Enter BRAC. Four years ago, BRAC Uganda began to address some of these problems by implementing what they call the Empowerment and Livelihood for Adolescence Program (ELA Program). The program is designed specifically “to improve the quality of the life of vulnerable adolescents by organizing them, creating spaces of their own and helping them develop a set of skills so that they can live and grow as confident, empowered and self reliant individuals contributing to change in their own families and communities.”

Because it is set up to achieve so many ambitious goals, the ELA program can seem fairly complex at first glance. In this blog post, I want to outline how the program is organized and talk a little bit about some of the social components of the ELA clubs. And in the next blog post, I’ll talk more about the finance components of the ELA program and about the impact of the program overall.

General Organization of ELA

Meet Barbara. She works extremely hard to train ELA staff and to develop materials for the program. She has also been with the ELA program from the beginning and has an excellent grasp on how the program functions and on how far it has come. In the video below, I asked her about what she’s currently working on and about some of the major changes she has seen in the program over the years. Check it out:

As Barbara said in the video, the ELA program has expanded significantly in the past few years and as a result, has become much more decentralized. A colleague at BRAC once joked with me: “anyone who says they understand everything that’s going on with the organization is crazy.” Yet somehow, the program functions with uncanny efficiency.

ELA Management

Each ELA girl is a member of a local club, which is organized and managed by a mentor. There are currently a total 785 clubs, which are located all across Uganda. In general, clusters of about 10-15 clubs are linked to Branch Offices based on proximity. Each branch office has a Project Assistant who is responsible for supervising all of the clubs associated with the branch and for helping the clubs to strengthen their relationships with surrounding communities. The Project Assistants report directly to the Area Coordinators, who are responsible for overseeing a handful of Branch Offices in a specific district. Area Coordinators report to Regional Coordinators, who then report to the Uganda Program Manager. The program manager is responsible for overseeing all big-picture aspects of the program and is stationed mainly at the BRAC Country Office in Kampala.

Microfinance Staff

The ELA microfinance, which is recent addition to the ELA program, requires some additional staff members. At the branch level, there are Credit Officers, who are tasked with overseeing all the financial components of the program. ELA microfinance also has its own set of Area Coordinators, who are responsible for managing microfinance at multiple branches and must be present at all loan disbursements. The microfinance Area Coordinators also report to the Regional Managers and to the Program Manager. Every month, all of the Area Coordinators meet with the Program Manager at the Country Office to review the performance of their clubs and to discuss how to improve the program.

Club Houses  

The space used for the program consists mainly of extensions of community member’s houses, or of  public buildings rented by BRAC from local governments. This is the main space where club members and mentors meet six afternoons per week. The clubs also use community sports fields for certain athletic activities.

How to Join

The requirements to join a club aren’t strict at all. Any girl between 13 and 21 years old, who is a permanent citizen of Uganda and who can pay the 2,000 UGX (~$0.80) admission fee can join. All she really has to do is approach the local club’s mentor and ask.

The Social Components of ELA Clubs

Community Participation

One thing that is emphasized over and over again when discussing the ELA program with BRAC management is community involvement. From what I was able to gather, this happens in mainly two ways. The first way is called a mothers forum. Once, every two weeks or so, the Project Assistant from the branch will get together with the mothers of club members to discuss the club programs and things that the mothers can do to help empower their daughters. Another way that the community is involved with ELA clubs is through community leaders’ workshops. These are events where prominent female figures from the community visit a club to talk to the girls about sexual health, life challenges or a host of other topics.

Life Skills Based Education

The ELA program also provides girls with resources to learn more about life challenges and how to overcome them. The clubs focus on a wide range of topics including reproductive health, menstruation, familial and community responsibility, leadership, bride price, early pregnancy, STIs, family planning and rape. Mentors will normally focus on one aspect of one of these topics every day, and occasionally guest speakers will come to the clubs to give presentations to the girls. BRAC has also published books on each of these topics consisting of general advice and collections of stories from the lives of ELA girls.

Just below is a kind of introductory story from BRAC’s book on family planning. It’s called “Tough Times,” and is mainly about a young, 20-year-old woman named Stella and her struggle through her second pregnancy. It emphasizes the importance of leaving time between births.

Last year, in 2009, I got married to Mike, a bicycle cyclist.   I’m now five months pregnant. I was forced into marriage because my parents never wanted to stay with a pregnant woman. I had long stopped studying due to lack of finances at home.   

Mike stayed in a remote village. Once in a while, when a vehicle passed, every one waited in anticipation of their relative.  City people are claimed to be rich since they always carry with them so many gifts. In the village the main source of livelihood is agriculture and most of the farming done is for consumption. 

As it was my first pregnancy, I lacked knowledge on how to care for myself. Friends, however, encouraged me to visit the health centre for checkups.  

Throughout the pregnancy, I visited the health centre only once.  The long distance discouraged me form frequenting the place. I also lacked the money to receive the medical attention I needed. As a result, a traditional birth attendant helped me to give birth to my first child. She was easily available and cheap. 

Much as Mike tried so hard to meet every need of the family, the poor man failed. To make matters worse, I conceived again after ten months. This also affected our daughter so much. She was ever sick and crying. I also stopped breast feeding her since e I was down with morning sicknesses and the general discomfort that comes with pregnancy.  Eating also became a problem since we could only afford one meal a day. 

When it reached birth, Mike was able to gather some money to transport me to the health centre. I delivered with the help of the nurse, but I faced severe complications. I almost bled to death. I was weak and anemic. My baby looked so sick that I doubted his survival.  My daughter was stunted. Having two children in a couple of years was too much for me and it also strained my husband a lot.

The nurse advised me to go back for postnatal care, with my husband. She later explained that child birth was the most risky incidence and a threat to the woman’s health and that of her baby. She emphasized the need for birth spacing if we were to take good care of our children’s health and needs.

When the nurse had finished talking, it surprised me that I was so ignorant about family planning methods and birth spacing. Use of contraceptives would give me enough time to properly heal and properly take care of myself and the children before getting unexpected pregnancy. 

Since then, I have learned to use contraceptives.  I plan on waiting for my two children to properly grow before I conceive again. It is also important that I get a job so that I can supplement on Mike’s income. This will help us to properly take care of our family and keep it happy.  

Club Activities

To me, the club activities are in a big way the heart of the ELA program. They afford the ELA girls a daily opportunity to take a break from adversity, to talk about their experiences and to learn from one another.

Towards the end of my fellowship, I was lucky enough to visit the Kanyanya Club in the Zanna district in Kampala. Just before lunch one day, I hop on the back of a boda boda and speed just a few kilometers up the road to the main traffic hub in Zanna. I pick up two oily, floury pancakes called chapattis for lunch, then march off of the main road, back into the Zanna “slums” to find the Branch Office. I get a little lost on the winding backroads, but am only a few minutes late – Uganda style.

Once at the office, I am greeted warmly by the Project Assistant and an Area Manager I’ve met before. The three of us travel up about two kilometers of steep, dusty roads in the hot afternoon sun. It would have been much easier to take a boda boda, but the project assistant had recently been in an accident and really didn’t want to take any more chances. Just as I think I am running out of steam, we reach the top of a huge incline, descend down a short lane with lots of tree shade, and finally arrive at the club house.

It’s around two o’clock, and more and more girls filter in over the next hour. Many of the members aren’t around because they’ve gone to visit family in the villages for the holiday, and many of the girls that show up are also a bit drained from the intense heat of the sun. We still have a great time playing board games and dancing. Fortunately, I have my Flipcam and am able to grab some great footage of the club house and of the girls. Enjoy!

Andrew Huelsenbeck is a Kiva Fellow who worked in Kampala with BRAC Uganda. To learn more about BRAC, please visit their Kiva Partner Page. If you are interested in helping to empower one or more of BRAC’s many wonderful entrepreneurs, you can join the Friends of BRAC Uganda lending team or check out new BRAC Uganda loans on Kiva.org. Happy lending!

Ow de body! Are Sierra Leone and Rwanda still danger zones? What challenges do Ugandans most commonly face? Kiva Fellows from KF16 bring you another unique perspective from the diverse and vast continent of Africa! We patched together an overview of each of our placement countries that includes: basic socioeconomic stats, common stereotypes (and to what extent they are true or false), greatest challenges, most common loan products at our respective field partners, and the borrowers’ most common use of their profits.  Our part 2 series follows the Kiva Fellows through Sierra Leone, Rwanda, and Uganda. We hope our summaries give you a new perspective on the continent and its distinct countries that we’ve been fortunate to explore, thanks to the Kiva fellowship!

Tejal Desai, Sierra Leone

1. Basic country stats
% Living Below Poverty Line: 70.2% (CIA World Factbook)
Average Annual Income: $903 (kiva.org)
% Women in the Workforce: Adult female pop labor force participation: 65.4%, but women only earn 42% as much as men.

2. Most common stereotype about Sierra Leone
One common stereotype is that Sierra Leone is a very dangerous place to live and visit, with rebel crime and diamond smuggling being widespread occurrences.

Sierra Leone’s decade-long civil war, which ended in 2002, has been brought to the attention of mainstream audiences by films like Blood Diamond, and has tainted this beautiful country’s image. Although this war is responsible for over 2,000,000 displaced Sierra Leoneans and 50,000 dead, Sierra Leone as a nation has been making strides forward to leave behind the legacy, has invested in the development of its infrastructure, and is considered one of West Africa’s safest destinations.

Gari, processed cassava, a common Sierra Leonean food product.

3. Greatest challenge
Sierra Leone’s high cost of living creates many challenges, as it is seldom adjusted for inflation, especially with the rising costs of food and fuel. For some perspective: rice, a Sierra Leone staple, runs about $25-30 for 50 kilograms, a taxi ride across town costs $1-2, and almost 70% of the population lives under $1.25 a day. BRAC borrowers cite inflation as the biggest threat to their businesses, as depreciating inventory creates holes in revenue and risk for increasing their quantity of goods. Hassan, picture above, owns a grain shop in Waterloo, Sierra Leone, and says inflation makes it difficult for him to keep up with losses in the value of gari (processed cassava, photo above) and rice.

4. Most common loan product at field partner, BRAC Sierra Leone
The microloan is the most popular ($100-$300 loans), but another loan product on the rise is the SEP loan – small enterprise loan, which is offered to business owners who want to expand their business (more info here).

5. Clients’ most common use of profits
Many BRAC borrowers utilize their profits to expand their businesses, but a majority cite paying for school fees and education this as the most common use of their profits. The cost of primary education in 2004 was 53,000 SLL (around $26) per student, and has only increased since. Parents struggle to cover the costs of additional costs that come with education: school supplies, increasing costs of transportation, and uniforms.

Whitney Webb & Kathrin Gerner, Rwanda

1. Basic country stats
Rwanda has a population of 10.6 million with 56% of the citizens living below the poverty line. The average annual income is $1000 USD and women make up 53% of the workforce.

2. Most common stereotype about Rwanda
The first things that come to most people’s minds when they hear Rwanda? Genocide. War Zone. Danger. These are some of the key words I heard from people in reaction to hearing where I was placed for my fellowship.

Yes, Rwanda suffered the worst genocides in recent African history. There is no changing the fact that roughly 20% of the Rwandan population was murdered in 1994. However, the country has since moved forward with acceptance and strength. Today, Rwanda is one of the cleanest, safest, and most organized countries in Africa to live or visit.

Beautiful Rwanda

3. Greatest challenge
One of the big issues in Rwanda right now is the lack of available land. Rwanda is the most densely populated country in Africa and the population continues to grow at 3% a year. Roughly 90% of the population makes a living through agriculture. There is simply not enough land to go around.

Every time I visit the land of some of our agricultural borrowers, I am amazed at how small the plots actually are. The average landholder owns 0.5 hectares of farmland. It is unbelievable to see these plots stretch up the side of a hill that seems too steep to even climb.

There have been several government programs established such as land consolidation, improved seeds and fertilizers, and the irrigation of unusable land. Progress has been made, but as the population is set to double in 24 years, Rwanda will continue to fight an uphill battle.

4. Most common loan product at field partner, Urwego Opportunity Bank of Rwanda (UOB)
The most common loan product at Urwego is the group loan. These loans are usually used to grow businesses selling vegetables, clothing, kitchen goods, or textiles. The group members are accountable for each other and guarantee one another’s debt.

5. Clients’ most common use of profits
The most common intended use of profits from a loan is to create a savings account. Many borrowers state that they wish to put money away to create a better future for their families.

Andrew Huelsenbeck, Uganda

1. Basic country stats
Population: 34,612,250

Languages: English (schools, law and some newspapers and radio), Luganda, and many others

Religions: Roman Catholic (41.9%), Protestant (42%), Muslim (12.1%)

Age Structure: 0-14 (49.9%), 15-64 (48.1%), 65+ (2.1%)

Population living below the poverty line: 35%

Average Family Income: about $200 per year

Sex division in the work force: Nearly three quarters of all formal salaried positions are held by men. But if we also count the informal sector, then the numbers are much closer to being equal, with women constituting about 47% of the workforce.

Sources include the CIA world factbook, Gorilla Safari, and Taxation and gender equity: a comparative analysis of direct and indirect taxes in developing and developed countries by Caren Grown and Imraan Valodia.

2. Most common stereotypes about Uganda
1. Ugandans are short-sited and will not succeed at paying back loans because they will use the money on other side projects.

2. Ugandans are difficult to employ because they often misappropriate company funds.

Both of these are actually fairly common problems in Uganda, but the problem seems to have less to do with the Ugandan people, and more with incentive structures. Many Ugandans have a lot on pressing issues on their plates: hungry and sick family members, school fees, houses and other construction projects, expensive funerals, etc. It makes sense that they would get money any way they can and then use it to cover the costs of these things in the short term. It also makes sense for Ugandans to not work hard and to take money if they are not monitored and are not in danger of losing their jobs, or worse, in danger of facing serious legal repercussions. Without penalties, I think many people elsewhere in the world would act similarly.

BRAC Uganda has done a fantastic job of creating incentive structures to prevent this kind of behavior. They train their borrowers in financial management and make them sign formal promissory notes before receiving any money. In addition, BRAC has many program managers and an entire department devoted to constantly monitoring borrowers and employees. When, for example, there is any evidence that an employee has misappropriated funds, managers in the Country Office will launch a full-scale investigation and will terminate the employee if necessary. These measures help immensely in navigating around stereotypically Ugandan tendencies.

3. Greatest challenges
Power outages: At the BRAC Uganda Country Office, the power is out about 50% of the time. This is because the hydroelectric dam on the Nile is not producing enough energy to power all of Kampala all the time. At BRAC, we are lucky in that we have a back up generator, which kicks on every time the power goes out. But for other business owners who don’t have the luxury of owning a generator, these outages can substantially reduce productivity. This is especially true for business owners just outside of Kampala, who sometimes see only a few hours of power each week.

