1,000 Microloans for Rural Women in East Africa

When the WMI team arrived in Buger village, Tanzania on loan day the borrowers there were already standing and singing to greet us. They sang “mkopo ni mpangalio,” which translates loosely to “the loan is arranged.”  It’s a song written by loan program members that expresses the borrowers’ excitement to receive their loans. Having heard the song before at our seminar for the group chairwomen, we jumped right in and sang along.

We started with loans for a new group that is starting this cycle. These borrowers had spent the previous week preparing. They attended a GWOCO/WMI seminar with Esther, the loan program educator, and learned about small business dos and don’ts. Then they wrote their loan applications and business plans with the help of Eliminatha, the GWOCO Secretary. 

The staff read the business plans before agreeing to give out loans to the new borrowers. We were very impressed: one woman who will be buying and selling chickens thought to put down medicine for her livestock as an expense. This kind of active planning will enable her to foresee potential costs and prepare to meet them. It will also make it easy for her to pay off her loan!

 The continuing borrowers in the program were excited to move on from their 300,000 shilling loan to 400,000 shillings (an increase of about $50). In their follow-up applications, they gave various ideas for the use of the new funds. Some plan to branch out into other businesses, while others want to improve their stock and still others want to start selling their products regularly in town, rather than only at the bi-weekly market.

Before receiving a new loan or a follow-up, every borrower fills out a survey. This enables us to keep track of how the loans are helping them to improve their lives, communities, and status as women.

We are often asked: Has the loan had a positive impact on your community? How?  

Most women said that it was easier to access services in the community. When service providers like health care workers and water companies learn that a community’s income is rising, they are willing to make greater investments in that community. Although this loan hub is new, the loan program’s impact on community development here is mimicking WMI’s amazing results in Uganda, and we couldn’t be happier about it!