A dedicated micro credit fund for rural Madagascar

May 7, 2010

Potatoes – An example of microcredit seed fund

A bag of potatoes as seed stock
A bag of potatoes as seed stock

Dear friends of Zahana,

One very telling example for Zahana’s seed fund is the potato crop introduced to the village of Fiarenana in late 2009. The villagers were provided with 100 kg of small potatoes as seed stock. Potatoes were one of new crop suitable for a diversified crop rotation recommended by the agricultural expert who visited the village in September (?) 2009.

Zahana implemented that suggestion, hoping the potato crop can be sold at the market to generate cash income for the farmers in a season where the rice seedlings are already planted, but the rice ‘cash crop’ is far from being harvested.

The community decided to distribute 2 kg of potatoes to each family. Lists were meticulously kept, and each family was instructed to pay back their ‘loan’ in potato seedlings after the harvest, therefore increasing the community seed fund.

The potato harvest was very successful and over two tons of potatoes were harvested in the village. The only major problem was, admitted the villagers with great embarrassment to Zahana in March, that instead of selling the surplus potatoes, they ate them.

This example illustrates what success means for Zahana. From a traditional microcredit point of view the project is a failure, because it did not generate additional cash income for the farmers as intended. From Zahana’s perspective it was a huge success, because people did not only increase the community seed fund enriching it with a new crop, but also had food to eat in the “époque dure” or the “hard times” period before the rice harvest. The fact the potatoes are very high in vitamin C, is a great public health benefit during the rainy season where people normally go hungry for many weeks.

Thank you for your support.

Ihanta, Jeannette and Markus



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Antananarivo, Capital, Madagascar

Project Leader

Markus Faigle

Honolulu, HI United States

Where is this project located?

Map of A dedicated micro credit fund for rural Madagascar