Inflation: Inflation has been a huge problem in Uganda recently. Hovering at around 30%, it has reduced real incomes and has substantially increased the costs of living and doing business. This, in conjunction with regional droughts, has caused the prices of staples like matooke, sweet potatoes and charcoal to skyrocket.

4. Most common loan product at field partner, BRAC Uganda
Standard group microloans, which range anywhere from 100-800 USD. They are given to more than 125,000 women who are members of around 6,000 community-based microfinance groups throughout Uganda. BRAC also provides these women with training, technical assistance and helps them find ways to save. The women that receive the loans are often between 20 and 50 years old with little or no education. Virtually none of them have access to the formal financial sector or even to other microfinance products.

5. Clients’ most common use of profits
There are a number of ways that Ugandans are using the profits they are gaining from microfinancing. These mainly include sending their children to school, reinvesting in their businesses, and buying plots of land to build houses for their families.
Tejal Desai is a Kiva Fellow completing her fellowship with BRAC Sierra Leone. Interested in becoming a Kiva fellow? Click here to learn more about the program and apply!

Kiva Fellows from KF16 take on Africa!

Where might you find muzungu hunting? Where do Kenya’s elite runners hail from? And what do most borrowers in Burkina Faso use their business profits for? Kiva Fellows from KF16 bring you a unique perspective from the diverse and vast continent of Africa! We patched together an overview of each of our placement countries that includes: basic socioeconomic stats, common stereotypes (and to what extent they are true or false), greatest challenges, most common loan products at our respective field partners, and the  borrowers’ most common use of their profits.  This first post of a two-part series focuses on Kenya, Tanzania, and Burkina Faso. We hope our summaries give you a new perspective on the continent and its distinct countries that we’ve been fortunate to explore during the Kiva fellowship!

Claire Markham & Daniel Jung, Kenya

A SMEP borrower in Maua, Kenya selling beans and rice.

1. Basic country stats

% Living Below Poverty Line: 45.9% as of 2005 according to the World Bank

GDP per capita: GNI per capita as of 2010: US$790 according to the World Bank

% Women in the Workforce: Data unavailable.

% Labour participation rate for females aged 15+: 76% according to the World Bank

% Labour participation rate for males aged 15+: 88% according to the World Bank

2. Most common stereotype about Kenya?
A common stereotype is that Kenyans are excellent runners. To some extent, this is true. Of the 75 medals Kenya has won in the Olympics over time, 68 of these medals have been from athletics events.  Additionally, Kenyans have won over 70 marathon races worldwide this year. That being said, it would be inaccurate to stereotype all Kenyans as fast runners – in fact, 75% of Kenya’s elite runners come from one tribe, the Kalenjins. Some of the best runners also come from higher altitude areas of the country which contributes to their running performance.

3. Greatest challenge
The most significant recent challenge in Kenya has been “the worst drought in 60 years” resulting in enormous food shortages. Compounding the devastation caused by the most recent drought was another major challenge in Kenya, “corruption among the authorities meant to be helping the people.”

Despite these difficulties, microfinance institutions and its customers are making efforts to alleviate some of the damage of future droughts through the use of loans for water tanks and irrigation equipment. This will help to ensure that in future dry periods, there is more water to use for agricultural purposes to reduce the degree of food shortages.

4. Most common loan product at field partner, SMEP
Though SMEP offers a variety of loan products, including loans to finance businesses, green products, water products, and school fees, the most popular loan product by far is individual business loans.

5. Clients’ most common use of profits
At SMEP, there are an exceedingly large number of customers who use their loan to add stock to their retail shop where they sell cereal, fruit, flour, sugar, maize, among other items.

Lauren Barra, Tanzania

 1. Basic country stats
% Living Below Poverty Line: 36% (CIA World Factbook)

Average Annual Income: $723 (kiva.org)
% Women in the Workforce: 89% - the highest in the world! 

2. Most common stereotype about Tanzania
Before I left Mombasa, my Kenyan co-workers gave me the low-down. “Tanzanians are lazy and they speak terrible English.” Yes, the East African work ethic in general is very different from the maniac “money never sleeps” energy in NYC. Does work get accomplished at the same pace I’m used to back home? No. But I find my Tanzanian co-workers to be just as hard-working as any in Kenya and even more dedicated than many in the States. Tujijenge employees take pride in their work and will stay as late as needed to get the job done right.

As for the English? Let’s just say my Swahili is rapidly improving…

3. Greatest challenge
Muzungu hunting.

My first week in Tanzania, my FSS and I had an unfortunate run in with immigration. Three immigration officers came to my MFI, claiming they were performing security checks for Al-Shabaab. Instead, they made a B line for the two muzungus, demanded to see our passports and questioned the validity of our visas. They refused to believe I was here as a volunteer, insisting I needed to pay $200 for a Tanzania work visa. Same with my FSS – although he’s based in Nairobi and marked “business trip” on his Tanzania entry form, they threatened to take us downtown.

We considered calling the embassy – our visas were 100% legit and these guys were just looking for a bribe. Management took them into a separate room and I hear the conversation went something like this, “Maybe their visas are in order, maybe not. But it’s Friday afternoon and we can detain them over the weekend until the embassy sorts this out on Monday.” Spend the weekend in a Tanzanian jail? No thanks, rafiki.

Immigration left shortly thereafter and we haven’t heard from them since. Supposedly $400 greased their dirty palms on the way out the door. I’ll never know for sure, but that’s one welcome party I’ll never forget.

4. Most common loan product at field partner, Tujijenge Tanzania, Ltd.

Group business loans. These small businesses range from food vendors and hair salons to selling chickens and charcoal.

5. Clients’ most common use of profits
School fees. Although children attend primary school for free, families still have to pay for uniforms, testing fees and school supplies. There are also reports of children not attending school because of poorly paid teachers demanding enrollment money from them.

Allison Mooney, Burkina Faso

1. Basic country stats

% of population living below the poverty line 46.4%
GDP per capita: $1,200
% Women in the Workforce: 80%

2. Most common stereotype about Burkina Faso
That it doesn’t exist. This is false If you know enough about it to have a stereotype, you’ve probably done some real research. As far as Sahel area, most people assume the whole area is brown and dead. Although Ouaga itself doesn’t have much to offer nature-wise, the west of the country is beautiful and green!

3. Greatest challenge

Although perspectives differ on the greatest challenges facing Burkina, one that is really holding the country back is lack of education and unemployment. Only 21% of the population is literate (CIA Factbook), so there is no incentive for international corporations to come and utilize the capable workforce here. As a result, official unemployment is 77%. Although people find something to fill their time and make enough money to feed their children, moving above subsistence will require some changes to the Burkinabe education.

4. Most common loan product at field partner, Micro Start/AFD
Small business loans- selling fruit, pagnes (African cloth), etc… Most are group loans but some individual.

5. Clients’ most common use of profits
Education and health of children. Often families need to take their children out of school here because they need them to work to help feed the family. With the loans, often the parents can make enough money to support the family so children can stay in school.

Do: A Kiva Fellowship. It'll change your life. (Eric Rindal, KF15 Sierra Leone, KF16 Bolivia)

The sixteenth class of Kiva Fellows has all but left the field- but we’re by no means done talking about our experiences. We’ve collectively spent 422 weeks in the field (just over 8 years!) and worked an estimated 16,650 hours at Kiva field partners around the world.  Needless to say, we’ve got a lot of opinions about how to use this time wisely.

Now, we’re no experts in living or working abroad (though we sure do like it), but we have some nuggets of wisdom to offer up for those of you transitioning into a life abroad or beginning your next Kiva Fellowship. Stick by these tips, and you can’t go wrong. (And for more hints and tips, check out 33 Tips from Kiva Fellows (written November 2009) or 45 More Tips from Kiva Fellows in South America.) Enjoy!

Best Way to a Kiva Fellow’s Heart is through…

1. People love to share food in El Salvador. If you’re having lunch with someone or with co-workers, offer up some of what you have for them to try. (Andrea Ramirez, KF16 Costa Rica & El Salvador)

2. Though most of the USA fast food places are here, don’t bother with them, Turkish food is wonderful. (Kim Strathearn, KF16 Turkey)

3. If you take a trip(s) during your fellowship, remember that in some cultures it’s customary to bring back (small) gifts to friends and coworkers from your travels! I found that a box of chocolates to share in the office of my MFI was always much appreciated and disappeared within hours. (Laurie Young, KF16 Indonesia)

They may not look good. They may not taste that good, either. But do it: eat the fried cow intestines.

4. Make sure you try the different casados(rice and black beans paired with some sort of salad, and meat). It’s delicious, affordable, and the closest thing to home-made. (Andrea Ramirez, KF16 Costa Rica & El Salvador)

5. Try everything. Ok, yes, you could get sick, but worse, you could live the rest of your life without knowing what guinea pig, cow tongue, fermented maize, cow heart, llama, friend random thing with more random things in it, magical juice in a bag, etc., etc., tastes like. If these things don’t seem appealing, remember: even worse, you could miss out on a big chance to share in a local cultural experience that will stay stayed with you forever. (Mariela Cedeno, KF16 Bolivia)

6. Befriending office mates is easy as pie, especially if you bake one. Any baked treat will do the trick: cookies, cupcakes, 7-layer bars – anything tasty and homemade will suffice. Walk around and offer your treats during the afternoon coffee break. (Sandra Pina, KF16, Honduras)

How do you say…

7. No amount of “city” Spanish will prepare you for the linguistic richness and diversity of Spanish spoken in rural Costa Rica. That said, bring a notebook for ALL field visits, and let the loan officers be your best professors and guides. Even Costa Rican urbanites find themselves lost among the colloquialisms of Tico country Spanish. (Julie Kerr, KF16 Costa Rica)

8. Learning common words and phrases in an indigenous language is the quickest way to break the ice. Guaraní is Paraguay’s other official language and is spoken by the majority of the population. Purete means cool, haso means not cool, kaigue is lazy, nde ha’e kuña guapa means “You are a hard working woman!,” chevare’a means “I am hungry,” and amokose means “I want a drink!” (Alba Castillo, KF15 Paraguay)

9. Get rid of “uhm” in your vocabulary- it mean a female private part in Turkish. (Kim Strathearn, KF16, Turkey)

10. When a farmer says he brings his harvest to market using his “salchichón” (commonly known as “sausage”), blush not my friends, he means “horse”. (Julie Kerr, KF16 Costa Rica)

11. If you lose the thread of a conversation don’t just say ‘sí‘ or intermittently laugh. Get them to repeat things and when that get boring pick out a word or phrase that you Do know and make a comment or nonsequitor. They might be saying “fijate, las olas son bravas en la playa” and your response might be an unrelated, “¿Te gusta la playa?”  This gets the conversation back on your own terms. Think about how often you respond like this in English! (Jim Burke, KF16 Nicaragua)

12. Because they will ask: Kiva means “unity” or “agreement” in Swahili. (Kate Bennett, KF15 Ecuador & KF16)

What to Bring

Do: bring a tuperwear container. Sporks can also come in handy, for that mid-morning mountain climb.

13. My three smartest investments for my fellowships? A SteriPen, a tuperwear container, and a pocket knife with a corkscrew. (Kate Bennett, KF15 Ecuador & KF16 Peru)

14. Always carry a small, sturdy umbrella. It will get you through unexpected showers; as well as hot, sunny days. (Alba Castillo, KF16 Paraguay)

15. Rain is as plentiful is the air we breathe. Bring an umbrella if you prefer to shower before getting dressed. (Julie Kerr, KF16 Costa Rica)

16. Bug spray, bug spray and MORE bug spray!! For those of you who like more natural alternatives, anything with menthol or eucalyptus helps repel the mightiest of mammoth mosquitoes, sand flies, ticks and chiggers. Slather it on THICK! (Julie Kerr, KF16 Costa Rica)

17. Bring clothes or shoes that need to be fixed, mended, or altered. It is cheap and the work is top quality. The sasterías and zapateros are EVERYWHERE. (Jim Burke, KF16 Nicaragua)

There’s no place like home (in a new country!)

18. If you can, try to find accommodation near the central market building: there’s nothing like eating shrimp ceviche with avocado at 7 o’clock in the morning. Besides, this may be your only chance for the entire day to get your hands on food that’s neither triple-fried nor made out of pure pork fat. (Emmanuel von Arx, KF16 Ecuador)

19. If it’s possible, go with a homestay! Local food, local language, and a solid support group in-country are just a few of the obvious perks of living with a family. (Kate Bennett, KF15 Ecuador and KF16 Peru)

20. For Kiva Fellows in the former Soviet republics: If you’re looking for apartments in older Soviet buildings, check to make sure that the utilities actually work. Gas outages can be frequent (sometimes in the dead of winter), and running water tends to be spotty on higher floors. As a rule of thumb, try not to live above the fifth floor – after all, the elevator might also not work! (Chris Paci, KF16 Tajikistan & Azerbaijan)

Getting from point A to B

21. When moving around by taxi in Cuzco, do everything possible to seem local to get cheaper prices (there are lots of local gringos, so you can pull it off). How to go about it?

• Say hi to your taxista like this “Buenas, maestro.” Saying hola is touristy, saying chofer is touristy, and asking anything about anything is touristy. You don’t care. You are local.
• Tell him where you are going by saying “I will get off at such and such location”. If you are going to a restaurant, know its name, what street it is on, the nearest cross street, and a reference point nearby BEFORE you get in. Otherwise you won’t be able to pull off the “trabajo aquí.”(Miss any of those four, you are officially a tourist.) (Rob Gradoville, KF16 Peru)

If you're feeling the need for speed, do: hop on your loan officer's motorcycle.

22. If you’re taking the bus and you don’t know where you need to get off, just ask the bus diver. Costa Rica has the nicest bus drivers around! (Andrea Ramirez, KF16 Costa Rica & El Salvador)

23. Note the taxi number (on side of doors when you get in) can help you retrieve forgotten item. Also can help if the taxi driver sees you note the number, he might be less likely to take the long way. It is common for taxis to stop and ask other for directions if they don’t know the place your going. Always make sure they turn the meter on. In the tourist area, always flag down a moving taxi–the ones that are just waiting around are just waiting to rip you off. Beware of the money switcheroo (ie you give them a 50 lira note that is the same color as a 5 lira note and they do the switcheroo and try to convince you that you only gave them the 5. Females always sit in the back and not in the front. I have have some excellent taxi driver and some dinks as well. Rider beware (Kim Strathearn, KF16 Turkey)

Get to work!

