Tuesday, 26 November 2013

I Thought I Would Paint A Picture Of Daily Life Here


Emma Chase works for the micro-finance institution MicroLoan Foundation and is currently spending three months volunteering in Zambia, where she is helping to set up the partnership between MicroLoan Foundation and Lendwithcare. She has been writing about her time in Zambia in three previous blog posts ("Home away from home", "Muddy bricks and trainers" and "If it had wheels, I travelled on it!") and here is her fourth installment. This is a re-post from the MicroLoan Foundation.

It’s 17.00 and we’ve had a power cut, and no water, since 9 a.m. It’s a daily occurrence and I thought I would take the opportunity to describe to you all what life here is like; my day-to–day routine.
I wake on average between 5 and 5.30 a.m in time with the sun, to the illusive clanging of metal somewhere nearby; I’ve tried, and failed, to identify its source, and purpose! Once up I pour myself a cup of water, boiled the previous night, and say good morning to my resident spiders – I think they are a family as this past week I’ve seen half a dozen small spiders – and they entertain me with a dance around the room. 
On the way to work – Smog and poverty
I am accustomed to life here - as I navigate my way along the side of roads, jumping out of the way when a car speeds past hooting me to move, I forget that I am many miles away from home, where life is so different. I join men in smart suits (yes, suits when it is 37degrees!) walking to work, children being taken to school by elder siblings, girls and boys with music blaring from their phones walking with the arrogance of youth, men sweeping the leaves and dead flowers away from a government building, cattle on a walk, a man on his bike with a wellington on his left and a flip flop on his right, three cyclists each carrying two dead goats on the backs of their bikes, holding my breath as passing vehicles emit large plumes of dark smoke – oh wait! Not so different after all.
People have asked me if I have found living so close to such poverty difficult and in truth, yes. Each morning on my way to work I see children, without shoes, without proper clothes, put to work. One morning I passed a mother with her son. They were each lifting large bundles of bamboo branches. Mum was wrestling with a load twice the size of her – about the size of a large tree trunk and son, who could not have been older than ten, a slightly smaller bunch… a small tree. The branches were tied up and resting on a wall. They each had a material pad that they held on the tops of their heads and, as though bulls about to charge, bent their heads to meet the branches. They then each negotiated with the weight to hoist it up and get on their way.
The wind and fire in Chipata
Two special features of Chipata are the wind, and the fire.  When I was first told about the wind I thought it a blessing – a relief from the heat – and although a breeze is most welcome during the scoring afternoon heat, I have witnessed some of its more irritating features: Causing papers to fly around the office as though they are birds, taking off at whim, and throwing dust into my eyes. I bought some replacement sunglasses (that cover about half of my face!) but even while I wear them the frequent whooshes of wind, scattering grit and dust everywhere still find my eyes as I walk about town. I’m not hiding my temporary blindness, whilst walking around, and so I’m pretty sure everyone here thinks I’m nuts: “Oh for God’s sake, I can’t see”, mutters the crazy mzungu.
Fire is the second characteristic of Chipata. Small fires are commonplace and mostly used to burn rubbish; men at the sides of roads burn their waste, and I often see children play at poking them with sticks. Sometimes small, sometimes large piles of ash are part of the landscape, and a constant whiff of smoke can be smelt throughout the town. One morning I was welcomed into work by a cloud of white smoke that was steadily covering Chipata town, and the crackle, crackle of burning trees. From every window in the office, all you could see was thick, white smoke. Everyone was pretty unperturbed whereas I was panicking: Would I get to my guesthouse in time to pick up my passport, what would I need to grab in case we needed to evacuate? Everyone laughed at me when I asked whether I should prepare for such an event and they assured me that they would let me know if I needed to worry – I could grab a lift out of town with them! In the meantime I was to get on with work. As the odd bits of ash floated in through the windows I asked why no one was worried. They told me that the fire was to hunt for rats, to be eaten or sold at the market.
Zambian culinary specialties
Work finishes at 17.00. Because the sun sets at 18.15, and it is pitch black by 18.30, everyone promptly leaves the office. When I get home at about 17.15 I begin making dinner. I am now a professional in one-pot meals and have experimented with all the locally grown vegetables I purchase in the market. I have taken recipes from local women and recreated them for myself – one such dish is using ground peanuts to make a spinach and tomato dish. Groundnuts (peanuts) are very popular as, like the dried kapenta fish, they are hassle-free sources of protein. I’m also gorging on anything you can buy from women selling along the roads: Cassava – did you know that if you are not going to eat it fresh, you should dig a hole in the ground and store it there till you are ready to eat it?! – and chinaka. I was introduced to chinaka through my recruit at work; she called in a seller to let me try some. It is similar to pate in texture, but is made from groundnuts, salt and African polony. For those of you, like me, who did not know what African polony is, it comes from brownish tubers of orchids that are the size of small potatoes, grown underground, in the Northern region of Zambia. It used to be restricted to the northern Bemba tribes but is now common across eastern Zambia. It can be spread on bread, or eaten with nshima. Rats are also featured in some peoples’ diet but I’m not that brave! 
At about 20.30 I switch on my kettle for the morning’s water and as I begin to get sleepy, the dogs start barking; barking a lullaby to send me to sleep. I have only seen one dog in the street but come nightfall two dozen or so, make their presence known. It is during this pandemonium; the howling of the wind, banging of the windows, barking of the dogs and rumbling of the kettle that I drift off to sleep, appreciating all the advantages life has given me.

