishing their goals with your continued support. Juana Paola Valientes is a single mom who first started selling lingerie to coworkers from a small table outside the market. Now she has a nice, well-stocked store in the San Lorenzo market and has no problems paying school expenses for her son. Santiago Piris Peralta bought equipment for his tire repair shop and with additional income has been doing home improvements that his wife and children now enjoy. Maria Teresa Cuquejo started her beauty salon with a single chair back in 2000, today she also offers make up, massages and a sauna and employs her daughter and three hairdressers.
Recently many of you funded the first round of student loans on Kiva, some of them through Fundación Paraguaya. While microfinance is growing quickly in Paraguay, the student population is still underserved. It's common for students in Paraguay to work part or full-time and go to school at night; your loans are helping them pay tuition, fees and books at the beginning of the semester.
The latest loans from FP on Kiva are to install and/or maintain water facilities; the first loan for this purpose was Junta de Saneamiento Saguazú. In Paraguay the government doesn't have the capacity to serve all; as a result, neighborhood associations and small entrepreneurs build their own water wells and small distribution systems. This is where FP and your funds come into play by providing more resources to these groups to give water access to more people.
Your loans are doing much more than providing economic opportunities to small and microentrepreneurs. They are creating support networks and strengthening communities through women's committees; they are helping create jobs and allowing children to attend and stay in school to have a much better outlook. It takes time, education and resources to have an impact in people's lives. These are just a few examples to show how, with your continued support, great things are happening and can continue to happen. To conclude, I want to thank you and Kiva for allowing me to represent you when visiting borrowers, it has truly been a pleasure to meet so many and witness the change these loans are bringing about.
Sincerely,
Carlos Cruz Montaño, Kiva Fellow 12th Class
* Officially established a democracy in 1992 after a 30+ years dictatorship that ended 1989.
* Its territory is similar in size to that of California in the United States or Germany.
* With over 6 million people it is as populated as the state of Massachusetts
* In 2008 it generated 16.9 billion USD, equivalent to half of Wyoming's GDP.
* Paraguay scored 2.1 and ranks 154 out of 180 countries -second to last in South America- in the 2009 Corruption Perceptions Index by Transparency International.
* 4 out of 10 Paraguayans are classified as poor and almost two live in indigence.
* Kiva's only field partner in the country, Fundación Paraguaya has been posting loans since mid-2007 and thanks to your support is now raising around $190,000 every month.
Milagros is a 28 year old married woman. She took out her first loan in April 2009 which she fully repaid in August 2009. Milagros works as a receptionist but also sells clothing and catalogue cosmetics to friends and family. FINCA Peru gave her the opportunity to start her own business. Because of that, Milagros is now able to support the education of her younger siblings. From the training sessions provided by FINCA Peru, Milagros has learned to be responsible and how to handle domestic violence. She likes the ease of obtaining a loan and the possibility to save money. Milagros dreams of heaving her own house for which she is currently saving money. The attached picture of Milagros was taken on December 17 2010.
After continuing non-payment to Kiva, all active SELFINA loans have now been defaulted. Kiva will continue to pursue recovery of funds on these loans and apply funds proportionally to lenders if and as funds are received. However, Kiva staff have judged the likelihood of recovery on these loans to be sufficiently low such as to update the loan status of these loans to "defaulted".
For further details on this default, please see SELFINA's Field Partner page here http://http://www.kiva.org/partners/90/.
The purpose of this message is to update you on how Kiva funds are being used by Fundación D-MIRO work to serve low-income men and women who live in marginalized urban areas and to inform you about recent political events in Ecuador. Fundación D-MIRO has been one of Kiva´s field partners for 1 year. This means that in October of last year, D-MIRO began posting some of its clients on the Kiva website to raise funds for their loans. To date, you and other Kiva lenders have funded 931 clients, lending a total of $802,250.
As a Kiva Fellow for the past three months, I have had the wonderful opportunity to spend 6 weeks working with the energetic staff at Fundación D-MIRO´s office in Guayaquil, Ecuador to strengthen their work with Kiva and ultimately enable them to post more borrowers to Kiva. To help achieve this goal, I spent two days training loan officers in Playas (officially called General Villacamil Playas) to carry out Kiva processes and start posting more of D-MIRO´s clients to Kiva. Click here to see a short video about this experience.
Fundación D-MIRO Mision Alianza's mission is to be a microfinance institution that contributes to the improvement of the quality of life in marginalized areas of Ecuador, providing agile and opportune services that reflect confidence in its clients. Most of D-MIRO`s clients live in peri-urban, marginalized areas of the city. It is estimated that 40% of Guayaquil's ~2,100,000 inhabitants live in such conditions. This means that D-MIRO's services are in high demand, but it also means that their work can be very challenging. Check out this blog, which explains the difficulty of carrying a camera to get a borrower picture.
Working in this context is indeed not easy and I have the utmost respect for the staff at D-MIRO and their tremendous efforts to further their mission and provide loans to hardworking individuals.
As you may be aware, the political situation in Ecuador has received significant media attention over the past month. Ecuador has a long history of political instability; the country has had eight presidents since 1996. On September 30th, police protests brought Ecuador's major cities to a halt – some say this amounted to an attempted coup, others maintain it was a police protest over changes in their wage structure and nothing more. None of Fundación D-MIRO's offices were affected in the events of September 30th and as far as we know none of D-MIRO's clients were negatively impacted. While the security situation deteriorated rapidly that day, it also turned around equally as rapidly and most people were back at work in Guayaquil and Quito the following day, including the staff at D-MIRO. The protests, however, called attention to many of the social and political reforms enacted by President Correa over the past 4 years. From declaring some foreign loans illegitimate, to reducing the cost of higher education, his policies have won him both many allies and many adversaries at home and abroad. If you'd like to read more about Ecuador's political reforms over the past several years, check out this article from the Economist or this recent article from the BBC.
Especially in light of Ecuador's political changes, it is more important than ever for low-income individuals to have reliable access to credit through microfinance institutions like Fundación D-MIRO.
To search for currently fundraising D-MIRO loans on Kiva, click here.
No currently fundraising clients? Please check back soon! In the meantime, you can join D-MIRO's Kiva Lending Team!
When asked what they think of Costa Rica most people usually refer to the poster in their local travel agency, white palm beaches, virgin cloud forests, and toucans. Yet, there is a side of Costa Rica that the tour packages pouring out of San Jose regrettably fail to recount. The truth is, while eco-tourism and liberal trade agreements have brought prosperity to some in Costa Rica, many Ticos still live below the poverty line. Is ignorance bliss? We Kiva Lenders know better.
My name is Gabriel Francis, and I am a Kiva Fellow working with FUDECOSUR, a Kiva field partner based in rural southern Costa Rica. With only two weeks left of my fellowship I can hardly believe I will soon be trading tropical rainforests for the concrete jungle of New York City.
Kiva's Field Partner FUDECOSUR
As a Kiva Fellow, I was placed with one of Kiva's Field Partners to provide support and transparency into the money lending process. As you may know, all entrepreneurs on Kiva's web site are supported by local Field Partners, or micro-finance institutions (MFIs) like FUDECOSUR, who are Kiva's liaison between Kiva lenders and Kiva borrowers. They choose which of their clients are eligible to receive Kiva support, write and upload business profiles, disburse loans, collect payments, write journal updates, and respond to lender comments. Currently, FUDECOSUR is one of three MFIs in Costa Rica and the only to focus exclusively on Costa Rica's impoverished agricultural region.
Southern Costa Rica is ripe for micro-finance innovation. For a majority of FUDECOSUR's clients their Kiva loan is the first loan they have ever received, and in some cases ever qualified for. Despite an abundance of national banking options and agricultural credit unions in the area most loan terms are too steep to afford and bank branches too difficult to reach over the muddy unpaved roads. FUDECOSUR specifically tailors its loans to serve this marginalized client base. By operating on a village banking model FUDECOSUR empowers local communities to manage their own credit resources. With your neighbor as local banker, barriers to affordable credit are significantly lowered. Village banking also creates a bond of trust in these farming communities between the organization and its users, ensuring decision-making starts at the community level. As a non-profit organization all interest payments to this partner go to extending new credit opportunities to these local banks and providing additional educational services such as computer classes. To further facilitate its agricultural clients FUDECOSUR often extends longer than average loan terms, so that when a plague or heavy rains destroy the harvest, farmers have some flexibility in payment.
Riding around in FUDECOSUR's four wheel car over the past three months, I have interviewed over one hundred Kiva borrowers and visited nearly all of its 41 village banks. Since FUDECOSUR is a new Kiva partner and still in pilot phase a majority of my work has been spent on ensuring they are prepared to scale with a Kiva funding increase. The good news is, yes, I think we can expect to see a lot more Costa Rican borrowers on Kiva in the future. In addition to process refinement and borrower interviews, I have also compiled several Social Impact studies to measure FUDECOSUR's success in their mission to alleviate poverty. The results have been heart-warming.
Recently, Melvin, an entrepreneur in Santa Rosa de Brunca who took out a Kiva loan to purchase two cows, told me that he has really seen a difference in his community since FUDECOSUR came to town. The people have hope he says. Just by looking around he can see a difference. Houses are well kept and children go to school rather than work in their family's fields. Melvin then wondered out loud if Kiva lenders would like to help his community finance a potable water system, which they are in the process of building.
Client Profile: Doña Maria and her pigs
The Executive Director of FUDECOSUR, Leonardo, often starts off his meetings with local village banks by telling the story of a butterfly farm.
"Imagine," he says, "if at every birthday celebration, graduation, or religious ceremony if people let out butterflies! Wouldn't it be beautiful? A room full of butterflies swirling about in the warm air to complement the happiness of the occasion? All we need are you to be the butterfly farmers."
Butterflies of all colors, shapes, and sizes are abundant in Costa Rica but most importantly this kind of radical thinking exemplifies the utopian ideal we chase in micro-finance: new economic activity created where there once was none. So it is truly remarkable when such a case is found.
Doña Maria is one of the spunkiest 76 year old women I have ever met. A few years ago Maria's partner, who is 77, grew tired of trekking about in the hills of his coffee fields. The work is hard and at his age he didn't feel like battling the mud, the rain, and the ant nests to pick the ripe red berries. So Doña Maria had the innovative idea to create something out of nothing. She decided to build a pig farm.
Maria noticed that people in her village often travelled to the nearby town of Pejibeye to purchase their meat. Very few of her neighbors raised their own pigs and no butcher shop existed in her village. With a Kiva loan of $1,200 Doña Maria purchased six piglets and built a pig sty behind her house. Within six months from her loan date these pigs had already birthed 18 babies, a return of 300% on her original investment. If only my own investments showed such quick returns! Her neighbors quickly started placing bids for her pigs rather than travel all the way to neighboring town. By now Maria has a healthy business that help her and her partner earn a steady income without having to crawl around in the coffee fields. When Don Gerardo, a loan officer of FUDECOSUR, and I first met Maria she was out in knee high rubber boots and an umbrella feeding her pigs despite the heavy rains. Don Gerardo noted that he hopes he shows such initiative at that age. Who wouldn't agree?
Doña Maria's case is only one of many example I have witnessed during my time in Southern Costa Rica. Despite popular opinion, most poor people work hard and when given an opportunity to improve themselves, they take it. Truly, the power of inclusive financial services like micro-credit is astonishing.
Of course, not every story turns out with a happy ending. Every once in a while I interview a borrower where things haven't gone so well. Like Keilyn of the China Kichá who took out a Kiva loan to finance her father's grocery store. Within several short months of taking the loan Keilyn lost over $3,000 from bad customers who failed to pay grocery bills made on credit. When her father became ill and required two consecutive surgeries Keilyn found herself burdened with debts beyond her means and was forced to close the store. She and her father count on the sale of the house they live in to cover her Kiva loan payments. Though few and far between stories like this are humbling reminders that although micro-finance is a valuable service it is not magic. After all, this is still real life.
The Rain in San Isidro
Here in southern Costa Rica the rainy season is in full swing. I think I've seen more rain in the past few months than I have in the past three years combined. It rains every day all day without fail and often hard enough to turn the street outside my tiny apartment in San Isidro into a full fledged river. Although it will be a relief to see some sunshine, I have to admit that I will miss the sound of rain clattering against my tin roof. The droning wash puts me to sleep at night and a warm metallic ping is my natural alarm clock in the morning.
Despite these miserable conditions the farmers of Costa Rica press on. Every day trucks loaded with bright red berries from the recent coffee harvest roll through town, leaving behind a syrupy scent that is unique to the area. It seems almost surreal that those beans will soon follow me overseas to be ground into a dark cup for my daily coffee. As I walk among the fierce skyscrapers of the Manhattan skyline I will be more thankful than ever for the sacrifices it took to get those beans there, for the farmers of the Brunca Region of Costa Rica to which I owe an unforgettable three months, and to you, the Kiva Lenders, who are making it all possible.
On behalf of myself and the entrepreneurs of the Brunca Region of Costa Rica thank you for being a Kiva Lender. Together, may we find sustainable solutions to poverty and facilitate development world-wide.
May this letter find you in peace. As we say in Costa Rica, Pura Vida!
Yours, ever so truly and faithfully,
Gabriel Francis Kiva Fellow, class 12
PS: This Friday, October 23rd, I will be conducting a one time personal interview with Leonardo, Executive Director of FUDECOSUR to be published on the official Kiva Fellows blog. If you have ever had a burning question about how micro-finance works in the real world or a specific questions for this partner, now is your chance. Please use this Google Moderator page to submit and vote on questions: http://www.google.com/moderator/#16/e=35f62
You may remember making a loan earlier this year to Guiselle of Costa Rica through Kiva.org. This Tuesday, loan officer Geiner of FUDECOSUR, Kiva's partner in southern Costa Rica, and myself, a Kiva Fellow, visited Guiselle at the village bank meeting of El Ese. I am happy to report that Guiselle is healthy and that her hydroponic lettuce business is progressing nicely.
In addition to being a Kiva entrepreneur Guiselle is also a secretary of the village banking community of El Ese which is supported by FUDECOSUR. Between attending to borrowers at the meeting I interviewed Guiselle to see how her lettuce farm is progressing. For those who don't know, me included, hydroponic farming means that food is grown in a controlled green-house like environment and watered with only the necessary nutrients to support healthy plants. In Guiselle's case she grows her lettuce in burnt rice shells in planters that she has built in the yard behind her house. In addition to lettuce she is testing celery, sweet chiles, and culantro. In the future she would like to expand to radishes. Before this business Guiselle had to work in the coffee fields of her neighbors. She is grateful for the opportunity to strike out on her own.
When I asked Guiselle if she would like to say anything to the Kiva lenders who enabled her loan she said she thanks you and that if it wasn't for you she wouldn't have been able to start her own business.
On behalf Guiselle and all the entrepreneurs of the Region Brunca of Costa Rica thank you for your support. As we say in Costa Rica, Pura Vida!
Gabriel Francis, Kiva Fellow in Costa Rica
This loan was managed by FUDECOSUR, Kiva's partner in Southern Costa Rica. To learn more about FUDECOSUR click here: http://www.kiva.org/partners/150
To support additional farmers like Guiselle, please join the Friends of FUDECOSUR lending group on Kiva by clicking here: http://www.kiva.org/team/friends_of_fudecosur
Visitamos a la Señora Amalia en su vivienda estaba muy contenta con este financiamiento por lo que su negocio logro mejorar en ciertos aspectos importantes, ya que la mayoría de sus clientes recurren a su negocio para realizar sus compras.
Ella utilizo el financiamiento para capital de trabajo como ropa, cosmético y calzado. Ella obtuvo una ganancia de un 11% por lo que siempre estaba ofreciendo un buen servicio, además de esto la experiencia que ha obtenido pues la mayoría de sus clientes son sus vecinos y ciertas personas que tienen mucho tiempo de trabajar con ella.
También se ha esforzado mucho y con el dinero obtenido pudo realizar su objetivo. Ella nos comenta que su negocio se mantiene a pesar de las numerosas competencias que tiene, sus clientes habituales siguen recurriendo a su negocio. Y las ganancias que percibe están siendo invertidas en nuevos materiales.
A pesar de su edad ha demostrado que tiene un gran espíritu para salir adelante, pues siempre se preocupa por realizar los pagos de sus cuotas en tiempo y forma.
Espera seguir trabajando duro y más adelante espera ampliar su pequeño negocio.
Rose is very grateful to all the lenders who entrusted her with a loan capital that she needed in expanding her business. Through the loan she was able to purchase the necessary commodities she needed for the growth of her enterprise.
