Archive for December 3rd, 2007
Rose Kasoma, Ugandan Entrepreneur
I first met Rose Kasoma at the office of Share an Opportunity (SAO) Microfinance, Ltd in Kampala, Uganda where she came to pay the monthly installment on her $1,200 loan funded by Kiva lenders. We talked briefly and I asked permission to visit her.
On November 30, 2007, accompanied by Stuart Tamale, a young college educated Ugandan loan officer working for SAO, we went to Rose’s store.
The store is well located in the Ugandan version of a strip mall near a “round-about” on a busy thoroughfare on the outskirts of Kampala. All shops in the brick strip mall open to the outside air toward the road. There were approximately ten shops in the mall, all the same size; about 5 paces wide and 5 paces deep. Rose’s store was well stocked, clean, and the merchandise was nicely displayed. I saw no shops in the immediate area offering the same product selection as Rose. Her shelves were better stocked than some nearby shops.
When we arrived at 9 am, Rose’s youngest son Brian was alone in the store. Brian was well dressed and polite. Like his mother, he is soft spoken. Brian is 14 years old and on vacation from Senior 2 grade, which is the equivalent of ninth grade in the US.
Next, Stuart took me to Rose’s home. It was not easy to find. He navigated down a winding dirt path to a dead end. Rose’s compound, perched on the edge of a swampy jungle inhabited by monkeys, consists of a small brick house, a brick chicken coop, a broken down confinement structure for her 3 cows, and an outhouse.
Rose greeted us warmly. We talked as she hacked stalks of sugar cane into foot long segments for sale at the store. At one point, she went to the chicken coop, removed a chicken, gently calmed the frightened animal, and then proceeded to offer it to me as a gift. I was overwhelmed by her generosity, considering this bird represented a significant portion of her farm assets. I declined the gift, explaining that I didn’t know how to cook (or butcher) a chicken, and I was staying in a hotel with no kitchen. I thanked her profusely for the offer.
Rose is one of seven children. Her husband, who was away the day we visited, is also one of seven children. Rose’s father refused to pay tuition for her schooling but her mother somehow found money to pay for Rose’s limited education. Her understanding of English is excellent, but she preferred to answer my questions in the local language, which Stuart translated.
Rose has two sons and one daughter. The oldest son, Nicholas, is in medical school training to be a doctor. The daughter, Victoria, is in nursing school. We met the younger son Brian at the store. Rose does not intend to have more children.
Rose first became acquainted with SAO Uganda when its social service component gave her tuition assistance for Nicholas and Victoria in elementary school.
When I asked Rose how business was going, she said it was only “so-so”. Sales are stable, and with the Kiva loan she is able to maintain a good inventory of general merchandise for her customers. Occasionally she is asked to extend credit, but she resists because she has to make her monthly loan repayments. She pays cash for her stock and does not accept trade credit when offered. Rose is a serious, but cautious businesswoman.
The big event in Rose’s life right now is a small plot of land her husband recently inherited in a nearby township. The ground is well drained and more suitable for raising livestock than their current swampy location. She and her husband would like to move there and add pigs to their collection of cows and chickens. To do this they will need money to build a new home and farm buildings. When I asked if she would sell her current home, she quickly replied no, it was being saved for the children.
When I asked Rose what her dream in life is, she paused, and then explained that she is old and wants to retire to the new farm to raise livestock. Rose is much younger than I am, but the average life expectancy in Uganda is less than 50, so she considers herself old. She often works till midnight at the store. Although her children are well educated, Rose understands the vagaries of Uganda’s economy well enough to also train them to be self-sufficient entrepreneurs, in case all else fails. She intends to pass the store on to one or more of the children.
Our interview ended as we delivered Rose to her store. It was time for work, not talk, so I bid her goodbye with confidence that Kiva’s funds are well invested and secure.
Add comment 3 December 2007
My First Field Visit
Since arriving in Kenya I have been yearning to meet Kiva clients, to see the effects of Kiva and microfinance with my own eyes. Over the years I have read many books and articles about microfinance, but nothing can take the place of seeing the smiles on the clients’ faces as they watch customers file in and out of their shops – often as a direct result of their Kiva loan. I not only saw clients who had been given the opportunity to increase their incomes, I saw people with a newfound sense of pride, accomplishment, and confidence. I can now attest to the fact that Kiva loans really are loans that change lives…it’s not just a clever slogan!