Disability Does Not Diminish Your Eligibility For Personal Loans!

disability loans
Your physical disability has restricted you to engage in a good employment and you are compelled to live on benefits issued by the department of social security.

It is a reality that the benefits you get from government are inadequate to meet all your essential expenses.
In order to maintain the quality of life, you have to find additional fund from elsewhere. Practically it is not so easy to get financial support from external sources due to your weak financial background.

Now, the situation has changed a lot and lenders have come forward with special loan schemes with intention to cater to the needs of disabled persons.

They offer personal loans to such people on simple terms for short period. The loan scheme is designed in such a way that anyone can avail it without going through tough procedures.

They offer the loan regardless of your credit history or property status. Your tenancy position or adverse credit ratings like arrears, bankruptcy, defaults etc. does not exclude you from gaining the loan.

Only thing is that you should be in a position to repay the amount you receive within the stipulated time.

Lenders examine only whether you will be able to pay back the amount as per the schedule and if they are satisfied in your ability, certainly they give assent to your loan request.

You need to give the required details regarding your identity and fiscal position duly filled in the online application. This is the only thing you have to do with regard to the availing of the loan.

You need not even visit the lender's office at least once ahead of loan approval. Online facility enables the borrowers to file their application according to their convenience from any place at any time. You get the loan approval within hours of your application.

The amount you get is related to your repaying ability and current need. Loan tenure changes according to one’s paying back capacity.

You can gain personal loans at low interest charges. You can examine the veracity of the rate by comparing it with various loan schemes and arrive at a reasonable one.

Wednesday, 13 November 2013

Typhoon Haiyan hits the Philippines - Testimonial from CARE International's Sandra Bulling

Sandra Bulling, CARE International Emergency Communications Officer, is with CARE’s Emergency Team in the areas affected by the Super Typhoon Haiyan in the Philippines.
Nov. 11, 2013, 19:00 local time.

“We arrived by boat at the port in Ormoc City. As soon as we stepped onto the port, we were in the middle of a disaster zone. Everything was destroyed. Tin roofing sheets were hanging off trees like wet blankets.

“All the houses along the coast are completely flattened. Everything is destroyed. Further inland, about 80 percent of the houses are roofless. About five percent of the houses are completely collapsed – these are mainly wooden houses. It seems like everyone we’ve seen has a hammer or tools in their hands, trying to repair their houses and their roofs. People are picking up poles and pieces of wood from the street. There are long queues at hardware stores, pharmacies. We waited in line for two hours to get fuel. So far the roads are okay, but it’s taking a long time to get anywhere.

© REUTERS/Erik De Castro

“I talked to a shop owner whose shop was destroyed; he lost everything. He’s wondering how he’s going to feed his five children. I also met a little girl, who was trying to dry out her books. Her house was totally destroyed, but there she was, worried about her school books, because she wants to go to school. And it’s the only thing she has left.