24. If you have any freedom to do borrower visits, have no shame in visiting anyone who owns a panatería, heladería, or pisco vineyard. Peruvian hospitality and pride in their business translate to homemade treats for you. Microtenterprise never tasted so good. (Kate Bennett, KF15 Ecuador & KF16)

25. Make people laugh, even when it’s awkward. Visiting clients who are on a spectrum from extreme introvert, to slightly less extreme introvert, can be daunting, but like everything else in life, there is nothing better than a laugh. You’d be amazed how many times my laughing at people and saying “por favor, sonria porque se me va a romper la camera si sigue asi,” actually made them smile. Don’t rush, don’t pull out your pen and BV template, and don’t start dangerously pointing your camera right way. Chill out, smile, shake hands, take in the scenery, interact! (Mariela Cedeno, KF16 Bolivia)

Do: hang out with coworkers after work. Don't: let them win.

26. Make sure to hang out with MFI staff outside of work. Don’t worry so much about about keeping it strictly ‘professional.’ I built trust, learned office hierarchy, gossip, and got a lot of technical questions answered after a few beers with loan officers. (Jim Burke, KF16 Nicaragua)

27. Fake it ’til you make it. You will be considered an expert in all things Kiva, even if you’re not. Embrace the challenge. You will have multiple resources at your disposal: use them. Learn along the way and don’t be afraid to tell your field partner, “Can I get back to you on that? I want to confirm with Kiva.” (Sandra Pina, KF16, Honduras)

28. Invest in your coworkers. From the service staff to the reception staff to the MIS, they not only help you with your job but they can be great friends and connectors to your life in a new country. (Jill Hall, KF16 Philippines)

29. They tell you this at training, but really, do it: spend your first week only asking questions. Lots and lots of questions (and start on your Loan Product Survey or Social Impact Assessment first- asking pointed questions while completing items on your workplan is a double whammy!). Being extremely informed about every aspect of your MFI will only make your work easier moving forward. (And teach you more about microfinance, which is the whole point of the Fellowship, right?) (Kate Bennett, KF15 Ecuador & KF16)

30. If it should take a day or two, it’ll take three or four. If it’s your Borrower Verification, it’ll take a month. (Kate Bennett, KF15 Ecuador & KF16)

31. Figure out how your MFI communicates. They are probably using chat or skype. Get your coworkers chat/skype info early on. Sometimes you can formulate better questions, get better responses and be less annoying chatting rather than visiting their office for every little thing. (Jim Burke, KF16 Nicaragua)

32. Email coworkers when you leave! – Even if they weren’t helpful with that one thing you were working on…they still care and want to hear from you when you’re gone. (Eric Rindal, KF15 Sierra Leone, KF16 Bolivia)

33. Participate! Don’t be shy (or obnoxious) and get involved with after work sports or after work drinks. This is your new community. (Eric Rindal, KF15 Sierra Leone, KF16 Bolivia)

Gringo Pricing

34. Don’t be afraid to bargain for transportation and goods! In many developing countries, it’s expected of everyone. You’ll probably be quoted a much higher price at the start than you should be paying, and it’s not because the vendor’s trying to “cheat” you as a foreigner. It just makes economic sense – it would be foolish for the entrepreneur not to sell for as high a price as he/she can get. (Chris Paci, KF16 Tajikistan & Azerbaijan)

35. Never take the first price- haggling is expected. On the other side of the coin (jaja), though, don’t haggle some old woman trying to sell you a scarf in the Sunday market into oblivion- that extra dollar probably means an awful lot more than her than it does to you. Lay aside your hubris and indignation from time to time and accept the gringo tax. (Kate Bennett, KF15 Ecuador & KF16)

Safety

36. Should you ever attract negative attention from the police in the former Soviet world, an effective tactic is to pretend (or demonstrate) that you speak barely any Russian – enough to understand their questions, but not enough to maintain a conversation. As long as your documents are in order, they will likely decide you’re too awkward to be worth it and let you leave. Hurray! Oh, and always carry your passport and registration with you. Always always always always always. (Chris Paci, KF16 Tajikistan & Azerbaijan)

37. Remember, guys: It’s better to appear like a total sissy than to get robbed or killed. If you feel that you are getting into a dangerous situation or a dead-end street in a bad neighborhood, don’t hesitate: simply turn around and run! Don’t worry: nobody will ever know about this – your reputation as a fearless globetrotter stays alive, and so will you… (Emmanuel von Arx, KF16 Ecuador)

38. It’s natural to burn with curiosity about your host country. But if you’re not living in a democracy, be cautious about the sorts of political questions you ask, unless you know your conversational partners well. For instance, my first placement was in Khujand, Tajikistan, in a region surrounded on three sides by the hostile country of Uzbekistan, and the authorities were always wary of Uzbek spies. My current placement of Azerbaijan is a country that considers itself at war and has suffered terrorist attacks in the past, so as the police see it, there’s a lot to be suspicious about. Be hyper-aware of these sorts of issues. And if you feel tempted to criticize the political system there and/or extol the virtues of your own, stop and reconsider. It’s not why Kiva sent you there, and in the worst-case scenario, you might get both yourself and your conversational partners in genuine trouble. (Chris Paci, KF16 Tajikistan & Azerbaijan)

39. Never carry your credit card unless you are making a withdrawal. I prefer to carry large sums of money in my shoe rather than bringing my card out of hiding. (Jim Burke, KF16 Nicaragua)

40. Make and carry a photocopy of your passport. Carrying it around for real is a real bad idea, and having no record makes it hard to check into hostels/hotels. (Jim Burke, KF16 Nicaragua)

41. If you’re in a country with a heavy police presence, be careful what you photograph! Sometimes the most unexpected subjects – bridges, factories, metro stations, gorgeous government buildings – can be deemed security risks, and photographing them can attract negative attention from the police. (Chris Paci, KF16 Tajikistan & Azerbaijan)

Hugs and Handshakes

42. If you are an unmarried woman and living in a country where the locals aren’t used to seeing women wandering around alone and are often inquisitive of where you are going and why you aren’t married, bring and wear a fake wedding band. Also, make sure you figure out which hand is the hand that the locals wear it on! It’ll do wonders for (sometimes) avoiding uncomfortable conversations if you don’t want to have them. (Laurie Young, KF16 Indonesia)

43. Outside of San Salvador the people are pretty conservative. Men won’t shake a woman’s hand unless she extends her hand first. (Andrea Ramirez, KF16 Costa Rica & El Salvador)

44. In Paraguay, you greet and say goodbye to friends with not one, but two kisses – one on each cheek. (Alba Castillo, KF16 Paraguay)

45. In Turkey, among friends the greeting is a kiss on both checks (Kim Strathearn, KF16 Turkey)

Living and Looking Local:

Do: try to dance like the locals. Don't: fool yourself into thinking you're really, really good at it.

46. Although Turkey is fairly well connected, don’t rely on google. (Kim Strathearn, KF16 Turkey)

47. If you want to look like a local, wear jeans. Even if it’s 100 degrees outside. Tourists are associated with shorts. (Andrea Ramirez, KF16 Costa Rica & El Salvador)

48. One of the best ways to learn about a culture is to people watch– what are they doing and not doing in public. (Kim Strathearn, KF16 Turkey)

49. When in Rome…always pour some out for Pachamama. If you find yourself sitting around a big bucket of Chicha with nothing but a full gourd in hand, don’t be stingy, pour some out for Mother Earth, she’s thirsty too. (Mariela Cedeno, KF16 Bolivia)

50. Walk, walk everywhere, all the time. Yes you need to be at the office at 8 a.m. and you get up at 7:40, but maybe during your two hour lunch break and on weekends you can make sure to take the time to pace yourself. Remember to absorb everything around you: the sounds, the streets, the people, the street vendors, the conversations, the protests, the smells. For some reason, those were also my most peaceful times. (Mariela Cedeno, KF16 Bolivia)

51. Getting haircuts is cheap and always a great experience. Getting a straight razor shave sounds bad ass but is just bad and hurts a lot. (Jim Burke, KF16 Nicaragua)

52. Get into the rhythm of your location. If the locals take time to smell the roses or take a tea break –you should too. This is a great video (in English) on what a glass of tea means (Kim Strathearn, KF16 Turkey)

53. Sit in a park/plaza by yourself…someone will sit next to you. (Eric Rindal, KF15 Sierra Leone, KF16 Bolivia)

54. Be a guest (and a friend) – allow people in your host country to take you around…you don’t always have to pretend like you’re not a tourist…let’s be real, this is not your native country (if it is, still go on some trips!). (Eric Rindal, KF15 Sierra Leone, KF16 Bolivia)

55. Get off the internet! Your friends at home really don’t need to hear from you every day (although your mother/father probably does). It’s way cooler to say, “I was out of internet range…” (Eric Rindal, KF15 Sierra Leone, KF16 Bolivia)

Mind your manners:

56. You are going to be thoroughly stared at. Get used to it, as it is not rude here. (Kim Strathearn, KF16 Turkey)

57. Don’t be offended when asked how much money you make, how much is your apartment, are you married, have kids, no to either question is followed by why not? Good way to deflect is nicely reply why do you want to know? Turks are very curious and have a different sense of what is private information. (Kim Strathearn, KF16 Turkey)

58. Turkish people are very hospitable and gracious to guests–learn what it means to be a good guest. (Kim Strathearn, KF16 Turkey)

59. Most people in the former Soviet republics love to be photographed! Once you do, though, they might surprise you by asking when they can expect to receive a printed copy of their photo. There are plenty of little shops here where you can get a picture printed, so always take down the person’s address and try to bring or mail them a copy. With an inexpensive little gesture like this, you can absolutely make someone’s day. (Chris Paci, KF16 Tajikistan & Azerbaijan)

60. Follow through on promises (or obligations)– go to dinner with coworker’s families, take a day trip with coworkers or friends, etc. (Eric Rindal, KF15 Sierra Leone, KF16 Bolivia)

Kate Bennett (KF16) is thrilled to be working in Ica, Peru with Kiva Field Partner Caja Rural Señor de Luren. For more on Kate’s experiences with Caja Rural Señor de Luren or life in Peru or Ecuador, follow her work here.

In the first part of this blog series, I shared pictures of Malian borrowers. But even on my way to those borrowers, I was not able to put down my camera. Here are my favorite shots from the road.

If you are as mesmerized by Mali as I was, also check out Mali in Color (Part 1): Impressions of Kiva Borrowers.

Family on a donkey cart

Three women

Moving truck

Group of children

Bicycle transport

Women and children

Mother and daughter

Fire wood

Children

Young girls

Morning commute

Overloaded bus

Three women with babies

Man on bicycle

Woman with fruit

~~~

Kathrin Gerner took a little detour from her fellowship with Amasezerano Community Banking (ACB) and Vision Finance Company (VFC) in Kigali, Rwanda, to conduct a borrower verification for Soro Yiriwaso in Mali. Support borrowers in Mali by lending to one of Soro Yiriwaso’s clients.

Previous posts by Kathrin Gerner:
Paving the Way to the Future (Part 1): Bad Roads, Transportation Costs and Microfinance in Togo
Paving the Way to the Future (Part 2): Road Construction and Its Effects on Microfinance in Togo
Isabukuru Nziza, ACB! A Kiva Field Partner in Rwanda Celebrates Its Fifth Anniversary
Say a Little Prayer for the Portfolio: 5 Questions about Christian Microfinance in Rwanda

When I boarded a plane to Mali last week, I was not exactly enthusiastic. One reason may have been the unpleasant 2 AM take-off from Kigali, another the recent Al-Qaida kidnappings in the North, which meant that all relevant tourist spots were off limits. And six months into my career as a Kiva fellow, a routine task such as a borrower visit was not enough to get me excited.

I was in for a surprise.

The borrowers of Kiva’s Malian field partner Soro Yiriwaso and their incredible hospitality, made my trip unforgettable. I came to check borrowers’ identities and look at loan papers. I left with a mountain of presents, a full stomach and a serious caffeine high after the countless cups of sweat tea offered to me everywhere I went.

But I was most excited about finally being in a country where people love to be photographed. Below are my favorite shots from my meetings with Malian borrowers.

If you are as mesmerized by Mali as I was, also check out Mali in Color (Part 2): Impressions from the Road.

Dikel and one of the fish she purchased with her loan

Benkan Group with the smoked and fresh fish they bought to sell

Benkadi Group in front of one of the women's homes

Yaya in his pharmacy where he offers traditional Chinese medicine and treatments

Mariam, the president of Benkadi Association, a group of rice and peanut farmers

Some other members of Benkadi Association, a group of rice and peanut farmers

Assitan bought a sack of rice to use in her restaurant

Yeh, a member of Benkola Association, another group of rice and peanut farmers

Guests are welcomed with song and dance

The members of Benkola Association, a group of rice and peanut farmers, posing in the village square

Rokia and the other members of Tiessiri Group, who bought jewelry to sell

~~~

Kathrin Gerner took a little detour from her fellowship with Amasezerano Community Banking (ACB) and Vision Finance Company (VFC) in Kigali, Rwanda, to conduct a borrower verification for Soro Yiriwaso in Mali. Support borrowers in Mali by lending to one of Soro Yiriwaso’s clients.

Previous posts by Kathrin Gerner:
Paving the Way to the Future (Part 1): Bad Roads, Transportation Costs and Microfinance in Togo
Paving the Way to the Future (Part 2): Road Construction and Its Effects on Microfinance in Togo
Isabukuru Nziza, ACB! A Kiva Field Partner in Rwanda Celebrates Its Fifth Anniversary
Say a Little Prayer for the Portfolio: 5 Questions about Christian Microfinance in Rwanda

Fishing at the coast of Sierra Leone (by Tejal Desai)

December has long been the month of annual awards, looking back and frantic searches for presents. The Kiva fellows blog is no exception to this rule: Share the fellows’ memories by taking a photographic journey through Sierra Leone and watching a video about a typical day of a fellow conducting loan officer trainings. Learn about some incredible women in Costa Rica, who received a Woman Entrepreneur Award from Kiva’s field partner, Fundación Mujer. And to avoid the frantic searches this year, consider surprising your loved ones with the gift that keeps on giving, the Kiva Gift Card.

A Typical Day in the Life of a Kiva Fellow: Loan Officer Training (Video Blog Post)
Country: Ecuador / Fellow: Emmanuel von Arx (KF16)
Emmanuel’s video blog shows that a typical day of a Kiva fellow does not always involve meeting borrowers.

Swit Salone: A Journey in Photos
Country: Sierra Leone / Fellow: Tejal Desai (KF16)
Tejal takes her camera along to document her journey through the beautiful country of Sierra Leone and its capital city, Freetown.

Women of the Year
Country: Costa Rica / Fellow: Andrea Ramirez (KF16)
Andrea shares her experience as a member of the jury for Fundación Mujer’s 8th annual Woman Entrepreneur Awards.

