Testimony from Tanzania:
The Power of a Micro-Loan

The first two weeks of November, I had the privilege of traveling in central Tanzania. This is an agricultural area where corn and sunflower seeds are the primary crops. We traversed the Great Rift Valley several times via Land Rover over roads that are more like pathways than actual roads, and visited the various villages where the micro-loan funds have been distributed beginning in November of 2008.

A micro-loan is a very small, short-term loan at low interest, esp. to a start-up company or self-employed person. Lori Kovich, one of our North Heights missionaries, works with World Encounter, the agency that has been distributing micro-loans. World Encounter's micro-loan program is designed to give out loans in three stages to groups of ten women who are grouped to help and encourage each other to stay accountable to their plan and repayment of the loan. Once all ten women have repaid their loan they are eligible for the next stage. World Encounter hopes that after three years' investment of funds that most of the women will find that their income-generating projects are at a place of sustainability.

Lori has been meeting with the women in the micro-loan program on a monthly basis. During the first year, groups were formed, bylaws were written, and projects were identified. The women had input into who would become a part of each group that was formed. They needed to decide on what kind of projects they wanted to pursue, check up on each other, encourage and help each other out with their projects. At this time, all of the loans have been paid back in full.

The first-year loans are about $60, the second-year loans about $80, and the third-year loans will be about $100. A number of the women said that this seemed like just a little bit of money but then went on to share how they had been able to see some great things happen even with just this small amount.

I had a firsthand opportunity to see the positive affect of the first-year loans in the lives of these women. I observed what I believe was a newfound pride and confidence as they shared their stories. They recounted with joy how God had blessed them through the micro-loan program. Here are a few of their stories:

Itisaeli is the treasurer of the group in Old Kioboi. She raised chickens for eggs, and Guinea hens. She went to a neighboring village where they have Internet and studied about chickens, learned about how to take care of them, what diseases they get. She was so pleased to report that while there had been a plague killing many chickens this past year none of her chickens died and they have begun laying eggs. She also shared with us that she did make a profit this past year and was able to pay her children's school fees and purchase medicines when they were sick.

A woman in Sinka village sold South African Shaklee-type vitamins and cleaning products and made a good profit. She purchased ducks and goats and still had some money left. With part of her profits, she is able to pay the school fees for her children.

Mama Rachel is the leader of the group in the village of Mwanga. She bought vegetables, traded them for corn, then sold the corn. She also bought fruit and traded for beans. She had enough profit to buy a sewing machine, took a sewing class, and has made a couple outfits for her daughters.

By the end of my two-week visit, I realized the power that a micro-loan has to help women break out of a cycle of poverty. I believe that this is a good project for North Heights to invest in. This year we will designate part of the offerings that we take during the Lenten season for the micro-loan program.

This is an exciting project and a great opportunity for North Heights to be involved in a work that is taking God's power to the world. These women, their families, and their communities will all profit from the World Encounter micro-loan program. If you want to find out more about the micro-loan program and how you could get involved, check out worldencounter.org.