“We just arrived in Jaro, a small town on the way to Tacloban. It’s dark now, so we can’t go any further. We’re staying in the police station tonight – not sure where we’ll sleep, maybe in the car, or outside. There’s an electricity pole that’s leaning dangerously over the police station, so everyone is trying to steer clear of that. Thank  you to the police for letting us use their toilets! Our plan is to go to Dulag, just south of Tacloban. Our driver just came from there, and says it’s very bad, and they need help.

© ACCORD/CARE

“People are becoming quite desperate. Some officials just came and told us that there has been looting in the area, people trying to get rice for their families. People haven’t had food for three days, and they’re trying to feed their families. That’s why it’s so important to get food and emergency supplies in to these areas as soon as possible. In Ormoc, there was food; we could buy chicken and rice. But there were big queues at the food stalls and shops. We’re in an urban area now, and I don’t even want to think what it’s like in the rural areas. We’ll start moving again at first light. I don’t think anyone is going to get any sleep tonight.”

Sandra Bulling, CARE International Emergency Communications Officer 

Areas affected by the typhoon include Leyte and Cebu, where a large number of Lendwithcare entrepreneurs live and work. We are still uncertain of the extent of the damage and we are still waiting for further information from SEEDFINANCE, our partner in the Philippines, before taking any final decision regarding repayments.  However, it is very likely that a large number of lendwithcare entrepreneurs will have been affected, and neither CARE nor the microfinance organisations with whom we work, would demand repayment from individuals who have lost their livelihoods in this way.

In order to help with disaster relief efforts, you can donate to CARE International now, either via The Big Give (your donation will be doubled, for a limited time) or directly on CARE International's emergency appeal page.

Follow the latest news and updates on Twitter @lendwithcare or @careintuk or Facebook www.facebook.com/lendwithcare or www.facebook.com/CAREInternationalUK

Monday, 4 November 2013

Financial inclusion: How can poor people have access to the financial services they need?

2.5 billion people around the world lack access to financial services such as savings accounts, access to loans,  insurance and  bank transfers.  According to the Centre for Financial Inclusion, “Access to a range of quality financial services at affordable prices, delivered with convenience and dignity, can change the course of an individual’s, family’s, or business’s future.  A full suite of financial services should be provided with quality, to all who can use them, by a range of providers”.

CARE's Code of Conduct

Financial inclusion is challenging and requires financial service providers to meet the unique needs of all clients, especially the so called "invisible customers", the most under-served and vulnerable client groups.

Last week, the Global Forum “Financial Inclusion 2020” took place in London.  The vision of this movement is to create a financially inclusive world using the year 2020 as a focal point for action. The movement has worked together for over 20 years to promote  responsible microfinance practices.  The focus of these practices is the economic and social benefit of customers, rather than the maximisation of profits for microfinance institutions.

On Wednesday to conclude the forum, the Microfinance CEO Working Group,  who collaborate to improve the way in which their Microfinance institutions work, participated in a conversation with members of the Microfinance Club UK on the development of the Financial Inclusion 2020 initiative.

Discussion around two major questions arose from this conversation:
  1. What does expanding Financial Inclusion mean for the very poor? How do we ensure financial services remain client-focused and that financial sustainability is not achieved at the expense of microfinance's social mission - poverty alleviation.
  2. What role must technology play in driving and expanding financial inclusion? Attendees were in strong agreement that technology is critical to the success of Financial Inclusion and the creation of sustainable business models, for example the use of mobile phones to transfer small amounts of money between users of the same mobile company, as  is being done in Kenya, Tanzania and other African countries. 

The group also highlighted what they consider to be the fundamentals of responsible microfinance. These fundamentals are included in CARE's Code of Conduct in Microfinance and are critical to the success of Financial Inclusion as a movement to build better futures for people with low and moderate income around the world. These are:
  • ensure customer protection 
  • focus on customers’ real needs 
  • reach customers in remote areas 
  • provide services to customers classified as poor 
  • provide training to their customers 
  • being transparent and efficient in their management 
  • work with and empower local staff

Read more about the Financial Inclusion Forum 2020

By Teresa Hall, Lendwithcare.org Assistant

Tuesday, 29 October 2013

Video updates from Togo part two: collecting updates from the field

After the first part of our video updates from Togo in July, the wait is finally over! Here is part two, at last.

