Field Note: Hekima Microfinance DR Congo

by Gareth Evans, Deputy Director of Economic Development, World Relief

I am currently in Goma, Eastern DR Congo with Hekima, World Relief's microfinance institution (click here for their Kiva profile)

Hekima was started in 2003 and has grown to be the most successful microfinance institution in the area. They are currently in the processing of adding new innovative products and services such as Teacher and Agricultural loans.

The Teacher loans will help teachers spend more time in the class room teaching, rather than supplementing their (sporadic and meager) incomes by working elsewhere. It will also mean that they are less dependent on parents paying their school fees in a lump sum, which will give parents a longer time period to pay the fees and will stop their children from being sent home for non-payment.

The agricultural loans will help farmers improve their incomes by providing access to finance for improved (expensive) seeds and fertilizer, which will improve yields giving them more crops to sell. Access to finance will also mean that farmers should be able to hold on to their stock for longer and not need to accept a low price for their crop, therefore further improving their income.

These two new products that are being developed are a small example of the work that Hekima is doing to support the poor in eastern DR Congo. The areas in which Hekima operates are extremely fragile and suffer from instability and have been drastically affected by volcanic activity. Yet, by helping to improve the livelihoods of the vulnerable, Hekima is improving the stability of the region.

Helping to alleviate poverty is a huge task, and Hekima is only able to do this thanks to the contributions donors make to World Relief. Thank you for your ongoing support.

Blessings,

Gareth

Turame Community Finance Staff Profile - Rose Niyonizigiye

Staff: Rose Niyonizigiye
TURAME Branch: Bujumbura Office
Position: Loan Officer

Rose sits at her desk with a deep sense of satisfaction; her journey leading to TURAME has been a particularly long one filled with many difficulties. Rose is married and mother to five children, the first of which is attending Hope University of Africa. She is also the guardian of two additional children of her husband’s relative.

From 2004 to 2006, Rose was unemployed, and with such a large family to support she found herself in desperate circumstances. Prior to 2004, Rose had been working on a project called FEPADE with UNHCR (United Nations High Commissioner of Refugees), a UN agency that protects and supports refugees around the world. Unfortunately, she had come under corrupt leadership. The leaders of the project stole a sum equivalent to about $300,000; FEPADE was left financially stranded. After working for two months without pay, she had no choice but to leave.

During her time of unemployment, Rose had to rely on income generated from selling phone cards to send her children to school. She found herself contemplating evicting the two children of her husband’s relative. However, she stalled her decision upon hearing about loan possibilities from a community bank called TURAME. She applied for loans from TURAME and eventually became the leader of her community bank group. After three months of being a client, Rose learned of a job opening at the bank and applied. In time, she was hired.

When asked what she has gained by being a part of the TURAME staff, Rose responded by saying she had no appropriate words to answer with, she simply gave thanks and glory to God for her employment. She no longer has to deliberate evicting the two children as she is able to fund all her children’s education. Furthermore, TURAME has provided her with employee loans with which she has bought school supplies and a plot of land.

Rose wishes to continue to serve TURAME diligently. She also hopes that the entire TURAME staff will continue to work in Christ, if they do, she believes nothing can stop TURAME from reaching sustainability. She concluded with a prayer request that alluded to Matthew 6:19-24: that “moth and rust” would not destroy TURAME, but that in seeking after “treasures in heaven”, they would become an enduring institution.

Bernadette’s Story – Turame Community Finance, Burundi

Bernadette Nzeyimana
Community Bank Group: “Tuyage” (Let us Converse)
Location: Ngozi

Bernadette is a very tall elegant woman with a wide smile. Because of the war in Burundi, Bernadette was widowed in 2000 and left to care for her eight children - five daughters and three sons - on her own. However, her entrepreneurial skills have enabled her to provide for her family.

Today she runs a wholesale business of ground paddy rice. She has increased the sizes of her loans from 60,000 BIF (Burundian Francs) to 260,000 BIF in her fifth loan cycle. With pride she describe the way she is now able to provide for her entire family. “I’ve never missed any meal for my family.