The Do-Gooder’s 2011 Guide to Responsible Giving: Kiva Cards
Country: Peru / Fellow: Kate Bennett (KF16)
Kate makes a personal pitch for the Kiva Gift Card, a gift that keeps on giving.

~
Updates from the past month:
Autonomy, Sierra Leone and the 2011 Kiva Love Tour
Adapting for Borrowers by Borrowers, Microinsurance +SKFL
New Products in Microfinance, Over-Indebtedness + Transparency
Earthquakes, 5Ks + The Pain of Sickness and Loss
Expanding the Reach of Microfinance, Downsizing Development + Why We Kiva
~

Plus more pictures from the past week:

Sierra Leone (Tejal Desai)

Costa Rica (by Andrea Ramirez)

Kiva Gift Card (by Kate Bennett)

Sierra Leone boasts lush, tumultuous landscapes, postcard-worthy beaches, delectable home cooking, inspiring stories, and some of the friendliest people you’ll meet. I was fortunate to have been placed in Freetown, Sierra Leone for my Kiva Fellowship at BRAC Sierra Leone. Follow my journey through this beautiful country and its capital city, Freetown. Hope you enjoy the photos!

Fish is one of Sierra Leone's abundant resources, with main catches including snapper, lobster, barracuda, and mackerel.

Sierra Leone’s beaches are a piece of paradise outside of the city

Arriving from the office just in time to catch the sun set on the West African coast: priceless.

Fresh fruit on the side of the road sold by a friendly Sierra Leonean man named Joe. So swit.

The Kiva coordinator, Mbalu, and I at the BRAC Sierra Leone country office in Freetown.

A hometown hero and Kiva borrower, Ethleem opened a stationary and school supply shop after recognizing how deprived local schools were in basic supplies. She is one of the main suppliers of textbooks and stationary to schools in downtown Freetown!

Spicy! Mbalu gave me a lesson in Sierra Leonean cooking.

Mbalu taught me how to prepare a traditional Sierra Leonean meal: fried stew with fish. Delicious!

On a boat departing from Banana Island to Freetown.

With the BRAC Tengebeh Town SEP staff: the folks who help make it happen in the field!

A BRAC credit officer, Reginald, took me to watch a local football match at the Freetown National Stadium scrimmage field: Team Krootown Obama vs. Red Devils.

Tejal Desai has served as a Kiva Fellow in Freetown, Sierra Leone with BRAC Sierra Leone from August to December 2011. Want to support microfinance in Sierra Leone? Joining BRAC Sierra Leone’s lending team joining BRAC Sierra Leone’s lending team and lend to a BRAC borrower today!

Read more Kiva Fellows blog posts by Tejal here.

The president of one of Kiva Field Partner Micro Start's solidarity groups. By Allison Moomey, KF16, Burkina Faso

This week’s updates come at a time of change for Fellows around the world. As the holidays near, Fellows prepare to phase out of their current placements, move on to the next ones, and tie up loose ends with their Kiva Field Partners. But this doesn’t interfere with Fellows’ primary mission: to ensure that Kiva’s work and the work of our Field Partners is, too, sparking change as the new year approaches.

Malaria Dreams: The True Kiva Fellowship Experience
By Tejal Desai, KF16, Sierra Leone

Looking back on her Fellowship, Tejals offers a unique glimpse into Kiva Fellow’s experience. She brings us along for the journey of finding out her placement (and then finding out it was changed), arriving in Sierra Leone, and hitting the inevitable speed bumps, pot holes, and the trough of disillusionment.

The Ladder of Autonomy
By Allison Moomey, KF16, Burkina Faso
Allison discusses Micro Start’s solidary groups and their vision for each group member: ultimately, to achieve a level of autonomy from microcredit itself.

Kiva Love Tour: Honduras 2011
By Sandra Pina, KF16, Honduras
For the Kiva groupies out there, Sandra takes us backstage her “Kiva Love Tour,” her recent whirlwind tour of 26 ODEF Financiera branch offices. Sure, maybe she wasn’t actually doing any musical performances, but she was definitely spreading Kiva love.

*      *       *

Adapting for Borrowers by Borrowers, Microinsurance + SKFL
Why Do We Lend, What’s a Kiva Fellowship + How does Microfinance Support Green & Agricultural Development?
Expanding the Reach of Microfinance, Downsizing Development + Why We Kiva
Kiva-style Microfinance, Reggaeton + a Journey though the Commercial Jungle
Loan Use, Agriculture Loans + Stuff Kiva Fellows Like

*      *       *

Plus more on-the-ground photos from the past week:

Swit Salone, it's been real. By Tejal Desai, KF16, Sierra Leone

By Sandra Pina, KF16, Honduras

A loan officer with one of Micro Start's solidarity groups, one rung up on the ladder of autonomy. By Allison Moomey, KF16, Burkina Faso

Beautiful Freetown sunset

As my Kiva fellowship winds down, I reflect on the memorable journey I’ve been privileged to experience through the Kiva Fellows Program as a member of its 16^th class. Through personal revelations and humbling lessons in adaptation, microfinance work, cultural differences (and a unique incidence of malaria), I’ve grown attached to beautiful Sierra Leone. Throughout the fellowship, I’ve found my journey paralleling that of a character in a humorous novel, Malaria Dreams by Stuart Stevens, in which a man travels through the Central African Republic in one mission in mind: to find a friend’s Land Rover and drive it back to Europe — only to find that his 3-month journey has a lot more in store for him than he anticipated, and nothing goes exactly as planned. My fellowship similarly followed suit with its own surprises, bumps in the road, and memorable moments.

This journey started with a phone call. Much like the experience of my KF 16 friend, DJ Forza, this call arrived out of the blue, and was received with some degree of hesitation. As I was daydreaming about my placement relocation (first placement was planned for the Philippines) to the South Pacific gem, Samoa, two weeks before Kiva Fellows training, Kiva Fellows Program staff informed me that there was an urgent matter we needed to discuss.

A ball of tension immediately struck me in the gut. As the conversation progressed, I learned that, due to unforeseen circumstances, I wouldn’t be going to Samoa… and I wouldn’t be going to the Philippines. I would be going somewhere for this fellowship, but the location was yet to be determined, and I would find out in a few days.

Three days later, KFP informed me that Sierra Leone was the most available placement, and that I would have to make the decision and shift gears as soon as possible. I think my response at that moment was, “Wow. Ok. Can I think about it?”

My family started to wonder what I had gotten myself into, what I signed up for. There was a lot of head shaking and concerned looks shared amongst my family and friends, and a lot of pity faces that conveyed, “Oh jeez, Tejal, you’re nuts. What ARE you doing?” I recalled images and scenes from the movie “Blood Diamond,” reports in the news about corruption, documentaries about civil war, and tried to push them far out of my mind. Kiva Fellow alum assured me to relax and do more research, and shared their overwhelmingly-positive experiences in “Swit Salone.” Shortly after, at KF16 training, I met over 20 amazing individuals who signed up for the same experience of spending almost 4 months in unfamiliar surroundings, and realized that if I’m crazy, I have many crazy friends right by my side to help me through this exhilarating journey. And so it began…

A warm welcome

With the BRAC SEP staff in Kenema.

Salone undoubtedly welcomed me with open arms, with its people being some of the warmest and most accommodating I’ve ever met, and its weather being comparable to a rainforest sauna. On my first day at BRAC, I was pleasantly shocked at how quickly the  staff took me under their wing, instructing me how to take public transit around the city, taking me to beaches and local football matches, and planning weekend outings.

Additionally, the Kiva Coordinator, Mbalu, and I found ourselves inseparable: we stuck side by side on field visits, trainings, even for fun weekend cooking sessions. And when I wasn’t at the office, I found new friends in local business owners, school kids in the neighborhood, and families that religiously welcomed guests with a friendly, “How de body?” (Krio for “How is your health?”).

The rainy and humid weather forecast made for exciting adventures navigating through Freetown on the back of motorbikes and cramming into poda-podas to jet across town to complete Kiva deliverables with Mbalu. There really is nothing quite like taking a motorbike ride through a torrential storm in Freetown!

Speed bumps, pot holes, and the trough of disillusionment

Like every journey, mine hit quite a few bumps and pot holes along the way. In Kiva Fellows training, we were told to expect a trough as we progressed through our Fellowship workplan. My “fall” into the trough occurred slightly early, around week two, while I was starting a large project that would help take BRAC Sierra Leone from Pilot to Active status in their partnership with Kiva. A few of the catalysts that induced my “falling” into the trough were a combination of understanding cultural differences, adjusting to a new work environment, and finding a groove to personal productivity.

At first, I tried absorb and observe as much as possible in the new work environment: work culture, policies, traditions, best practices, hierarchy, field work, microfinance products and programs – without passing judgment on what could be “better” or more efficient. But little did I know that my KF-powered brain was already in go-mode, looking for ways to improve things and not actually taking the time to understand how systems worked, and more importantly, why they were the way they were. This resulted in major frustration, miscommunication, misunderstandings, and many hand-on-forehead moments.

Those six weeks in the trough, although very difficult, proved to be some of the most eye-opening of the entire fellowship, and brought to light a very humbling and important lesson: modifying my definition of success and using different benchmarks to measure productivity will in turn change the way I viewed efficiency. As soon as I realized this (thanks to the help of family and friends who gave the golden advice!), everything seemed more manageable, clear, and sensible.

A third struggle I encountered, and unfortunately have never quite overcome, was understanding the weight of poverty and economic conditions in Sierra Leone, and realizing as a Kiva Fellow, as a foreigner, and as an individual, there were few things I could change on my own and had control over, but many more that I could not change. This has by far been the hardest reality to digest. And although microfinance work does help hundreds of thousands of people in Sierra Leone, the reality is that microfinance alone won’t solve all problems, it won’t heal an entire nation.

Swit Salone, it's been real.

Reflection

Despite these challenges, the growth, knowledge and friendships I’ve gained in Sierra Leone have made this fellowship a memorable and life-altering experience I won’t forget. The wonderful people I’ve met, the warmth of the people, the food, the natural beauty, and of course the work I’ve done at BRAC Sierra Leone will always remain fondly with me.

I think back to that memorable day in August when Kiva called me to introduce me to this opportunity, and have never been more thankful to have given the chance to find a home in Sierra Leone during my fellowship. I’m very sad to leave, but know that soon enough, I will find myself back in the embrace of Swit Salone.

Tejal Desai is a Kiva Fellow finishing her fellowship in Freetown, Sierra Leone. She has been working at BRAC Sierra Leone, and has been grateful for the hospitality and support the BRAC Staff has shown her during her time in Freetown. She encourages you to support sustainability in Sierra Leone by joining BRAC Sierra Leone’s lending team and loaning to a BRAC borrower.

Read Tejal’s additional Kiva Fellows blog posts here.

A Warm Welcome! Manana offers the best from her garden. By DJ Forza, Georgia

This week’s Fellows Blog focuses on adaptability: Adapting microinsurance to poor households in Indonesia, an MFI in Turkey adapts to the needs of women entrepreneurs, a multifaceted borrower in Nepal adapts to market pressures, and a Kiva Fellow adapts to changing expectations. In a continuation of The Stuff Kiva Fellows Like series we hear how different fellows have adapted to their lives abroad by ‘crashing parties’ and ‘going to the Bazaar’. We hear about how practitioners are adapting finance and microinsurance products to their borrowers. Equally nimble we hear from a few borrowers and how they have expertly adapted to market pressures and changing circumstance. Microfinance is a dynamic industry by nature and like DJ or Binu or Maya Enterprise for Micro Finance, ensuring success means staying flexible and welcoming new opportunities born out of challenges.

Microinsurance in Indonesia: Current Challenges and Innovations.
Country: Indonesia / Fellow: Laurie Young, KF16

Laurie takes us to a microinsurance conference and explains the challenges of getting appropriate insurance products to poor households in Indonesia.

If It Is Tuesday It Must Be Izmit+ more of my favorite borrowers+ “buyurun agabeyi”…
Country: Turkey/ Fellow: Kim Strathearn, KF16

Kim explains the history of Maya Enterprise for Micro Finance and gives a profile on the women micro-entrepreneurs served by the organization in Turkey.

Multi-faceted Borrowers Part 2
Country: Nepal / Fellow: Abhinab Basnyat, KF16

Abhinab continues his series on multifaceted borrowers by introducing Binu, a Kiva borrower, and explaining her many business ideas.

Second Chances (Part 1)
Country: Georgia/ Fellow: DJ Forza, KF16

In this heartfelt and honest post DJ explains how she adapted her expectations and settled into her Kiva Fellowship in Georgia.

Stuff Kiva Fellows Like #10-17
Country: Nicaragua / Fellow: Jim Burke, KF16

The ‘Stuff Kiva Fellows Like’ series continues. Fellows discuss the stuff they like and how they have adapted to living abroad and working in microfinance.

* * *

Questions from the Field: Why Do We Lend, What’s a Kiva Fellowship + How does Microfinance Support Green& Agricultural Development?
Update from the Field: New Products in Microfinance, Over-Indebtedness+ Transparency
Update from the Field: Earthquakes, 5Ks+ The Pain of Sickness and Loss
Update from the Field: Expanding the Reach of Microfinance, Downsizing Development+ Why We Kiva

* * *

Plus more on-the-ground photos from the past week:

Vice Minister of Finance giving the Keynote Speech on the second day of the event. By Laurie Young, Indonesia

Binu infront of her canteen. By Abhinab Basnyat, Nepal

Spectacular Sighnaghi! By DJ Forza, Georgia

Jill in a Poofy Pink 'Filipiniana'. By Jill Hall, Philippines

We are Kiva Fellows. This is the stuff we like. Here is an insider (often critical, or satirical but always true!) view of what it means to be a Kiva Fellow and promote access to financial services around the world. From party crashing to bazaars to street food, these are the things we like and thrive on. Check out Stuff Kiva Fellows Like (SKFL) #1-9!

#10 Street Food

Mariela Cedeño, KF16, Cochabamba, Bolivia

I’m not really sure why, but there is something inherently appealing to a Kiva Fellow’s being about food that is prepared, cooked, and sold on the streets. Perhaps it’s the dubiously hygienic food preparation, the alternative cooking apparatus used to bring food to fire, or it’s ready availability and our relative laziness…wait, no, it’s actually our need to literally ‘taste’ the local culture. In our fits of street food deliriousness we are open and ready to taste all that our surroundings have to offer, however, we often find that the local fare may not quietly find a home in our stomachs. Thankfully, before leaving to our local assignments, our travel nurses reminded us that in times of intestinal woe, Cipro and other like antibiotics will be our best friend. They sometimes are, but because we are well versed in the dangers of overusing antibiotics and are haunted by nightmares of creating giant super bacteria that start kidnapping local women and children, we use them sparingly and wisely.

