African Woman Food Farmer Initiative (AWFFI)

Introduction

The AWFFI microfinance program in the eight THP-Africa countries is growing. AWFFI is continuing to provide partners with micro-credit, partners are mobilizing both required and voluntary savings, and trainings are building partners’ capacity to generate income, to manage their finances, and to create wealth through savings.

Summary of 2006 AWFFI Direct Credit Loan Disbursement

In the first three quarters of 2006, AWFFI programs in the eight THP Africa countries have disbursed a total of $475,498 dollars in loans to 8,089 women. The average loan size across all of our program countries in 2006 has been $59.

Since its inception in 1999, AWFFI has disbursed 79,187 loans totaling $4,540,178. The following table provides a summary of loan disbursement during the first three quarters of 2006. It is necessary to note that loans disbursed from the 14 government-recognized rural banks are not included in this table, as these banks are independent of The Hunger Project.

Country	Value of Loans Disbursed in 2006	Number of Loans Disbursed in 2006	Average Loan Size
Benin	$144,348	2,460	$59
Burkina Faso	$119,399	2,248	$53
Ethiopia	$17,561	386	$45
Ghana	$47,360	628	$75
Malawi	$11,740	237	$50
Mozambique	$71,936	286	$252
Senegal	$40,523	1,627	$25
Uganda	$22,632	217	$104
TOTAL	$475,498	8,089	$59

General Review of Government-Recognized Rural Banks

Although no more THP rural banks have obtained official recognition since the last Board Report, several are well positioned to do so.

In Ghana, 330 AWFFI partners at Matsekope Epicenter have already purchased 20,000,000 Cedis (~$2,175) in shares and have mobilized 35,000,000 Cedis (~$3,806) in savings for their soon-to-be recognized rural bank (credit union). During the third quarter, the Board of Directors at Matsekope’s rural bank, with the assistance of THP-Ghana, also recruited a bank manager. According to the AWFFI Project Officer, the registration process should be completed early in the 4^th quarter.

In Benin, rural bank formation at Dekpo Epicenter is also well underway. The Board of Directors, Loan Committee, and Audit Committee have already been elected, and the Board, with the assistance of THP-Benin, is currently recruiting a bank manager so that the bank may become operational.

In Uganda, 186 partners (126 women and 60 men) at Kiboga Epicenter participated in a 3-day training on Savings and Credit Cooperative Establishment, led by the District Cooperative Officer, in July. Since the training, 12 Vision, Commitment, and Action (VCA) workshops have been held throughout the epicenter villages to prepare and mobilize partners for rural bank establishment. Over 400 people have attended these VCA workshops, and 117 partners have already paid the required membership fees and purchased shares to become fully registered members.

Meanwhile, our already recognized rural banks are continuing to grow. In Burkina Faso, Nongfaire Epicenter Rural Bank, which gained its official recognition in 2004, is performing particularly well. The repayment rate at Nongfaire Rural Bank stands at 97% and is rising. Savings deposits are also increasing. At the end of 2004, members’ savings deposits at the Nongfaire bank totaled 1,140,700 Francs CFA (~$2,206). By the close of 2005, deposits had nearly quadrupled to 4,257,975 Francs CFA (~$8,236). Today, at the close of the 3^rd quarter, members’ savings are worth CFA 15,060,045 (~$29,130). Almost all of the women in Nongfaire use their loans to practice animal husbandry, and before the intervention of THP and AWFFI in the area, these women did not have access to credit. The bank has drawn the attention of neighboring villages. After witnessing the tangible improvements which the Nongfaire women have achieved in their lives through membership in the bank and access to loans, women from three neighboring villages have asked to also join the bank. The Board of Directors at the bank has approved their request, and as a result, membership is expected to more than double in 2006. While the number of members at the end of 2005 was 293, the bank leadership anticipates having over 600 members by the end of 2006.

In Uganda, Wakiso Rural Bank, which obtained its official recognition in 2004, is also emerging as a leader among our rural banks. During its Annual General Assembly (AGM) meeting which was held during the second quarter, the Cooperative Officer which supervises the district to which Wakiso belongs, identified Wakiso’s Board of Directors as being the best in the district. The auditor’s 2005 report of Wakiso Rural Bank revealed that from 2004 to 2005 share capital increased by 115%, the regular savings balance increased by 512%, the total income increased by 172%, and the loan balance increased from Ushs 28,400,000 (~$15,212) to Ushs 54,874,000 (~$29,391). Most recently, just in the third quarter of 2006, the bank has introduced a new product: fixed savings accounts for youth between the ages of 16 to 18. Not only is the bank providing men and women with savings and credit facilities, but is now also providing services to youth. The objective is to teach youth to develop a savings culture, and so far, 11 boys and 11 girls have opened savings accounts. So far in 2006, 165 persons have joined the bank, bringing the bank’s membership at the end of the third quarter 2006 to 715 persons.