In my first blog about my trip to Togo, I mentioned that visiting our microfinance partner, WAGES, was of particular interest to me because of CARE’s long-standing relationship with the institution. However, the main purpose of my trip was to respond to our lenders’ desire for more updates on how their loans have impacted on the lives of the people they have supported.  So I travelled to WAGES to provide the loan officers who work with Lendwithcare some further training on how to provide updates and more specifically how they can use film to bring these updates to life.

The training was led by professional film makers Fiona Molloy and Nik Wood (the people that also put together our fab TV ad!) and I have to say the loan officers really enjoyed learning the tricks of the trade from Fiona and Nik.  They particularly enjoyed learning how shooting different kinds of footage rather than simply zooming in and out can improve a film.

These three women had specific messages they wanted to pass on to the Lendwithcare lenders:


1.  Akouvi Amouzou – a fish monger from Togo. Akouvi told me “it feels good to be able to build my own house, hire staff to increase revenue and have money for when my children are sick”

2. Ama Nyabledzi – a market trader from Togo. Ama proudly announced when we visited her at her stall that “my palm oil is the sweetest on the market!”

3.  TchallaAdjo – a grain seller from Togo. At 69-years-old Tchalla had generated enough income from her business to build her own house, which I was lucky enough to be shown around

By Tracey Horner, Head of Lendwithcare.org

Read the final part of Tracey's video blog from Togo!

Thursday, 24 October 2013

If It Had Wheels, I Travelled On It!

Emma Chase works for the micro-finance institution MicroLoan Foundation and is currently spending three months volunteering in Zambia, where she is helping to set up the partnership between MicroLoan Foundation and Lendwithcare. She has been writing about her time in Zambia in two previous blog posts ("Home away from home" and "Muddy bricks and trainers") and here is her third installment.

A few weeks ago I spent a day traveling to the rest of MicroLoan Zambia’s branches. Initially I was to spend a few days at each branch, but last minute training would see everyone in Chipata the following week. I travelled to Nyimba, Petauke and Katete to meet with each branch manager and brief them on the proposed procedures for Lendwithcare. My day started bright and early and by 4 a.m I was in a taxi, en route to the coach station. Little did I know that come nightfall, I would have travelled on pretty much anything that had wheels.
The coach set off to Nyimba at 5 a.m and in the 3 hours the journey took, the sun woke up and said a very impressive good morning; casting a warm orange glow over the undulating landscape until it reached its peak to settle itself high in the sky, watching over eastern Zambia.

Welcome to Nyimba, the banana district! I arrived and was met by big smiles - John and lots of banana sellers. He took me to the office where we had a very productive meeting, and I successfully used the toilet without losing anything! John was sent to Nyimba to set up the MLF branch all by himself. Two years on and he works tirelessly with a client base of 500 women. We visited Nyimba’s market where lots of these women work. The market is quite large (larger than London’s Borough Market, with about twenty times the number of sellers) and almost all the women there are MicroLoan clients. From bakers (the smell was amazing!), to hairdressers - whatever you could imagine or you would want they sell it, and throw in huge smiles and lots of laughter to go with it.

Now, people drive at two speeds here – fast, and snail’s pace. The former using their car horns to let everyone know they were coming, and would not be slowing down to get out of the way; the calm of the mornings are perforated with honk, honk, honk; the latter when something interesting, like a “mzungu” walking by, is happening. This was how I travelled from Nyimba to Petauke for my second meeting: An hour in a taxi-car, with three men in the back gossiping about the Zimbabwe election. I was given the honoured passengers front seat and within five minutes wished I were squashed between the men in the back. For an hour we drove at lightning speed, catapulting ourselves over giant potholes, listening to loud Christian music that would jump every ten seconds, for company.