Nevertheless, a Kiva Fellow is not threatened by the possibility of exposure to parasites, e. coli, or anything of it’s kind, and with unready stomachs we take in all the savory goodness that the streets have to offer. Often we eat things without knowing what they are, and when told what they are, we shrug our shoulders and press on. We seek cultural immersion through food; we are bold culinary pioneers.

#11 Party Crashing

Sandra Pina, KF16, Honduras

Kiva Fellows (KFs) LOVE a good party. Food, music, drinks: what’s not to love? KFs are repeat offenders for obvious reasons. They do not consider their behavior to be ill-mannered or inconsiderate: crashing is merely a survival tactic. It can get very lonely in the field and KFs can’t sit and wait for invites to flood their Facebook wall because well, odds are they won’t. So, KFs crash. Weddings, birthdays, retirement celebrations, grocery store inaugurations, TGIF fun, holiday festivities are all fair game. Sure, the KF may not know Marta from accounting or her husband to be, or Adrian the birthday boy, but KFs firmly believe that nothing brings people together like cake. In the pursuit of brotherly love (read: food, music, drinks), KFs show up and wow coworkers and strangers alike with their witty banter and impressive dance moves (moonwalk anyone?). As (invited) party-goers head for home, they are usually heard saying something along the lines of, “That KF is really something.”

#12 Personal Space

Crowded ferry ride

Lauren Barra, KF 16, Kenya/Tanzania

The world’s population has just surpassed 7 billion people. Whether we’re boarding a matatu, dala-dala, or ferry, Kiva Fellows are painfully reminded of this fact each time we set out into the field. Public transportation in the developing world usually involves hoards of people, pushing and shoving, all desperately trying to secure a coveted seat. Hesitate, and you’ll end up standing for most of the bumpy ride. Although buses have legal limits, more people pile in at each stop because “there’s always room for one more.” You’re packed in like sardines and it suddenly occurs to you. What wouldn’t you give for a few more inches of personal space?

#13 Podcasts

Kate Bennett, KF16, Peru

Stuff You Should Know Team howstuffworks.com

You’re living in middle-of-nowhere Perú, or Sierra Leone, or Cambodia. You’re feeling isolated, whether due to your language skills, culture shock, or sheer exhaustion. You’re covered in mosquito bites, your toilet doesn’t work, and you can’t remember the taste of strawberries or what it feels like to not be in 100°F weather. The only English you’ve spoken or heard in three months are your own inane mutterings over PA2‘s most recent tech glitch.

But then, you flip on your iPod. All your troubles slide away as the smooth, calming voice of Ira Glass envelops you. It almost doesn’t matter what Ira is going on about, it just matters that he’s there for you. And it’s not just Ira: it’s the Stuff You Should Know team, the hilarious duo at RadioLab, and maybe a little bit of Prarie Home Companion for posterity’s sake. Meet your new best friends. You’re learning, you’re growing, and you’re keeping yourself sane through the incredible technologies of podcasts. And now that there’s a Stuff You Should Know lending team? Well that’s just gravy.

#14 Being ‘Xtreme’

Jim Burke, KF16, Nicaragua

Volcano Boarding Leon, Nicaragua

Kiva Fellows are adventurous, risk taking individuals. They are Xtreme. The natural habitat for the Kiva Fellow is the extreme cold (La Paz), the extreme heat, or the extremely uncomfortable. KFs thrive in new environments, welcome an adventurous BV visit, and like being pushed to the limit physically and mentally. KFs love extreme sports like whitewater rafting in Uganda, volcano boarding, walking around Guayaquil, or canoeing flooded city streets.

Kiva Fellows are extreme but what they like even more is to remind people how extreme they are. They do this by wearing outdoorsy clothes, or accenting their business casual office wardrobe with hardcore Keen gear. KFs also establish their field cred by downplaying how extreme they are. They especially like pretending really shocking things are no big deal. Be it a GIGANTIC earthquake, election violence or sky diving, recounting these harrowing tales always ends in; ‘Oh, but it was really just no big deal…’

#15 “Going Native”

Jill Hall, KF16, Philippines

Jill in a Poofy Pink 'Filipiniana'

A Kiva Fellow is lucky if they get an email from their MFI prior to leaving for the field detailing a list of appropriate clothing items to bring. Some fellows get hints like, “at your placement, they are a bit more formal so take a suit” or “you will be visiting agricultural borrowers in remote areas so take durable clothes”. It is not often that you get a “bring a gown because every company event you attend everyone there will be dressed to the nines” so you can imagine my shock when I attended my first work event in the Philippines and everyone is in beautiful gowns called “Filipinianas”.

Every Kiva Fellow knows there is that moment where they can decide to “go native” and we either do as the locals do or we don’t. As fellows we whole heartedly embrace the phrase, “When in Rome…”. With this in mind, I finally traveled to the labrynth of a market to find my own Filipiniana. Initially I had reservations but when I walked into the room in my new bubble gum pink gown, I saw a room full of smiling faces. For this type of reaction, any Kiva fellow would “go native”!

#16 Eating Stuff With Weird Names

Kim Strathearn, KF16, Turkey

Karnıyarık, otherwise known as 'Split Belly'

Kiva Fellows like to eat. But not the stuff that made Rob sick, twice! We like good food with weird names such as the Imam fainted, Sultan’s Delight, split belly, angle hair, lady’s thighs, lady’s belly, attractive lady’s lips, priest’s stew, Ali the gentlemen, cigarette pastry, Albanian liver and Lion’s milk (yes too much of it does make you roar!) More than eating strange foods, Kiva Fellows like to take charge and  cook local specialties themselves! Nothing says immersion and cultural understanding more than whipping up a batch of ‘vizier’s fingers’!

The fellow in Turkey is probably the luckiest because of the amazing cuisine available. Turkey has a rich culinary history dating back to the Ottoman Empire. Don’t forget that the Sultan controlled the spice trade crossing his territories so only the best ingredients ended up on his table. Legend says that imperial cooks were rigorously tested for hire solely based on their method of cooking rice, a simple dish. KFs are foodies and have mastered the subtle differences between rice, beans and other simple dishes

#17 Going to the Bazaar

Chris Paci, KF16, Tajikistan/Azerbaijan

The Bazaar

As Kiva Fellows, we try to do all we can to support the microentrepreneurs that Kiva has sent us abroad to help. The flip side of that – natural, if you think about it – is that we’re required to feel guilty whenever we shop at an enterprise that is not sufficiently micro. It ruins our field cred. You see, we have been sent out into the world as MICROFINANCE MISSIONARIES!: volunteers who spread the Kiva gospel while leading ascetic lives of self-deprivation that bring us closer to the impoverished societies in which we live. Upscale clothing stores and glitzy shopping malls just don’t square with that self-image.

Luckily, there’s a loophole, and it’s called the bazaar. Vast, labyrinthine, and bursting with local color, the bazaar is packed with every good a Kiva Fellow could need, all sold by hundreds of individual entrepreneurs who are micro enough to earn our attention. The bazaar makes us feel more assimilated just for having stepped inside. Even the word “bazaar” is resonant with exoticism and magic, which means, of course, that it should be dropped into casual conversation as often as possible. “Why yes, I buy all of my shashlyk from the bazaar.” “I found the most amazing Engrish T-shirt at the bazaar yesterday.” “I might be a little late; I need to pick up some apricots from the bazaar after work.” Any one of the above lines is guaranteed to make us at least 20% cooler in the eyes of our developed-world peers.

And of course, as every Kiva Fellow knows, successfully haggling with a microentrepreneur is the number-one way to gain field cred!

Read Stuff Kiva Fellows Like (SKFL) #1-9 here!>>>

Be a part of loans that change lives. Apply to be a Kiva Fellow!

Jim Burke is a Kiva Fellow working with AFODENIC in Nicaragua. When not diligently working on his Kiva deliverables he kills time reading the blog SEAWL. To learn more about Kiva borrowers around the world please visit Kiva.org.

There’s a certain amount of introspective review that happens near the end of a Kiva Fellow’s time in the field, as previous Fellows have written about self-discoveries in spirituality, competitiveness, and self-acceptance. We’ve all gained a better worldview, certainly.  Witnessing extreme poverty, adjusting to life in a developing nation and participating in the small technological miracle of connecting Kiva Lenders and Borrowers can lead to some genuine soul-searching.  I’ve learned an important life lesson and, at the risk of public humiliation; but ultimately hoping to a) cement this lesson to my own heart and b) encourage future Fellows, I’ll admit that due to my own ignorance and fear, I nearly missed out on one of the greatest experiences of my life.

As soon as I received the news that I had been accepted into the Kiva Fellows program, I threw myself into learning the complexities of microfinance; taking a course provided by the United Nations and reading everything about Africa I could get my hands on, especially works by and about Nelson Mandela. I indulged in elaborate daydreams about waking up to warm African sunrises, traveling through spectacular landscapes and helping women in Africa connect with Kiva Lenders; enabling them to sell more cows, purchase a sewing machine to launch a school uniforms business and find a self-determined way out of poverty, thus making a better life for their children. Even though I knew that the kind of wild animals found on safari would be nowhere Richards Bay, South Africa, my dreams had songs from THE LION KING soundtrack playing in the background. Yep, you could say my expectations were high.

Reality hit during a Skype call with my Kiva Fellows Program coordinator.

KFP: Hey DJ, I know we talked about your placement in Africa, but we decided you are needed in Georgia.

Me: I don’t want to live in Atlanta.

KFP: Um, we’re talking about the former Soviet Republic of Georgia. You know, next to Russia and Azerbaijan?

Me: (fumbling for my atlas) Uh…oh…can I think about it?

KFP: Sure, but this is your only option. It is Tbilisi or nothing. Everything else has been taken*.

Me: (desperate) What about Liberia? South Sudan? Sierra Leone?

KFP: Sorry, not options at this time. Anyway, Sierra Leone was just filled.

Me: (whining to self) WHY couldn’t I have Sierra Leone???

*Note: the Kiva Fellows Program coordinator was professional and kind; my ears just did not want to hear it in that moment. At no time was I guaranteed a placement in Africa.

Devastated would be an overstatement, but I was severely disappointed. My beautiful Africa fantasies dissolved. Fear and uncertainty took over. Bad stereotypes of the former Soviet Union filled my head. Never mind that it was early July, I felt as though I had been exiled to Siberia, picturing endless cold and depressing days; trudging through blizzards, surviving on bread and vodka, suffering as though I was a tragic character in a Tolstoy novel. Snapping out of those dark (Hello! Overly dramatic much? ) thoughts, feeling deeply ashamed at my reaction (the Golden Rule of volunteering: be flexible!) and embarrassed by my serious geographical ignorance, I anxiously surfed the web for any information about Georgia. I clicked over to the Kiva website and found several borrower profiles from Georgia. One jumped out: Nanuli, who wanted to borrow money for tomato seedlings and to pay for her son’s wedding. I noticed her loan was just $25 from being fully funded and took that as a sign.  Two clicks later, I felt immensely better and quickly committed to my assignment. Thankfully, the Kiva Fellows Program team was gracious in the wake of my cringe-worthy moment. Really, is there a worse way to react than out of selfishness and ignorance? My cheeks get hot thinking about it to this day.

The irony, of course, is that living and working in Georgia has exceeded every expectation I had about volunteering, living abroad and my ability to contribute to Kiva’s mission to alleviate poverty. The Kiva Fellows Program wisely and carefully matches Kiva Fellows with each host MFI, based on the experience and skills each Kiva Fellow can bring to the table, with the critical needs of Kiva and the MFI itself. In my case, Credo has been working to move from pilot to partner, and I had a set of deliverables that challenged me and was incredibly rewarding to work though. I’m proud to share they are well on their way to full partnership and, pending final approval, a significant increase in available funding. Oh yes, I worked with Kiva Borrowers to help them connect with Kiva Lenders; enabling them to sell more cows, launch businesses and find a self-determined way out of poverty- just as I had envisioned. There have been warm sunrises and spectacular landscapes- a bit different, but no less amazing than I planned. Perhaps most significantly, I’ve begun to understand urban poverty and have taken a more compassionate view about what poverty does and does not look like.

What does poverty look like?

Spectacular Sighnaghi!

Daily, I’m humbled by the famous hospitality of my Georgian friends, neighbors, colleagues and especially Kiva Borrowers, who live by the belief that guests in their homeland are a “Gift from God”.  Georgians will literally give anything and everything they have if they thought it might make a guest happy. I’ve learned to refrain from complimenting things, yet am still showered with bags of delicious fruit, homemade tomato sauce, and invitations to supra, weddings and cultural events. Each kindness takes me back to my initial reaction, and I’m humbly reminded that the universe has a bigger plan for me than I ever had for myself.

Manana offers the best from her garden

Homemade tomato sauce and spicy ketchup

Gifts of grapes, figs and hazelnuts

Tamar sends me home with a perfect pumpkin (and a huge smile!)

In part 2, we’ll take a look at an innovative new program Credo is launching to help bring Kiva loans, financial services and client protection education to the most vulnerable of borrowers: previously rejected loan applicants.

Thank goodness for second chances.

Previous posts by this author:

The Velvet Season

Trust But Verify

Pride and Poverty: A Photo Essay of Kiva Borrowers in Georgia

DJ Forza is a Kiva Fellow working in Tbilisi, Georgia and is truly happy her good friend Tejal Desai landed in Sierra Leone, but she still hopes to visit one day. She also thinks Atlanta, Georgia is just great. Mostly, she is thankful for the second chance that lead her to Georgia and the team at Credo. To learn more, please visit Credo’s partner page, and join the Georgia lending team.

A borrower who took out microfinance loans to purchase a water tank and greenhouse. By Claire Markham, in Nairobi, Kenya

Last week’s stories from the field elucidate readers on a number of Kiva-questions, and pose a few questions of their own: what is a Wandering Kiva Fellow, and is a Kiva Fellowship right for you? How can microloans support a green or agriculturally sustainable economy? In a country bouncing back from a civil war, how can international aid and microfinance help (or hurt)? What social programs are our partners supporting across the world, and how can microfinance support HIV-postive microborrowers? And finally, a question we put to you lenders: How do You Lend?

To Kiva Fellow or not to Kiva Fellow. Eso e’ la pregunta.
By Robert Gradoville, KF16, Peru
Should I become a Kiva Fellow? How does it stack up against the Peace Corps, overseas research grants, overseas workshops on topics in development, Fulbright Fellowships, Rotary Scholarships, and service-learning trips? This post compares and contrasts “what it’s like” to be a Kiva Fellow to the myriad other programs out there.

