Tuesday, September 15, 2009

Do Microfinance Loans Work? The Amkeni Pottery Collective



There was a recent New York Times Magazine dedicated to women’s issues. I found it really interesting and thought I would put in my two cents after working on Women’s Empowerment here in Tanzania.

So, does microfinance work? Yes!
Is there enough opportunity for loans out there? Definitely Not!

It seems like the people who receive loans are in the right place at the right time. Luckily for the Amkeni Women’s Group in a neighboring village, I was posted here in Usangi to work at their disposal.


I met Mwanaidi, the group’s executive officer, when I was facilitating a seminar with students for the Usangi Women’s Empowerment Project. She had heard about our seminars, and came on a whim. We talked a little and started meeting up every so often and slowly became friends. She eventually told me about her own organization, a small women’s group.

The Amkeni Women’s Group had started a few years back by a group of friends. All had been affected by HIV in their families either directly or indirectly. All of them were concerned about education in the community. They started helping each other and other families in need by monthly contributions, as well as holding educational meetings at primary schools and singing songs about these issues at public events. They love to sing!


By the time I met the entire group, there were 15 women total. They were motivated to do more in the community but had no means of generating income for such projects. They were barely feeding their families and putting kids through school. Most women either worked family farms or cut and sold firewood at the market to make what little they could.

Mwanaidi approached me about starting a pottery collective to make and sell pots at a market near Arusha. I was at first hesitant, but she was really motivated. I outlined the format of a grant proposal and said “you write it, I will translate”. This is exactly what happened, and a week later I had a grant proposal in Swahili in my hands, budget and all.


I was now more convinced that it would be worth the effort to become involved, so I translated the grant into English and started working with the entire group on details. Details, it turns out, can be difficult when 15 people are involved, especially when they have demanding schedules and an average of 10 people in their household who they support! Many meetings followed.

Usually I would come to their meeting house and greet for 15 minutes while we waited for all the women to come. A discussion inevitably ensues on who isn’t there and speculation the reasons why. Mwanaidi calls the women to order and we start our meeting. She welcomes me to speak, and I ask questions. Discussion begins on what action to take. The views of those not present are speculated, then it is discussed again why they aren’t at the meeting and eventually what their brother-in-law did last week that was really taboo and Mwanaidi calls the women to order. I am welcomed to speak and I raise another question on scheduling. Different options are discussed but it is brought up that one person who is absent wouldn’t be able to do that because her little sister did so-and-so things last week and now the Imam is very angry and Mwanaidi calls the women to order. This process repeats until I wish Peace Corps had given a session on how to stop village women from gossiping. When it starts to get dark they start to sing and I go home feeling hopeful!


But in the end all the details worked out, I submitted our grant (VAST) and we were approved. A spinning machine was purchased and training started. Success! 6 women were fully trained and the other 9 are continuing to learn after one month with a teacher. They already have pots to sell. Moreover, these women have P.U.R.P.O.S.E. when they come to work, because they are excited to be able to come to work. They are productive and motivated and have involved their entire families in this effort. Apparently you can gossip and mould clay at the same time!

The moral of this story, I guess, is that these mircrofinance grants can do wonders IF the people are motivated to go 90% before even getting the money. In places like Tanzania, those people are all around, they just need a hand at the other end to reach for.