I’ve got this place [in Ngozi Central Market] for my business and have already bought a parcel of land. Adding to this, I am able to pay my rent, reimburse my loans and remain with a benefit [profit].”

Bernadette says she enjoys being with the other community bank group members, making friendships and supporting each other. In the future she hopes to take a loan out for 500,000 BIF in order to purchase goats and cows.

How did I get here?

Tonight I was sitting and reading, Attacking Poverty in the Developing World, which is a collection of Essays edited by Judy Dean (et al) who is a World Relief board member. The book reviews a range of issues, including Health, Agriculture and Access to Finance. All of a sudden I was hit (again) by the enormity of the work that I am involved with. Poverty is incomprehensibly huge and yet I am involved in helping alleviate it. I sat on the edge of Lake Kivu and reflected that I am the Chairman of the largest microfinance institution (MFI) in Eastern Congo, on the Board of both an influential MFI in Burundi and one of the fastest growing banks in Rwanda.

How did that happen? Why me? It doesn’t make sense to me!

I have never been amazing at school, although I didn’t really have to work very hard. Truth be told I was pretty lazy and I could have achieved so much more academically. However, I did grow up in a Church that somewhat focuses on development programs, locally and internationally. The Salvation Army is probably known to many of you for it’s thrift stores and McDonalds Billions. But did you know it works in 119 countries? My siblings and I are the 5th generation of my family to be involved in ‘The Army’. There are three generations playing in my home ‘corps’ (church) brass band. At one time we had my Mother’s Father and my Dad’s Uncle, along with my Dad, my Brother and myself. My brother currently leads the young people’s band and my home corps, and my sister is involved in the young people’s ministry where she attends. Suffice to say, my family take the responsibility (and The Army) very seriously. In 1995 I was also privileged enough to travel with my brass band to set up a music school in Ghana.

So, growing up in an environment that was mission led, I was always involved in something. Whether it was spending Christmas Day playing carols to those in Hospital and feeding the elderly at church, or participating in the annual ‘self-denial’ appeal for international development, whereby you sacrifice something and give the saved money to the church for development work. I guess I have always been aware of the needs of those who have been less fortunate than I have.

I studied economics at university, and during the summers I went to New Jersey to work at a Salvation Army camp for underprivileged children. I remember saying to one of the counselors that I wanted to ‘save the poor with economics’. At that time I hadn’t even heard of microfinance or World Relief, all I knew was that there was no reason for inequalities. If the market was perfect then they would operate right up until the margin (until they do not make any more profit), and that there must be a way to make a ‘profit’ from providing services to the poor. What I saw when I looked at the current situation was that the markets were lazy, they hadn’t tried to use new technology and other resources to reach deeper into society. I also saw that those who did exploited the poor and made very large profits. There had to be a better way.

During my final years of study I learned about The Salvation Army’s Mustard Seed project in Tanzania. A small microcredit program that helped women build businesses and take steps out of poverty. I contacted The Army’s International Development department and asked them about the program. Mistakenly, I tried to write my final year dissertation on the impact of microfinance in Southern Tanzania. While I was talking to The Army about their work, I asked them if they had any vacant positions, thinking that I could take an admin job while I learnt more about international development. While I was working things out with The Army, I took a job at Royal Bank of Scotland in their Intermediary Sales department. I was doing very well and I could see a career developing in banking in the UK, just like my Father had. I also interviewed for a position with a private equity firm, they were looking to offer me the position, but I was waiting to hear from The Army about a position to manage their Tanzanian microcredit program. Would I take a high paying investment banking position or a very low paying NGO job?