Entrepreneur: Carlos Alberto Rodriguez Location: Bluefields, Nicaragua Amount Repaid: $525.00 of $700.00
Carlos Alberto Rodriguez lives in the San Ramon neighborhood of Bluefields with his wife and three children. Carlos is the owner of a private delivery business, moving cargo, letters or packages within Nicaragua. As the public post office only transports lightweight cargo, there is opportunity for private couriers to transport bulkier goods and packages. With his loan, Carlos has purchased a light truck to help move the cargo. Previously, he was renting a car which cut into his margins. As Bluefields is not connected to the rest of Nicaragua by road, all cargo must be transported in boat, and then put in truck for delivery to the final destination. One of his big clients is actually the local bank, which sometimes transports money.
This is Carlos' first loan with ADEPHCA and he has noted that he hopes there are more in the future so he can continue to grow his business.
Carlos is pictured here in front of a sign advertising his delivery business.
Posted by Daniel Tulchin from Bluefields, Nicaragua August 13, 2010
My name is Alexis Guild and I have had the privilege of working with the staff of IMPRO over the past three months as a Kiva fellow. As you may know, all entrepreneur profiles on Kiva's web site are posted by local field partners (microfinance institutions) such as IMPRO, which are organizations that lend to the working poor to help lift themselves out of poverty.
You are receiving this e-mail because you have made a Kiva loan through IMPRO and we thought you might be interested in learning more about this Kiva partner.
IMPRO is a small, family-run NGO (non-governmental organization) that works in the cities of La Paz, El Alto and the surrounding rural areas. The partnership with Kiva, which began in 2007, has allowed IMPRO to expand their services while maintaining low interest rates. Bolivia, which is known for its expansive and relatively successful microfinance sector, is a competitive marketplace. IMPRO has been able to distinguish itself through its customer service and varied loan products beyond microenterprise such as health and education loans. The most distinctive and perhaps the most successful loan product offered by IMPRO is their "Mejoramiento de Habitat y Vivienda" (Housing and Living Conditions Improvement) program.
What distinguishes this program from other loan products is that the lead loan officer, Enrique, is also a trained architect. He dedicates himself exclusively to the "Mejoramiento de Habitat y Vivienda" program. Beyond credit consultation and monitoring of the loan, Enrique also offers his professional services advising the clients on such issues as design as well as the type and cost of materials.
Meet Eufracio Mita, one of IMPRO's housing loan clients (pictured, in the red jacket). He used his loan to start construction on a bathroom in the house he lives in and to repair the bedroom walls of a second house he rents out. While he encountered some difficulties due to the increased price of labor, he has been able to complete this construction. In describing his relationship with IMPRO, he thanked Enrique for his advice and help as he gathered the necessary materials. The repairs allowed him to improve the quality of life of his family. Not only did the value of the houses increase, but he also was able to ensure the continued additional income of the house he rents out. In the future he hopes to continue with the construction of his home, building a second story to create more living space. Eventually, he told us, he hopes his children will be able to live in the house he currently rents out.
Eufracio's relationship with Enrique is not unique at IMPRO. The loan officers and other dedicated staff, many of whom have worked with the organization for more than 10 years, pride themselves on their high quality of customer service. I have continually been impressed with the commitment of the staff to their clients. On numerous visits with various loan officers, I have seen the warmth and trust built in the relationship with the client. To the clients, the IMPRO loan officers are also friends.
My experience over the past three months has shown me that microfinance is about more than providing loans – it is about providing opportunities and building relationships. You, as a Kiva lender, play an important role in this relationship (hopefully you have received or will receive an update on a loan you supported). Each time I explained Kiva to a client, they were impressed and honored by the wide breadth of support from all over the world. Some even asked for the web site address so they could see Kiva for themselves. Your impact is tangible.
On behalf of the IMPRO loan officers and staff, I would like to thank you for your continued support. Please consider joining the Friends of IMPRO lending team to keep up with currently fundraising loans and to connect with other IMPRO lenders.
It has been an honor working with Kiva and the entrepreneurs in Bolivia.
I've been serving as a Kiva Fellow at HOPE Ukraine, Kiva's only field partner in Ukraine, for almost 3 months. Thanks in large part to your generosity and commitment to microfinance in Ukraine, HOPE Ukraine is successfully growing as an organization and has recently made efforts to diversify its portfolio to include agricultural loans. These loans to greenhouse farmers in eastern Ukraine have been extremely successful in helping HOPE weather an economic storm that has been particularly bad for HOPE Ukraine's clients.
The 2008 economic crisis had a direct and devastating impact on the Ukrainian economy, and its citizens are still reeling. I've gathered from HOPE Ukraine's clients and Loan Officers that the devaluation of the Ukrainian Hryvna against the US Dollar has had the most negative impact on Ukraine, and in particular its small business owners. The US Dollar plays an extremely important role in the banking, manufacturing, and retail sectors of the world economy. Here in Ukraine, most bank loans are repaid in dollars and most wholesale products are priced in dollars. So when the value of the Ukrainian Hryvna dropped from 5 UAH to the dollar to nearly 10 UAH to the dollar, small businesses were hit especially hard. Now the Hryvna has stabilized to about 8 UAH to 1 USD. For Lidiya Geiko, who runs a kiosk selling shoes and clothes in Dneprorudnyi, this meant the 10,000 UAH loan she received through HOPE Ukraine and Kiva purchased 2/3 as much product as it used to. She told me that she would not be able to stay open were it not for her microloan.
Meanwhile, repaying loans became harder than ever, even for the borrowers of HOPE Ukraine who received loans funded by you Kiva lenders. HOPE Ukraine delinquencies and defaults rose greatly between 2008 and 2009, and HOPE was forced to close several of its offices throughout Ukraine. Something needed to change.
HOPE Ukraine noticed greenhouse farmers throughout Kamenka in eastern Ukraine were getting small loans from different organizations and creating lucrative businesses with their greenhouses. Greenhouse farmers can yield as much as 35,000 UAH (about $4,750) from one greenhouse during a growing season. But purchasing the materials to build a new greenhouse costs a third of that and must be done before the growing season starts, when farming families lack that extra capital. So HOPE Ukraine introduced its own agricultural loans for the greenhouse farmers in Kamenka. A loan in January allows the farmer to have that extra money to build a greenhouse and repay his loan in two large chunks at the end of a 6 month loan term, after the completed greenhouse has already yielded its profits. These loans have been extremely successful. The office in Kamenka that manages these loans has a delinquency rate of less than 1%.
Ukrainians have been greenhouse-farming for generations. Under the Soviet Union, families were allowed to build small, recreational greenhouses that measured no more than 70 centimeters high and a meter long. If USSR officials came around and saw that they were any bigger, said Sergei Galushka, they would just mow them down with tractors.
Today, the greenhouses are massive. Sergei's were 60 meters long and 8 meters high. Driving along dirt roads through Kamenka Village in Ukraine, I must have seen hundreds of greenhouses, one after the other. They're really quite beautiful, round half cylinders, the sunlight reflecting off the opaque plastic covering steel and wooden bars.
The beauty of the greenhouse is that it has a built-in cycle that puts farmers months ahead of the natural growing season. With snow still on the ground, radish seeds are planted in a kind of "staging area" or prep-greenhouse. There they grow until the radishes are about one month away from being ready to harvest, and then are planted in the greenhouse. There the plants grow for another month and are harvested. At the time of harvesting, the tomato plants are growing in the staging greenhouse and will soon be moved to the greenhouse, while a new crop of tomatoes or maybe cucumbers are planted in the prep greenhouse.
One greenhouse crop of radishes yields about 7,000 Hryvna, and even more for tomatoes, cucumbers, and cabbage. Volodya Alekyan can just take his vegetables to the highway and set up a stand, where semi trucks will come from as far away as Moscow to get quality produce ahead of season. With such demand, greenhouse farmers can charge more for their produce and thus reap more profits.
HOPE Ukraine plans to expand its agricultural loan program, says the organization's director Andre Barkov. He hopes that the success of Kamenka's farmers will influence greenhouse farmers in neighboring villages where HOPE Ukraine does not yet work. This will be beneficial not only for HOPE Ukraine but more importantly for those residents of the villages who depend on farming for food and a sustainable income. To see all fundraising loans from HOPE Ukraine, click here. To get more involved, consider joining the HOPE Ukraine Kiva lending team!
I had so much fun going to Kamenka to visit the greenhouse farmers. They're so hard working and so warm and welcoming to someone such as I who interrupted their working day to visit them. After showing me around their farms, Volodya and his family invited me into their two-room home for Armenian coffee; Sergei and Oksana had me in for Ukrainian borsch and vodka.
On September 14th, 2009, you helped fund a loan amount of $1400 to El-Shadai Group. We recently caught up with Alice, a member of the group to ask her about her loan experience and this is what she had to say:
With the loan, Alice bought food stuffs such as cassava, plantain, yam, etc. for sale. She says business is really progressing. Alice saves and invests the profits in her kids' education. She has no problem at all with her repayments and wants another loan to buy goods in bulk.
On September 14th, 2009, you helped fund a loan amount of $1050 to Ntease Group. We recently caught up with Patience, a member of the group to ask her about her loan experience and this is what she had to say:
Patience bought bags of cereals such as maize, beans, etc. for sale. She says business is progressing. She invests the profits in her kids' education. Patience has no problem with her repayments and wants another loan to buy goods in bulk.
Natalia, a group 2 member of Las Escogidas, runs a business from her home which consists of her selling all sorts of things - mostly clothing/fabrics: lingerie, pants, and curtains - but including some foods: this week, soup and sausage.
After repaying her last 8,000 peso ($220) loan with Esperanza, Natalia has since taken out a second loan, all 10,000 pesos of which she has invested in the clothing she is able to buy in bulk in Santo Domingo. With the earnings from her clothing sales, Natalia addresses the necessity of diversifying her products for sale. The buying patterns of her clientele - those walking or driving by the main road that runs past her house - are unpredictable and inconsistent, hence this week's unusual combination of underwear and soup for sale.
Natalia will continue to use her business savvy to read the needs and desires of her market. She hopes that she will soon be able to have sufficient earnings to finish off her house. For the future, Natalia hopes to work her way towards having enough savings to be able to send her 4 children to university so that they can learn the professions of their choosing.
You can browse other Esperanza International loans that are currently being funded by Kiva associates here.
Upon visiting The Women´s Bank of United Growth at the end of May, the group members expressed optimism and reported that, in general, business was good. The members have used their loan to invest in various productive activities including the purchase of sewing materials (strings, elastics), agricultural products (plantain seeds and fertilizers) and the purchase of animals (cows, chickens). Like many entrepreneurs in the Aguas Frías region, the members of this group have been negatively affected by the unusually low market prices for the products they produce, such as plantains and animal meat. Lucia Herrera says that this loan has changed the way she does business. Now, she says, ¨I have money saved that I can invest in my business, everyday I see a small amount of income from my productive activities
Jean Paul se retiro del banco comunal Esperanza, le deseamos mucha suerte en sus próximos proyectos.
About Asociación Arariwa
Unidad Microfinanza Arariwa (Arariwa) is part of a larger umbrella NGO Asociación Arariwa that was founded in 1977 and began offering microcredit in 1994 with the goal of improving the quality of life, skills and equity of the population of the rural Cusco region.
With a market presence stretching across the entire province of Cusco as well as portions of Puno, Apurimac and Madre de Dios provinces, Arariwa currently serves approximately 14,000 low income entrepreneurs with financial and business development services. Arariwa maintains a strong focus on the village banking methodology, outreach to women – approximately 72% of borrowers are women – and education (all village banking clients receive training in one of four areas). Arariwa's services are tailored towards micro-enterprise owners interested primarily in group loan products.
Arariwa was cited as one of the Top 25 Peruvian Microfinance Institutions in October 2009.
If you would like to lend to another Arariwa entrepreneur, please click here.
El socio Donny se retiro del banco comunal Esperanza,le deseamos mucha suerte en sus proximos proyectos.
About Asociación Arariwa
Unidad Microfinanza Arariwa (Arariwa) is part of a larger umbrella NGO Asociación Arariwa that was founded in 1977 and began offering microcredit in 1994 with the goal of improving the quality of life, skills and equity of the population of the rural Cusco region.
With a market presence stretching across the entire province of Cusco as well as portions of Puno, Apurimac and Madre de Dios provinces, Arariwa currently serves approximately 14,000 low income entrepreneurs with financial and business development services. Arariwa maintains a strong focus on the village banking methodology, outreach to women – approximately 72% of borrowers are women – and education (all village banking clients receive training in one of four areas). Arariwa's services are tailored towards micro-enterprise owners interested primarily in group loan products.
Arariwa was cited as one of the Top 25 Peruvian Microfinance Institutions in October 2009.
If you would like to lend to another Arariwa entrepreneur, please click here.
Greetings are coming to you from Hoshim. He is pleased to inform you that the loan has helped developed his businesses. Hoshim can now buy more cows for raring than before. Through this business, he is able to generate enough to feed his family, send his children to school and solve most of his household problems and made his monthly repayments in time and in full. Hoshim would like to personally thank Kiva and especially all his lenders for the support given to Hoshim business.
After receiving the loan, Sanabar use it to buy more cows from the farmers. Now she can buy more because she had more capital. She's really grateful, because she made more income from her business. Sanabar can support her children in their education. She had a plan to support her children until they get more higher education, so she is saving her income to make it happen. Sanabar is thankful for all the Lenders of Kiva and IMON International. Because of the loan she can improve her life, better healthy and can buy a good quality food.
Being a responsible mother, Victorina works hard to improve her family's standard of living. Through the loan she availed, she purchased fish in volumes to sell in their wet market of Angadanan, Isabela. She already paid back the loan borrowed and hoping to again borrow higher loan in the future. She is thankful to ASKI and KIVA lenders for uplifting her business and to have the opportunity for greater profits. She is glad to become an ASKI client, because of them she gains progress.
The loan was funded by Kiva's field partner, Alalay sa Kaunlaran (ASKI), Philippines. ASKI's vision: A God-centered model microfinance organization committed to serving the poorer communities in Luzon through socio-economic development and holistic transformation. Please select and copy the following links to see more information about ASKI and ways to get involved!
To see ASKI's borrowers who are currently fund raising on Kiva http://www.kiva.org/lend?partner_id=123&status=fundRaising&sortBy=New+to+Old
To read more about ASKI, please visit their partner profile page http://www.kiva.org/partners/123
Support ASKI and their staff by joining the ASKI lending team http://www.kiva.org/community/teams/view?team_id=6834
As a Kiva Fellow, one of my main roles has involved meeting with borrowers, primarily for the purpose of writing journals to update lenders on the progress of their borrowers and the loans they have. I have been fortunate to have the opportunity to meet over 80 of the borrowers whom you and your fellow lenders have supported through Kiva. Most of these borrowers live in or near Managua, the capital city of Nicaragua, but I have also traveled to Juigalpa, another city about three hours away. Sixty percent of AFODENIC's Kiva borrowers live and work in Managua, while the remaining 40 percent come from Juigalpa or Nueva Guinea, where the institution's third major branch office is located. In December, AFODENIC reached the two-year mark in its partnership with Kiva, and so far Kiva lenders have lent a total of $1,784,300 to AFODENIC borrowers. For more information about AFODENIC and the great work the organization is doing, visit the field partner page on the Kiva site.
In several senses, a theme of my time working as a Kiva Fellow has been the unpredictability of microfinance. Just as my personal experience has been unpredictable – I didn't know exactly what to expect when I left home for Nicaragua – it quickly became clear to me that many borrowers, and thus the microfinance institutions that lend to them, have to contend with the effects of unpredictability on an everyday basis. Julia Maria Vega, for one, took out a loan intending to purchase construction materials to replace her front wall, currently made of wood, with cement blocks. Unfortunately, this was not to be. Julia's pulpería – a general store that is often run out of the front of the owner's home – is her source of income, and she uses that revenue to pay back the loans she takes out for construction. But when business is bad in the store, Julia can't purchase more items to sell and if she doesn't have items to sell, she won't be able to repay her loan. When Julia requested her loan, she couldn't predict how bad business was going to be and so didn't know she wasn't going to be able to use the loan in the way she wanted. Other borrowers I've met have experienced other unpredictable misfortunes, like robbery or major medical expenses within the family that they did not anticipate.
I have also seen the impact of some unpredictable forces that work on a larger scale. When I asked borrowers how their businesses were doing, those who told me that things were not going so well often cited "la situación" or "la crisis" as the reason, referring to the ongoing global economic downturn. The economic crisis, another unpredictable turn of events, has not been kind to Nicaragua, which is the poorest country in Latin America and has the second lowest per capita income in the entire Western Hemisphere, after Haiti. Several borrowers were even able to put exact figures on the downturn their own businesses are experiencing. Jorge Orozco Sanchez, who sells bread in his neighborhood, told me he has lately been making about 150 sales per day whereas he used to sell around 250 items on a good day. Similarly, Marvin Jose Sandoval said that sales are low in his pulpería because of the state of the economy; when he first started taking out loans from AFODENIC, he was bringing in about 2,000 cordobas on a daily basis, equivalent to just under $100. Now, he makes 700 or 800 cordobas' worth of sales in a day, about $35 or $40.