We visited clients in Mlolongo, a rapidly growing town on the Mombasa Highway, just outside of Nairobi. What was only recently considered an informal settlement has grown due to the high traffic of transport trucks and is now considered a town. Mlolongo has a rapidly growing population and subsequently a rapid increase in businesses and homes. On the morning of our field visit, it had been raining. The roads are unpaved, and there is no drainage system for excess water. So it was mud, puddles, and careful steps for us! Everywhere we looked, we could see new houses being built to accommodate the influx of people coming to live in the town. Many recently-opened businesses lined the muddy streets. Unfortunately for those who can’t afford a stall or a shop from which to operate their business, a rainy day means that they can’t lay out their goods on the street for sale. One of the Kiva clients was one such unfortunate business-owner who had no choice but to accept the fact that she could make no sales until the weather cleared up. But the weather was no deterrent for the other Kiva clients I had the pleasure of meeting.
Instead of singling out a few of the clients, I want to express my overall feeling after my field visit. (If you want to learn more about the individual clients in Mlolongo, check out the journal entries I have posted for Action Now: Kenya.) Leaving Mlolongo, I had some time to digest what I had just seen and experienced while I sat in two hours of diesel-infused air while stuck in the notorious Nairobi traffic. My first thought was of the overwhelming display of entrepreneurship and determination in each of the clients. Each has suffered their own set of hardships, each has accepted financial responsibility for their families and often extended families or orphans in the area, and each has been proactive in helping themselves to rise out of poverty. That’s something that has always intrigued me about microfinance. In my eyes, the old saying, “It takes money to make money”, is only half of the economic development equation. It takes money and determination to make money, especially in the developing world where adversity often outweighs opportunity.
Secondly, as I mentioned earlier, I saw the difference a small loan can make. Most of the clients we visited used their loan to purchase inventory or materials in bulk for their shop. There are so many benefits from doing so: a bigger selection for customers (creating competitive advantage over other, similar shops), a price discount for buying in bulk (allowing for greater profits), and less travel time to go to Nairobi to make their purchases (reducing costs in both time and money), to name a few. Many of the clients said they wanted to become a wholesaler to supply other shops in the area with material or goods. The boost a Kiva loan can give to their business sets the stage for the future ability to do so. From an economic standpoint, a wholesale business can lead to greater profits and higher incomes; and from a development standpoint, it would mean that the shop owners of Mlolongo wouldn’t have to travel to Nairobi to purchase their inventory and the money would therefore remain within the town, benefiting the community as a whole.
I’ll be visiting slum areas of Nairobi this week, an experience sure to be different in many ways. I’m looking forward to seeing first-hand the different challenges faced by business-owners in the slums, as well as the differences in living conditions and overall quality of life – in comparison with the town of Mlolongo.
Add comment 3 December 2007
Work with Life in Africa
After being in Uganda for a few months and journaling for Kiva, September seems like years ago. Everything was so unfamiliar and I felt like the world I entered was insane. Yet, now I am used to the traffic, the city, the wonderful people, and the smells. J
My experience with Life In Africa has been truly eye-opening to the plight of those living in an IDP camp and those trying survive in the city. Each person I journal about has a unique challenge they are dealing with, or dealt with, along with a success story that may not have occurred without the start up capital from Kiva. It’s so fascinating to hear their stories before the loan, especially those who had no prior income, and then to hear how it affected their life and their families. Many of the borrowers explain that they have struggled with school fees and the loan helped them have sustainable income to send their children to school consistently; a priority that everyone has conveyed to me. Most of the borrowers I interview are women and their strength amazes me. Some of them widows, others my age and dealing with such hardships, and some who are the bread winners while their husbands just sit with their friends all day. Each woman has a fighting spirit and wants to provide for her family. At times the stories are hard and loans have not always been the answer to their challenges, but even if the business failed they have shown the remarkable ability to persevere through the situation they face.
