June 2011 AfriKids is a Child Rights Organisation working to improve life for Ghana’s most vulnerable and disadvantaged children in a holistic, inclusive and sustainable manner
A woman from the Natuginya branch of the ‘AfriKids Daughters’, a microfinance collective that produces Shea Butter
MICROFINANCE The AfriKids way... Microfinance plays a key role in seven of our 17 projects in Ghana. AfriKids Ghana has now created the ‘Livelihoods Department’. A microfinance loan is given to a beneficiary in order for them to invest and develop a self sufficient way of life. One example is for them to buy maize or rice for resale at the market. Once enough profit has been made, they will repay AfriKids and carry on with their new found business and improved credit rating. As soon as a loan is repaid, it is used to help another beneficiary start out in life.
The clear success of these loans has lead to a formation of the ‘Livelihoods Department’; a project solely based on microfinance loans, run by a team of three, led by Didas Azanoore, Head of Microfinanace and Sustainability. How it works Local people have mobilised themselves to come together as collectives and each of these groups will be assessed before a loan is offered. The Livelihoods team want to see that they will be able to manage their loans and make all of their repayments. These groups receive bespoke training in business management, credit management and customer relationships. They are trained up and empowered to understand business so that they can remain competitive in their own ventures.
AfriKids has high aspirations for the new department and would like to see it progress with more collectives and larger loans. We will keep you posted!
• Currently there are 21 microfinance groups which support 1,400 people across AfriKids’ 17 projects. • The loan recovery rate across the projects is high, with AfriKids’ Operation Sirigu generating a 99% recovery rate.