Like the economic crisis, another unpredictable large-scale "evento inesperado" (unexpected or undesirable event) plagued the country during this past rainy season: a drought. In Nicaragua, the rainy season, known as winter, runs from May to October or so, while the dry season, called summer, lasts from November to April. But in 2009, the rainy season was not quite so rainy. Many of AFODENIC's borrowers work in agriculture, cultivating crops such as pineapple, rice, beans, plantains, tomatoes, squash, pitahaya, and more. Maria Auxiliadora Bermudez requested a loan for her restaurant but gave it to her husband instead to invest in his squash crops, thinking it would prove to be a more beneficial investment. He ended up losing the entire crop this year as a result of the drought.
I want to end on an optimistic note. As I look back over the borrowers I've mentioned here, many of them fall into the category of borrowers I met who were having a tough time, those whose sales had fallen or who had been affected by some sort of unpredictability. And these borrowers do indeed make up a significant portion of the recipients of microloans from AFODENIC. But there is another group too, borrowers like Isolda Adilia Bravo Ruiz and Iccel Amanda Martinez Suarez who told me with confidence that sales are good, that their businesses are doing well. In thinking about the microfinance work that Kiva, AFODENIC, and other microfinance institutions are doing in Nicaragua, the borrower who is feeling the effects of the economic troubles in the country and the world and the borrower whose business is doing well are both part of the complete picture—and that's one thing we can predict.
Ayubjon has bought seeds and fertilizers in his farm. Thanks to all his KIVA lenders who choose him to lend with. "I would like to say thank you to my lenders. Because of them, I was able to take good care of my crop", Ayubjon said. IMON International would also like to say thank to the KIVA lenders. Hope you will always support farming business and the rest of IMON International's loans in the future.
Boboev Homidjon is a deserve bread baker in his village. He bakes and sells the national bread "lepeshka" in the local market. After he loaned from IMON to expand his business, now it is doing well. The loan helped him to expand his business improve his living. Homidjon would like to say thanks to all lenders who support his family business. He also would like to inform you that now he becomes more self-confidence and he believes in a bright future.
La socia María Mercedes tiene 49 años de edad, es casada y tiene 3 hijos, la socia tiene un negocio de bordados, ella nos cuenta que su negocio se llama "Bordes Virgen Estrella" y realiza todo tipo de bordados, cose ropa para diferentes santos de la ciudad del Cusco como capas para las vírgenes y ahora esta cosiendo la vestimenta para una danza tradicional llamada Ccapac Negro que es un danza que baila en las festividades de la Virgen de Paucartambo (fiesta tradicional que se realiza en la provincia de Paucartambo). El crédito que le prestaron lo utilizo para comprar materiales de bordados, ella compro perlas, hilos dorados, tela pana y tela terciopelo (materiales que se usan para hacer los bordados) y también los utilizo para mejorar su casa realizo algunos arreglos, los materiales de bordados los trae de la ciudad de Lima, ella está contenta con el préstamo otorgado porque le está ayudando a crecer su negocio porque esta bordando un poco mas y agradece a los inversionistas de Kiva.
About Asociación Arariwa
Unidad Microfinanza Arariwa (Arariwa) is part of a larger umbrella NGO Asociación Arariwa that was founded in 1977 and began offering microcredit in 1994 with the goal of improving the quality of life, skills and equity of the population of the rural Cusco region.
With a market presence stretching across the entire province of Cusco as well as portions of Puno, Apurimac and Madre de Dios provinces, Arariwa currently serves approximately 14,000 low income entrepreneurs with financial and business development services. Arariwa maintains a strong focus on the village banking methodology, outreach to women – approximately 72% of borrowers are women – and education (all village banking clients receive training in one of four areas). Arariwa's services are tailored towards micro-enterprise owners interested primarily in group loan products.
Arariwa was cited as one of the Top 25 Peruvian Microfinance Institutions in October 2009.
If you would like to lend to another Arariwa entrepreneur, please click here.
Olubisi said she won't be able to see her stall doing well without LAPO and Kiva lenders. Though challenges strum sometime, life goes on. She purchases more medicine to sell. She says thank you to all who contributed to her loan. She says thanks to all Kiva lenders for their financials support and prays they all be blessed. She has a sound relationship with LAPO.
My name is Gemma North, and for the past four months, I have had the privilege of serving as a Kiva Fellow with CREDIT MFI, one of Kiva's oldest field partners. Thanks to your strong support, the organization has been able to raise over $4 million on Kiva.org and is currently serving over 1,750 Kiva clients.
In the last couple of years, CREDIT has enjoyed tremendous growth, expanding its client base to over 40,000 individuals (93% of which are women), through 34 sub-branch offices. Despite this expansion, the organization has not eschewed its social mission. In 2007, CREDIT chose to develop and begin offering a product that would reach more economically and socially at-risk populations (such as the extreme poor or those affected by HIV/AIDS or sex-trafficking) through a new program called the Vulnerable Services Unit (VSU).
Unlike the majority of CREDIT's loans, which are geared towards individuals who can afford borrowing sums exceeding $50, Vulnerable Services Unit borrowers can get loans starting at a mere $12.50 for a period of up to a year. The VSU program is tailored towards rural clients and individuals with no collateral, therefore borrowers can access credit by forming solidarity groups of four to six people who commit to guaranteeing each other for the entirety of the loan term. As another level of security, four to six village groups then join together to form a village bank, which is directed by an elected leader who will provide mediation if any issues arise.
CREDIT's efforts to best serve its clients are further reflected in the tailoring of this loan product. Since the majority of the clients earn a living through farming, raising animals, or processing local foods, CREDIT has designed repayments to coincide with the harvest season. This way, when farmers need to pay for a large expense prior to the planting season, such as purchasing fertilizer or seeds, they have access to financing. Yet for the next 10-12 months, while they are working in their fields and not earning a large income, clients only repay the interest on the loan, which can be as low as thirty cents or a few dollars a month. The borrowers only repay the loan principal once the harvest is finished and when they have additional income from selling crops. Additionally, CREDIT MFI provides three trainings for all of its clients during the loan cycle: one on debt management, another on budgeting and a third on building and using savings. When possible, the organization partners with local nonprofits to address a community's needs by providing education on other topics such as maternal or child health. While visiting the field, one client told us that although another MFI operates in his area, he and others in the village joined VSU because of these non-financial services.
Recently, I accompanied CREDIT's Kiva Coordinator to a loan disbursement meeting for a VSU village bank. After traveling for nearly forty five minutes by motorbike on a punishing dirt road, we reached a small village and took the first turn into a dirt courtyard where a couple of men, including the village bank leader, were waiting for us. Two staff members from CREDIT spent the next two hours reviewing proper loan use, guarantees, repayments, interest, late fees, the role of the group and village bank leaders and other items, all the while making sure that every person understood the process. Eventually, the Branch Manager for the province arrived to meet the new village bank members and offer them encouragement. Finally, each group was called up to review their loan documents and receive their funds. The credit officer verified the identity of every person and carefully went through their contract and repayment information, finishing by having each client stamp their fingerprints on the documents. Once they received their funds, every member counted their money before returning home.
As I observed this process and received a running translation of what was being said, I was impressed by the contrast between the informality of our surroundings and the business-like atmosphere of the meeting. Here we were, in a remote town where the majority of the villagers live off of what they farm or raise. We were gathered under a thatch-roof shelter; under the awning a chicken sat in a hanging basket and occasionally poked her head out to look at the crowd. Some of the women were sitting on single bricks or their flip-flops, a couple of men had settled in the hammock. Two mothers had their children; one bounced her naked son on her knees while the other had a metal bowl for her daughter to play with. The reviews of the loan documents and disbursement of funds was done over a low bamboo platform covered by a reed mat. Yet the entire meeting had taken nearly three hours to thoroughly cover every item and ensure that all participants clearly understood the engagement. Four staff members from CREDIT had come to participate in the process following a week's worth of prior preparations. Every client had taken off nearly a half day of work to join this meeting--all of this, for loans between $12.50 and $100.
All of the preparation, commitment and professionalism on the part of the CREDIT staff and the organization's efforts to create a valuable service for their clients reminded me yet again that microfinance organizations, while working with and targeting "the poor," consider and treat individuals as clients. This development tool offers people the responsibility and trust to enter into a business relationship which encourages and requires independence, reliability and, in cases like VSU, social cohesion. On behalf of CREDIT MFI we thank you for your continued support and confidence in our work and our clients' commitment to support themselves.
The loan, disbursed by Lebanese MFI Al Majmoua, Lebanese Association for Development and supported by you Kiva lenders, has been almost repaid. Jamal is thankful for the opportunity the Al Majmoua - Kiva loan has given him.
Zeinab has owned and operated a grocery store. Her loan, disbursed by Lebanese MFI Al Majmoua, Lebanese Association for Development and supported by you Kiva lenders, has been repaid. With the loan capital Nagwa was able to diversify her merchandise and expand her stock. Her business is steady as all of Zeinab's friends and neighbors know her well and feel comfortable buying from her store. When we asked Zeinab what her plans were for the future, she said that she would like to continue diversifying her merchandise and keep on improving her business. She is grateful for the opportunity to work with Kiva and Al Majmoua.
Aside from his clothes selling business Virginia (or Gini as she is usually called) has another on-off source of income. There is a cooperation institution close to where she lives that, among other things, takes care of abandoned children. When a new baby comes to the institution she is called for a few weeks to take care of the baby until he is sent somewhere else. When we go to visit her for the purpose of this journal, we find out she is at the institution taking care of the baby and meet her there. She explains to us that the baby's mum was HIV positive and passed away soon after labour and that she really hope the baby is healthy, something they will not know till his test results come back from Italy, where they got sent a week ago.
She says she has done this on and off since 2002 as well as her cloth selling business. She explains that the business is not going too well but she declares this is normally the case in the months of January, February and March and that she hopes that it starts picking up soon again.
She asks us if we have seen his construction when we went looking for her at her home. She is smiling and is very happy about the way her house extension is looking. She has the walls already and says she will need another loan for the roof, and another one to finish off the windows.
As we can only show one picture, see Virginia at the institution where she takes care of the baby. We can assure her house is looking good and hopefully we can show a picture with her in the house if a future journal!
Discussions of Africa seem to inevitably evolve into discussions of health. Hot button issues such as HIV/AIDS, malaria, and infant mortality suddenly become unavoidable topics of conversation and often leave us feeling discouraged and overwhelmed. This fact is no less relevant when it comes to discussions about Togo. This tiny West African country sandwiched between Ghana, Benin, and Burkina Faso is home to 6 million people. Thankfully, the HIV/AIDS prevalence hovers around a relatively low 3% of the population, but bacterial and viral infections including malaria are widespread. The Togolese face a life expectancy of just under 60 years and the country rates 42nd in the world for high infant mortality. It is all too easy to feel enveloped in statistics. Yet an extraordinary amount of work is being done to keep the Togolese population healthy. Individuals just like you are taking action, helping others, and using the profits to support their own families. As a Kiva Fellow working with Women and Associations for Gain both Economic and Social (WAGES), I had the opportunity to meet some of these inspiring individuals. The following journal entry will focus on four extraordinary women, all of whom work as nurses or midwives in the Lomé area and received Kiva loans from WAGES.
Akou Damali runs a large prenatal and family planning clinic. Born in Nigeria, Mrs. Damali now works in the Akodésséwa neighbourhood of Lomé. With the help of her loan officer acting as a translator, we conducted our interview in a combination of English, French, and Ewe. When asked how many hours she worked a day, Mrs. Damali laughed and said, "Twenty-four hours." In reality, the clinic must always be open to serve her patients. She used her $1,125 loan to purchase medications, injections, pills and other products for her clinic. At times, Mrs. Damali can struggle to deal with sudden declines in her patients' health. Patients experiencing complications in their pregnancy can fall ill beyond Mrs. Damali's care and she is forced to send them to a hospital. Nevertheless, Mrs. Damali maintains that running a clinic is, in fact, a very profitable business. As a single mother of three, she is able to use the profits make ends meet at home and support her own family.
Edjoè Abiassi works as a midwife and pharmacist in the Hédranawoé neighbourhood just north of Mrs. Damali's clinic. Mrs. Abiassi takes pride in her work. She enjoys helping the sick and finds joy in saving the lives of mothers and babies. In addition to a personal sense of satisfaction, the profits from her business help Mrs. Abiassi support her four children. She used her $650 loan to purchase medications for her business, and she has used the profits to help cover school fees and food costs for her children. Given the difficult nature of her work, Mrs. Abiassi can face extremely trying situations. Currently, she is facing a mass expiration of stock and has been forced to either dispose of some of her medications or send them back to the manufacturer. Like Mrs. Damali, Mrs. Abiassi must overcome complications in her patients' pregnancy or during childbirth. At times, the outcome can be disheartening. As a result, Mrs. Abiassi plans on building a small clinic in the future. There, she will be able to better care for her patients and perform deliveries in a clean and comfortable environment.
Afi Maimounatou Kouloungou and Anoko Lawson run two sister clinics a few blocks apart in the Hédzranawoé district of Lomé. Both clinics offer services such as prenatal care and family planning as well as general services for the ill. These hardworking women must be available twenty-four hours each day in order to care for their patients. Although exhausting, Mrs. Kouloungou maintains that it is worth the work for the sake of "aider l'humanité," helping humanity. Both women used their individual $625 and $975 loans to purchase medications, beds, and other supplies needed to better serve their patients' needs.
It can be difficult to operate a clinic, but Mrs. Lawson has seen the benefits. She divides the profits from her loan in two, using one part to reinvest in her business and putting the remainder into savings. She says that her loan has had a huge positive impact on her family. After the elections, Mrs. Lawson hopes to receive another WAGES loan to purchase land and build a house. Mrs. Kouloungou's family has also benefited from her loan. She says that this loan from WAGES has "changé la vie." It has changed her life and everyone in her family is very happy. In the future, Mrs. Kouloungou would also like to take out another loan with WAGES in order to purchase land and build a house.
The loan officer with whom I was working commented that this seemed to be a common long term plan among WAGES' female entrepreneurs. Mrs. Lawson laughed and said that women cannot just wait for their husbands to provide for them. Instead, they must fend for themselves. She stated wisely that sometimes, "Il faut être maman et papa au meme temps." You have to be mother and father at the same time. Evidently, this line of work has significant challenges. In addition to the difficulties shared with Mrs. Damali and Mrs. Abiassi, Mrs. Lawson mentioned the hardship of working such long hours. Mrs. Kouloungou also addressed a specific situation where patients will require her services, but cannot pay for her care. This puts her in an extremely difficult position. Despite the obstacles they face on a daily basis, all four of these women remain committed to their work and their patients.
All of these dedicated women are thankful for their loans. They ask that Kiva lenders continue to support WAGES so that they may continue to benefit from WAGES loans. As an institution, WAGES also does its part to keep the community healthy. WAGES goes beyond providing financial services to offer health seminars focusing on HIV/AIDS prevention and malaria treatment. Mrs. Damali, Mrs. Abiassi, Mrs. Lawson, and Mrs. Kouloungou strive for this goal independently and are collectively supported by an institution dedicated to the same cause. As a result, the extended WAGES community is working to ensure the ongoing health of their fellow citizens. Empowerment is not possible without health and these four women are lifting themselves out of poverty by helping others do the same.
On behalf of these four women, WAGES, and Kiva, I would like to thank you for ongoing commitment to lending, empowerment, and poverty alleviation. Lend to a WAGES entrepreneur here. Show your support for WAGES by joining the lending team.
My name is Maia Pelleg and I'm a Kiva Fellow working with Sinapi Aba Trust (SAT) in Ghana. I completed my first placement as a Kiva Fellow in Kenya in January, 2010 and was thrilled to embark on an experience with Kiva and microfinance in the new context of West Africa. The initial goals of my posting in Ghana included implementing a repayment reporting system, facilitating a process that enables SAT to provide journal updates to lenders, and making necessary changes to increase efficiency.
I arrived in Kumasi and quickly ascertained that Ghana's reputation for tremendous hospitality stems from reality. The staff of SAT welcomed me warmly and graciously offered to acquaint me with various aspects of Ashanti society.
Unfortunately, as I discovered the kindness of SAT staff, I also found that SAT's existing Kiva system was extremely flawed and lacked proper management. A close look revealed that many loan amounts and terms published on the Kiva website were incorrect. Additionally, the presence of multiple duplicate loan postings was concerning.
Kiva took immediate action and paused SAT for fundraising on Kiva.org. We have evaluated many aspects of the SAT partnership, and I am confident that operational weaknesses can be corrected and adequate management information systems can be utilized.
