By Markus Faigle | Volunteer
We would like to fast-track the process and use microcredit as a lever, or another important tool, to raise the quality of life for our current community members. Our ultimate goal is to lift them out of poverty and an endless cycle of depending on each year’s uncertain rice harvest as their only source for cash income. Improving the standard of living of our community households relies first and foremost on securing a steady, regular income stream in addition of the rice harvest. We hope to accomplish that with the help of access to these much-needed microcredit loans thought Zahana.
Although the microcredit loan conditions are clearly defined and set by each community for their respective members, they are not always easily met in rural areas due to endemic economic hardship. Launched over two decades ago, the "Zahana microcredit" scheme has evolved from ambitious large scale group loans - ranging from community rice granary loans worth millions of ariary almost 20 years ago, to household-level micro-loans. With lessons learned applied it evolved into a program targeting those willing to undergo training provided by Zahana and the commitment to adhere to both the annual rural agricultural calendar and a community-set repayment schedules. The approach has proven successful, with the number of loans surging from a few dozen to around a hundred today.
To illustrate the importance of our microcredit program for households and its impact on the family unit, we will look at examples, or households located in Zahana’s four project villages. The first focus is on the household of Benja and Juliette, residents of Fiarenana with a young child.
Benja and Juliette took out a loan of 400,000 ariary (90 USD) to buy two piglets. Once the animals had matured and been fattened up, they were sold for 2,100,000 ariary. This sum, after paying back their loan amount, enabled Benja and Juliette to invest in buying and reselling paddy rice with their own money. The profits from this trading activity allowed them to acquire two rice-growing plots - one irrigated and one rain-fed, with a total value of 5,500,000 ariary. As an important bonus, they could now afford furnishings for their small house, which was itself purchased and built with help of a previous loan. Their example can be an inspiration to other young couples that change is possible.
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By Markus Faigle | Volunteer
By Markus Faigle | Volunteer
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