Eventually, The Army asked me to manage the program for two years, and it was too hard to resist. I had to get back to Africa, Ghana had such an impact on me and finally I’d found away I could use economics to help people. The program went well, we expanded outreach, managed our liquidity and risk and opened a second branch. It is still running and I keep in touch with the team. After Tanzania I went back to the UK to rest. I quickly took a job in the Civil Service, working in the Permanent Secretary’s Private Office in the Department for Constitutional Affairs (now the Justice Department). I was responsible for the Permanent Secretary’s outward communications and internet presence. I was responsible for writing letters to Lords and Ladies. We had an office in Victoria and one in the House of Lords. After the opening of Parliament I struck up a conversation with the Bishop of London, and at Christmas I received a gift from the Lord Chancellor and the then Permanent Secretary and now head of the joint intelligence committee, Alex Allen. How on earth did I get there from rural Tanzania?!

I didn’t last there long. I missed Africa and working with the most vulnerable. So, I stated to apply for jobs in the microfinance field, but with only two years international experience from straight out of university I didn’t have many choices. However, I applied for a job with World Relief in Liberia, they asked for 5+ years experience and I thought I’d never get it. I guess they were desperate as one Friday night when I was trying to get the tube home I got a call from the guy who would become my boss, Richard Schroeder (now of World Hope International). I also met my future wife, as she prepared me to head out.

I signed up to working for LEAP Liberia for just one year, the idea was that I’d provide technical assistance to the managing director but she ended up going on maternity leave and I was moved in to her position. That year was tough. I had to let half the staff go because we didn’t have enough clients to keep everybody on staff. We also had some fraud which meant I had to fire the Accountant and Internal Auditor. We redeveloped the policies and procedures and got the program back up and running. It was very satisfying to rebuild the program, but again I was ready to head back to the UK.

I started looking for jobs, and I came across a Financial Economist position in the Economist. Again, this was a job I never thought I’d get. The firm flew me out from Liberia for an interview, and a few weeks later they offered me the job. I spent my time providing technical support to a microfinance bank in Tajikistan, writing proposals to DFID, the World Bank and others. I travelled to Bangladesh, Ghana and other places trying to put together a portfolio of projects. We came close to winning the project in Ghana, we heard we had won but they did a recount and we ended up second. Very frustrating. Unfortunately, the finance development department hadn’t made a profit for several years and so we were all made redundant. Fortunately, I was able to find some consulting work with UNDP in Pakistan and World Relief in Mozambique while I applied for other jobs.

At the same time World Relief was looking for a microfinance technical advisor, so I applied for the position and was able to secure a transfer visa from Liberia to Baltimore. After a few months, I was promoted to Deputy Director of Economic Development and I subsequently found myself on the boards of all these MFIs and managing the development of our Savings For Life programs. I feel really privileged to be able to do a job I am passionate about, but it is also very humbling to have all this responsibility.

Every time I come to visit the microfinance institutions I am reminded of this responsibility. Our clients have tremendous stories. Having access to financial services has allowed many to build successful businesses and smooth their income during difficult times. It is amazing how effective microfinance institutions can be. Even though this career is what I wanted, I never thought I’d be in the position I am now. I am grateful for the belief World Relief have had in me and the support of our donors in the US. Thank you for your continued support.

WR Microfinance Stats Update

Click image to view.

Haiti - Short Trip

I am currently on my way home from spending the week in Haiti. I was fortunate to be joined by some of our HIV/AIDS team, Dr. Esther Gwan and Joanna Mayhew, as well as Jeff Demers who provides support to the Haiti office. Later on during the week, we were all joined by a friend of World Relief, Mr. Ken Graber.

My primary purpose for the trip was to work with Ken to start the merger between our microfinance program and another microfinance program managed by World Concern. From looking through our books it is clear our program will definitely benefit from being a part of a larger microfinance program, as I believe will World Concern's program.

We met with USAID and ANIMH (the local microfinance network) and found that this would be the first merger between microfinance programs. This created quite a bit of excitement with the agencies. They are keen for consolidation in the sector, and we hope that we can document lessons learned through our merger, so that we can help other microfinance programs in the future.