I have spent the last few weeks designing a new decentralized Kiva system and have already begun implementing changes. Including loan officers from around the country in Kiva processes serves as an additional check as well as enables SAT to provide journal updates and scale in the future. Central to the new Kiva platform is an internal data system that will verify loan details and automate frequent and accurate repayment reports. Additionally, a senior regional manager will be stepping in as Kiva Coordinator at the end of this month.
I am working directly with SAT leadership and staff to execute identified changes. Just this week I trained two branches and several loan officers in how to collect borrower information and photographs for Kiva's site. I can attest to SAT's commitment to a strong Kiva partnership based on integrity and honesty. I am confident that we are able to bridge any gaps that existed in SAT's process of raising funds on Kiva.
This experience serves as a reminder of how seriously Kiva takes transparency and accountability. I hope you will share my ongoing confidence in SAT and more generally in microfinance. Sinapi Aba Trust makes a real difference in the lives of low-income entrepreneurs and I am excited to be a part of enabling them to continue their lending footprint.
She was delighted and thankful to Kiva's project and lenders who are always committed to financial sustainability and improving the income of entrepreneurs around the world.
Djumaev Nazirjon is thankful to Kiva and all the lenders. With the loan he increased his stock and diversified his business in that. He included selling men's clothing. Nazirjon said, with the profit, he repaired the family house and improved the family living. He is looking forward for more loans from Kiva to further expand his business. Nazirjon thanks once again everyone who supported him as exactly your timely assistance allowed him developing his business.
Tserensodnom Otgon wishes to thank all of the Kiva lenders and the Kiva microfund that loaned to his business. He received a 1,100,000 tugrug (~ 774 USD) loan from XacBank, Kiva's Mongolian partner MFI, in September, 2009. He is currently still paying of the loan. Tserensodnom requested this loan to purchase more dairy supplies for his retail dairy business. He used the loan to purchase a large amount of dairy from Tamir soum in Arhangai province. His working capital has increased by 1,200,000 tugrugs (~ 844 USD) and his profit has increased by 250,000 tugrugs (~ 175 USD). With his business profit he was able to afford food and clothing for the upcoming Mongolian Lunar New Year Celebration.
This loan has been refunded for the following reason:
During onsite monitoring with Sinapi Aba Trust, Kiva recently discovered that some loans were posted to the website with incorrect loan amounts or in duplicate. Sinapi Aba Trust was immediately paused while Kiva investigated the nature of these inaccuracies. All loans fundraised in February 2010 are being refunded and Sinapi Aba Trust is redesigning its Kiva processes, including some key personnel changes and the department to which SAT’s Kiva-focused staff report, in order to ensure high quality data and full transparency in the future.
Please find a letter from Sinapi Aba Trust below:
Dear Kiva Community, We would like to extend our deepest gratitude to Kiva and the people who have been lending to support borrowers of Sinapi Aba Trust (SAT). We appreciate your support as lenders because your kindness means so much to our borrowers.
SAT is currently paused on Kiva’s website for fund raising. This pause comes in the aftermath of discovering inaccurate data posted by SAT to Kiva's site regarding borrowers and loan details. We are overhauling our internal systems and re-structuring our data entry procedures in the quest to create a much closer link between lenders and borrowers of SAT and to ensure absolute data accuracy. We would like to assure lenders that we are putting better processes in place that will allow us to communicate detailed information and also to scale up as a partner.
In the spirit of transparency and in an effort to provide you only with data that is guaranteed to be 100% accurate, we are back dating our system to February 1 and refunding all loans that have been posted since then. We really appreciate your patience and understanding during this time of transition to our new system. We sincerely apologize for any inconvenience caused. The connection between Kiva, the lenders, and our borrowers is incredibly important to us. We hope that you will have confidence in SAT’s new system and continue to lend to our borrowers.
My name is Maia Pelleg and I'm a Kiva Fellow who is posted in Kenya with KADET (The Kenya Agency for the Development of Enterprise and Technology). KADET recently became an active Kiva partner so much of my work has involved helping them to implement their Kiva-related field operations and conducting Kiva trainings and orientation sessions for branch personnel. I've met dozens of KADET staff members, and my motivation to continue to impact communities through microfinance has been fueled by their passion, hard work and dedication. I've also had the opportunity to meet a number of KADET clients at weekly borrower groups and in one-on-one interactions.
I met Hilderh Akinyi Okwaro (http://www.kiva.org/lend/129628) in late November as I accompanied a credit officer, Danielton, in the field. Hilderh’s shop is in on a busy street just outside the town center of Kisumu. Kisumu, Kenya’s third largest city, is set on the serene shore of Lake Victoria and offers a distinct culture from the bustling capital city of Nairobi. Kisumu’s atmosphere is tranquil, sultry, and relaxed. The layout of the town turns its back on the water, focusing on a commercial center and land that links to the rest of Kenya, rather than the lake that connects Kenya to Uganda and Tanzania.
Danielton and I arrive at Mama Hilderh’s shop on boda-bodas, bicycle taxis consisting of a bicycle and a padded seat on the back. Droplets of sweat trickle down my driver’s neck; the humidity is relentless. I climb off the back of the bike and walk towards Hilderh’s shop. It’s a tin rectangular structure with large boxy holes excised from the metal for windows. The wooden door looks like one that would be placed on a barn, although instead of red it’s painted sky blue. The outside is painted blue as well, with a black trim along the bottom. The corrugated tin roof leaves a ripple effect above the entryway. A white sign with black and red writing announces Hilderh’s business: Kanyaish Tailoring & Training Center.
We walk through the doorway to find Hilderh sitting behind a sewing machine, a stretch of brown and yellow fabric inside the grips of the needle. She wears a floral tunic over a long black skirt, a measuring tape draped over her neck, and clips of fabric scattered in her hair and around her chair. Vibrant cloth of greens, reds, blues, purples and yellows line the wall behind her. On the wall opposite the windows are posters of women wearing beautiful brightly patterned Kangas. Their dresses and blouses are intended as model designs from which customers can choose. After introductions and pleasantries are exchanged, I ask Hilderh about her loan. This is her third loan from KADET, and Hilderh tells me she spent the 43,000 Kenyan shillings (~$575) on two second-hand sewing machines for her students, cloth and other materials for dress-making, and school fees for her children.
I ask Hilderh what motivated her to become a tailor and to start her own business. She tells me: “First I was just a housewife. I was not staying with my husband properly. We were having problems. That’s why I decided to learn something. I wanted to be financially independent. So in 2002 I decided to train as a tailor and then in 2003 I took the certification test and I became a full tailor.”
At 45 years old, Hilderh now supports her husband (who lives separately upcountry) and her three children. She credits KADET with her success: “I was not having enough money... I had too many customers and not enough material to satisfy their needs. When KADET came to talk to our group we found it was good. The capital I’ve accessed through KADET has allowed me to grow my business. Now I can say my business has grown. Now it is famous. If you ask where is Hilderh, a tailor, everyone will tell you I am here.”
Besides selling clothing, Hilderh teaches students. I turn my attention to the opposite side of the room, where seven girls sit on benches, three working on sewing machines and the others using paper bags for material as they create dresses and blouses by hand. Hilderh introduces me to these girls. Each one is at least 18 years old. Most pay 12,000 KES (~$160) a year for Hilderh’s instruction and guidance. Three are orphans that Hilderh teaches and mentors for free.
I have met many borrowers working as tailors, but this is the first time I’ve seen one extending his or her knowledge to others in the community. I ask Hilderh why she decided to open a training center for young women. She tells me: “My youngest child was sponsored by World Vision. Someone in America donated money to help him eat and to pay for his needs when I couldn’t. An organization that takes street girls and street boys and trains them came to me and asked if I would assist in training the girls. I agreed. I train them for one year. Then they go for their test and get a certificate. I want to help them. I’ve received help and now I want to share my skills with others.”
Hilderh designed the training program herself. The girls are required to come to Hilderh’s shop five days a week from 8am – 5pm. There are five elements to the curriculum: 1. How to behave as a tailor. (A lesson on respect.) 2. How to talk to customers 3. How to manage a workshop. 4. How to manage money and to save. 5. How to create (pattern drafting, cutting fabric, sewing, and ironing).
One of Hilderh’s dreams is to expand her business so that she can provide opportunity for more members of her community. She has already hired two of her former students as employees. Not only does she want to be able to employ more, but she also hopes to be able to train more “street girls for no fees”.
Hilderh says she has two other dreams. The first is for her children to complete college and to find employment so that they can sustain themselves. The second is to own her own home. Currently Hilderh lives with her four children in a rental home with no running water. “One day,” Hilderh says, “we won’t pay rent. We will have our own property.”
I’m excited to be writing to you as a Kiva Fellow where I recently
finished my placement in Southern Costa Rica, working with Kiva’s new
pilot partner, FUDECOSUR. As you may know, all entrepreneurs on Kiva’s
web site are supported by local Field Partners, or microfinance
institutions (MFIs) like FUDECOSUR, who are Kiva’s liaison between
Kiva lenders and Kiva borrower. As a Kiva Fellow, I was placed with
FUDECOSUR to help provide training and advice on how best to use Kiva
to support their existing microfinance operations. When I arrived,
they had yet to set up a process for posting loans on Kiva. However,
this bright and dynamic group hit the ground running and were ready to
post loans to Kiva just two days after I arrived. During the liquidity
crisis this past year, they struggled to obtain funding to expand
their operations in Southern Costa Rica. The generosity of Kiva
lenders, however, did not falter and FUDECOSUR was able to tap this
generosity raising nearly $65,000 in its first 3 months and reaching
80 new clients.
These clients are located in communities spanning most of Southern
Costa Rica and with just three loan officers, FUDECOSUR has clients
are excluded from the formal financial system, either because of their
remote location or lack of collateral. In 1993, FUDECOSUR opened with
the aim of reaching these disadvantaged quite a job to provide credit
to these isolated communities. Most of these clients and set about
opening village banks in their district, Perez Zeledon.
Village banks are semi-autonomous groups elected by their communities
who help credit officers with the loan disbursal and collection
process. Because the village bank president, treasurer and secretary
have an intimate knowledge of the market conditions on the ground,
they are better prepared to assess credit demand and risk. This model
makes reaching poorer, more isolated communities a feasible prospect.
If you would like to learn more about FUDECOSUR’s model, watch this
video I compiled during my time in Costa Rica, “Microfinance in Costa
Rica: A FUDECOSUR story”. http://www.youtube.com/watch?v=0lCaGIHKrxg
During my first weeks in Costa Rica, I was given the opportunity of
introducing Kiva to these village banks. One of the more interesting
village banks I visited was Altamira, a community nestled in the
foothills of La Amistad national park. After a 4 hour drive with
David, the credit officer, we reached Altamira. Altramira is coffee
country and it shows. Nearly all of FUDECOSUR’s clients are coffee
farmers. 5 years ago, coffee prices plummeted and many farmers were
forced to sell land, livestock and other productive assets. AsProLa, a
rural tourism and environmental conservation organization entered and
helped educate these vulnerable farmers on the advantages of
converting to high value organic coffee and explained reasons how
diversifying their farms could help them avoid income shocks like they
had experienced. FUDECOSUR entered Altamira and trained a village
bank. The community prospered with credit and education provided by
these two organizations. Farmers benefited from decreased
vulnerability and a higher value market channel, courtesy of the
organic coffee they produced. To understand more about the coffee
process in Altamira, please watch this video I produced during my time
there. “ Coffee: A Love Affair”. http://fellowsblog.kiva.org/2009/11/18/coffee-a-love-affair
My name is Prem Thomas and I had the pleasure of spending the last 14 weeks volunteering as a Kiva Fellow at the Center for Community Transformation (CCT), a pilot field partner in Manila. I was placed here to provide support for the staff and feedback for Kiva into CCT’s lending operations. I spent my time here learning about CCT’s operations, visiting entrepreneurs and training staff so that we can share lenders’ stories with the Kiva community. As you may know, all entrepreneurs that you see on Kiva.org are supported by local field partners like CCT, who post business profiles, disburse loans, collect repayments write journals and interact directly with Kiva lenders.
CCT’s Plan For CCT, microfinance is part of a bigger picture to address the poverty gap in the Philippines. CCT views microfinance as a way to empower its clients to own a business and generate income, but that is just the start. They also provide other necessary services (education, training, healthcare, and clean water) to completely transform the lives of the urban and rural poor and homeless through a holistic development approach anchored in Christian principles.
Typhoon Ondoy and CCT It was a very interesting time to be a fellow at CCT. I landed in Manila just a few days after Typhoon Ondoy flooded much of the National Capital Region and the Philippines. When I arrived CCT was well underway with their disaster response efforts as 4,803 of the 70,000 borrowers and 26 staff members were affected by the storm. As a fellow at CCT, I spent quite a bit of time visiting borrowers and had the opportunity to visit all Kiva CCT borrowers affected by the flood. Here are a couple of their stories:
Jocelyn Urdaneta (http://partners.kiva.org/app.php?page=businesses&action=about&id=133055&_te=mj) lost her newly purchased chicken and personal possessions in the floods. She had to stay with her in-laws as her room on the first floor was engulfed with floodwaters. To make ends meet, Jocelyn works part-time cleaning the CCT branch office, but hopes to restart her business.
All of CCT’s Typhoon victims who are unable to repay their loans have been entered into a newly launched restoration and recovery program. As part of the program the affected victims will be granted temporary moratoriums on the repayment process and assisted through the recovery and loan repayment process.
And the Rest of the Stories During the last few months I had the opportunity to meet with Filipino farmers, jewelers, grocery store owners, carpenters, trash collectors and direct sellers. Some spoke English and some did not, but they all had something in common: an immense pride in owning their own business and being able to pay back your loans. Despite not having much, all the CCT borrowers were happy, hospitable and seemed to be improving their lives. Most had messages of thanks and gratitude for the trust and sacrifice you made to lend them money when you did not even know them. Some of the highlights are in the video below.
Greetings from Togo! I am Jessica Chervin, and I have just completed a placement as a Kiva Fellow at Microfund Togo. This was the last of my three placements at Kiva Field Partners that serve borrowers in West Africa. In my nine months in the field, the clients of Microfund Togo showed me most clearly how an excellent savings product is complementary to – and equally important as – any loan.
Meet Nadège Patalaki, a reseller of West African textiles. Not long after receiving her loan, she was in a motorbike accident in which she injured her leg. This injury put her out of commission for three months, and she had to give up the space in which she’d set up her boutique. Additionally, as the city of Lomé is currently renovating the buildings that comprise the Grand Marché, many merchants have been displaced to the outskirts of the area, where they have far less exposure to prospective customers. An additional drag on Nadège’s business has been the depreciation of the Ghanaian cedi against the CFA (a currency pegged to the euro and used by 8 West African countries, including Togo). As a result, the Ghanaian customers who used to come on large shopping trips to Lomé are no longer coming.
Nadège Patalaki at work
But Microfund Togo has a loan product that makes these setbacks manageable. Every day, a Microfund Togo employee visits Nadège at her boutique across the street from the beach to collect a small portion of her loan repayment. At the same time, Nadège gives the Microfund Togo employee a couple of hundred CFA (100 CFA = US$0.23) to be deposited into her savings account. Every day, Nadège expands her reserve, ensuring that she will always have funds in case of an emergency and – of particular importance in Africa – that her funds will be stored in a safe place.
Achille Marcos, a Kiva borrower whom I met in Aného, has taken this savings system a step further. Achille runs a very successful motor fuel business. Since receiving his Kiva loan, he has seen his profits soar, increasing by a staggering 250%. In fact, in absolute terms, Achille was recording the highest daily profit any Kiva borrower I’ve met. He also seems to be a conscientious saver. When Microfund Togo visits Achille each day, he makes savings deposits not only into an account for himself, but into an account for one of his children as well – and very soon, he plans to open savings accounts for each of his other two children. He hopes that these accounts will provide the funds necessary for his children to pursue higher education when they are of age. Achille Marcos could not afford a formal education, but he is one of the most responsible and forward-looking people I have ever met.
Achille Marcos proudly displays daily deposit cards for his savings accounts
At many microfinance institutions, a savings history is a prerequisite for taking out a loan. By treating savings collections as they do loan collections for customers who utilize this service, Microfund Togo emphasizes the importance of saving, enables its clients to actively save for their futures, and – in the case of clients like Achille Marcos – to save for those of their children, too! Now, if only we could import a bit of this thinking back in my home country of the United States!
My name is Julie Pachico and I'm a Kiva Fellow who's had the privilege of spending the past three months working with Kiva's Field Partner Fundación para la Vivenda Progresiva (FVP). During my time here, the incredibly helpful and supportive FVP staff has made it possible for me to drive down countless bumpy, unpaved roads in search of Kiva clients to interview, learn border Spanglish such as troque (truck) and yonque (junkyard), attend a lucha libre fight and eat more homemade tamales and meat tacos than I ever thought possible.
