Out To IHESA

We arrived back in Iringa yesterday evening.  Working with us this first week are Alan Brutlag and Susan Sanford from Grant County MN.  Alan and Susan are visiting Iringa as part of their vacation in Africa to see what our program is all about and to meet some of our members.  They will be spending a week with us in Iringa.

Our first visit this year was to the village of Ihemi, where we first visited Iringa with a group from our church in 2001.  A SACCOS was started here in 2008.  It is the second oldest and one of the most successful of our SACCOS.

Ihemi is a 45 minute drive west of Iringa.  The SACCOS here has 117 members with another 70 on their waiting list.  Some have been waiting for 2 years – but our SACCOS are advised that membership numbers should not exceed twice the number of loans given.  After all, it is better to not admit everyone than to have them become discouraged by a long wait for a loan.

The meeting opened with prayers and greetings from the visitors.  Itiweni then took over the meeting and gave a lesson about good business practices.  She then opened the meeting to questions.

One question concerned the availability of capital.  Last year the Ihemi SACCOS had over 50 members on their waiting list for a loan.  These members were approved for loans, had met their savings requirement (they must have 33% of their loan in a savings account), and had an approved plan (we only loan for income projects of which they must have a business plan).  Late in the year we arranged a special loan for their SACCOS of 23,000,000 TZS (about $15,000) which helped but did not provide for all of their borrower’s needs.  They are very concerned that they may not be able to get this loan again this year and want to know what they can do (we are concerned as well).

We heard from a member who told us that they have been getting bad seed from their suppliers.  It turns out that as much as 20-30% of the seed they are buying will not germinate!  Maybe the SACCOS can sign up as a dealer?

Fertilizer arriving too late or being of poor quality was another issue. Itiweni told our members that we are talking to suppliers about this, but since they buy from local dealers there is not too much we can do.

When the meeting adjourned we took some time to talk to a few individuals about their experiences with microloans.  Here are their stories:

Anni Chaula is a 54 year old widow with 5 children.  She is currently supporting 3 children and 2 grandchildren.  She has belonged to IHESA (her local branch of Iringa Hope) since it started.  She is afraid that she may not be able to get a loan this year since last year her loan was made from the Iringa Hope special loan.  She told us she needs $450 to plant her fields.  Without a loan her projected income is $300-400 so her son will not be able to go to school and she will not be able to afford her basic needs.  A loan, however, will change her life.   “If I get the loan I will be able to send my son to school, we can pay all of our bills, give a tithe, and still be able to put a metal roof on our home!”, said Anni, who projects that with a loan she will earn over $1,400!

Everyone we interviewed told us a similar story.  They all know how much that a loan from IHESA will benefit their families, but are worried that there just is not enough capital.

Afterward we stopped in the SACCOS office to look at the record books.  Last year IHESA had a 100% repayment rate.  Their SACCOS earned over $1,200 for the year.  Their members increased their savings.  The membership for the year was relatively flat – but they explained that they have been very hesitant to admit people when their capital is so small.

Our next order of business was to visit some of the success stories of the SACCOS members.  Our first visit was to a farmer in the village of Isimilo.  Since he joined the SACCOS five years ago he has increased his fields from 4 acres to 15 acres.  Over the past year he added 4 acres and he spent the year preparing his land for planting.  This year he intends to plant tomatoes.  In the last five years he has hired 2 people to help on his farm.  He thinks that with in cultivating tomatoes he will need to hire one or two more helpers.

The second person we talked to was one of our 2014 calendar girls.  Maria Masika is featured during July on the calendar.  Maria is a widow with 4 young children.  She has taken out loans for the past three years.  With her first loan she started a business selling supplies to a secondary school.  Since then she has used part of her profits from this business plus two loans from Iringa Hope to buy and grow a shop selling clothes in the nearby village of Ifunda.  She tells us that this year she thinks her income will be about $2,200!  She tells us that she employs one person in her clothes shop and another for her business with the school.

Our last visit was with Onesimo, also a long time member of Iringa Hope.  Onesimo started with a $200 loan to buy a few tools to work as a carpenter.  Since then he has taken out two more loans, also for tools.  He now has a small shop making custom windows, doors, and furniture.  Onesmio told us that before his loans he earned about $350/year as a carpenter.  He now earns over $2,500/year and employs two men full-time in his shop!

Over the course of a few years, these three individuals have been able to borrow a few thousand dollars of capital from Iringa Hope.  Using this capital they have created 7 good jobs while raising their incomes from the extreme poverty level of $300/year to a middle income level of over $2,000/year.

It is hard to estimate how many jobs have been created by these entrepreneurs in Ihemi.  When asked, the chairman and the treasurer, along with some of the members quickly added up those they knew of off-hand and came up with 30.  But, they concluded, “We know that there have been many, many more.”

After the meeting we headed to town for a bit of shopping and to bed.  Tomorrow we start early!

It is a beautiful drive from Dar es Salaam to Iringa.  Unfortunately it is also all day!

We drive up the African rift, rising from sea level to about 5,000 ft.

When we got to Ihemi we found a group of members working on the parish field.

As we started the SACCOS meeting the women rose to greet the visitors (later the men did too)

Alan Brutlag and Susan Sanford are joining us this week.

Anni Chaula told us about the loan she is waiting for.  She needs $450 to plant her fields.  Widow Anni supports herself, three children, and two grandchild from her farm.

After we finished our meeting we looked over records, etc. in the office.  Then we did fittings for reading glasses that Alan and Susan had brought along.

One of the projects we visited was this farm in Isimilo.  He has increased his farm from 4 acres to 15 and created 3 jobs!

On the way to the fields we passed thorugh Isimilo where he lives.  This village lies about a 20 minute drive down a rutted road from Ihemi.

In Ifundi Maria Masika showed us her clothing shop.  She also sells school supplies.  Maria now has 2 employees.

Onesimo now runs a carpenter shop selling custom furniture, windows, and doors.  He has 2 employees in his shop.

At the end of a long day we went shopping in town.  Tomorrow we visit two SACCOS.