I also sat with our HIV/AIDS team to discuss greater support to people giving care to HIV/AIDS sufferers and orphans. We have had a microfinance scheme within our program that has provided them with loans, this year through a grant from Tearfund UK, we are extending this.

Haiti amazes me every time I visit. I have lived in Liberia, immediately following the end of their 14 year civil war, but I think Haiti would be even harder to live in. Port Au Prince is densely populated, and very polluted. Houses cling to steep slopes that are prone to landslides due to the destruction of the environment and soil erosion. With Haiti so close to the US, it is sad that this place is one of the poorest countries in the World.

Much of the food and goods consumed in Haiti are imported. The agricultural sector is very fragile, the regular hurricanes can wipe away crops in a heartbeat. But the food that is produced is often organic, not necessarily by design, but because fertilizer is out of the reach for the majority of farmers.

Our microfinance program is looking at how we can better support the agricultural sector, how we can create 'green' loans to promote good environmental practices, and how we can help the poorest of the poor take small steps out of poverty.

Help World Relief support more people in Haiti, donate now and designate your funds to Microenterprise Development.

Thank you for your support. Gareth

DR Congo Updates

Please see the links below for updates from DR Congo.

World Relief is based in Goma and is looking to respond as soon as is possible.

Help World Relief respond, click here to donate http://community.wr.org/Page.aspx?pid=1278

Miliband admits UK may send troops to bolster UN peacekeepers in Congo
http://www.timesonline.co.uk/tol/news/world/africa/article5072262.ece

Images from DR Congo

http://www.timesonline.co.uk/tol/template/2.0-0/element/pictureGalleryPopup.jsp?id=5072695&&offset=0&§ionName=WorldAfrica

Too Slow to Act?
http://news.bbc.co.uk/2/hi/africa/7705419.stm

Pray for the Crisis In Congo

The crisis in DR Congo has halted our microfinance programs in Goma, DR Congo.

We will keep you updated on the peace process and how our staff and clients are doing.

Please keep World Relief in your prayers and please consider donating to support our disaster response efforts. www.wr.org/donate

SEEP Network Meetings 4 - 7 Nov VA

World Relief will be participating on a panel about non-profit organizations and MFI divestiture.

World Relief has brought on a number of partners to their microfinance institutions. This has been a tool for strengthening the MFI, and has had the positive impact of also monetizing long-term assets for reinvestment.

The MFIs have benefited from increased growth, and technical support.

Find out more by attending the SEEP network meetings.

WR wants to Hear from You

We are developing a new tool for fundraising, an endowment fund in which 105% of your donation is used for supporting our economic development programs. It would be great to get your feedback on the endowment fund idea. To find out more about the fund and give us feedback join our google group, visit http://groups.google.com/group/WR-Performance-Giving or sign up below.

I am looking forward to hearing from you, Gareth

Subscribe to WR Performance Giving

Email:

Visit this group

STATS UPDATE

Wait for Wendy's Network Update, but here is a sneak preview:

Active Clients 159,239
Outstanding Loan Portfolio $37,666,000
Portfolio at Risk > 30 days 7%
Percent Female Clients 82%
Operational Self-Sufficiency 94%
Total Staff (Local/Expatriate) 1,138/6
Average Outstanding Loan Size $237

as at June 30 2008

The Haiti Challenge

World Relief manages a small microfinance program in Haiti called, Finansman pou ede moun avanse (FEMA), or Financing for Helping People Advance.

With just over 3,000 clients FEMA is currently not self-sufficient, they rely on grants and donations to support their operating costs. We are looking to grow the program so that it can meet all it's operating costs from it's interest income, but growth takes time and your support is vital to ensuring FEMA can continue to provide access to financial services for the poor in Haiti.

Meet the Challenge
FEMA has several supporters that are making sure it continues to moves forward. One group, from Clifton Park in New York, was inspired by the leadership of World Relief Haiti and the opportunities for economic growth in Port-au-Prince and surrounding areas. They pledged $50,000 to World Relief and are challenging other donors to match these funds to raise a total of $100,000.