FVP is unique among Kiva Field Partners because it's the only one based on the U.S.–Mexico border. Its main office is in Nuevo Laredo (on the border with Texas), with two other branch offices in the border towns of Ciudad Acuna and Piedras Negras. This video gives you a brief glimpse of FVP staff in action and shows images of clients Kiva lenders have helped fund: http://www.youtube.com/watch?v=fYK3Xg_C9dg
During my time here, I've come to view the border as a particularly volatile and vulnerable region in Mexico. The majority of clients that I met immigrated here from the south of Mexico, seeking better-paying jobs or a chance to cross into the U.S. in order to find work. I met Kiva borrowers such as Gloria and Hidalga, who immigrated here from two of the poorest states in Mexico, Chiapas and Veracruz, in search of opportunity.
So how does microfinance enter the picture as a potential solution? With a loan from an organization such as FVP, a family can build an extra room in the front of their house, which they can later turn into a business. For instance, Laura expanded her front porch so she could rent the space out to other street vendors. Felicita used her loan to start a stationery shop and Julia used hers to start a grocery store. These businesses enabled both of them to work from home, generate extra income for the family and take care of their children. Businesses that are dependent on high sales during holidays can also take advantage of microloans to stock up on merchandise in preparation for the busy season: Martha used her Kiva loan to purchase flowers in preparation for the popular Dia de los Muertos festival, while Pati was able to buy decorations for her Christmas-themed store.
While I did meet some clients such as Guadalupe, who used her loans to expand her egg-selling business into a chicken rotisserie, the severity of the economic crisis in Mexico has caused most clients to depend on microfinance for day-to-day survival, rather than to escape poverty. Microfinance may be a stepping stone to alleviating poverty as opposed to a be-all, end-all solution, but it is a vital stepping stone nonetheless. What may be more important about microfinance in Mexico in the long term, though, is not the fact that it provides easily available capital, but the way in which it empowers women and transforms their role in their families. Over 44% of FVP's loans are to female entrepreneurs, and this number is only expected to increase.
I've come to see loan officers in particular as the underrated heroes of microfinance, as they are the ones who provide the strongest connection between the client and the organization. Through mud and dust, burning temperatures and near-freezing ones, the loan officers at FVP are often the first to arrive in the office and the last to leave. FVP is also notable for hiring an all-female staff in their two branch offices, where one of the managers commented to me that she'd considered recruiting new hires by placing an ad in the paper for “single-mothers only, because they're the ones who work the hardest!” You can watch a video about a typical day with a loan officer in Nuevo Laredo here: http://bit.ly/5iuG15
FVP staff wishes to send a personal message of thanks to Kiva lenders: “FVP thanks Kiva and Kiva lenders; their support for this program enables it to be accessible to more families in our community, which is seeing an improvement in its quality of life. We are convinced that through hard work and our daily efforts, we can continue to provide a better future for our community's children."
If you would like to support and learn more about microfinance in the border region of Mexico, please check out FVP's partner page on Kiva (http://bit.ly/5FUMlo) and join our lending team, the FVP Incredibles (http://bit.ly/7MLdhp). To view all currently fundraising loans from FVP, please click here: (http://bit.ly/5PkhuR).
I’m excited to be sending you this update from the field in Nicaragua. My name is Meg Gray and I have been working as a Kiva Fellow with Kiva’s field partner CEPRODEL in Managua from the beginning of October until last week. As you may know, all borrowers’ profiles are posted to Kiva’s website by local microfinance institutions (MFIs) such as CEPRODEL, who distribute loans on the ground to borrowers and are responsible for collecting repayments.
Since you have supported at least one (and hopefully many) CEPRODEL entrepreneurs, I want to start by telling you more about CEPRODEL and the entrepreneurs it works with. Founded in 1990, the Centro de Promoción del Desarrollo Local y Superación de la Pobreza, or CEPRODEL for short, now has 16 field offices and over 40 loan officers, who work with over 13,000 entrepreneurs throughout Western Nicaragua. The role of a field partner on Kiva.org is to provide a connection between Kiva.org and the individual entrepreneurs that you see on the website. Without field partners, it would be impossible for Kiva to reach so many entrepreneurs in so many different parts of the world. The microfinance organizations (MFIs) like CEPRODEL who become Kiva Field Partners are essential because they are knowledgeable about existing local needs and already have systems in place for finding clients, distributing loans, and collecting repayments. The benefits of such local knowledge were constantly shining through as I watched loan officers counsel clients on everything from postponing the sale of a cow because of the low market price for beef to the merits of cement versus cinderblock walls. In short, Kiva’s field partners make the whole Kiva process possible.
The Kiva entrepreneurs I met while working with CEPRODEL run the gamut. They are storeowners, ice cream makers, farmers, motorcycle repairmen, hammock weavers, bakers, artisans, cattlemen, and more. I am grateful that they opened up to me and shared both their successes and the challenges facing their businesses. In general, it felt like a challenging time for entrepreneurs in Nicaragua. At least half of the clients I spoke to mentioned “la crisis” or “la situación” which are local shorthand for the world wide economic crisis. Though symptoms are beginning to ease in the US, the aftershocks are still reverberating through the Nicaraguan economy. Remittances (money sent to Nicaragua from relatives living abroad), which account for about 12% of the Nicaraguan GDP, are way down. The cost of basic food is soaring. A countrywide drought, which is causing foot shortages, has exacerbated this problem. When asked about the difficulties facing their businesses many CEPRODEL clients responded like Juana Solorzano did when she told me that business is not good right now. Juana runs a small restaurant and her sales are way down because people don’t have any money to spend, she says. For example, the sale of cooked plantains, a Nicaraguan staple, from her restaurant has dropped from around 125 plantains per weekend to roughly 30 since the crisis began.
Despite the hard times, I met many inspiring entrepreneurs who have used the opportunity of receiving a loan to improve their lives and the lives of their families. Marlon Gutierrez is a good natured and talkative man who runs a pulpería, which is a small general store, in Managua. As we chatted he explained that he used his first loan from CEPRODEL to fix up his house, but now he uses each loan (he is on his 4th) to invest in and grow his business and with the additional profits he is slowly fixing up his house to improve the lives of his wife and three children. Aurelia Hernandez, another CEPRODEL client, makes tejadas, which are thinly sliced fried plantains, and sells them outside a local factory. She lives in a small house with her husband, 6 children, and 5 grandchildren. As she walked me around her house, I counted 5 rooms including the open-air kitchen. Every wall was a patchwork of new and old cinderblocks and Aurelia proudly pointed at the new as she explained how the loans had allowed her to make her house much more livable for her family. She is optimistic that loans will help her expand and diversify her business in the future and help her earn enough to replace her roof which at the moment has several holes in it. Marlon and Aurelia are just a few examples of the inspiring CEPRODEL clients that I met. They, like so many others, are working hard to make the most of their Kiva loans.
I can truly say that working at CEPRODEL has been an amazing experience. Having the opportunity to meet so many inspiring entrepreneurs was a privilege. To share this experience with you, I put together a short video of some of the Kiva borrowers I met. These clips were taken as the borrowers were working and I hope they will bring to life the businesses, people, and stories that make up Kiva’s field partner CEPRODEL.
Bisolima has been successfully repaid her loan. Her business is going well. She is receiving good profit which she is spending for improving of her family living. Presently her assets are increasing every month. Bisolima is thankful for the opportunity to have taken this loan and thanks you for your support and encouragement! On behalf of IMON International, thank you for your continued generosity! Please forgive our tardiness in replying back to you. Your support is important to us and we are very grateful.
Bayasgalan Guntev received a 2,000,000 tugrug (~1425 USD) loan from XacBank, Kiva's Mongolian partner MFI, in September, 2009 and is currently paying off the loan. She requested the loan to purchase more materials for her shoe making business. She produces a variety of traditional styled Mongolian shoes. Guntev had originally planned to purchase a new sewing machine with the loan funds, however, she was unable to find one of sufficient quality. Therefore, she paid back the half loan and bought fabrics and materials with remaining amount. Currently, Guntev has used 80% of her purchased materials in production. The new variety of fabrics have enabled her to broaden her product designs and styles and have attracted new customers to her business. This has increased her working capital and her profits which now average 400,000 tugrugs (~280 USD) per month. She recently hired two more assistants to help her keep up with growing demand for her shoes, especially during busy winter season. Guntav's increased earnings have enabled her to buy all necessary things for her family and she saved enough money to purchase a new quality sewing machine. She thanks the Kiva microfund and all of the lenders that made her loan possible.
Victoria said she won’t be able to see her stall doing well without Kiva lenders and LAPO. Though challenges strike sometimes, life must go on. She used her Kiva loan to purchase more rechargeable phones accessories to sell. She is happy because her business makes her have a personal interaction with her customers. She has fully repaid her kiva loan. She is very grateful to all Kiva lenders.
The loan, disbursed by Lebanese MFI Al Majmoua, Lebanese Association for Development and supported by you Kiva lenders, has been almost repaid. Jaber is thankful for the opportunity the Al Majmoua - Kiva loan has given him.
Victoria handset accessories such as handsets case, chargers, ear-piece and more are moving well. She is happy because the loan has increase her business capital and she was able to buy handset accessories with this she can meet the customers needs. She says the only challenge she is facing at the moment is acquiring a store for the business and she hopes to get one before the year runs out. She herby acknowledges the support of Kiva to her business.
ADvance Happy New Year 2010! Time is fast approaching and people are so busy preparing for new year. Wenna & her family really want to thank all the KIVa people for being part of the success of 2009, for providing their needs, also to Paglaum Cooperative.
Mahmoud has owned a furmiture shop. His loan, disbursed by Lebanese MFI Al Majmoua, Lebanese Association for Development and supported by you Kiva lenders, has almost been repaid. With the loan capital Mahmoud was able to diversify his merchandise by purchasing new furniture. Therefore, he plans on taking out a new loan upon its repayment. He is grateful for the opportunity to work with Kiva and Al Majmoua.
As we enter the holiday season, XacBank would like to wish you a Merry Christmas and a Happy New Year! Here's an e-card we created for you, featuring XacBank's staff and Kiva borrowers: http://www.youtube.com/watch?v=Zqkvv532mFI
I'm Jane Lim, a Kiva Fellow who served for the last two and a half months at XacBank, a Kiva Field Partner in Mongolia. My fellowship just ended, and until a few days ago I was in Mongolia, experiencing the bitter cold and breathing in the smoke that pervades the city of Ulaanbaatar due to widespread coal burning by surrounding ger districts. A ger is a traditional Mongolian tent, round and white, and very much a part of modern Mongolia. In the middle of each ger is a rustic stove used to burn fuel to warm the ger and to cook. The past few years have seen a steep rise in pollution as ger districts and their accompanying coal burning have rapidly grown due to an increased number of migrants from the countryside.
In my last few days in Mongolia, it was a common lament by my colleagues in XacBank's microfinance department that I would be missing their New Year’s party. New Year’s parties in Mongolia are a huge celebration—more than just an annual dinner and dance, these are events for which people get decked out in their finest, more than any other event in the year. When I visited Oyun Pildulam, a Kiva borrower who works as a tailor right by XacBank's Chingeltey branch, her wall was covered with custom-made fancy dresses for the New Year—sequins and feathers galore with nary a hint of understatement.
Other tailors I've met are not as lucky as Oyun, who has five employees and gives classes to aspiring tailors. Gantuya Narmandah, another Kiva borrower I met, struggles to find stalls willing to sell the products she sews in her home. She lost her job in a sewing factory after the collapse of socialism in Mongolia in 1990. Many industries were privatized following the introduction of democracy, and in the process, many Mongolians lost their state jobs and turned to running their own microenterprises. Gantuya wasn't the first or last Kiva borrower I met who cited the impact of the change in political systems. Tsend-Ayush Lhagva used to work as a truck driver, but after dabbling with different small businesses, she has settled on making Mongolian boots and is finding it to be the most profitable thing she has done. In my short time in Mongolia, I had the good fortune to meet a wide variety of Kiva borrowers and learned that they can be extremely diverse, yet similar.
Unlike many other Kiva Field Partners, XacBank is a registered commercial bank. XAC LLC started in 1998 with funding from the United Nations Development Programme and was Mongolia's first registered non-bank financial institution. It later merged with another non-bank financial institution to form XacBank, and then started commercial operations. Despite being a commercial bank, XacBank has never wavered in its social mission; it can be argued that its commercial profitability has given it the ability to design and implement initiatives that benefit the poor.
While I was at XacBank, I got to know two of these initiatives at a deeper level. Both struck me as relevant and practical. The first is the franchising of savings and credit cooperatives (SCCs). Because Mongolia is sparsely populated, the cost of reaching borrowers in rural areas is high. It is not economically viable for XacBank to open an extensive number of branches throughout Mongolia, so the bank has decided to help strengthen local SCCs in order to aid the rural community. XacBank currently supports local SCCs by providing training, expertise and wholesale loans; it is also planning to provide mobile banking, leasing and micro-insurance via SCCs. The good thing about franchised SCCs is that SCC members keep their own profits, which further enrich the local community.
The other initiative is the introduction of eco-loans. In order to mitigate the pollution brought about by coal burning in winter, XacBank has introduced loans for subsidized environmentally friendly products such as energy efficient stoves and ger blankets. Ger blankets are an alternative form of insulation that wraps around a ger, keeping it warm without the need to burn fuel. Eco-loans were introduced this winter and XacBank hopes they will be popular.
Having worked at XacBank for the past few months, I have witnessed the potential the bank has to expand and refine its services to increase profitability as well as to aid the poor. XacBank values its partnership with Kiva not just because Kiva lends at a 0% interest rate and accepts borrower defaults, but also because the organization, like Kiva lenders, attaches value to the human connection.
To share this enthusiasm with XacBank's Kiva borrowers, we created a video to illustrate to them in their language how the Kiva process works. Here is an English version of the same video: http://www.youtube.com/watch?v=wiXu1ICaz_Y
XacBank became a Kiva partner in January 2009 and, with your help, has since fundraised over US$1 million on Kiva, and has administered loans to over 1,000 Kiva borrowers. We hope that you will continue your support of Kiva and XacBank in 2010 and beyond—a little goes a long way!
Francis lives together with his two daughters, three sons and his wife in their own house. The children are all going to school, except one baby. He himself received ten years of school. His wife trades with provisions in her own store.
Trading with provisions is also Francis’ job. He also sells soft drinks out of two own fridges. Sometimes in the year, the demand is very low and because of financial difficulties it could be very hard times. Because of this, Francis decided to take this loan from the Christian Rural Aid Network (CRAN), to be able to handle his financial problems. His income increased, which he mainly uses for his children’s school fees and savings for their education.
The two main dreams for the future are, to build another store to rent and to see his children through education. Francis thanks every lender very much, for giving him the chance to improve his business, which is helping him to improve his life step by step.
About Christian Rural Aid Network:
Christian Rural Aid Network is a non-governmental, rural development organization established in 1993 with the aim of promoting an improvement in the quality of life and the socio-economic development of the rural poor in Ghana. Based in Cape Coast and operating in three regions and seven different districts, CRAN’s work is based on the values of Christian motivation and obligation towards the development of the individual as a whole, employing and promoting “demand-led” or “self-help” strategies for community development and rural poverty reduction. CRAN’s mission is to “work towards the improvement in the quality of life of the rural poor, the disadvantaged and the marginalized populations and communities in a holistic fashion (physically, socially, economically and spiritually), with emphasis on the right of children to quality formal education, in addition to the economic and social empowerment of women in a professional and qualitative manner”. To learn more about CRAN, click here. To browse through profiles of recent CRAN loan applicants and to make a loan to another worthy CRAN loan client, click here.
Thank you for supporting an entrepreneur in Honduras! The message below is from Prisma Honduras S.A., Kiva’s field partner in Honduras. As you may know, all borrowers’ profiles are posted on Kiva’s website with the help of microfinance institutions (MFIs) such as Prisma Honduras.
Prisma Honduras wishes to extend their thanks to all the Kiva lenders, and Kiva staff, who during the financial and political crisis that Honduras has been experiencing have continued to support our clients by funding our loans, even knowing that the situation in Honduras has been difficult since the political crisis in June 2009. Our people have suffered a lot, but they still have the inner strength to keep fighting and overcome the difficulties for the good of their family and because they have no other place to live.
Our country is trying to move beyond the political crisis after the elections of the 29th of November. We hope to continue with the valuable support you give by funding our loans and our people. Our goal is to help our clients achieve a better quality of life, by helping to improve their businesses which can help contribute to their food security and that of their families.