Village Banks BY Farmers FOR Farmers: A Microcredit Labor of Love
By Julie Kerr, KF16, Costa Rica
In Costa Rica, a country with a strong commitment to ecological conservation, Julie introduces us to yet another innovation ensuring agriculture’s sustainability. Not only are FUDECOSUR village banks run by village farmers, as detailed in Bank-O-Mat Under a Hot Tin Roof, but they are also trained and managed by loan officers who are farmers themselves. To learn more about FUDECOSUR village banks, keep reading!

Multi-faceted Borrowers Part 1
By Abhinab Basnyat, KF16, Nepal
Abhinab introduces us to Nepalese Kiva borrowers Narayan Devi and Binu- their stories may seem like those of textbook microcredit borrowers, but their stories jump off of the page nonetheless.

The Wandering Fellow
By Eric Rindal, KF16, Bolivia
Eric wakes up under new sheets on a small bed in a small room amid warm and verdant Santa Cruz, Bolivia. After 30 frantic seconds he pieces together where he is, which brings us to the topic at hand: the varying freedoms and the challenges of that rare breed of Kiva Fellows: the Wandering Fellow.

The Double-Edged Sword: Sierra Leone’s Battle Against Poverty
By Tejal Desai, KF16, Sierra Leone
Aid: What does it mean for a country recovering from a devastating decade-long civil war that killed over 50,000 of its people? And what does it mean for microfinance organizations that aim to loosen the leash from dependency and push for sustainability? Tejal brings on on an okada ride through Sierra Leone’s capital, Freetown, and discusses the multifaceted role that international aid plays in the fight against poverty.

How do You Lend?
By Kate Bennett, KF16, Peru
The most challenging part of trainings for we Kiva Fellows is not instructing loan officers to obtain signed consent forms from borrowers, or explaining how money moves from lender, to Kiva, to Caja Rural, to the client. The most difficult explanation is often how and why. Kate takes on this challenges, and then poses this question to you- the lenders.

Visiting an HIV-Clinic in Guayaquil (Part II)
By Emmanuel M. von Arx, KF16, Ecuador
Emmanuel again heads out of Banco D-MIRO’s headquarters on Guayaquil’s Isla Trinitaria to the HIV-clinic at Hospital Abel Gilbert. He meets inspiring workers on the HIV-front, learns about organizations dedicated to serving this community in need and raising HIV-awareness, and discusses the future of HIV-positive potential microborrowers in Ecuador.

Going Green? Overcoming Cultural Barriers to Promote Green Loans (Part 2)
By Claire Markham, KF16, Kenya
In  part two of this series, Claire attempts to answer the question of how an MFI can break through the obstacles identified in Part 1 to implement a successful green and water loan program. She may not have all the answers, but she gives us some insight into valuable strategies being used worldwide.

*      *       *

Updates from the past month:
New Products in Microfinance, Over-Indebtedness + Transparency
Starting Capital, Development Levels + Adventurous Borrower Visits
Going Pilot to Active, Meeting Borrowers + Technology and Social Performance
Costs of Kiva, Donkey Shares + the Law of Diminishing Marginal Returns
Loan Sharks, Snapshots + “the Country with a Smile”

*      *       *

Plus more pictures from the past week:

Kiva Borrower Naryan Devi. By Abhinab Basnyat, KF 16, Nepal

By Tejal Desai, KF16, Sierra Leone

By Eric Rindal, KF16, Bolivia

By Julie Kerr. Thumbs-up and smiles from a proud coffee farmer in La Sierra, Platanares, Costa Rica

“Microfinance is not aid. This is the common misconception.” The words echoed through my head during a morning meeting at BRAC Sierra Leone’s country office with microfinance representatives from various organizations and banks in Sierra Leone, all present to discuss the state of local microfinance. I learned that an overwhelming majority of these microfinance providers shared a common challenge: scaling microfinance and infusing economic sustainability into an environment dominated by aid and financial dependency.

Aid: What does it mean for a country recovering from a devastating decade-long civil war that killed over 50,000 of its people? And what does it mean for microfinance organizations that aim to loosen the leash from dependency and push for sustainability? After taking an okada ride through Sierra Leone’s capital, Freetown, one may find the presence of international aid ubiquitous, and acting as a double-edged sword in the fight against poverty.

Two Edges, One Battle

A family planning health campaign sponsored by UNFPA, United Nations Population Fund.

The first edge of the sword has undeniably achieved great feats for Sierra Leone. Since 2001, international aid has helped Sierra Leone take tremendous strides in healthcare, democracy, human rights, and the fight against HIV/AIDS. Donors and organizations such as UNICEF have started to offer pregnant women and mothers with children under the age of five free healthcare, drastically reducing child and maternal mortality. Additionally, private and public funding is being utilized to build and improve roads and public health facilities throughout Sierra Leone.

The other edge of the sword, however, has created a barrier for sustainable growth and capacity-building. Microfinance representatives in Sierra Leone shared that they have often faced difficulty convincing unbanked communities who lack access to the financial mainstream of the self-sustainability and longer-term return on invest and growth associated with microfinance. Due to the infiltration of aid for many socioeconomic services and assistance programs, microfinance loans, according to local reps, are commonly perceived as aid funds, and on occasion, are not repaid by clients. As a result, the organizations providing these loans have to write off more loans as default or delinquent, take on more debt, and struggle to keep their own services afloat.

Aid in Sierra Leone: helpful or harmful for development?

Although aid has created positive changes in health and infrastructure in Sierra Leone, and will continue to help the country make strides as it recovers from the impact of war, it will not win this battle on poverty alone. It will clearly require more than a band-aid solution to foster growth, raise employment, improve health, reduce debt, and create opportunities for economic growth. Hopefully over time, microfinance will become one of  many prominent factors helping shift an economy away from dependency, and towards a more self-sustaining Sierra Leone.

Tejal Desai is a Kiva Fellow serving in Freetown, Sierra Leone. She is working at BRAC Sierra Leone, and encourages you to support entrepreneurship, prosperity, and sustainability in Sierra Leone by joining BRAC Sierra Leone’s lending team and loaning to a BRAC borrower.  To learn more about the impact of BRAC Sierra Leone’s small enterprise loan, click here.

Meru, Kenya (by Claire Markham)

This week on the Kiva fellows blog, start out by learning about three new microfinance products – microinsurance in Indonesia, higher education loans in the Philippines and green and water loans in Kenya. Continue on to Nepal to admire the handiwork of artisan borrowers. Make your way to Ecuador to find out more about the risk of indebtedness. Share the fellows’ personal experiences with the recent elections in Nicaragua and rush hour traffic in Uganda. Finish by taking a critical look at transparency in microfinance and Kiva’s responsibility with regards to transparency.

Microinsurance in Indonesia: What are the Options for Kiva Borrowers?
Country: Indonesia / Fellow: Laurie Young (KF16)
Laurie takes a look at Vision Fund Indonesia’s current microinsurance products.

Artisan Borrowers of BPW-Patan, Nepal
Country: Nepal / Fellow: Abhinab Basnyat (KF16)
Abhinab visits Kiva borrowers in Nepal and admires their handicraft.

Necessary “No”
Country: Ecuador / Fellow: Marcus Berkowitz (KF16)
Marcus explains why Cooperativa San Jose must say “no” to some borrowers who risk over-indebtedness.

Team Kiva: World Police?
Country: Tanzania / Fellow: Lauren Barra (KF16)
Lauren explores whether Kiva has a responsibility to promote microfinance transparency and what Kiva must do to meet this responsibility.

Red and Black to Pink, Peace and Love: The Reign of Daniel
Country: Nicaragua / Fellow: Jim Burke (KF16)
Jim shines some light on the results of the recent elections in Nicaragua.

Study Now, Pay Now: Funding Higher Education in the Philippines
Country: Philippines / Fellow: Jill Hall (KF16)
Jill answers questions about higher education loan products in the Philippines.

The Kampala Commute
Country: Uganda / Fellow: Andrew Huelsenbeck (KF16)
Andrew shares his experience getting around the Ugandan capital during rush hour.

Going Green? Overcoming Cultural Barriers to Promote Green Loans (Part 2)
Country: Kenya / Fellow: Claire Markham (KF16)
Claire attempts to answer the question of how an MFI can break through cultural barriers to implement a successful green and water loan program.

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Updates from the past month:
Earthquakes, 5Ks + The Pain of Sickness and Loss
Expanding the Reach of Microfinance, Downsizing Development + Why We Kiva
Green Loans, Dark Alleys + On-the-Ground Footage of it All
Kiva-style Microfinance, Reggaeton + a Journey though the Commercial Jungle
Loan Use, Agriculture Loans + Stuff Kiva Fellows Like
~

Plus more pictures from the past week:

Indonesia (by Laurie Young)

Nepal (by Abhinab Basnyat)

Ecuador (by Marcus Berkowitz)

Tanzania (by Lauren Barra)

Nicaragua (by Jim Burke)

Philippines (by Jill Hall)

Kenya (by Claire Markham)

In Kenya, the act of going green appears to be far less of a priority than it is in more developed green economies. In the first part of this blog series, I discussed the cultural barriers that exist in Kenya. In this second part, I attempt to answer the question of how an MFI can break through the obstacles identified in Part 1 to implement a successful green and water loan program. I certainly don’t have all of the answers, but I will describe certain strategies that can be used.

Frame of Reference: Me vs. we, now vs. later

First and foremost, it is important to frame the benefits in a way people will be able to personalize. In countries that have already developed a green economy, many people are willing to pay extra to use an environmentally friendly product or service for a variety of reasons, including:

1) It feels good to do our part by reducing our environmental footprint;

2) There is an awareness of the consequences of ignoring our impact on the environment; and

3) It might actually save money in the long run (as is the case with solar panels, eco-friendly light bulbs, and other products).

In Kenya, the key to convincing borrowers to go green is to demonstrate how a solar or water loan can result in tangible benefits to the borrower in the very near term, whether through direct financial savings, access to energy or water that wasn’t available previously, or improved sanitary conditions. Focusing on the benefits that lie in the distant future is not as likely to have as strong of an impact.

Serving clients that don’t have access to electricity or water

An obvious solution is to focus on clients in rural areas who do not have access to the electricity grid or a clean water source. These clients would be able to derive huge benefits in the form of increased convenience, agricultural business innovations, and ensuring health and safety for one’s family.

Increased convenience

Customers who do not have access to the electricity or clean water often must go to quite inconvenient measures to obtain alternatives, whether this means traveling far to collect water from the river, taking time to gather firewood, among many others. They would be able to save considerable time and energy from having access to a loan to purchase solar panels to power their home or a water tank to collect potable rainwater. This time can be used in more productive ways such as working at their business to generate additional revenue.

Agricultural business innovations

In rural areas, there are many customers whose primary business is agricultural. In periods of drought, using water tanks or irrigation equipment would be hugely beneficial to ensure that the crops can continue to grow and provide income for the farmers. Additionally, there are innovations such as biogas facilities that turn cow manure into renewable energy for the farmers’ homes and fertilizer for the farmers’ crops, in addition to being great for the environment.

A farmer and his biogas facility

Ensuring health and safety for one’s family

Many low-income individuals in rural areas use kerosene or firewood to light and heat their house. Kerosene emits toxic fumes, and the burning of both kerosene and firewood increase the risk of setting fire to their homes. These people may also often obtain water from potentially contaminated sources. By reducing the risk of toxic fumes, possible fire damage, or water contamination through the use of a green or water loan, the borrower can improve the safety and health of both themselves and their family.

In one of the villages I visited, the clients had previously walked 2 km to the nearest river to obtain water. This water is not clean and these clients are putting themselves and their families at risk of disease and illnesses.  Unfortunately, they do not have many other options. One customer used to purchase water from someone in their community but it was very expensive.

The potential difficulty in serving clients that don’t have access to electricity or water is affordability – clients who really need the loans might not be able to afford them. Some clients aren’t incurring any savings through their reduced use in energy because they never had electricity to begin with; they have previously been collecting firewood from around their house which has no cost, or using paraffin lanterns which have a very minimal cost. The key for many MFIs, from a risk mitigation stand point, is targeting clients who already have an established business through which the borrower could use the income to pay to service the loan.

In arid areas such as near Meru, clean water is hard to come by

Educating clients that already have access to electricity and water

Most potential clients in urban centres already have access to the electricity grid and a clean water source. These clients are more difficult to convince to go green through the use of a solar or water loan, but this is by no means impossible. Through education on personal expenditure savings, potential business opportunities, improved health and safety, and increased reliability, urban clients can be persuaded.

Personal Expenditure Savings

To power their homes, clients will pay for electricity, kerosene, gas, or paraffin lanterns. Each of these sources has costs associated with them and clients would be able to save money by switching to a renewable energy source.

Even if clean water is more accessible in urban regions, it comes at a cost. Customers would derive savings from a conveniently located water tank that has no incremental cost to consume the water it provides.

Potential Business Opportunities

In addition to powering one’s home or providing clean water for one’s family, business opportunities exist from solar panels or water tanks. With a solar panel, clients can earn fees through allowing others to charge their cell phones with the energy derived from the solar panel. With a water tank, clients can sell clean water at a reasonable price to those in their community who would otherwise need to pay large fees at stores for access to clean water.

The clean water can also be used to enhance the customer’s existing business. I met with one client who uses his water tank for his restaurant business so that he can still wash dishes and clean the restaurant during periods of drought.

Improved health and safety

Even though clients in urban areas likely have access to electricity or clean water, it is not free and many low-income individuals resort to the same measures as clients who do not have access at all. These clients might elect to use kerosene, firewood and water from potentially unclean sources to save money.  This results in the same risks as discussed above.

Increased Reliability

Throughout Kenya, power outages are exceedingly common and often take place several times a week, sometimes for hours at a time. In such circumstances, clients in urban centers can benefit from the use of solar panels as a backup alternative. Once clients already have the solar panel in their home as an alternative to electricity, they may be more inclined to use it even in times where there are no power outages because there is no additional cost to its use once the upfront investment has already been made.

A happy group of borrowers posing with one of the many water tanks the group members have purchased through loans

Educating loan officers

In order for clients to decide to use these loan products, they need to first be aware of the benefits that exist. A select few may hear about green or water loans from others in their community, but a much more effective way to disseminate this information is through the SMEP representatives that they meet on a weekly or monthly basis: loan officers. However, many loan officers are unaware of the extensive benefits that exist. In order for a successful green and water loan program to be implemented, all loan officers need to receive sufficient training so that they are well informed and able to explain to both urban and rural customers all of the benefits.

Hope for the future

Though there are a wide range of products offered by suppliers, most of the clients I interviewed had purchased water tanks for $160-190 and solar panels for $25-100. For low-income individuals, this is certainly a sizeable investment, but the message I consistently received from these customers was that they found the investment to be incredibly worthwhile for many of the reasons discussed above.  Many of these customers had even taken out 2^nd or 3^rd loans to purchase additional green products because they were so happy with the results.