I reached Petauke safely. Petauke is smaller than Chipata and I didn’t get such a good vibe from it. I tried to keep my time here brief and after my meeting quickly found a taxi to take me to Katete; an African taxi! Some of you will understand my exclamations. Now when I was visiting Jo-burg years ago I was told never to get in the way of an African taxi… Treasure this advice. A vehicle similar to a serena packed with passengers and their household items – think of the circus trick with clowns fitting into a mini car – driving at faster than light speed, honk, honk, honk, breaking suddenly to pick up travellers on the side of the road, accompanied by Christian music played as though we were in a nightclub. Again, I was given the front seat. Pro: Quick escape. Con: Deafened by the music. I sat in this taxi for 90 minutes before we eventually set off. In the initial bargaining for my business I had told them I needed to leave ASAP, I needed to get to Katete for a meeting. After about 15 minutes of waiting I asked when we were leaving: “Any minute now”.


Arriving in Katete and taking a short motorbike ride to the office I had my meeting and quickly found another taxi to take me home - I traveled in the back this time – sweaty, dusty and greasy. A coach, three cars, van and motorbike later, my bed never looked so good.  

Thursday, 17 October 2013

National Ethical Investment Week | Six reasons why a lendwithcare.org microloan makes a good investment


As National Ethical Investment Week (NEIW) 2013 draws to a close and people within the sector call for “bigger, bolder, broader and better”[1] ethical investments from the UK, I have been thinking about how and indeed if, lendwithcare answers this call to action?

© CARE/Emilie Bailey


Lendwithcare enables people to lend from as little as £15 to entrepreneurs running their own businesses in developing countries. 100% of the loan goes directly to the entrepreneur. Entrepreneurs range from fish farmers in Cambodia to beauticians in Togo. The entrepreneur uses the loan to grow their business and support their family, and later pays the lender back. When their loan has been repaid, the lender can withdraw the money and keep it, or re-invest the money in another entrepreneur and help kick start another business.

Essentially it does. After all, NEIW aims to let people know they have 'ethical and green options when it comes to their financial decisions' – that everyone, not just rich philanthropists, can use their money to make a difference. Lendwithcare certainly lets people do this. However, NEIW also aims to let people know they can make a difference and make money. And it is this additional dimension that, although significant, is where NEIW contributors and lendwithcare lenders differ – while you won’t earn any interest on your loan, the vast majority of cases you get your money back in full and on time – unless of course one considers a warm, fuzzy feeling a ‘return’ on your investment.

Which leads me back to my original question: Does this lack of financial gain mean lendwithcare is not a smart investment? Of course not. Below are six reasons why an investment in a lendwithcare business, makes good money sense.  After all lendwithcare loans:

  1. Create employmentand contribute towards building sustainable livelihoods in poor communities around the world. Affordable financial services are central to addressing poverty and your investment will help build the capacity of Microfinance Institutions (MFIs) to help the poorest earn a living, grow their businesses and create new jobs.
  2. Affordable: Investments start from as little as £15 but those with more cash to spare can lend  the full loan amount required. 
  3. Return: Repayment rate on lendwithcare is 99.97%[2] and although we do not offer investors more than their initial investment back, there is always that added ‘warm, fuzzy feeling’ I mentioned earlier. 
  4. Ethical: Lendwithcare is an initiative of humanitarian and development charity, CARE International UK and your investment will be used entirely for the benefit of the poor. Lendwithcare only partners with MFIs that have a strong social development mission and promote microfinance as a means to improving the social and economic conditions of poor people and their families. The MFIs we work with also promote and invest in social businesses in the communities they serve. 
  5. Unique: Investing directly in a lendwithcare entrepreneur and their business is an innovative way to do something good with your money and let’s face it, with saving accounts offering such low rates of interest it’s not doing much good anywhere else at the moment! 
  6. Knowledge, experience and expertise:  CARE International has been active in promoting microfinance throughout Asia, Africa, Eastern Europe and Latin America for more than two decades, so you can be sure that your money is being invested sensibly and expertly.
So join me in #makingmoneygood this National Ethical Investment Week and sign-up to lendwithcare.org!
 
If you sign-up and get two friends lending through our share page before midnight tomorrow (Friday 18th of October) you could win an iPad mini www.lendwithcare.org/share

By Nancy Thomas, Lendwithcare Executive 


[2]Lendwithcare was launched by CARE International UK in September 2012. Since then there have been two defaulted loans and this was sadly due to the two entrepreneurs in question passing away.