Thanks again for your support. The management and staff at Prisma Honduras wishes you all Happy Holidays and a Happy New Year.
Check out all fundraising loans from Prisma Honduras here
Thank you so much for supporting an entrepreneur from the Dominican Republic or Haiti! As a Kiva Fellow, I have spent the last three months working with Kiva’s Field Partner Esperanza International, visiting borrowers and writing updates about their businesses.
As you may know, all borrowers’ profiles are posted on Kiva’s website with the help of microfinance institutions (MFIs) such as Esperanza. With several branch offices located in the rural areas of these two countries, Esperanza reaches entrepreneurs in the most remote and undeserved communities. This makes possible the connection between Kiva lenders and borrowers in some of the neediest areas of the Dominican Republic.
Most of the loans Esperanza International disburses are group loans, inspired by the Grameen method, which consists of making a loan to a group of people living in the same community, after providing them with a short training program that includes basic business advice and training about the Esperanza program. All the borrowers from the group are bound to pay together, and the repayment meetings that are led in the communities help strengthen the links between local entrepreneurs. It is not uncommon for neighbors to attend these meetings and decide to join the groups to start a new project, or strengthen an existing one through a loan.
Esperanza is a strong supporter of the idea of mutual support and local initiatives to lift whole communities out of poverty. For instance, the institution recently started to run literacy programs in many of the communities they work with. These programs are led by the most educated among its borrowers. Esperanza has also been supporting local projects, such as a school that was created by one of its long term borrowers, named Milàn.
I had the unique chance to meet Milan and visit her school. She was just back from a trip across the United States (her first time out of the Dominican Republic) to tell her story. Milàn took out a loan from Esperanza in 1998 that allowed her to increase the income from her clothing business. Like many Esperanza borrowers, she was selling clothes on the street. Milan felt that she wanted to do something for the children of her neighborhood who didn’t have the opportunity to go to school, so she started a little school inside her house, providing children with basic literacy lessons, and a meal at lunch. Milan continued her clothing business and from the income generated, she could expand her school, until she reached 100 students (divided in two classes of 50 students on morning and afternoon). As her project was taking shape, she received further financial support from Esperanza and other non-profit organizations. The school I visited is a 2 story building, with eight classrooms, a library and computer room. Almost 500 students are attending the school, and follow an education program acknowledged by the Dominican ministry of Education, provided by 17 teachers (working part-time). Meanwhile, Milan has been able to complete her own education that she had left shortly before reaching high school. She is now about to get an advanced education degree that will certify her as a principal.
Recently, I was visiting a group of borrowers, who took their first loan funded by Kiva lenders. Maria, and one of the women of the group had a very similar story to Milan’s. Besides her clothing and home accessories business, she runs a local school, in her house, where she is the teacher of a class of 15 preschool children aged from 3 to 5. She is a well respected woman in her community. Her neighbors call her “la profesora” (the teacher). Although her activity as a teacher is not a source of income, it definitely is a great motivation for her to succeed in her business. Maria has recently added new products to her home accessories such as aromatic candles that she hopes will increase her sales during Christmas time.
Thanks to their commitment to reach the most isolated communities, and the indispensable financial support they receive from Kiva lenders, Esperanza may be fostering, through Maria, a new local project that will bring great benefits to the community.
Let’s wish Maria and all of Esperanza’s borrowers great success in their attempt to improve their life condition and access to education in the Dominican Republic. For this reason I entreat all of you who have lent to Esperanza International in the past to continue doing so, and continue to support this worthy project!
Please consider joining Esperanza’s Lending Team by clicking here.
La Asociación Comunal Rosales, durante el préstamo obtenido, pagaron con normalidad las cuotas, reuniéndose los lunes a las 8:30 en el Centro Focal Los Andes, muchas de sus integrantes visitaron o llevaron a sus hijos al consultorio, también invirtieron en sus negocios el préstamo obtenido, actualmente ellas cerraron el grupo porque querían tomarse un descanso.
Natividad tiene su negocio de confección, con su crédito ha comprado telas para confeccionar sabanas, se dedica también hacer manualidades para la decoración del hogar. Le ha ido muy bien en este negocio, ahora quiere comprarse su remalladora industrial, para ello esta ahorrando. Agradece a Finca por que ella ha crecido en su negocio, ha mandado sábanas al exterior por intermedio de un familiar y le ha ido bien.
Itohan is a fashion designer and also sells clothes as well as drinks. She added her last KIVA loan to her business capital. Haven fully repaid her loan she says thank you to all KIVA lenders for all their supports.
Sok lives with her husband and her children in the Kampong Cham province. Recently a loan officer visited to check how she used the loan. We found out that she spent some money to purchase sugar canes seed, flowing the land and reinvest in rubber business. She said there are several problems force her to stop growing canes. The high price of seeds, falling sugar cane's price as well as unstable climate condition. She is now no longer grow canes. Currently, she and her husband are employed as rubber farmers. They typically make US$5 a day. When ask do they have play to expand their business in the future, they have no idea yet.
Thank you so much for your generosity and kindness toward Sok Pov and her family. CREDIT appreciates your help and looks forward to partnering with you again in the future to continue to provide quality financial services to Cambodia's poor entrepreneurs.
I visited Julita’s hardware store last week. As we walked down a busy street to Julita’s hardware store, the CCT staff member with me pointed out Julita’s newest business, a busy bicycle parts store, on the left side of the street. Approaching Julita’s original business, I found Julita behind the counter with several customers waiting to buy things. I waited for them to finish and asked for a few minutes of Julita’s time. It was Julita’s assistant’s day off, so Julita was quite busy, but she tolds me, in fluent, well-spoken English, about her business and family in between filling customers’ orders. Julita is one of CCT’s bigger success stories. Helped by a 4,000 peso loan from CCT, Julita and her husband opened their first business in 2005. Revenue has grown four-fold, from 90,000 pesos per month to 360,000 pesos per month. In February this year, they opened their bicycle parts store down the road. Julita credits her success to progressively larger loans she’s received from CCT and business training in her last job as a sales clerk. The loans have allowed her increase the range of products she offers, expanding the business. The growth in their business has also come while raising four children, a seven-year-old son and three daughters: eight, nine, and 12-years-old. Asked why she started a hardware store, Julita said she needed a job and saw the store “in my dreams.” As her success has been noted by CCT and other CCT borrowers, Julita has been asked to mentor other entrepreneurs through CCT’s mentor program. She’s used profits from the business to buy a second-hand car and is eager to open up branches around the city. She’s able to save more money by living, along with her husband and four children, with her parents, but she and her husband hope to have a house of their own. Note: The income from Julita's hardware store was incorrectly stated in Julita's original profile. It has been corrected above. Please consider lending to another CCT entrepreneur in need of a loan and joining the CCT lending team.
Nurmatova Munavvar had successfully repaid her 7-month loan in the size of 2500 Somoni. Munavvar is running a grocery business. She applied for the loan as she wanted to purchase more foodstuffs thus increasing the range of goods for selling. She would like to let you know that each of you is a part of her success and she will remember your support and assistance. Certainly, Munavvar will not stop the development of her business and planning to grow and grow in future. Thank you!
Gladys was paid a visit by the credit officer and found her family and business doing well with basic needs being met and improved housing she had access to the main market in Bwaise and she at times work in mobile Markets She goes for shopping twice a week in Owino market She has got more customers now and she is very great full to Kiva for giving her this opportunity and getting timely loans
Grâce au crédit de ALIDé qu'elle a eu, Guedegbe Nathalie arrive à mieux satisfaire les commandes qu'elle reçoit de ses clients. En effet, le fonds de roulement de Nathalie lui permet d'acheter plus de marchandises qu'avant et de pouvoir livrer une partie à crédit.
Abdusattorova Munavvar has been successfully repaid her loan. Her business is going well. Due the loan from Kiva she successfully bought the new modern sewing machine. She is receiving good profit which she is spending for improving of her family living. Presently her assets are increasing every month. Munavvar is thankful for the opportunity to have taken this loan and thanks you for your support and encouragement! On behalf of IMON International, thank you for your continued generosity! Please forgive our tardiness in replying back to you. Your support is important to us and we are very grateful.
Victor Okonkwo store has added color in terms of goods that he bought with his kiva loan . Victor is very optimistic about the prosperity of his business and that of his family. he thanks you.
GNANNOU Aline a investi le prêt qu'elle a eu de Kiva dans l'achat de charbon de bois qui serre à faire la cuisine dans beaucoup de ménage à Cotonou, Capitale Économique du Bénin. Aline a pu écouler tous les charbons de bois qu'elle a acheté avec le crédit de Kiva et faire d'important profit sur ses ventes.
Grâce au crédit de Kiva, DONOUVOSSI Agnès a pu augmenter le volume de son activité.C'est ainsi que Agnès parvient à mieux satisfaire ses clients. Aussi, Agnès a vu ses revenus augmentés avec ce crédit de Kiva. Ceci lui permet de mieux subvenir dorénavant à ses besoins et à ceux de son enfant.
Mary was paid a visit by the credit officer and found her family doing well with basic needs being met and improved housing she had access to the main market in Owino Where she goes for shopping She has got more customers now and she is very great full to kiva for giving her this opportunity and getting timely loans
I have met over one hundred beneficiaries of your investments since my arrival in Paraguay. After days spent visiting Kiva borrowers, with my bus idling in Asuncion’s rush hour traffic and my lungs swimming in diesel exhaust, I spent a lot of time reflecting on Paraguay’s micro-entrepreneurs. My thoughts tended to bounce from borrower to borrower, from business to business: the garrulous restaurateur, the sun-soaked brick-maker, the struggling seamstress—different lives facing unique challenges. But their differences weren’t what stood out. Instead, I found myself focusing on a uniting theme: “asi, no más” a ubiquitous Paraguayan phrase that roughly translates to “That’s just how it is.”
The phrase, an attitude for some, practically a modus operandi for others, evokes a number of currents running through Paraguayan life. Most dominant is an incredible, nearly universal tranquility in the way Paraguayans confront life and its challenges. For many of the Kiva borrowers I met (such as Miguel Arce, Alejandra Alvarez , and Facunda Perez), behind that tranquility were razor sharp ambition and entrepreneurial acumen that helped their businesses grow and flourish. For others, “asi, no más” translated into a more passive willingness to accept the status quo.
The attitude itself wasn’t what struck me—with a history of political tyranny and an absolutely oppressive spring/summer climate, it is not surprising to find a culture that likes to keep an even keel and is disinclined to rock the boat. What was striking was how often my amateur analyses of Paraguay’s fight against poverty could be boiled down to this simple phrase. For families who were truly struggling, it felt like it was the driving force behind their ability to make do, to exist with dignity. For those who were staying afloat and growing when possible, “asi, no más” was an ability to withstand setbacks, to remain confident that, since that’s just how it is, eventually things would get better and hard work would be rewarded.
For all of these families, whether they were at the very bottom of the income ladder or perched somewhere closer to the middle, the capital provided by Fundación Paraguaya was seen as a much needed tool for economic stability and growth. To read more about how microfinance fits into the development puzzle in Paraguay, check out The Feel-Good Line, an entry I wrote for the Kiva Fellows blog.
Stay Connected!
Click hereto see more fundraising loans from Fundación Paraguaya.
To stay connected to Paraguay and to all the great work being done at Fundación Paraguaya, join our lending team Team Fundación Paraguaya. (New to Kiva Lending Teams? Learn more here)
Thank you again for investing in Paraguay and being a part of Kiva!
Sincerely,
Nick Cain Kiva Fellow
Questions? Comments? Feel free to write me at nick.cain@fellows.kiva.org
P.S. I would like to say a special thank you to the 19 Kiva Lenders who are currently members of Team Fundacion Paraguaya. Your support has been so impressive! Together we have almost 200 loans to our name!
My name is Nick Cain and I am writing to you from Asunción, Paraguay, where I have been volunteering as a Kiva Fellow for the past four months. At some point since becoming a Kiva lender, you made a loan to a Paraguayan entrepreneur. By doing so, you joined a group of people who have collectively invested over $2.3 million in this country (a figure that astounds me each and every time I write it), and for that, I would like to start by saying thank you. Because of you, bricks are made, dresses are sewn, cell phones are sold, and mounds and mounds of Paraguay’s most popular snack, chipa, are cooked and eaten. Your money moves this economy.
The Field Partner: Fundación Paraguaya
As you may know, all Kiva loans are disbursed and administered by Field Partners—local institutions who vet clients and collect payments. In Paraguay, your capital flows through Fundación Paraguaya, a 24-year-old organization with a remarkable history and a bold social mission. Led by its founder, Martín Burt, Fundación Paraguaya brought microfinance to Paraguay in 1985, at a time when the country was still controlled by Alfredo Stroessner, an iron-fisted, secret police-wielding dictator whose maniacal 35-year rule left his country poor, uneducated, and disastrously bereft of infrastructure. But, with a touch of irony that is familiar to many microfinance practitioners, the same set of circumstances that left so many Paraguayans entrenched in poverty also created an informal economy that was teeming with micro-entrepreneurs and, Martín believed, hungry for credit. A chance meeting with a representative from microfinance pioneer ACCION International inspired Martín to act on his hunch that, for Paraguayans trying to lift themselves out of poverty, access to capital would be the key.
The Leader
After 24 years, three major international awards, and one term as mayor of Asunción, Martín Burt is still at the helm of Fundación Paraguaya, preaching the doctrine of sustainability and innovation to his team (now over 150 people strong) of managers, teachers, and loan officers. Since 1985, Fundación Paraguaya has disbursed over $37.5 million in loans to entrepreneurs across the country. Because it is a non-profit organization, when Fundación Paraguaya earns money on its loan portfolio, the money is re-invested into the operating budgets of its other innovative social ventures: a business education program for young people, two self-sufficient agricultural high schools, and a recently-announced Poverty Eradication Project that is every bit as ambitious as it sounds.
Recently, I sat down with Martín to hear a little more about how Fundación Paraguaya got started, where he sees it going, and how the interest-free capital provided by lenders like you helps more than just a single borrower. Check out the interview in the video below.
Thank you for supporting a Kiva entrepreneur in Cambodia. My name is Drew Loizeaux, and I have been serving as a Kiva Fellow with one of Kiva’s partners in Cambodia, Hattha Kaksekar Limited (HKL), for the last three months. Working alongside the fantastic staff here, and meeting many of the clients that your loans have funded, has been a tremendously inspiring experience. Without you, the Kiva lenders, none of this would be possible.
Working at HKL with everyone from management to field staff, I have seen first hand the dedication to fostering these relationships. HKL staff serve their clients with an amazing amount of respect and understanding that, in turn, creates a great level of trust between both parties. The Kiva model flourishes with this trust, because many important details of the lives and businesses of the entrepreneurs that would otherwise be missed are passed on to the lenders.
Before I became a Kiva Fellow, my favorite part of the lending process was receiving updates on the Kiva entrepreneurs who I had lent to. It was like a small window into their lives, and it made me feel like I was able to make the world better in some small but tangible way. As a Kiva Fellow, visiting with clients and finding out about the borrowers’ progress is still my favorite part of working with Kiva.
Many of you have received updates on HKL loans, but I know many others have not. We have been working extremely hard to get as many journals as possible written, but with current staffing and the number of HKL loans on Kiva, we have been focusing on the loans that are ending soon. In the next year, we anticipate that you will receive individual updates on a large majority of your loans. In the meantime, I would like to share the videos and journals for three of my favorite meetings with Kiva Entrepreneurs during my time here. I hope you enjoy them!
Rom Chhoeuy sells fish and traditional fish paste at a local market. When I visited with her, I asked her what her hopes and dreams are for the future. When her kids realized that they were being videotaped, they were very excited about it and spent the whole time waving at me. You can see the video here: http://www.youtube.com/watch?v=kN-DBP1CLls&_te=mj. Read the whole journal on her business profile page here: http://www.kiva.org/app.php?page=businesses&action=about&id=53965&_te=mj
I am a Kiva Fellow and I'm finishing my Kiva Fellowship with Pearl Microfinance. I have been working in Kampala, Uganda with Pearl since February 2009. My daily tasks have mainly involved visiting the Kiva entrepreneurs and helping Grace, the Kiva Coordinator at Pearl, to improve the system that is used to post loans from Pearl on Kiva’s Web site.
First, I want to say - thank you for all your support for the entrepreneurs at Pearl Microfinance Limited!
Pearl has been working with Kiva for about 20 months. In that time, Kiva lenders have funded over 5,000 entrepreneurs and lent more than $1.5 million! You are receiving this message because you were one of those lenders.
Pearl is an interesting microfinance institution. Unlike many other microfinance institutions on Kiva, Pearl is a for-profit organization. Although this may make some people cringe, during my time here, I have come to see it as a tremendously positive thing. Pearl is constantly trying to make its processes as efficient and effective as possible. They are concerned about retention of clients and having a good reputation. I think this forces them to create loan products that are appealing to the clients.