So, far they have raised an additional $10,000 to meet the Haiti Challenge. Help us break through the $100,000 mark and help even more people out of poverty in Haiti.

Hallmarks of FEMA
Extending credit in conflict-ridden areas: Ongoing civil unrest in Haiti has placed significant pressure on the program’s loan portfolio. As other microfinance entities have fled the area, World Relief has chosen to stay. We believe the love of Christ shines brightest in dark places.

HIV/AIDS Training: In addition to biblically based ethics training and financial training, World Relief’s program integrates AIDS education during the weekly community banking meetings.

Integration with church-based ministries: Together with our church-based care-giving and health ministries in HIV/AIDS and maternal and child health, our loan programs are providing an integrated, sustainable, church-based solution to poverty.

About Haiti
The Poorest Country in the West, Located in the Caribbean, sharing the Island of Hispaniola with the Dominican Republic. Haiti has a population of about 8.9m and a life expectancy of just 57 years. GDP per capita is only $1,300 compared to the US at $45,800, or Jamaica with $7,700.

How to Give
Go to http://www.worldrelief.org/ for more information.
Make checks payable to World Relief, in the note section write "Designated for FEMA, Haiti, Matching Grant", and send to: World Relief, 7 East Baltimore Street, Baltimore MD 21202

Women rise in Rwanda's revival
Female entrepreneurs run farms and other businesses following genocide
By Anthony Faiola
The Washington Post

MARABA, Rwanda - Sun-kissed plantations ring this village, renowned in recent years for growing the rich arabica beans brewed and served in some of the world's finest coffee houses. But the secret to success here has had far less to do with the idyllic climate and volcanic soil than with a group of people who have emerged as Maraba's -- and Rwanda's -- most potent economic force: women.

In the 14 years since the genocide, when 800,000 people died during three months of violence, this country has become perhaps the world's leading example of how empowering women can fundamentally transform post-conflict economies and fight the cycle of poverty.

Read the full article: http://www.msnbc.msn.com/id/24659361/

World Relief has been helping to empower women in Rwanda since 1997 - just three years after the end of the genocide. Urwego Opportunity Microfinance Bank - the current joint venture between World Relief, Hope International, World Relief Canada, and Opportunity International, serves over 30,000 clients - 83% of which are women - with loans and savings services geared to lift the burden of poverty in Rwanda's recovering economy.

Click here for more on UOMB's work.

Development in the Midst of Insecurity

During the month of April, thousands of Haitians flooded the streets in Port-au-Prince burning tires, looting stores - all in protest of soaring food prices. In Haiti, food prices have increased as much as 45% in less than two years time. Stability was threatened in Burundi, where attacks by the National Liberation Forces (FNL) continue to jeopardize the recovering nation's peace after the end of a twelve year conflict in 2004 - a conflict that killed more than 300,000. In eastern Democratic Republic of Congo, hundreds of Congolese living in the Rutshuru area of North Kivu fled recently after renewed violence erupted between the government's soldiers and the Democratic Forces for the Liberation of Rwanda rebel group.

In times of economic and political insecurity, microfinance institutions (MFIs) face threats in their ability to serve clients with loans as the pressure on borrowers to repay intensifies and conflict threatens the stability of markets. Clients struggle with managing an income base that becomes increasingly dedicated towards buying food rather than meeting other consumption needs. World Relief's microfinance sector is not new to these challenges. Since 1991, World Relief microfinance institutions have operated in tense environments where economies have been destroyed by civil, national, and global political conflict and economic collapse. Seven of World Relief's microfinance program countries rank in the bottom one third of the countries listed in the United Nation's 2007/2008 Human Development Index.

Today, World Relief's microfinance institutions continue to play a key role in promoting development in the midst of insecurity. World Relief's MFIs are extending outreach to new clients, expanding geographically with new branches in urban and rural areas, and revising and designing new loan products to better adapt to the business demands and realities clients face.