In Senegal, Coki Epicenter Rural Bank is also excelling. Of all the government-recognized rural banks, it is the richest. Coki, which obtained its recognition in December 2005, has funds valued at CFA 65,509,900 (~$126,711). Coki also has the largest membership, with 1,412 persons. What is amazing about Coki is that the wealth of the bank has been principally generated through savings deposits. Savings at Coki are worth CFA 34,589,720 (~$66,905). THP-Senegal attributes this achievement to the dynamism and leadership of the Bank’s Board of Directors’ Chairperson, who convinced the bank’s members to implement strict savings’ policies. At Coki Rural Bank, individual members must save 2,000 Francs CFA (~$3.87) each month, and groups must save 10,000 Francs CFA (~$19.34) monthly. Also, to access a loan, you must save a third of the sum which you would like to demand. While this criteria was deemed to be quite stringent at first, the community is now accustomed to it and has developed a strong culture of savings.

AWFFI Activities Update

In Benin, CFA 59,680,000 (~$115,435) was disbursed in the form of direct loans to 1,914 women in 146 women’s groups in the epicenters of Kpinnou, Djakotomey, Dekpo, Zakpota, and Ouissi during the second and third quarters of 2006. Partners’ savings at the end of the third quarter are worth CFA 17,362,750 (~$33,584). AWFFI partners in the various epicenters have been participating in group dynamics and book-keeping trainings during the past two quarters. The AWFFI staff is currently training epicenter and village loan committees and opening local revolving loan fund bank accounts to prepare for future disbursements.

In Burkina Faso, CFA 25,585,000 (~$49,487) was disbursed during the second and third quarters of 2006 to 756 women in 101 women’s groups in the epicenters of Bissiga, Bougue, Kouy, Fetombaga, and Yegueresso. Partners’ savings at the end of the third quarter are worth CFA 12,537,175 (~$24,250). Yegueresso, one of the youngest epicenters in Burkina Faso, has impressed the staff with its dynamism. Over 1,000 women are participating in the AWFFI program and receiving loans and training. Repayment for the first loan cycle was 100%, and the AWFFI partners entered their second loan cycle in the second quarter of 2006. The microfinance program at Yegueresso has now expanded to include the men as well. During the third quarter, 50 men received loans. If these men are able to repay their loans in the same manner as their female counterparts, the SPIA credit for men program will expand to serve more men in 2007.

In Ethiopia the AWFFI program is off to a phenomenal start. During the second and third quarters, 10 AWFFI loan groups in Jaldu completed their first loan cycle with a repayment rate of 100%. These ten loan groups have received new, larger-sized loans. Five new loan groups have also been formed in Jaldu and received their first loans during the third quarter. AWFFI has also expanded into the two new epicenters of Debre Libanos and Mesquan. Village and Epicenter-level loan committees have been formed and trained in both epicenters, and four loan groups in Debre Libanos have received loans. Loan disbursement in Mesquan will begin next quarter and will continue in Debre Libanos and Jaldu. During the second and third quarters, a total of 148,250 Birr ($17,079) was distributed to 29 groups consisting of 373 members in Jaldu and Debre Libanos Epicenters. At the end of the third quarter, partners’s savings stood at 26,208 Birr (~$3,019).

Another highlight of the third quarter was the debut of the men’s microfinance program. Birr 79,800 ($9,194) has been distributed to nine loan groups of 133 partners in Jaldu and Debre Libanos epicenters. These partners mobilized Birr 8,463 (~$975) in savings to order to access credit.

During the second and third quarters, the AWFFI staff conducted savings and credit management trainings and income generation trainings with all new loan groups. Both AWFFI partners and SPIA partners (male microfinance participants) are also attending literacy classes at Jaldu and Debre Libanos Epicenters.

In Ghana 434,500,000 Cedis (~$47,249) was disbursed to 628 women in 64 loan groups in Taido, Asafora, Adensua-Besease, Matsekope, Amuyaokope, Yordon Adome, and Gbefi-Hoeme Epicenters. Savings at the end of the third quarter stand at 82,490,000 Cedis (~$8,970). The AWFFI staff is in the process of training epicenter and village loan committees and opening local revolving loan fund banks accounts for each epicenter before future disbursements. The AWFFI staff has also made savings mobilization a top priority and is sensitizing partners to save beyond the required amounts.

