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Newsletters NEWSLETTER |
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Microfinance for Youth |
“I Knew They Would” |
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Growing Strong Young PeopleSibonginkosi, a twenty-one year-old high school junior, lives alone since both parents have passed away. This year, he took out a loan for about $30, which he paid back with interest over twenty-six weeks. He never missed a payment. With his loan he bought bread, snacks, and prepaid air time for cell phones (this area went from no telephones to cell phones with the placement of one cell tower). As his business grows, he may sell juice or cooking kerosene or even ice cream, and he hopes to learn from neighbors how to raise chickens as well. When asked what he hopes to be doing in five years, he responded, “Working my own big business.” Fifty one students like Sibonginkosi took out loans from Microfinance for Youth last year. When asked if the profit helps at home, one student said, “Now I can help buy bread for my little brother.” But we are working so the success continues. In the coming year we plan to start some groups of students who meet in homes, rather than at schools. Some of the neediest young people in this area drop out of school for various reasons, such as economic difficulty, having children, or to care for orphaned siblings. For this program, instead of involving a teacher as an advisor, we’ll require each youth to work with a mentor. Ana is an example of our hope for this program. Ana has HIV, and just over a year ago got on anti-retroviral drugs that have saved her life. But in the time that she was too sick to work, she bought an oven and began teaching her teenage daughter to bake. With the help of a sister who works at a nearby shoe factory, they began selling cakes and muffins to workers at the factory. In a few months they were getting orders worth as much as US $40 for baked treats. With her profit, the teenage daughter has bought a school uniform, meat for her family, and helped pay the transportation costs for her mother’s doctor visits. Ana and her daughter have never taken out a loan, nor do they have a bank account. But when they learned about Microfinance for Youth, Ana was very excited. She began asking friends about forming a loan group so they could start or improve their businesses. “I think my daughter could be an example to them,” she said. “I love the idea of helping youth. They need something like this where they can gain some skills for themselves. I’m so proud of my daughter.” We’re proud of her and other youth like her, and we look forward to meeting the next batch of youth who will make us proud this year.
Reflections from the Jeskes In an area where life is difficult, change can be thrilling or terrifying. On the one hand, the day-to-day could get better. But on the other hand, sometimes the thinking goes, “If things are hard now, and something changes, the weak grip I have might let go entirely.” Being new Project Directors for Microfinance for Youth, we’ve felt both eager and scared, and seen the same in our staff and those involved with the project. While we capitalize on the energy of our staff in some areas, we also find ourselves easing staff members’ concerns about any change - and having new Project Directors counts as change. But things will continue largely on the same trajectory, building on the many bright spots from 2006. With people like Sibonginkosi continuing on, we will have a leadership base of successful young entrepreneurs that we’ve never before experienced. And this benefit carries over to the recruitment, selection, and training of more new, young business people. Our own arrival here has felt like a success as well. After two years looking for a position in Africa, through friends we heard about Microfinance for Youth. The move has been full of small blessings, from our quaint mountain-view home to the pecan and lemon trees in our yard. Phoebe (3) and Zeke (18 months) are making friends with Zulu neighbors and loving the routine of having their parents splitting one full time position. Coming on board with MFY, we both realize how dynamic this project is. As these young people grow and continue on with life, eMangwe itself (the tribal area where MFY is functioning) could change. And with continued success, Microfinance for Youth will offer lessons to other microfinance institutions elsewhere. What a privilege to be a part of this!
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October 13, 2006, my office phone rang at just before 6
AM. Since this rarely happens, I scrambled out of bed to answer. It was Deborah Lindholm, Executive Director of Foundation for Women in San Diego, and author of our first Rotary grant. “Have you heard the news? Dr. Yunus just won the Nobel Peace Prize.” I was stunned and immediately moved to tears. “Its about time,” I whispered under my breath. Dr. Yunus has been a friend and mentor to me for the past twenty years. Here is photo of Deborah, Dr. Yunus and I at the Microcredit Summit gathering in Halifax in November.
I had the chance to congratulate him on winning the Nobel Prize and give him an update of the progress of YEBO and Home Based Care givers lending programs. When I told him of the amazing repayment rates the youth had achieved and he said, “I knew they would, I told you, remember?” I got shivers hearing him remind me. This is what makes microfinance such an amazing development tool. It unleashes human creativity and people become entrepreneurial, make a profit and pay back. Why it works so well, is that it is based on realizing the capacity of the ordinary genius in everyone. It is a privilege and joy to work with each of you. We are grateful to all of you who support our efforts to nurture this potential in our youth and clients. -- Lynn McMullen
Reflections on Two Years Well-Spent Business is such a natural response to hardship. I’ve seen it again and again. Especially in Africa. An orphaned teenager selling bunches of steel-wool on the street for 30c in Escourt for some extra money. A teacher fallen on hard times, resorted to selling jackets and purses out of the trunk of her car. A grandmother and orphaned granddaughter selling their beaded dolls at every opportunity to earn money for food. An HIV positive mother of three who survived a near-scrape with death from AIDS, now on treatment training her children how to earn money through muffin sales.
Yet, opportunity is often the missing piece. Capital available to start a business big enough to bring sufficient income, to purchase the equipment and supplies necessary to really get a good start. This is what is so exciting about microfinance: inserting opportunity into the equation of industriousness, hope and dedication of micro-entrepreneurs. Opportunity to access capital that is otherwise out of reach for youth most vulnerable in AIDS-infected communities, their grandparents and caregivers. The most exciting part of the past two years was being able to inspire and provide opportunities for vulnerable youth to excel in business. I come away with countless stories of youth who have caught the vision for business and succeeded in micro-enterprise: Atwell, Philile, Siyabonga, Nokwenzani, Cornwell and Musa, Cecilia, Nikeziwe, and Jabusilile. Income from these micro-businesses has brought into increased food security to families, and brought in the necessary cash to bring hope for a better future. Microfinance For Youth is about interjecting hope, faith and opportunity into an orphaned teen’s life – we believe in them, in their abilities, their potential. Creating a scaleable system that will be able to impact not just one vulnerable youth, but hundreds from one school to the next across the heart of the southern African AIDS pandemic. This is the vision of MFY, a vision that after the second year of the pilot - and a school’s repayment rate of 92% - is very attainable. |
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Next Trip to Africa is
planned for July 21st, 2007. Next Newsletter: Meet Mr. Nzuza, Jeske Family Updates from Loskop and more... |
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