Microfinance With Agriculture Works

Trinita and Zuculi at their monthly meeting where all see

the money change hands and together they do simple math

The Debits and Credits

Their Journal Entries

We've been supervising a small Agrifinance Loan program that has a portfolio of a little over $1000 and has done much good:

2 and a half months ago two 18,000 Meticais ($600 USD) loans were given to two women to establish a small chicken raising project in which each woman was to raise 200 chicks each, and then after raising the chicks to chickens in her home, would sell them on the local streets. One woman, Trinita, already knew how to raise chickens to sell, and the collateral for her loan was to teach another woman, Lurdes to do the same.

They are now raising their third flock, and have each paid back 5,400 Meticais ($180 USD,17.6% of their loan) in just two months time. (they chose to expedite paying it back, that is why they are paying it back so high).

They have made an average of 2,337 Meticais monthly monthly, ($80 USD, just above the countries minimum wage of $73/month.) Since the start of the project. This number will nearly double when Trinita and Lurdes do not have to make the loan payment.

In 5 months time the loan of 18,000 Meticais will be paid off, and these two women will be making 2.3 times the minimum wage of $73/month. Then Lurdes will have to pay her "interest rate" and teach another woman her newly found trade, and this new woman's business will be financed by the $180 that Lurdes and Trinita have paid back and the $820 outstanding.

Good Business is what will bring these people out of poverty, I am convinced.