In Haiti, 3,000 women are organized into small credit groups through FEMA - World Relief's microfinance institution operating in Port-au-Prince and Jacmel. In addition to working directly through local markets, FEMA links through local churches and reaches out to beneficiaries of World Relief's Orphan and Vulnerable Children Program, including those who have been affected by the mass HIV/AIDS epidemic in Haiti.

Turame Community Bank (TCB) currently extends financial services to over 11,000 men and women through urban and rural regions of Burundi. Current conflicts in Burundi are exacerbated by generations of ethnic conflict. To respond proactively to the effects of this, community bank groups are being trained in peace and reconciliation curriculum, which emphasizes communication, respect for others, and listening as conflict mitigation strategies. In Turame's Gitega branch and Ruyigi sub-branch, graduates of vocational skills schools, including ex-combatants, are receiving loans through Turame. Soon, these graduates will also be able to access new savings services and asset-based loan products through TCB.

In the North and South Kivu provinces in the Democratic Republic of Congo, Hekima is not only expanding the outreach of the MFI, but is helping two formal microfinance associations to coordinate capacity-building activities and promote best practices to build the entire microfinance sector within the region. In Bukavu, South Kivu, Hekima is reaching vulnerable markets such as the Kadutu market - where women are accessing loans as small as $50. The levels of poverty in this area are amongst the most extreme, as years of inflation and ethnic war completely destroyed the financial sector, including the region's once innovative network of savings and credit cooperatives.

In conflict-affected and economic downtrodden regions of the world, hope in the face of poverty is often difficult to perceive. World Relief's microfinance institutions aim to not only make hope present in the lives of the poor, but to allow hope to thrive through sustainable, transformational change.

Story from Haiti...

Jean Marie Dominique

Bethsaléel association, Dieu Saint-Cité church in Jacmel.

Receiving an initial loan of 3,600 Haitian Gourdes ($96) from FEMA, World Relief's microfinance institution in Haiti, Jean Marie invested the money into her small fish and sardine business. She has prospered and now is on her third loan cycle, with a loan of $8,000 Gourdes ($214). She and her husband raise their seven children. Mrs. Dominique has managed her resources well and now has much more money to invest. She sells cases of chicken and fish imported from Miami. FEMA has enabled her to increase her business revenue, to save some money, and invest in the education of her children.

Big Thanks to our Interns

World Relief would like to thanks Jason and Amy for all their hard work supporting the Economic Development Unit.

Jason has been based in Baltimore for the last 8 months and has provided great support to the team, which has allowed us to improve our provision of microfinance around the world. He is moving on to join FSG Social Impact Consultants in Boston. We wish him all the best.

Amy has been based in Haiti and will be with us for another week in Baltimore but then heads back to Canada to start looking for her next position.

On behalf of World Relief and our partners we wish you both the best in your future careers.

EDU

CREDIT Surpasses $1 million in loans from Kiva!

Kiva - the online marketplace providing individual lenders with the opportunity to lend to entrepreneurs in the developing world - and CREDIT, World Relief's microfinance institution in Cambodia, have partnered together for almost two years. Since the partnership formed, Kiva's lenders have provided over $1 million in loans to CREDIT's clients! Kiva has rated CREDIT with a 5-Star rating, signifying that CREDIT has provided sigificant evidence that its clients have a strong likelihood to repay their loans! CREDIT has a 0% delinquency rate and 0% default rate on Kiva loans! Learn more about CREDIT clients on Kiva's website!

Economic Development at World Relief

World Relief has a long history of providing Economic Development programs in conflict and post-conflict environments.

We currently support Microfinance and Agricultural Development programs in 12 countries providing pro-poor financial services to over 144,000 individuals.

Our Economic Development unit works closely with our Health team to combine HIV/AIDs and Maternal Mothers and Child Health programs to provide a more rounded approach to development.

If you would like to support World Relief please go to our website or contact the Economic Development unit.