Uganda’s microfinance market is very large. There are many clients and many providers. Although there are a large number of providers, the providers are not necessarily in multiple locations in Uganda. Pearl is one of the most widespread microfinance institutions in Uganda. It has offices in many different locations, and the credit officers are committed to using public transport or riding their motorcycles for hours to meet clients which makes the range even larger!
Until a few weeks ago, Pearl was not able to post loans from this huge geographical area on Kiva’s Web site. They could post only from their central location. While I was serving there as a Kiva Fellow, Grace and I were able to change the process so the Pearl employees can post from several locations in Uganda.
Pearls’ clients have been incredibly inspiring! I loved meeting them, hearing the ways that their lives have changed because of their loans, and meeting their children, who will grow up more comfortable because of the investments that their parents are making.
Greetings from Tanzania! Thank you for supporting Zuhura Malugu with a loan. With the loan Zuhura received, she purchased Hand bags,s candles and suits to sell door-to-door. With the increased stock in her new business, her monthly profit rose from $260! to about $300! Zuhura uses the profit to continually increase the stock of her door to door business. Zuhura is very grateful for the loan and is thankful to everyone who has supported her.
To see other loans being fundraised by Tujijenge Tanzania, please click on the following link: http://www.kiva.org/app.php?page=businesses&partner_id=87&status=fundRaising&sortBy=New+to+Old&_tpg=fb
Mr. Mat El and his wife have been selling recycling materials for three years. In September 2008, he applied for a loan of $600 to purchase a motorbike to carry recycle materials to sell.
As a result of the loan, Mat has purchased the red motorcycle. It is called Cent Caré. He uses it with a trailer at the back to travel about forty kilometers from his home to buy discarded household materials from villager and then sells them to a wholesalers in his village.
Because of the motor bike, Mat is able to buy more recycle materials for resale so he can generate the income up about $48.78 per three days compared to only about $36.50 before. So, Mat is able to manage the income to pay for household expenditures such as food, clothes and electricity charging. Mat said that “If he did not the loan he won’t have a motorbike like this.” In the end, he paid off the loan in full and ahead of schedule.
Dear lenders, Mambo from Mbozi , Tanzania and from SELFINA! Thank you for your loan through Kiva to Rehema Mpembela, a SELFINA client and micro-entrepreneur. The purpose of this journal is to update you on Rehema and the status of her business.
As you know, your generosity helped Rehema obtain a loan of $1050 in January 2008. She is running General Store and used the loan to purchase additional stock for her general store in bulk. She works at her business for 12 hours per day, 6 days per week. Since she took out the loan, her business has been doing well and Rehema’s monthly profits have increased from about $280 to approximately $400. She has used these extra profits to successfully repay her loan as well as to pay for her children school fees, to make improvement for her house and buy better food for her family.
In the future, she is planning to request a loan of $2000 from SELFINA with which she plans to expand her business by increasing the quantity and the range of her business. On the personal front, her family is doing well and she assisted with her husband. She is married with 5 children. Rehema dreams about send her children to University. SELFINA aims to continue to assist Rehema and other women like her, and empower them towards financial security and increased confidence through micro loans. Thank you very much for supporting Rehema! To continue to support women like her and lend to SELFINA borrowers, please click here:
Happy Year of the Ox! Thank you for supporting a Kiva entrepreneur in Cambodia.
It is the first day back in the Maxima office after Khmer New Year, and the office is abuzz with discussions of people describing their vacations. Our Kiva Coordinator, Sophal, a bright, 22-year-old Khmer girl and one of my closest friends in the office, asks me where I went.
“Battambong,” I reply, trying to pronounce the name correctly. After a few feeble attempts, Sophal at last can understand the city I mean.
“Did you dance, Julie?” She asks.
“Yes! We danced at the pagoda all three nights!” I exclaim.
“S’bai, at? Was it happy?”
“S’bai s’bai! Very happy!”
My name is Julie Picquet, and I am a Kiva Fellow working with Maxima Mikroheranhvatho, a Kiva Field Partner based in Phnom Penh, Cambodia. With two-thirds of my fellowship complete, I can hardly believe that I have less than one month left with this beautiful country and its inspiring citizens.
Kiva’s Partnership with Maxima
As a Kiva Fellow, I was placed with one of Kiva’s Field Partners to provide support and transparency into the money lending process. In the past nine weeks, I have visited Kiva entrepreneurs and worked closely with Maxima staff to write borrower updates, streamline our upload processes, and help with translation. As you may know, all entrepreneurs on Kiva’s web site are supported by local Field Partners, or microfinance institutions (MFIs) like Maxima, who are Kiva’s liaison between Kiva lenders and Kiva borrowers. They choose which of their clients are eligible to receive Kiva support, write and upload business profiles, disburse loans, collect payments, write journal updates, and respond to lender comments. Currently, Maxima is the only Field Partner to be completely owned and operated by Cambodians.
Despite the prominence of microfinance institutions in Cambodia (more than eighteen major banks and counting), Maxima stands apart from the rest as a boutique firm. As the smallest of Kiva’s four field partners in Cambodia, Maxima has the flexibility to tailor its loan products to best fit client demands. For example, some loan products include flexible interest rates, allowing clients to choose a lower interest rate if they can come to the Maxima office to make their payments, rather than have the loan officer drive to the clients’ residences. This cuts down on significant costs for the MFI, who can in turn pass the savings on to the client.
Riding on the back of a Maxima motorbike, interviewing borrowers and hearing about their business operations, I am impressed by the enthusiasm villages show when a loan officer and I drive past their houses. Sothea, a loan officer whose territory is the Koh Dach Island on the Mekong river, where she was raised and her parents still live, teaches me about customer service. “I always smile, the whole time I’m here,” she says, “My clients are everywhere, I want them to see me happy!”
Client Profile: The Um Family’s Mushrooms
Maxima’s clients seem happy, indeed. In the past nine years, Maxima has disbursed over $6 million dollars of loans and reached over 10,000 families. Maxima gives not only business loans, but also loans to build houses or to send children to school. In the homes I visit, I see the signs of development – children’s homework on the bamboo bed, taxi driving certificates pinned to the wall of a humble, wooden house. Piece by piece, Maxima’s loans help Cambodians improve their standard of living through sustainable business growth.
One example of this forward movement through small business entrepreneurship is exemplified through Sotheany Um and her family. When a credit offer and I approached the Um household, Sotheany’s father proudly told me that he could speak some French (which he learned when Cambodia was a French colony), so I said “Je m'appelle Julie.” He laughed and pulled up some chairs for Sothea and I to sit, while his daughter finished some work. During our interview, Sotheany’s young daughter ran around in pigtails and holding a balloon while we talked.
Sotheany is a hardworking businesswoman. This is her first microfinance loan, and she used all $700 of her loan to start up a mushroom business near the home she shares with her parents. She learned the mushroom growing trade from her brother-in-law, who had learned it from his uncle. She started the business about 6 months ago upon receiving the loan.
In this business, large, dark rooms are filled with vertical lines of segmented plastic bags, each filled with a mushroom fertilizer. The bags hang from floor-to-ceiling, and after a few weeks, wide, white mushrooms begin to sprout from the bottoms of each segment. The Ums built two buildings to grow mushrooms, each with over 5000 segmented bags. Sotheany’s father and brother-in-law enthusiastically showed us their mushroom huts and the mushrooms that are beginning to grow.
Sotheany sells her mushrooms on the island for 6000/kg for regular consumers, and 4000 or 5000/kg for wholesalers. One problem she faces is the lack of wholesalers to purchase her mushrooms. She may need to sell some of her mushrooms in Phnom Penh as well in order to increase her market. Sotheany is hopeful that she will be able to pay back her loan on time.
This video shows my interview with Sotheany, as well as her father and brother-in-law giving us a tour of the rooms where her mushrooms grow: http://www.youtube.com/watch?v=LoHT7jC5tUw
I was deeply impressed with the hard work that the Um household had put into starting this business. Mr. Um had even painted signs to mark the entrance of the mushroom hut, in both Khmer and French. To me, it showed the care that they have taken to run their business successfully and increase their income. On the Koh Dach Island, most people are weavers, and I imagine that it must take courage and confidence to introduce a new product to the island.
Before leaving to visit more weavers on the island, I thanked the Um family for their time and wished her success: “Some nang lo’ah!” – “Good luck!” To Sotheany’s father I said, “Au revoir!”
Maxima Welcomes the New Year
Last week Maxima brought in monks to bless the staff for Khmer New Year and invited me to join. Upstairs in our office, desks were pushed aside, mats were spread, and shoes were removed. We sat down and listened to the monks chant, as they splashed us with water and showered us with flower petals. The following day at 7:30 am, I was picked up by Maxima’s driver and brought to our Khmer New Year Party, where we met up with our second branch and the 60 or so employees cooked together, ate together and danced together as a family. “S’bai at, Julie?” They ask. “Yes,” I say, “I am very happy. Are you?”
Cambodia’s recent history paints a very different picture than the one I have come to see in my time here. Development is underway, and in the wake of a genocide, social problems and political corruption, in the faces of my coworkers and the people they serve I see happiness and determination.
On behalf of Kiva, Maxima and its hardworking clients, I thank you for your continued support of our hard work. Together, we can bring sustainable solutions to poverty and facilitate development worldwide.
We wish you a happy and healthy Year of the Ox, and we hope to continue to partner with you in the future.
Very Sincerely Yours,
Julie Picquet
Maxima Mikroheranhvatho
Phnom Penh, Cambodia
Thank you for supporting an entrepreneur in El Salvador! For the past several months, I have been working as a Kiva Fellow (see http://www.kiva.org/about/fellows-program) with Kiva’s Salvadoran field partner, Apoyo Integral. As you may know, all entrepreneur profiles on Kiva’s website are posted by local Field Partners (microfinance institutions), which are organizations that lend to the working poor to help them lift themselves out of poverty. The role of the Field Partner is to screen each entrepreneur, upload his or her loan request onto the Kiva website, disburse the loan, and collect repayments.
I would like to believe that the recent introduction to micro-lending through organizations such as Apoyo Integral and Kiva has finally opened doors for poor Salvadorans seeking to finance their businesses, homes, and families’ future. However, one thing I have slowly learned is that, in El Salvador at least, micro-finance’s most important contribution to date may ultimately not be the offering of cash to El Salvador’s poor but rather the gift of allowing them the dignity to be held accountable. After a decade of civil war in the 1980s, which attracted billions of dollars in foreign aid and has left over one million Salvadoran immigrants (20 percent of El Salvador’s population) working in the U.S. and sending five billion dollars a year back to families, many Salvadorans have become accustomed to receiving financial support. Not until recent years, however, have they been invited into a formal contract to which they are asked to sign their own names, to give their own word of honor.
My visits to struggling lenders such as Mercedes (http://www.kiva.org/app.php?page=businesses&action=about&id=40971&_tpos=1&_tpg=1) remind me that even remittances and credit do not ensure a thriving business and rarely cover the risks of not having access to health insurance. sufficient education, or a secure roof. Despite this, I was often inspired by stories of success, most memorably when I visited Lucy’s bakery (http://www.kiva.org/app.php?page=businesses&action=about&id=63109&_tpos=7&_tpg=1). As a young single mother, Lucy has expanded her small bakery business with the support of four small business loans from Apoyo Integral. Now, with three full-time employees (mom, dad, and her younger sister), a brand new industrial oven, and thousands invested in professional baking tools, Lucy and her family are thinking about building a larger bakery across the street to meet the overwhelming demand for their tasty treats. Though Lucy’s success tends to be the exception rather than the rule in El Salvador, her leadership and confidence in her role as an entrepreneur (especially as a woman in Latin America) gives me hope that micro-credit can be a source of economic - and cultural - independence among El Salvador’s poor.
Through my experience working with Apoyo Integral and their partner organization, the Salvadoran Foundation for Integral Development (FUSAI), I quickly realized how the organizations focused beyond just providing credit and charging interest. Both Apoyo Integral and FUSAI use the savings on credit (graciously provided without interest from Kiva lenders such as yourself) to pay for technical assistance services for clients building their own homes, training micro-entrepreneurs and youth in enterprise strategies, and even teaching a much-needed accounting class here and there. You, a Kiva lender, are giving them the financial resources; Apoyo Integral and FUSAI give them confidence; and the entrepreneurs are individually responsible for making something happen for their families and for El Salvador.
Phnov Thon, 30, lives with her husband in Kompong Cham, Cambodia. Phnov is a rice farmer, and her husband is a taxi driver. Phnov requested a loan to purchase pigs to raise.
A CREDIT MFI loan officer recently visited Phnov to check on her progress. After receiving her loan, Phnov used the money from her loan to buy pigs and to help her husband obtain an official driver's license. Because Phnov can stay at home to raise the pigs, the family is able to make more money. Additionally, her husband hopes that his official license will allow him to operate his own taxi business in the future.
Phnov says that her family's standard of living has improved since she started taking loans with CREDIT. When asked, she said she was thankful to CREDIT for its good service, and to Kiva lenders for supporting her loan.
In the future, Phnov hopes to buy more pigs to raise and to open a grocery store in her home.
(For those viewing this update in email, this lender's profile can be viewed here: http://partners.kiva.org/app.php?page=businesses&action=about&id=49517, and all loans from CREDIT MFI in Cambodia can be viewed here: http://partners.kiva.org/about/aboutPartner?id=9)"
Le crédit que Yvonne N'VEKOUNOU a eu de ALIDé lui permet de faire un important stock de provisions et de vite répondre aux commandes de sa clientèle. Yvonne a aussi obtenu d'autres marchés de service traiteur. En effet, pendant les cérémonies de baptême ou de mariage, le service de Yvonne est sollicité.
Mutandu Elysé vous remercie sincèrement pour avoir soutenu financièrement son affaire. Le crédit qu’il a reçu au mois de janvier dernier lui a permis d’acheter 1 sac de maїs, des haricots et des objets scolaires tels que des cahiers et uniformes, etc... pour les élèves. La dépréciation monétaire ainsi que la hausse des prix sur le marché ont perturbé un peu le rhymne de sa vente, mais il est travaille durement afin de réaliser plus de revenu pour être à l’abri de l’inflation.
En plus de la vente de tissus et de divers ustensiles en plastique, Elisabeth ZANNOU fait depuis qu'elle a eu ce dernier crédit de la restauration. En effet, Elisabeth vend la pâte de maïs, de manioc, de causette d'igname, du riz et du haricot. Elisabeth arrive à mieux satisfaire ses besoins et ceux de sa famille notamment en nourriture depuis qu'elle a cette autre source de revenu qu'est la restauration.
La quinua sigue siendo para Irma su principal fuente de trabajo, ya que continúa en el negocio de la elaboración de productos a base de este nutritivo alimento. con el préstamo obtenido compró más quinua para hornear y algunos moldes para mejorar y variar sus deliciosos productos.Con estos nuevos ingresos actualmente Irma se siente más tranquila, ya que ahora podrá pagar los estudios superiores de sus hijas con mayor comodidad, ella quiere agradecer de todo corazón a las personas que desinteresadamente la ayudaron y se preocuparon por ella.
Dear lenders, Mambo (Greetings!) from Dar es salaam, Tanzania and from SELFINA! Thank you for your loan through Kiva to Amina Rwambo, a SELFINA client and micro-entrepreneur. The purpose of this journal is to update you on Amina and the status of her business. As you know, your generosity helped Amina obtain a loan of $ 700 in March 2008. She is running a eggs business and used the loan to purchase stock of eggs She works at her business six days. Since she took out the loan, her business has been doing well and Amina’s monthly profits have increased from about $140 to approximately $220. She has used these extra profits to repay her loan, pay water and electricity bills buy food for her family. In the future, she is planning to expand her business. On the personal front, her family is doing well. As you may remember, she is widow and has one child. SELFINA aims to continue to assist Amina and other women like her, and empower them towards financial security and increased confidence through micro loans. Thank you very much for supporting Amina! To continue to support women like her and lend to SELFINA borrowers, please click here: http://www.kiva.org/app.php?page=businesses&partner_id=90&status=All&sortBy=New+to+Old&_tpg=fb Asante tena (thank you again) for your support!