In Malawi during the second and third quarters of 2006, new loans totaling MK 777,900 (~$5,636) were made to 13 groups consisting of 131 partners at Ligowe and Mpingo Epicenters and Chiphoola and Chinamwali areas. During the third quarter, AWFFI loan groups in Ligowe finished their first loan cycle with a repayment rate of 100% and will be receiving their second cycle loans shortly. In the other THP-Malawi epicenters, the principal activity during the previous two quarters has been loan recovery. The Food Crisis of 2004-2005 in Malawi created a repayment problem on AWFFI loans, so the THP-Malawi staff is working in partnership with Epicenter Loan Committees to increase repayment levels so that disbursement may begin again.

In Mozambique Meticals 1,217,000 (~$47,061) was disbursed to 20 loans groups consisting of 207 women in the epicenters of Manhica and Chokwe during the second and third quarters. Savings at the end of the third quarter are Meticals 59,054 (~$2,284). The second quarter marked the start of the SPIA Microfinance program for men. Three groups of 30 men in Chokwe Epicenter have received Meticals 118,000 (~$4,563). In 2007, the SPIA Microfinance program will be initiated at Manhica Epicenter.

In Senegal CFA 21,276,000 (~$41,153) was disbursed to 11 groups consisting of 1,627 women in Ndereppe, Namarel, Ndioum, Diokoul, Ross Bethio, Sanar, Sam Contor, Rosso Senegal, Richard Toll, and Saly-Velingra Epicenters. At the end of the third quarter, partner’s savings were worth CFA 27,296,845 (~$52,799).

As is the case in Benin and Ghana, the AWFFI Project Officer, in conformity with AWFFI implementation procedures, is also in the process of training AWFFI leaders and opening local epicenter revolving loan fund bank accounts for each epicenter before proceeding with further disbursement.

In Uganda a total of Ushs 41,590,000 (~$22,360) was disbursed to 23 groups of 217 women in Kiringente and Iganga Epicenters during the second and third quarters of 2006. Savings for AWFFI partners totaled Ushs 33,963,250 (~$18,260) at the end of the third quarter. During the past two quarters, AWFFI partners in Uganda have been busy with Functional Adult Literacy, Book keeping, Group Dynamics, Project Planning, Budgeting, and Food Processing trainings.

Impact of AWFFI on Partners

With access to loan capital, AWWFI partners in all eight program countries are able to undertake income-generating activities and increase their revenues. With their profits they invest in their families and children. AWFFI Project Officers in all countries report that AWFFI partners are now paying for their children’s school fees, purchasing medicine and paying for health clinic fees for themselves and for family members, and improving their housing and sanitation conditions.

Typical AWFFI Stories:

· In Ghana, Naomi Asantewaa at Atuobikrom Epicenter has increased the size of her plantain and maize farm from two to ten acres. This expansion was made possible by the two cycles of loans that she took from the AWFFI-created Credit Union.

· In Mozambique, AWFFI partners at Manhica Epicenter have used the profits and savings generated from their loans to purchase livestock and to buy land titles for their homes and their farm land.

· In Ethiopia, all partners who took first cycle loans at Jaldu Epicenter have dug pit latrines in their compounds.

· In Benin, three AWFFI partners at Zakpota Epicenter have been able to use their profits to purchase motorcycles to facilitate both their trading activities and their participation in meetings.

· In Uganda, the AWFFI Project Officer provides the story of Ms. Bateganya Lovisa, a 26-year-old AWFFI partner at Iganga Epicenter. Ms. Bateganya received a loan of 150,000 shillings (~$81) from the AWFFI loan scheme in March 2003. She invested half in small-scale farming and half in petty business. At the time she lived in a grass thatched mud and wattle house. Together with other savings from her other undertakings, Ms. Lovisa bought 300 kilos of coffee and 700 kilograms of maize during the harvesting season, when prices were low. She then resold the coffee and maize when the price had nearly doubled. Using her savings, she purchased a goat, which then multiplied into eight goats.

In the second loan cycle she obtained a loan of 200,000 shillings (~$108). Through her produce business and the sale of five of her goats, Ms. Lovisa has now managed to erect a three-roomed house, which is about to be completed. Ms. Lovisa has just acquired a third cycle loan of 350,000 shillings (~$188) which she intends to use to also expand her business. With her profits she intends to buy a plot of land and to also pay school fees for her child who has entered secondary school. Apart from her business fortunes and house she has recently erected, Ms. Lovisa has gained business and life skills through her participation in AWFFI and has become an AWFFI animator in her village. Ms. Lovisa feels she is now an economically liberated woman who is able to take decisions affecting her business and home.