 Access to capital is one of the most difficult for the great majority of people in countries like Ethiopia. Many studies and practices have shown that one of the most effective ways to empower people is to give them access to capital. Partners in the Horn of Africa has partnered with Ethiopian local NGOs like Abba Woldetensae (AWWA), in Ethiopia to give small loans to mostly poor women in different parts of Ethiopia. The amount of money ranges from $80 to $300 depending where the project is and the woman’s borrowing record.
 The stipulation of to the loan is that each person has to pay 5% interest, make regular repayment of principal and put approximately 2% of the loan amount into a personal savings account. Once the money fully paid off and the business is evaluated, then the merchant will be given double the amount of the original loan. The interest collected will be recycled to newcomers. The pictures show some starting and others are successful. These people…and we have almost 1000 women in three projects with AWWA, could become the most untapped powerful economic engine of Ethiopia.
Micro-financing Profiles:
Name: Alameetu Eshefae
Age: 40 |
| Question Posed: |
Paraphrase of Recipient's Answer |
| What were you doing before you received the loan? |
Before micro-financing Alameetu was borrowing money from people she knew in the community to sell Tela (local beer). She was also a maid. |
| Amount and term of current loan: |
450 Birr for 12 months (about CDN$56). She started out borrowing 50 Birr. |
| What are you using the loan for? i.e. What are you selling? |
Now she is selling food in a small restaurant. However, she says the money is not enough for expenses so she is still borrowing from friends. |
| How has this improved your life? |
This opportunity has produced very good changes in her life. Now her children are able to attend school. Other people charge her much more interest then micro-financing. Making tela was very hard work. She worked night and day and had no time for her family. Now the whole family is involved in the preparation and running of the restaurant. |
| What are your plans for the future? i.e. What will you do with more money? What are your goals? |
For the future, she wants to make her place much bigger. From her profits, she rents farmland for growing wheat. She eventually wants to own the farmland. |
Name: Shamsu Idrise
Age: 65 |
| Question Posed: |
Paraphrase of Recipient's Answer |
| What were you doing before you received the loan? |
Before micro-financing Shamsu was collecting and selling firewood. She sold a few spices. She was borrowing money from friends. |
| Amount and term of current loan: |
300 Birr (About CDN$37) |
| What are you using the loan for? i.e. What are you selling? |
Now Shamsu sells many more spices and incense. |
| Why did you choose to sell this product? |
This is much easier on her health. |
| How has this improved your life? |
The interest on a micro-financing loan is much lower than alternatives. Now she has time for her children. She can now provide for her children and grandchildren. They can all go to school. They all have everything they need to survive. She says, however, she would like even more financing. Even though she is healthy, strong and happy, she has such a large family now and needs much more financing. Three of her grandchildren have lost parents to illness. These children, however, help her in the market to setup and dismantle. They also collect water and wood for her. |
| What are your plans for the future? i.e. What will you do with more money? What are your goals? |
For the future, she plans to complete her house. She needs to provide for her orphaned grandchild. She wants to sell many more spices. |
Name: Amena Alemu
Age: 56
Family Description:
Amena is now widowed. Her husband died 15 years ago in the war with Eritrea. She has 5 grandchildren. She had 8 children but lost 7 of them. She does not know where her one remaining daughter is. The daughter left with a military man, leaving her 5 children with Amena 15 years ago.
|
| Question Posed: |
Paraphrase of Recipient's Answer |
| What were you doing before you received the loan? |
Before micro-financing, Amena was selling shamata, a non-alcoholic drink. |
| Amount and term of current loan: |
150 Birr which was repaid (about CDN$19). Next loan will be 250 Birr |
| What are you using the loan for? i.e. What are you selling? |
Bread and cheese. She rents a small restaurant from an individual. |
| How has this improved your life? |
She now has enough money to pay for her children to eat, have clothing and pay for her rent. Before receiving the loan her children were hungry a lot. |
| What are your plans for the future? i.e. What will you do with more money? What are your goals? |
She would like to eventually sell meat products. They are worth much more. Now she only sells fasting foods. |
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