Dear lenders, Mambo (Greetings!) from Dar es salaam, Tanzania and from SELFINA! Thank you for your loan through Kiva to Sophia Hassan, a SELFINA client and micro-entrepreneur. The purpose of this journal is to update you on Sophia and the status of her business. As you know, your generosity helped Sophia obtain a loan of $ 1025 in March 2008. She is running a tailoring business and used the loan to purchase sewing machine and cloth. She works at her business seven days. Since she took out the loan, her business has been doing well and Sophia’s monthly profits have increased from about $200 to approximately $300. She has used these extra profits to repay her loan, pay water and electricity bills and pay school fees for her children. In the future, she is planning to expand her business. On the personal front, her family is doing well. SELFINA aims to continue to assist Sophia and other women like her, and empower them towards financial security and increased confidence through micro loans. Thank you very much for supporting Sophia! To continue to support women like her and lend to SELFINA borrowers, please click here: http://www.kiva.org/app.php?page=businesses&partner_id=90&status=All&sortBy=New+to+Old&_tpg=fb Asante tena (thank you again) for your support!
I made several visits to MADAM in order to have a talk with the Director (Leader of this group) about his Kiva loan, but he was either out of the town or busy with guests. Alternatively, I decided to talk with John S. Koroma the Program’s Officer.
John received a loan of Le 2,000,000 from you. With this loan, he bought house building materials – fifty bags of cements, sand, iron robs, five bundles of corrugated iron zincs, boards and paid workmanship. With your loan’s help, John has almost completed building his house. He now has only to paint the outside of the house. He expects occupying his new home come April of this year, he told me.
This house consists of three bed rooms, one parlor, a toilet, a store and a dinning room. Without the help of your loan, it will have taken donkey’s years for Mr. John to be able to complete building his house. Since salaries are very small and there are other financial commitments to meet, he should have found it very hard or even impossible to use such a meager salary in building his house. But with the loan, he was able to do so with ease.
John, on behalf of MADAM asked me to convey his appreciation and gratitude to you for the loan given to them. Talking as a program’s officer, he will like to see you extending your support to grass-root people in the remote villages of Sierra Leone where they (MADMA) operate.
This new picture of John was taken inside of his office. I hope you enjoyed your journal update. Thanks for lending to SMT clients, please keep lending to our clients.
To see if SMT has loans in need of funding by Kiva lenders, please click here.
To view all SMT loans currently being paid back, please click here.
Regards, Ibrahim O. Jalloh, SMT’s Kiva Coordinator. jamraray@gmail.com
Huy Touch, 43, lives with her husband and three children in Kampong Cham, Cambodia. Huy and her husband have many businesses, but primarily work by lending out grinding mills to their neighbors, and earned approximately $3 a day at the time they applied for a loan. Huy requested a loan to strengthen their cattle business and to purchase materials to build another grinding mill.
A CREDIT MFI loan officer recently visited Huy to check on her progress. After receiving her loan, Huy purchased rocks and other materials and built a grinding mill, which she then sold. As a result, her income increased, and she was able to purchase more rocks to build grinding mills. She spent some of the money on housing materials and her cattle business.
In the future, Huy wants to continue with her mill-building business, and needs more money to purchase rocks.
When asked, Huy said she would recommend CREDIT to neighbors thinking about starting their own businesses.
(For those viewing this update in email, this lender's profile can be viewed here: http://partners.kiva.org/app.php?page=businesses&action=about&id=49520, and all loans from CREDIT MFI in Cambodia can be viewed here: http://partners.kiva.org/about/aboutPartner?id=9)"
Dear lenders, Mambo (Greetings!) from Dar es salaam, Tanzania and from SELFINA! Thank you for your loan through Kiva to Fatuma Ahmad, a SELFINA client and micro-entrepreneur. The purpose of this journal is to update you on Fatuma and the status of her business. As you know, your generosity helped Fatuma obtain a loan of $ 700 in March 2008. She owns a general store business and used the loan to purchase stock in bulk She works at her business six days. She is assisted by one employee at her business. Since she took out the loan, her business has been doing well and Fatuma’s monthly profits have increased from about $150 to approximately $250. She has used these extra profits to repay her loan, pay school fees, pay water and electricity bills. In the future, she is planning to open another business business. On the personal front, her family is doing well. As you may remember, she is married and has one child. SELFINA aims to continue to assist Fatuma and other women like her, and empower them towards financial security and increased confidence through micro loans. Thank you very much for supporting Fatuma! To continue to support women like her and lend to SELFINA borrowers, please click here: http://www.kiva.org/app.php?page=businesses&partner_id=90&status=All&sortBy=New+to+Old&_tpg=fb Asante tena (thank you again) for your support!
La señora Esperanza del Socorro Flores al haber adquirido su crédito en Ceprodel fue grandemente beneficiada por la razon de que mejoró su condicion ya que adquirió los helados Eskimo y obtuvo ingresos por medio de esta venta. Con el crédito logró mejorar y por esto ha decidido continuar solicitando para mejorar mas las condiciones del negocio sobresaliendo como excelente comerciante.
Thank you for supporting an entrepreneur in Tajikistan.
I'm excited to be writing you as the Kiva Fellow in northern Tajikistan. For the last few months, I have been working with Kiva's Field Partner, MLF MicroInvest visiting many Kiva entrepreneurs.
As you may know, all entrepreneur profiles on Kiva's website are posted by local Field Partners (microfinance institutions) like MicroInvest, which are organizations which lend to those without easy access to credit for purposes of sustaining or growing their businesses. In my time here I have had the opportunity to get to know MicroInvest's staff and its clients. Its ultimate mission is to enable its borrowers to achieve self-sufficiency through the development of their businesses.
But from what I have seen in my time here, MicroInvest's work isn't just about issuing loans. They also create a long-lasting, collaborative relationship with each client to address their financial needs and improve the household's standard of living.
One such relationship is with Oishahon who sells vegetables and herbs in the Isfara market. I met with her recently and she talked at length about her business. For the season she is stocking garlic, fennel, various teas, and hot peppers. The winter is a fairly slow time for green grocers and most of her business comes during the spring months.
We spent some time talking about her past career as a teacher of Tajik literature. She, like many others here, spoke fondly of Rudaki who was a poet in ancient Persia some 1,000 years ago. She also discussed her past career as a teacher of Tajik literature. She abandoned her teaching career back in 1991 when Tajikistan became independent from the USSR and salaries fell significantly. There are many other former teachers, doctors or factory workers here who have moved on to a business of their own as a means of sustaining themselves.
With customers hovering around her stand, I excused myself so she could conduct her business. She expressed her thanks to Kiva lenders and says her loan has allowed her to sustain her business through the lean winter months.
With over $1.3 million in loans to Kiva clients, MicroInvest serves many others like Oishahon throughout the country. From Kiva, MicroInvest and its borrowers, we thank you for supporting our work. To see support additional borrowers, please check:
Nadia has worked with Al Majmoua, Lebanese Association for Development for the two years, and her last loan is nearly finished. She used the capital from her last loan, which was raised by Kiva lenders such as you, and disbursed by Al Majmoua, to purchase merchandise for her bakery like flour, oil and she also bought a new oven for her business. Nadia is extremely satisfied with her Kiva-Al Majmoua loan and hopes one day to expand her business by delivering for shops and become a bigger garage.
Isabel used her Kiva loan of 2500 soles to buy more materials (like cards, paper and printer ink) and a printer. Printers are cheaply made nowadays, Isabel says, plus the cartridges are so expensive that it’s almost worth it to just buy a new printer whenever you run out of ink. She says that her business is expanding and improving little by little, and this encourages her to keep working hard and investing her money in the business. She has been running the business herself for the past three or four years; before then, her husband administered the business. Several years ago, the couple was robbed of nearly everything they had, and had to start over again from scratch. “I’m just now getting back on my feet,” Isabel says.
Isabel has been a client of FINCA Perú since the institution first opened about 15 years ago. She had just $2 when she started out, she remembers. Her goal for the future is for two of her three children to graduate from college with professional degrees (Isabel has three children and one granddaughter (pictured), who she helped raise). Someday, she plans to leave the printing business to her third child, who did not go to college.
Isabel is pictured below (right) with her young granddaughter, with Albertina, a fellow member of the Empecemos Village Bank, and with Albertina's two children.
Senor Rodriguez has spent the last thirty years working with tires- 20 in his own shop. He received a loan to buy some additional machinery that has allowed him to expand the range of damage he can repair.
He wants you to know how much he loves his work. He doesn't get bored. He doesn't get tired of it. Every day is like the first day. He enthusiastically explained to me the variations of "vulcanizadoras"/"tire repair shops". He is on the first level of basic tire repair but he would like to expand to new tire sales. He wants to hand the business over to his son.
The attached photo shows Guillermo working with his son on the repair of a large tire.
This loan was made by ADMIC, the local Kiva partner. ADMIC was created almost thirty years ago to support the development and creation of small businesses as a support for the unemployed and other individuals with limited means.
Greetings from Tanzania! Thank you very much for supporting Dia Ally and her group. Dia used her loan to expand her café. She bought five sacks of rice, more cooking pans and benches for people to sit. She says the most popular dish at her café is ugali and beans, a Tanzanian staple. Her profit is still about $180 per month. She happily used some of her profits to send her children to school and she continues to repair her house. She doesn’t have electricity yet but she believes that if she stays involved with Tujijenge Tanzania, she will soon enough. Dia is careful with her money and has been proactively saving in case of an emergency, and currently has almost $350 in the bank. This month will be difficult because she lives in a Muslim area and many of her neighbors are fasting during Ramadhan. She says she will only earn $2-3 per day, but she can make it through the slow month because of her savings.
To see other loans being raised by Tujijenge Tanzania, please click on the following link: http://www.kiva.org/app.php?page=businesses&partner_id=87&status=fundRaising&sortBy=New+to+Old&_tpg=fb
I’m excited to be writing you as the Kiva Fellow in Benin City, Nigeria. Over the next 3 months I will be witnessing firsthand the impact and realities of microfinance while working with Kiva’s Field Partner, Lift Above Poverty Organization (LAPO). As you may know, all entrepreneur profiles on Kiva's website are posted by local Field Partners (microfinance institutions), which are organizations that lend to the poor for poverty alleviation. The role of a Field Partner is to screen each entrepreneur, upload his/her loan request on the Kiva website, disburse the loan, and collect loan repayments.
In my role, I will be visiting many Kiva entrepreneurs and businesses and training LAPO staff in writing updates for Kiva lenders. As a result, many of you will receive an update on an entrepreneur who received a loan contribution from you. Unfortunately, due to the logistical and administrative constraints, reaching every entrepreneur for an update is not possible, even with the team of 8 people at LAPO who are dedicated to providing Kiva with photos and other content. Whether or not we provide an update on an entrepreneur to whom you loaned, I hope that you will enjoy the story of one Kiva borrower in Benin City that, to me, illustrates the “togetherness” and “unity” that is the inspiration for Kiva’s Swahili name. It is the story of Cookey Nosayana.
Cookey owns a 24-hour Internet café and computer training center. He took a Kiva loan to purchase a more efficient generator that has cut his fuel costs by more than half. It supplies his business with power despite the frequent and extended power outages that are common in Nigeria (in order to stay open for business, he must run a generator an average of 15 hours every day).
Cookey is unique among LAPO (and likely Kiva) clients – he has access to the Internet. He is one of the few clients has been able to explore Kiva.org and experience the partnership that lenders have access to every time they sign on to their portfolio page. When I arrived to write his update, he was holding a printout of his borrower page. As a lender myself, I was excited to hear his perspective. He was gracious enough to answer my myriad of questions.
Cookey first found his profile on Kiva.org by accident. He was Googling “Cookey Nosayana” to see if he could find the meaning of his name. Up came Kiva.org. First he read what had been written in his business description. It was basic, but he was grateful that it had helped him get the capital to purchase a new generator. Then he started clicking around. He viewed his lenders – from the United States, Canada and the UK. They were working people, just like him. I asked him what he thought. Was he surprised that someone would lend him money from across the globe? He was grateful, but not surprised.
“We live in a humanitarian world,” he said. “It’s just like the head of LAPO [Godwin Ehigiamusoe],” Cookey continued. “When he first started LAPO people laughed. Now everyone is running to him for loans. It’s because it is a good idea.” Note: LAPO was started in 1987 when microfinance was still in its infancy and primarily limited to Asia. Those who believed in microfinance were still unsure about it’s promise in Nigeria. Godwin Ehigiamusoe blocked out the negativity, moved forward as he says, “with his heart and his head.” Today LAPO has 137 branches throughout Southern Nigeria and Sierra Leone, provides over $36,126,579 in loans each year and served 135,975 clients in 2007.
Now with LAPO partnering with Kiva, Cookey says that he would love to continue being part of this international web-based financial community. He has expansion plans for his business and will need additional capital to double the number of computers he has connected to the web. He hopes that LAPO will select him as a Kiva client a second time (His first Kiva loan will be paid off in 4 months so keep an eye out for him on the LAPO client lending page).
“Kiva is worthwhile,” says Cookey, “and will continue to be if both sides keep up their part.” As he explored the site, he browsed the businesses of his fellow borrowers from Indonesia to Azerbaijan and appreciated the widespread impact Kiva lenders were having. He believes that it is critical that Kiva entrepreneurs keep making payments and showing improvement and that lenders keep reinvesting their Kiva credit into new businesses as they are repaid. From Kiva, LAPO and its family of borrowers, we thank you for your continued support of our work. To see all currently fundraising loans from LAPO on Kiva.org, please click here:
Update by Brendan McBride, Kiva Fellow with FVP in Nuevo Laredo, Mexico:
I visited Mr. Gomez last week at his shoe business, and got the chance to talk to him about the impact of the Kiva loan. Mr. Gomez Has been in the shoe business for more than 30 years. He showed me a photograph of himself as a very young man already working as a shoe maker. (He has aged pretty well!) His business has allowed him to support himself and his family over the last three decades. All three of his children are now grown and have moved out of the house and started their own families.
His business has a faithful clientele that he is built up over the years. His wife told me that clients come from far away to have their shoes repaired or to have new shoes or boots made. At the time that I was visiting, Mr. Gomez was in the process of making a sharp pair of monogrammed boots for the mayor of a nearby town.
Mr. Gomez’s daughter-in-lawrecommended him to FVP, Kiva’s microfinance partner in Nuevo Laredo. He decided to seek a loan because he was needed to buy a larger amount of raw material in order to make the cowboy boots that are his specialty. He thus used the Kiva loan to purchase leather, boot soles, and other materials necessary for fabricating boots. Without this capital, it would be more difficult for him to invest in raw materials to make boots and have products available when customers walk through the door.
Mr. Gomez since his thanks to Kiva lenders for supporting his business! He is thinking about taking out another loan after paying back this one....
Celso said that there is no free day for him. He is working from monday to sunday (on weekends he takes a rest in the morning because the good money you can have it at night) but the rest of the week he works in the mournings, afternoons and night (but only until 22:00) . Now the loan is 25% re paid
Celso is working very hard with the car now. He is the kind of taxi driver that is always giving an entertained conversation with all the customers so he is enjoying his job a lot. Now the loan is 17% re paid and he is paying on time.
Simply so you know who is the voice of this progress report my name is Jon and I am a Kiva Fellow working in Nicaragua with AFODENIC; the organization that loans to Maria.
I sat down with Maria for quite awhile in her yard find out about her business and life. Maria has a well-developed pulperia and is in a sense paying her own little commodities game. Occasionally, she will make sales trips to more rural parts of Nicaragua. She can sell easier and with better profit margins in these unsaturated markets. When Maria goes to the interior, she buys basics for her pulperia that are cheaper there, like beans. She has about 30 one hundred pound sacks of beans stacked up on the sidewall of her pulperia. (b.t.w. pulperia = small home front store) She was able to buy the beans a bit cheaper in the interior and is betting that the price of beans will go up next month when the rains come back.
Very generously, Maria handed me a bottle of water and the loan officer an orange soda. We sat back down and talked more while I took photos of the children putting on my motorcycle helmet. Maria used the loan for working capital for her business. With the loan Maria has begun to sell much more medicine than she has in the past. It sells well in her barrio and on her sales trips.
Maria has many ambitions for the future. She would like to finish constructing her house, save money for retirement / emergencies, and buy a work truck.
Celso bought the car to be used as a taxi He wants to thank Kiva an all his lenders for trusting him (an older person!!!) He started to pay the loan and he asks for more patience from us he promessed to pay on time and he will do.
Simply so you know who is the voice of this article, my name is Jon and I am a Kiva Fellow working with AFODENIC; the micro finance institution that loans to Arely.
Arely had to quit her job a few years ago because her son has a condition where there is excessive liquid around his brain. I am not exactly sure what the affliction is, but it is supposedly not permanent and something that kids grow out of over time. Because the family needed to remain a two-income family Arely started a store out of the family home. Arely’s husband has a business selling used tires in Mercado Oriental and between the income of his business and the store they have enough money to live on as well as invest in their home. Essentially, Arely and her husband are using the loans to buy inventory for the business and make improvements to their home. Since they have a 15 year old and the little boy with the condition is much younger, they are building an additional room for their elder child. Arely and her husband have goals to further improve their home and earn more from their businesses.
