Kiva Stories from the Field

“Is That Mayonnaise on the Couscous?” and other Tales from Freetown

4 November 2008 at 14:33 adamgrenier Leave a comment

Do you remember the scene from Pulp Fiction where Samuel L. Jackson’s character was stupefied by the French’s fondness for putting mayonnaise on their french fries, as described by John Travolta’s character? I was equally stupefied when I received my first meal made in a Sierra Leonean restaurant this week. I ordered the chicken. What I received was a concoction beyond my wildest expectations. On the bottom of the plate was couscous covered with mayonnaise followed by a sprinkling of lettuce and a slice of cucumber covered with more mayonnaise with a single chicken wing on top. Mmmm…like a little mayonnaise sundae with a chicken wing on top…finger lickin’ good!

It was in Freetown, the capital city of Sierra Leone, where I consumed my first restaurant meal since my arrival. I’m extremely fortunate to have home-cooked meals made for me in Makeni by the talented Sheka Turay, but we were out on business today, so eating out was our only option. In Freetown, we visited the national office for the Christian Children’s Fund (SMT’s parent organization) and the Microfinance Investment and Technical Assistance Facility (MITAF) office. I want to tell you about these meetings because they will give you an idea of how SMT is doing today and where we might expect SMT to be in the future.

The first meeting was with Daniel Kaindaneh, National Director for CCF in Sierra Leone. Madame Regina Sulla, Executive Director of SMT, gave Daniel an update on the business and some of its challenges. Overall, the individual loan product offered by SMT is doing very well while the solidarity, or group loan, product is having its difficulties. I provided comments on the strength of the relationship between Kiva and SMT.

Daniel was familiar with the Kiva site and the Fellowship program. He was pleased to hear how well SMT has done on the Kiva site in a short period of time ($530K raised in 17 months). I also added how Kiva hopes to expand their presence with SMT, but must do so responsibly, underscoring the 30% rule – Kiva funds cannot attribute for greater than 30% of a MFIs gross loan portfolio. We are meeting the 30% limit with relative ease today and an increase in their portfolio can be matched by an increase in Kiva funds by our amazing lender community. It was at this time we talked about development opportunity in the town of Kailahun in eastern Sierra Leone.

Kailahun, ravaged by the civil war, is rebuilding itself as a strong agricultural region. Microfinance is in high demand in Kailahun, particularly with agriculture loans. Estimates have SMT’s portfolio increasing by as much as $200,000 in a years’ time in Kailahun. I did the math for you…a $200K increase in SMT’s gross loan portfolio could increase the monthly Kiva limit by about $6K. A $6K increase in Kiva loans could benefit anywhere between 5 and 30 new borrowers on the Kiva site. That’s pretty significant in the microfinance space. Over the next several weeks and months, SMT could begin operations in Kailahun. We are in position to take advantage of a neglected market in the east thanks, in large part, to the support of the Kiva community and CCF.

At MITAF, we met with Chief of Party, Pearson Kalungulungu. MITAF serves as a consultant for SMT. Among other services, they connect SMT with donors and investors looking to spread their capital amongst legitimate microfinance initiatives. MITAF and SMT are currently working to obtain the second round of funding from donors and investors. This second round will be used specifically in the agricultural space, which will help our efforts in Kailahun.

After giving Pearson a five minute overview on Kiva’s impressive statistics and operations, we talked about the status of microfinance in Sierra Leone in general and SMT’s ambitions. He informed us of the imminent arrival of a new BRAC office in Freetown. BRAC’s presence in Sierra Leone underscores the tremendous demand for microfinance services in Sierra Leone in a post-war era. To capitalize on the Freetown market, SMT is looking at starting operations in nearby Waterloo.

I hope this blog has provided you with insight on the SMT’s future and their ambitions. With continued support from Kiva Lenders, MITAF and CCF, SMT is positioned to take advantage of these incredible opportunities and assist larger populations of a rebuilding and hopeful Sierra Leone.

For more on SMT and the loans currently being funded by SMT, go to http://www.kiva.org/app.php?page=businesses&partner_id=57&status=All&sortBy=New+to+Old

Entry filed under: KF6 (Kiva Fellows 6th Class), Salone Microfinance Trust, Sierra Leone. Tags: Adam Grenier, Sierra Leone.