There is huge potential for green and water microfinance loans in Kenya; there is an undeniable need for the products from borrowers, and a strong desire to sell the products by microfinance institutions. With a continual focus on marketing these products, training and education for both loan officers and clients, I am confident that the MFIs in Kenya will be able to successfully capture this potential demand and pave the way for a greener Kenya.

A borrower who took out microfinance loans to purchase a water tank and greenhouse

Claire Markham is part of KF16, serving with SMEP Deposit Taking Microfinance Limited (SMEP) in Nairobi, Kenya. To lend to SMEP’s borrowers, become part of the SMEP lending team.

Many Kiva Fellows have some pretty crazy commutes. This is a post about what it’s like getting around town in Kampala, Uganda.

When it comes to rush hour chaos, New York City- even with its road-raging bridge-and-tunnelers- has nothing on Kampala. From about seven to nine thirty in the morning and five to eight in the evening, the city center’s tight, dusty roads transform into parking lots packed with big rigs carting petrol or bricks or other cargo; coach buses coming from or going to Kenya or Burundi or various other East African countries; all kinds of family cars; and shoddy white Chinese-made passenger vans called mutatus.

Matatus (also known as taxis) seem to be the preferred mode of transportation for the Kampala commuter for a few reasons: they are bountiful, they have routes to all corners of the city, they are cheap, and they will make pickups almost anywhere along the roadside. The second-hand vans have a lot of room—there are 3 rows of seats in the back, the front two of which have extra seats that fold down to take full advantage of the space. Usually, the seat by the sliding door in the back is occupied by a conductor, who yells out to potential passengers and collects fares. The maximum number of passengers is legally 14, but I’ve seen up to 16 or so commuters packed into a van. Many of my colleagues at BRAC use taxis to get to and from work. I use them mostly for field visits and for traveling to other cities near Kampala.

Zipping through all of the taxis and other larger vehicles are motorbikes called boda bodas, the second most popular way to commute. Drivers usually hang out together and pick up passengers from “stages” that are close to where the drivers live. The boda bodas have long, leather seats behind the drivers that can usually fit one, two (or if you’re Ugandan, three) commuters or some cargo. Boda drivers are fast, fearless and often furiously zigzag along the paths of least resistance, regardless of how precarious. This kind of driving makes commuting on a boda boda quick, but very very dangerous.

Everyone here has a boda story, and quite a few Kampalans can substantiate their tales with scars that span halfway up their arms or legs. A German friend that worked at a local hospital stopped riding boda bodas after discovering how many patients were admitted because of one bad move by a boda boda man. Despite all of this, I still ride bodas every day to get to work and to get around town. I just make sure to wear a helmet.

Besides the hand signals of a few traffic police and the loosely-adhered-to notion that cars should stay to the left, any maneuvers to hasten the commute are fair game. These include but are not limited to driving on the shoulder, driving in the wrong lane, cutting people off, “love tapping,” and good ol’ trailblazing. There are also no emissions requirements. It took me a while, but I’ve finally gotten used to the dust and the thick, purple clouds of petrol smoke that often hang above the roadways.

Kampala’s dusty roads struggle to support all this hectic traffic. They have begun to erode from constant use and frequent heavy rain, and they are now covered with potholes. The problem is so bad that some Kampalans have begun to jokingly refer to their city as “Kampothole.”

Last year, a research group actually attempted to count all the holes in the road, and discovered that the city center alone has almost 2,500 of them. Some of them are like the potholes we are used to—small enough that cars can pass over relatively unscathed; many others, however, occupy half the road and require drivers to swerve onto the shoulder or into oncoming traffic so as to avoid ruining their rides’ undercarriages.

Efforts to fix Kampala’s streets are led by the Kampala Capital City Authority. A few months back, the organization requested 345 billion Ugandan Shillings from the national government for repairing the potholes and other damage sustained by Kampala’s 900-kilometer road network. They were only granted 45 billion though, which is still a step up from the 15 billion they were working with last year.

Andrew Huelsenbeck is a Kiva Fellow currently working in Kampala with BRAC Uganda. To learn more about BRAC, please visit their Kiva Partner Page. If you are interested in helping to empower one or more of BRAC’s many wonderful entrepreneurs, you can join the Friends of BRAC Uganda lending team or check out new BRAC Uganda loans on Kiva.org. Happy lending!

Last month I had the privilege of attending the African Microfinance Pricing Transparency Leadership Forum in Nairobi. Hosted by MicroFinance Transparency, the conference gathered policymakers and regulators to exchange ideas about client protection and pricing disclosure in microfinance. Attendees included representatives from over 20 nations in East, West and Southern Africa.

African Microfinance Pricing Transparency Leadership Forum, courtesy of MFT's Joseph Kiirya

What does “transparency” entail? Transparency represents an organization’s commitment to communicate price from the client’s perspective. It is a means to an end – we cannot build a healthy microfinance industry without transparency. As we’ve seen with SKS in India, the industry risks immediate backlash if consumers and investors no longer trust microfinance institutions. Clever marketing and hidden interest rates or fees make it difficult for clients to make educated choices. Without accurate data, regulators are essentially navigating in the dark, forced to make decisions without context. Transparency is the strongest tool available for improving these market imperfections.

Microfinance is rapidly expanding and MFIs often face pressures to dilute their social mission in pursuit of competitiveness.  The danger lies in that it’s easier to hide prices than face tough choices about efficiency. Over the course of three days, conference participants debated big questions that will determine the future of the Africa’s microfinance industry. For example:

• Who is responsible for promoting transparency? Government regulators? Donors and investors?
• When, if ever, is it appropriate to cap profits and interest rates?
• How do we prevent over-indebtedness?

As the group wrestled with these questions, we walked through examples of microfinance rates and regulations around the world. For example, Kenya has no transparency regulation and as a result there’s tremendous variability in their pricing (see graph below). Kenya also has two separate regulatory agencies for deposit-taking MFIs –  the Central Bank of Kenya and SACCO Societies Regulatory Authority (SASRA). This system presents challenges with aligning policies and enforcements, unfortunately resulting in deceitful institutions slipping through the cracks.

Kenya Microfinance Interest Rata Data, provided by Microfinance Transparency

The Philippines’ Truth in Lending Act requires the conspicuous display of fees, interest rates, and the total cost of credit at branch offices. In Bosnia, all MFIs must use the same repayment schedule template – providing borrowers with a simple apples-to-apples comparison between microfinance institutions and products. Cambodia made the flat interest rate, a deceptively simple calculation, illegal in 2001. According to Cambodian Microfinance Association, effective interest rates have declined from 10% to 3–3.5% per month, due in part to the change in calculation method from flat rate to declining balance. The results are also evident in the interest rate curve seen below, with prices moving predictably and consistently in accordance with loan size.

Cambodia Microfinance Interest Rata Data, provided by Microfinance Transparency

Implementing similar client protection principles in Africa sparked a heated debate among participants. Is it better for governments to define one formula for calculating interest rates? Or publish reports on actual prices and let market forces decide? Although their views varied greatly, these policymakers and consumer advocates could all agree on one point. Regulators should not be fully responsible for promoting transparency – donors and investors must also play an active role.

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With $255MM disbursed to over 600,000 borrowers, Kiva is one of the largest microfinance donors in the world. So what should Kiva’s role be in promoting a healthy, transparent microfinance industry? Two questions arise:

1. Does Kiva have a responsibility to promote microfinance transparency?
2. What must Kiva do to meet this responsibility?

I believe the answer to the first question is a definitive “yes.” Kiva already acknowledges some measure of responsibility for accurate reporting from Field Partners. Client Waivers must be signed by each Kiva borrower and presented during the annual Borrower Verification. As I discussed in an earlier post, Kiva assigns “transparency” as a key criterion in their evaluation of Field Partner risk ratings. Partners which don’t follow Kiva’s guidelines face rating downgrades and in the case of fraud, are completely cut off from funds.

Interviewing borrowers in Dar es Salaam, Tanzania

The second question is much trickier to answer. Obviously fraudulent and corrupt institutions should be banned from Kiva’s platform. But what about institutions that charge higher than average interest rates? Or MFIs that are undergoing a noticeable mission drift? Kiva is now taking steps to identify these problem areas at its Field Partners. In addition to a Social Performance Audit, certain Kiva Fellows will perform a pilot survey of Client Protection Principles (CPP). Developed by the SMART Campaign, CPP are a set of standards that clients should expect to receive when doing business with a microfinance institution. They ensure that clients’ needs are being addressed throughout the loan process and that an MFI is “doing no harm.”

While this effort is commendable the real question is – what will Kiva do with this information? In theory, the CPP will “eventually enhance the Borrower Verification with additional elements to better understand the relationship between the MFI and their client and to highlight areas of improvement in their commitment to client protection.” But is “highlighting areas of improvement” really enough? Kiva’s reputation and financial standing puts it in a unique position to influence microfinance transparency and client protection. When Kiva talks, MFIs, investors and policy-makers listen. Shouldn’t Kiva use this position to make swift, decisive changes at its Field Partners in order to protect microfinance borrowers?

I’m not advocating that Kiva should be a watchdog agency for nearly 150 MFIs in 60 countries. But I do believe the title of “game-changer” compels Kiva to a higher standard of responsibility. This means clearly defined standards for client protection and cost of credit, consistent evaluation of Field Partners, and real consequences for organizations that fall short of these expectations. The potential for decreased fundraising limits, rating downgrades or even a “CPP Certified” label would all incentivize Field Partners to implement CPP standards as swiftly as possible.

With great power comes great responsibility and in this case, Kiva is more than capable of rising to the occasion.

Lauren Barra is serving as a Kiva Fellow with Yehu Microfinance Trust in Mombasa, Kenya and Tujijenge Tanzania in Dar es Salaam.

 Before this month, I had never ran an organized race. But when I heard of Fundación Paraguaya’s (FP) 5K to celebrate their new initiative in Tanzania, I was in! Yes, I said Tanzania – over 6,000 miles away from FP’s headquarters in Asunción. I will go into more detail about this great venture in a bit. But first, back to the 5K.

The race took place at FP’s financially self-sufficient and award-winning San Francisco Agricultural School, a.k.a. Cerrito, for the Low Chaco town it is located in.

Cerrito's store is strategically located along the side of the highway.

After a 2 hour bus ride, the Cerrito campus is just a short (1k or .6 mile) walk away.

The night before the race, two friends from the office and I stayed in the hotel located on Cerrito’s campus. After a combination of bus-riding and a little walking, we arrived at our destination. And while our room was getting set-up we toured the campus, talked to some students, saw a few farm animals, and admired well-tended herb and vegetable gardens. Since it was Sunday, we were only able to peek into the facilities where students process milk, yogurt, a variety of cheeses, and the ever-present dulce de leche.

Cerrito is committed to 100% organic products for the benefit of our health and of the environment.

A beautiful Chaco sunset.

Cerrito is a co-ed agricultural boarding school for students between the ages of 15-21 who come from poor farming families. Its curriculum integrates the usual high school subjects with the running of small-scale, on-campus agricultural businesses. These businesses also generate enough income to cover all of the school’s operating costs. This combination of academic and practical instruction helps students develop technical and entrepreneurial skills that will greatly increase the chances of a successful and stable financial future for themselves and their families. It can’t be overlooked that even the hotel serves as a type of ‘classroom’ where students can learn inter-personal and customer service skills, as well as catering and rural hotel management.

Cerrito students also sell their products in Asunción's weekly farmer's market.

The morning of the race was clear and sunny and charged with lots of positive energy. It was nice to spend time with employees from many different branches and with their families in such a relaxed atmosphere. We all picked up our respective t-shirt (yours truly was in the Leopardo group), stretched our limbs, and we were off!

Ready to go! Here with Kristen, Laura, Luis (KC), and Nancy (previous KC).

To begin with, the “SEGA Girls School” in Morogoro, which works with adolescent girls from marginalized groups, will replicate FP’s model used in the Mbaracayú School for Girls. In addition, the co-ed “Njombe Vocational Training Centre” in Njombe, which works with rural youth, will replicate the model used in the San Pedro Agricultural School. More schools will be selected in the coming months.

Fundación Paraguaya’s Tanzania office, located in Morogoro, about 120 miles west of Dar es Salaam, opened its doors October 4th. While FP will be operating out of Tanzania, it will also work with institutions in South Africa, Uganda, Kenya, Malawi and Rwanda.

This type of collaboration is not the norm as far as development aid is concerned. And it is an example of the South-South cooperation emerging throughout the developing world that challenges the “traditional” North-South donor-recipient relationship. What makes this collaboration even more unique is the absence of direct government involvement that would raise questions about ulterior motives and diplomatic interests. The questions of accountability and social performance measures, however, should always remain.

The longer I’m on the field, the more I realize that when it comes to poverty elimination (or even alleviation) and development there simply is no “silver bullet”. And granted, Paraguay and Tanzania have different histories and different cultures. But Fundación Paraguaya is implementing a well thought-out combination of tools that seem to be making a difference. Only time will tell the long-term impact of the financially self-sufficient agricultural school model and its mix of academic, technical, and entrepreneurial instruction. My hope, of course, is for this approach to have a lasting positive impact that benefits not only the participating students, but their families, communities, and countries for generations to come. Only time will tell.

Alba is a Kiva Fellow working with Fundación Paraguaya in Asunción.  To learn more about this great organization please visit Fundación Paraguaya’s partner page, or join their lending team. New loan profiles for the month of November are already up and fundraising! Check them out and lend to one, or two, or more of their dedicated borrowers.

Kiva Fellows in East Africa

This week, you have no fewer than 14 new articles to choose from on the Kiva fellows blog: Let the fellows take you along on borrower visits across the world. Learn how Kiva field partners expand the reach of microfinance in Rwanda, fill the microfinance donut hole in Sierra Leone and improve social performance in Uganda. Find out what poverty is like in urban Tajikistan and rural Burkina Faso. Get inspired by one of the creative ways to bring renewable energy to the developing world in the form of a soccer ball. And finally, watch a video of “Why We Kiva” to get a glimpse of why Kiva fellows jump at the opportunity to be thrown half way around the world to work with Kiva’s many local field partners.

Girlie’s Peanut Butter: Borrower Verification in the Philippines
Country: Philippines / Fellow: Jill Hall (KF16)
As Jill completes here borrower verifications, she meets the lady who makes peanut butter.

Going the Distance: Expanding the Reach of Microfinance in Rwanda
Country: Rwanda / Fellow: Whitney Webb (KF16)
Whitney takes a look at the creative ways Urwego Opportunity Bank uses to reach the far-flung areas of Rwanda.