Some of the most interesting interviews have been with those whose first business never took off or failed for various reasons because these borrowers had to adjust and rethink their business plan. Those who had to change really scrutinized their next business to ensure it would be profitable. Most of them have done tremendously well with their next business and proves “that if at first you don’t succeed you must try again.” Their tenacity to keep going and make a business succeed is inspiring to me. Those whose business did not succeed and they were not able to move forward were just as inspiring to me because most of them faced a challenge in life that was unbelievably staggering. In a country where life can be so cruel and adversity is prevalent, I have met people who are optimistic and hopeful that life can get better. I look forward for the rest of my time in Kampala.
1 comment 3 December 2007
More from Cambodia
Phnom Penh, Cambodia
It seems like every day in the field is a learning experience, specifically, about how the other half lives. Being out and about, visiting people in thatched, stilt homes as we sit barefoot on the floor and smile at each other just seems too good to be true sometimes. I love my work!
Being new to microfinance, I didn’t have a clear understanding about how it all worked beyond the basic concept – giving the poor access to just a little bit of capital at a reasonable interest rate so that they can better their lives. The beauty of Kiva is that they’ve really latched on to something profound - a medium by which lenders from rich countries can lend to those in poor and make them feel like they can reach right out and touch these people. I was looking at comments to my posts the other day and found that people actually write personal messages to the borrowers – that’s the power of the concept that’s been created! (Photo: Siem Morm picking long beans)
Just the other day, I wrote in one of my journal that “Previously she(Saran Rous) had purchased both her loom and materials on credit from the middleman and received minimal compensation when she provided the finished product. Now she is able to earn around $1.50 USD per day for her labors.” Can you believe that?! I write it as if – Wow, look at how much she makes now! But it’s TRUE, these are the kinds of incremental changes we’re dealing with that improve people’s lives. Daily, I continue to have my mind blown over details like this..jpg)
Most people we speak with use the loans for simple small improvements to their businesses. Many never had capital to purchase things upfront and had to work on credit for which their end profits were much reduced. These loans really only give them a slight edge, but it’s enough. Others say they borrow because it’s too difficult to save. There are no banks in the villages, so if the money is at home they’ll spend it. The truth is that it’s really not so dissimilar from the way a credit card works. The borrowers also have to put up considerable collateral (like the deed to their land) so they don’t default, and it seems to work. Maxima, the MFI I’m working with, says their loan default rate is less than 1%! Not bad in a country where most people only earn around $2/day. (Photo: Hand-woven silk on the loom)
Besides actually loving the work, I’ve also been blessed to have been placed with an MFI as professional and gracious as Maxima. With a staff of 23, even all the loan officers at Maxima have degrees in finance or business, or are going to night school to get them. On top of that (more for our benefit than anything) several speak English fluently, a half dozen are much better than average, and most of the rest can at least speak as much English as we can Khmer (the local language). This has made our field interviews so much deeper than we ever would have hoped because we can just wing-it from person to person to gather lots of interesting information.
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Every time we interview, I’m impressed at how sweet, gentle and open the Khmers are. They smile with their whole face and most seem, dare I say, “tickled” that we’re interested in them and downright AMAZED that people from all over the world can see their photo. They have pride too, and most women want to clean up and/or change clothes before I take another photo of them once they realize so many people will see it. Almost everyone in Cambodia works where they live so that our interviews all happen in people’s homes. They’re modest homes, mostly wood or thatched, raised on concrete stilts with an open living/work area on the ground floor. I’ve found myself both amazed and appalled sometimes at how many people live in such a small space. (My most extreme example so far is 10 people in a 10′x 12′ space! They all sleep on the floor.) For most, their children are their biggest concern and hope for the betterment of the family’s future. Remember that not so long ago, 30% of the population was eradicated by the Khmer Rouge genocide so that now a huge portion of the population consists of young parents and their children. For many, this is the first generation that even has a CHANCE of pursuing education past the 8th grade level. (Photo: Ny Sith with children)
Cambodia IS a poor country, but the Khmers aren’t lazy and most seem intent not only on bettering their lives immediately, but providing for future generations. It’s clear to me why microfinance has such a high success rate here and it’s exciting to be a small part of it. (Photo: Darin + loan officer interviewing Kiva borrowers at home)
2 comments 3 December 2007
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