Wednesday, 2 October 2013

How financial literacy can help build the market for microinsurance

by Alexa Roscoe, Private Sector Advisor, CARE International UK

© CARE/Helen Barnes

CARE International promotes microinsurance as part of the range of services and products that the poor need to help overcome poverty and reduce their vulnerability to shocks. However, we also know that as with all products, to be sustainable, any microinsurance model also needs to be profitable. Fortunately for the insurance industry and its clients, it’s being demonstrated that increasing profit and promoting financial inclusion do not have to be mutually exclusive. New research from our work in India shows that microinsurance distribution strategies that prioritize building clients’ financial literacy lead to almost three times as many new enrollments as those that do not.

To read Alexa's full blog please visit the Centre for Financial Inclusion

Monday, 30 September 2013

Promoting better health, diet and hygiene

Lendwithcare’s partners typically accompany loans with a range of other services. These include offering savings accounts, insurance and money transfer as well as providing training in basic bookkeeping, financial literacy and marketing. 

Delivery of a workshop to FACES customers by Laura Sarango 
However, they also focus on the general well being of borrowers. Recognising that poor health can adversely impact on the ability of borrowers to work, care for their families and develop their small businesses, lendwithcare’s partner in Ecuador, Fundacion de Apoyo Comunitario y Social del Ecuador(FACES) raises awareness of health, diet and hygiene issues.

FACES decided that since many of its clients, women in particular, only possessed a few years of formal schooling and were sometimes only semi-literate, in addition to disseminating information through specially designed pictorial leaflets, it would also invite clients to regular workshops where health and related issues can be discussed in a relaxed environment.

At least once a month Laura Sarango, who works as social responsibility assessor for FACES, holds a workshop entitled ‘Healthy habits’ in one of the many rural communities where FACES works in southern Ecuador. Generally, around twenty borrowers aged between 25 and 60 years old attend the workshops and around four-fifths of participants are women. The workshop begins by asking participants to list the most common illnesses that affect them and their families; it discusses their symptoms and causes, and then goes on to discuss their prevention and cure.

Laura explains “many of the most common illnesses such as diarrhoea, which is more frequent among children, can easily be prevented through better hygiene practices such as washing hands and also food before cooking and eating, keeping rubbish bins covered and making water safe before drinking it”. However, she goes on to mention, “because of the increased incidence of chronic illnesses in recent years, such as type 2 diabetes, high blood pressure and prostate and breast cancer, we encourage all participants to visit their local health centres and take advantage of free check-ups”.  The workshops are participative and all those attending are encouraged to share their own experiences and ask questions. So far, almost five hundred people have benefitted from attending the voluntary two-hour workshops. The workshops are not restricted to borrowers; indeed borrowers often invited friends, neighbours and relatives to attend as well.

Many of the participants are small-scale farmers or at least have small plots of land surrounding their homes. They are reminded of the importance of growing and consuming their own vegetables and fruits. Laura comments “occasionally, I come across farmers growing only cash crops or selling all that they produce and buying basic foods such as maize and beans, even when it would be much cheaper to grow these items very easily themselves”. She adds that one of the most frustrating aspects is when she lays out refreshments for the participants, “I deliberately offer both healthy and cheap options such as fruit, vegetables and fresh juices as well as unhealthy expensive options such as fizzy colas, cakes and French fries. Unfortunately most participants choose the latter although I go on to explain to them the economic and nutrition benefits of favouring the former”. As well as discussing what constitutes a balanced diet and the types and quantities of food participants should eat, Laura also focuses on children’s diet and ensuring that they have a good breakfast before going to school. She remarks “we found that although children are generally eating well in rural areas, in urban areas they are often simply having a glass of milk for breakfast and then snacking on sweets during the day at school”.  Laura invariably remains behind after the workshops have finished, as some participants prefer to ask questions on sensitive issues such as reproductive health privately.

The workshops have proved to be very popular and the aim is to eventually cover all of the parishes in southern Ecuador where FACES is operational.


By Dr Ajaz Ahmed Khan, Lendwithcare Microfinance Advisor