Microfinance For Women Summary
In order to help a sick child recover completely it is important to supplement the medicines with food and nutrition. Unfortunately, the AIDS epidemic has destroyed the fabric of the African community and most of the households are headed by grandmothers caring for 5 or more orphans. These grandmothers do not have a permanent source of income and struggle against odds to provide regular food or support to the family. We realized early in our work that if we were to succeed in making a real difference in the lives of all the HIV+ children we had to make sure the grandmothers had a regular source of income. Microfinance - a novel program by which poor people are given small loans without collateral has been implemented successfully in many countries. Through microfinance poor women get loans to start a business and over time as the business grows, they repay their loans. Worldwide the repayment rates for micro credit vastly exceed that of traditional banking. We decided to launch our own microfinance program to help these grandmothers.
Power of Love’s micro finance program was launched in 2005. In developing the program Power of Love had to take into account the special circumstances of the loan recipients - many could die during the loan process, all of them spent a large part of their day in providing care to one or more sick children, and the fact that they were themselves aging grandmothers. Unlike traditional microfinance programs, we decided to focus not just on successful loan repayment but on proof positive that the loan recipients’ lives were being improved.
How Does the Program Work?
POL’s micro finance program provides women caregivers with microloans and training to engage in income-generating activities. These women, who care for HIV/AIDS patients and orphaned children, are critical to maintaining family structures in the community. However, they are themselves highly vulnerable to poverty and sickness. With the ability to generate income, they can support and empower themselves, while providing care that is essential in the community response to HIV/AIDS.
Impact of the Program
To date, POL has provided more than 280 loans to women caregivers of HIV positive children. Repayment rates are over 90%. As a result of the businesses started with loan money, the diet of several families has improved significantly with many women reporting that they can now afford 2-3 meals a day as opposed to a single meal before they started the business. In addition, the children are healthier so that they miss fewer days of school, and as a result of regular earnings these women can pay for school supplies (books, school bags, shoes, uniforms). In addition, as the women progress successfully through loan cycles there is a marked improvement in the assortment and display of their merchandise. More importantly, women who are on their third or fourth loan cycle have not only become role models for other women but also for other men in the community. Several men are helping their wives run the business. The women are also saving a small amount each week as personal savings and have their own passbooks to record their savings.
Overall, we believe over 5000 children and adults have been directly impacted by the program through better nutrition, health, school attendance and increased life expectancy.
Micro Finance Activities (to date) in 2010
On International Women’s Day (March 8, 2010), 50 new loans were provided to women caregivers of HIV positive children. The women were provided with business training in February 2010, and after successful completion of the training received loans in the amount of $110-120 each. Members of the Rotary Club Nkwazi in Lusaka, participated in the event, chatted with the women and their families and shopped at the new businesses.
Some of the new businesses started by women are:
(i) Sale of dried fish
(ii) Fritters and Pop corn
(iii) Grocery items like vegetables, fruits, beans, soft drinks, mineral water, eggs, dressed chickens, Floor polish, Bags of charcoal, Cakes etc.
(iv) Hardware items
(v) Used clothing
Beneficiary Profile: All the loan recipients are women and have at least one child who is HIV positive. Second, most of the loan recipients have children who are HIV positive and are enrolled in Power of Love's ARC (Arms Reach Care) program. The ARC program provides the children with food, medicines, weekly health check-ups from the Community Health worker/Nurse, psychosocial counseling, and other life saving services. On average loan beneficiaries are caring for 4 children, and 3 elderly people at home. This implies that the micro loans are benefiting at least 400 people directly (assuming an average household size of 8) and many more indirectly.
Plans for 2010
We are planning on providing 200 new loans to women caregivers in 2010. To date, we have raised funds to provide 100 new loans and the first 50 loans will be given out in March 2010. At this time we are raising funds for the next 100 loans and your contribution will go a long way in improving the quality of life of orpahn and vulnerable children in Zambia.
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