Ipogolo

On Saturday we went to Ipogolo.  Ipogolo is a suburb of Iringa and is one of the “richer” locations we have visited (of course richer is relative here).  Ipogolo parish runs a Saturday school to help the children catch up with their studies.  They also run a women’s program and an outreach program.  When we met with Pastor Nixon in his office for chai he thanked us for supporting the SACCOS here.  He told us that it is making a big difference in his parish.  He knows that without the SACCCOS many of his members would not be able to send their children to school or support the orphaned children of their relatives.  Pastor Nixon praised the SACCOS for helping its members “own the idea” of working to improve their own future.

A new venture of the Ipogolo SACCOS is buying and selling fertilizer.  Since they are so close to town we asked them why.  He said that they have found that 1) the fertilizer from the dealers is often bad, 2) it is also not always available when it is needed, and 3) many of the dealers cheat the farmers on the price and the amount of fertilizer they are selling.  He said that they would like to expand this program so that they can support all of the members, but that there is not enough capital for this.

After our meeting we toured the compound.  We stopped to look at their agricultural demonstration plot, which looks very good, and at their new church, which will be roofed this year.  We paid a visit to their Saturday school where the children sang for us, and then we were off to our SACCOS meeting.

As we enter the meeting there was a some singing and ululating – a noisy greeting.  This SACCOS has 78 members – 25 men and 53 women.  Last year they gave out 47 loans to their members.   Their average loan was $250.  They had a 95% on time payment rate – and they have rescheduled the other 5% (some had crop failures and needed more time).

This group has also created many full time jobs.  When we took a survey of how many full time jobs had been created by members who have had more than 2 loans we found that the average member had created 1.33 jobs.  In other words, the 40 members who have worked with the SACCOS for a number of years have created 52 full time jobs.

This SACCOS was started in 2011 by an investment of $2,000.  Since then they have gotten loans from Iringa Hope Joint SACCOS and additional capital from members’ savings and donations by Iringa Hope.  This last year the SACCOS made a profit of $3,200 while the members earned over $23,000 in profits from their loans – an income increase of almost $600 per borrower.

After the meeting we interviewed two of the borrowers.  27-year-old Peter Mbilini is married and the father of 3.  He supports a total of 6 people.  He borrowed from Iringa Hope to buy a motorcycle so he could begin a taxi business.  Motorcycle taxis are in high demand in Iringa.  Within 3 months Peter was able to pay off almost half of his loan.  He thinks he will earn about $770 this year and about $2,000/year starting next year.

We next talked to Sofia Mgumba, 35 and married with 3 children.  She also has 6 people living in her home.  She has belonged to the SACCOS for 1 year and has taken out 3 loans (while farmers can only borrow once a year, business people in town often borrow for  only 3-4 months at a time and so will take out several loans in a year).  With her first loan she opened a duka (a small shop) in her home.  She paid this loan off in 3 months and took out a second loan to buy a larger shop along the road.  The profit from this shop allowed her to hire a sales lady and pay off her loan in 4 months.  Her third loan will allow her to buy a motorcycle - she plans to get into the taxi business.  She will hire someone to drive the motorcycle-taxi.  She expects to earn between $2,500 and 3,000/year from these two businesses.  With the profit from her business she plans to tithe, then she will send her children to school, and continue to grow her business!

The Ipogolo SACCOS is being managed well and is growing.  They are short of capital, but what they have and what we can give them is very well used.

We meet in Pastor Nixon's office.

Alan stops to look at the demonstration maize field.

The children sing a song in class.

27-year-old Peter Mbilini is married and the father of 3.  He supports a total of 6 people. 

Sofia Mgumba is 35 and married with 3 children.  She also has 6 people living in her home.

The new church should be getting a roof soon.

On our way out we found these kids playing in a dirt pile in their school uniforms rather than going home.  Kids are the same all over!