By Alka Subramanian | Project Leader
The goals of most micro loans programs in Africa range from poverty alleviation, financial inclusion, and economic empowerment for people with no work or income opportunities. A small amount of money can contribute significantly to poverty alleviation especially when provided to women and in remote areas. Studies have shown that by and large, micro loans program have been successful in achieving their goal of poverty alleviation in Asia and Africa. However, based on experience in the field for over 10 years, we find that micro loans programs have multiple layers of impact and these are discussed below.
Power of Love’s micro loans program provides business training and small loans to women impacted/infected by HIV and AIDS in the community of Matero in Zambia. This program has been running in the community for the past 11 years. Over the last several years, our program has achieved its goal of poverty alleviation, has helped women take steps toward self-reliance, and resulted in social empowerment for some women. The reason for these successes is due to the business training program, and because we are embedded in the community. The diverse types of impact of our loans program are discussed below.
First round of impact: As with most micro loans programs, our program has been successful in enabling loan recipients to have a modest source of income that helps pay for food, medicines, rent, and school expenses. For example, after a few months most women on our program can eat better, pay for basic requirements (such as cooking utensils, TV’s), school expenses, and start saving a small amount each week. More successful loan recipients open bank accounts and some extend their homes for rental income. This is the first round of impact and, with time, leads to additional benefits.
Second round of impact: In many cases, especially for women who expand their business, the women build relationships of mutual support with other women that benefits their business. Second, adult men in the household (husbands and/or sons) start helping run the business and taking care of children. Third, successful loan recipients become role models for both men and women in the community. In some ways, loan recipients are changing established cultural norms are on the path to self-reliance.
Third round of impact: The more successful loan recipients enjoy a higher status in the community. Further, they want to invest some of their time in mentoring community members take steps toward self-reliance just like they did. To achieve this goal, a few women have formed a club to mentor new loan recipients. They share their knowledge and experience with women who are new to business, or whose businesses are struggling, and encourage others to work hard to expand their businesses. Mentors are economically and socially empowered. We expect them to continue to expand their businesses and create jobs for community residents.
We are proud of our women entrepreneurs who have become an asset to their community.
Thanks for giving the gift of empowerment to women in Zambia.
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By Alka Subramanian | Executive Director
By Alka Subramanian | Executive Director and Founder
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