The Donut Hole Conundrum + Mamoud’s Story
Country: Sierra Leone / Fellow: Tejal Desai (KF16)
Tejal learns about the small enterprise loan, a loan product that is targeted at people that are financially overqualified for microcredit but too poor to receive a bank loan.

In Sickness and in Health: An MFI’s commitment to its clients in times of need
Country: El Salvador / Fellow: Andrea Ramirez (KF16)
Andrea explains how Fundacion Campo came up with a plan to help residents in areas flooded by the recent rain falls in El Salvador.

Pride & Poverty: A Photo Essay of Kiva Borrowers in Georgia
Country: Georgia / Fellow: DJ Forza (KF16)
DJ shares impressions of her borrower visits in Georgia.

More Than a Simple Find/Replace Operation: Changing CREDIT to Kredit
Country: Cambodia / Fellow: Dave Weber (KF16)
Dave explores why CREDIT is undergoing a name and logo change.

Downsizing Development: How a Soccer Ball Could Change the World
Country: Kenya / Fellow: Lauren Barra (KF16)
Lauren comes across a soccer ball that might help bring renewable energy to the developing world.

Microfinance by Land or by Sea
Country: Peru / Fellow: Kate Bennett (KF16)
Kate spends a week at the beach, but instead of working on her tan, she visits borrowers with Kiva field partner Caja Rural Señor de Luren.

This Is Urban Poverty in Tajikistan
Country: Tajikistan / Fellow: Chris Paci (KF16)
Chris experiences first-hand what urban poverty is like in Tajikistan.

The Second Bottom Line and BRAC Uganda’s Gold
Country: Uganda / Fellow: Andrew Huelsenbeck (KF16)
Andrew takes a look at BRAC Uganda’s dedication to social performance.

Mysteries, Geoglyphs + too-good-to-be-true Kiva Borrowers
Country: Peru / Fellow: Kate Bennett (KF16)
Kate wonders if a full loan repayment on the first repayment date might be too good to be true.

La Réalité de L’Afrique
Country: Burkina Faso / Fellow: Alison Moomey (KF16)
Alison gets a wake-up call to the realities of life in rural Burkina Faso after spending a weekend in a village without electricity or running water.

Video Blog: “Why We Kiva” – Kiva Fellows Around the World
Country: Bolivia / Fellow: Mariela Cedeño (KF16)
Mariela gives you a glimpse of why Kiva fellows jump at the opportunity to be thrown half way around the world to work with Kiva’s many local field partners.

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Updates from the past month:
Green Loans, Dark Alleys + On-the-Ground Footage of it All
Kiva-style Microfinance, Reggaeton + a Journey though the Commercial Jungle
Loan Use, Agriculture Loans + Stuff Kiva Fellows Like
Starting Capital, Development Levels + Adventurous Borrower Visits
Going Pilot to Active, Meeting Borrowers + Technology and Social Performance
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Plus more pictures from the past week:

Philippines (by Jill Hall)

Rwanda (by Whitney Webb)

Sierra Leone (by Tejal Desai)

El Salvador (by Andrea Ramirez)

Georgia (by DJ Forza)

Kenya (by Lauren Barra)

Peru (by Kate Bennett)

Tajikistan (by Chris Paci)

Peru (by Kate Bennett)

Burkina Faso (by Allison Moomey)

Wondering why Kiva Fellows jump at the opportunity to be thrown half way around the world to work with Kiva’s many local Field Parnters? Well, this little video should give you a small glimpse of “Why We Kiva”.

Mariela Cedeño is part of Kiva Fellows 16th Class, serving with CIDRE in Cochabamba, Bolivia. Cows have become her new favorite thing on earth…Llamas are also moving up the list. Please support CIDRE‘s hard-working entrepreneurs by making a loan today and  join the Friends of CIDRE/Amigos de CIDRE lending team to stay involved!

I spent last weekend in a small village about 10km outside of Banfora (a small city about 6.5 hours from where I live in Ouagadougou) with some incredibly welcoming and generous Peace Corps volunteers.  As often as I get annoyed by bugs, heat, and unreliable internet, I live a pretty charmed Burkinabé life in Ouaga.  Staying in a village without electricity or running water was a wake-up call to the realities of life here.  I didn’t do any of the hard work like getting water or biking products to market that most residents do each day.  I lived like a pretty privileged guest.  But I was still exhausted after just 48 hours.  I can’t even begin to imagine what life would be like as a resident with only tôt (nutritionally empty starch) to eat, daily trips to the pump for water, and a dirt floor to sleep on every night.  Although not as rural, these same challenges are a daily reality for many of Micro Start’s borrowers.  The weekend was full of lessons, and recognizing my lack of hardcore-ness was only the beginning.

What made this village fascinating for me to see was the presence and failures of past aid.  An NGO had built a rice co-op for the residents- the buildings, organizational structure, etc- about 30 years ago.  According to past aid logic, one would think that 30 years later we would see significant progress.  Instead, we see these buildings going unused, the co-op structure falling apart, and the residents still living on less than $1 a day.  It’s a classic case of outsiders coming in and telling residents what they need instead of empowering the residents themselves.

Most understand now that this aid doesn’t work.  But the question remains… what does?  Is the key building infrastructure, education, economic development, culture, food aid, or political stability?  While nobody has a perfect solution, I have had so many opportunities to refine my thoughts on this while in Burkina.  After reading about the power of keeping girls in school, I thought that education alone would fix our development concerns.  After learning about social entrepreneurship, I thought economic development would do the trick.  Why is it that these things seem so promising yet in many cases inevitably fail to make sustainable progress?

Developing countries are not a vacuum.  They, just like countries in any stage of development, are complex machines with many moving parts.  We have to address these concerns comprehensively.  Education without economic progress leads to frustratingly high unemployment (see Burkina!).  Economic progress without equitable political policies leads to opportunity for a select few.  A push for education without cultural adaption leads to low literacy rates.

I realize this doesn’t provide some really easy one size fits all solution.  But that’s been the beauty of my fellowship.  I have the opportunity to observe.  Ask questions.  See failures.  See successes.  And learn.

But it’s not all doom and gloom.  I think we are learning.  I see more and more solutions that are comprehensive.  Seeing the connections between clients’ use of loan profits and children’s education is really inspiring.  I met with ten clients this past week and almost every one said that the profit made from their loan helps to pay their children’s school fees.  Microfinance, while not a panacea for all situations, is often a powerful tool to address development concerns on multiple fronts.  There are great things happening here in Burkina, and I’m sure the same can be said for many other great Kiva countries!

Allison Moomey is a Kiva Fellow (KF 16) working with Micro Start in Ouagadougou, Burkina Faso. To learn more, please visit Micro Start’s partner page, join the Friends of Micro Start/AFD lending team, and lend to Burkinabe borrowers.

by Andrew Huelsenbeck, K16 Kiva Fellow, BRAC Uganda

The Second Bottom Line

One thing that’s gotten very popular with microfinance institutions (MFIs) lately is measuring success based on what is called a double bottom line. For a long time, the only bottom line for many MFIs was financials, but industry experts began to realize that looking good on paper did not amount to having any real social impact. This is why some MFIs have begun to use a second bottom line – social performance – as an additional metric for success.

What is social performance exactly? It is how an MFI is translating its core mission into practice. The success of this can be gauged in basically two ways: (1) by examining the actual impact of services on clients and (2) by examining the systems an MFI is using to optimize its impact on clients.

Among MFIs, a very common means of measuring the social impact of services is the Grameen Foundation’s Progress out of Poverty Index (PPI). The way the PPI works is by measuring the poverty levels of groups and individuals based on certain country-specific criteria like access to water, medicine, shelter etc. By examining changes in the PPI over time, MFIs are able to better determine their clients’ needs, which programs are most effective, how quickly clients leave poverty, and what helps them to move out of poverty faster.

The other main way of assessing social performance focuses less on the actual impact of services and more on MFIs’ management of the systems that optimize impact. This kind of management is commonly called social performance management (SPM). The success of SPM is based on an MFI’s ability to do mainly three things: (1) set clear social objectives, (2) monitor the progress towards achieving those objectives, and (3) use the insights from monitoring to improve overall performance and impact.

One of the major organizations responsible for establishing assessments and best practice guidelines relating to how MFIs achieve these three things is called the Social Performance Task Force (SPTF). The SPTF was birthed in 2005 when the CGAP, the Argidius Foundation and the Ford Foundation brought together leaders from various social performance initiatives in the microfinance industry to come to a consensus on a common social performance framework and an action plan to implement it. The SPTF has worked very closely with CERISE (the creator of the social performance assessment tool Kiva uses for its partners), and has recently been doing a lot of work in Uganda.

BRAC Uganda’s Gold SPM Award

Many Ugandan MFIs are part of a larger organization called the Association of Microfinance Institutions of Uganda (AMFIU). In the past year or so, AMFIU has begun to seriously encourage social performance management among its constituents. With the guidance of the SPTF and with funding from the Ford Foundation, the organization has held training sessions, published instructional guides, and not too long ago, held its first ever Social Performance Management Awards here in Kampala.

The event was huge. All of the big players were there: PRIDE, Opportunity, Finance Trust, Habitat for Humanity, EMESCO and more. The Ugandan Commissioner of Microfinance and the president of AMFIU were also in attendance and helped to present the awards to the MFIs that have really excelled in SPM. Many bronzes and silvers were handed out, but BRAC Uganda, the main MFI I am working with, took home the only gold.

Mr. Ariful Islam, the (former) Country Representative of BRAC Uganda, displays BRAC's Gold SPM Award

BRAC Uganda is an incredible organization. In just six years, with the help of the MasterCard Foundation, Kiva, Unicef and other major partners, BRAC has become a microfinance titan in Uganda. It currently has over 1,800 employees working at 114 branches, has dispersed more than $71 million in loans, and has touched the lives of nearly 2 million of Uganda’s poor.

What’s more impressive, though, is BRAC’s dedication to the second bottom line. Its mission is clear and simple: to alleviate poverty by empowering the poor to bring about change in their own lives. BRAC has achieved this not only by bringing financial services to some of the remotest regions in Uganda, but also by starting and scaling up health, agriculture, education and adolescent empowerment programs.

Many systems at BRAC are set up to ensure that clients are actually benefiting from these programs. More than half of the time, program managers are out in the field interacting with clients; the 15-member Monitoring Department continually evaluates programs to prevent mismanagement and misappropriation of funds; and BRAC Uganda’s unique Research and Evaluation Unit regularly conducts studies on the relevance and effectiveness of BRAC’s operations.

The research unit at BRAC Uganda is also currently working with AMFIU and the Grameen Foundation to promote the use of the PPI among other major MFIs in Uganda. The poverty index (or scorecard) was originally developed by a lead BRAC International researcher using national household survey data in Uganda. The Grameen Foundation adopted the idea, and worked with BRAC to update the index using newer data from many different countries. Now, the two organizations are using the PPI to improve social performance in Uganda and all over the world.

Andrew Huelsenbeck is a Kiva Fellow currently working in Kampala with BRAC Uganda. To learn more about BRAC, please visit their Kiva Partner Page. If you are interested in helping to empower one or more of BRAC’s many wonderful entrepreneurs, you can join the Friends of BRAC Uganda lending team or check out new BRAC Uganda loans on Kiva.org. Happy lending!

What’s the biggest killer in Kenya? It’s not what you think. One disease is responsible for more deaths than HIV, malaria and measles COMBINED. Diarrhea. That’s right, a troubling inconvenience in the states, diarrhea is a deadly menace in Africa. While victims don’t die from diarrhea directly, the severe dehydration and electrolyte imbalances it causes can be lethal. The most effective way to combat this preventable loss of life is also the simplest – wash your hands.

Only 1 in 10 Kenyan children wash their hands before each meal. Educating children and parents about this easy precaution could potentially save hundreds, if not thousands of lives. A successful education campaign may accomplish more than the billions poured into AIDS research and other high-profile development aid at a fraction of the cost.

So why is traditional development aid still focused on large-scale, sweeping reforms? In Building Social Business, Nobel Prize winner Dr. Muhammad Yunus explains,

Most of us are very impatient by nature. We want to fix things quickly. It’s especially true with huge, global problems that have burdened humankind for centuries: poverty, disease, hunger, homelessness, oppression …But for practical reasons its sometimes better to reduce a problem to a manageable size rather than trying to fix it all at once. Giant plans designed to help millions of people often get out of control. Unless we prepare step-by-step, “thinking big” can be a recipe for disaster.

As several of my colleagues have outlined here, here and here the power of simplicity is particularly evident in microfinance. These borrowers’ success makes me wonder – how else can “thinking small” translate to big changes in international development?

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Playing soccer on the beaches of Mombasa

A few weeks ago I got my answer. My roommate Amy emailed with exciting news – “I got the internship!!” After weeks of cover letters, interviews, and language proficiency tests, Amy secured a marketing internship with sOccket, an innovative new social business focused on bringing renewable energy to the developing world. As one reporter noted,

Every great once in a while, you come across something that makes you slap your head and say, “That’s…just…brilliant.”

sOccket is a soccer ball that captures and stores energy during normal game play to be used to later charge batteries and LEDs in developing countries. Invented by four women from Harvard, sOccket attempts to address the compelling energy needs of 1.5 billion people living without electricity. Every 15 minutes of play with the ball generates enough power to light up an LED lamp for 3 hours. This simple concept is picking up speed and was recently highlighted by the Clinton Global Initiative.

Football club in Swahili village

Whether you’re traveling in Europe, South America, or Africa one theme is consistent – people are obsessed with soccer. In Mombasa, children play with soccer balls made from dozens of plastic grocery bags. You can’t walk along the beach without someone passing you a ball and inviting you to join their game. Even remote Swahili villages proudly boast their own “football clubs.” sOccket taps into this global enthusiasm and at the right price, it should easily find a large customer base.

But can this really work? Will sOccket actually create substantial changes in the developing world? In a New York Times interview sOccket co-founder Jessica Lin responds,

We’ve received some comments about how this ball isn’t going to solve the energy problems of the developing world. And, of course, we realize that. We are trying to make a bigger statement about energy needs. Even if our project just starts people thinking about different ways to bring energy access to places like Africa, that’s really important.

The importance of “thinking small” certainly isn’t a new concept, but it’s gaining momentum in the international development community. Kiva, sOccket, Grameen Bank…each of these organizations is playing a much larger role in redefining the world’s approach to development aid. Downsizing our efforts won’t change the world over night. But in time, its collective impact could be greater than we ever imagined.

Want to start making a difference today? Click here to make a loan!

Lauren Barra is serving as a Kiva Fellow with Yehu Microfinance Trust in Mombasa, Kenya and Tujijenge Tanzania in Dar es Salaam.

Mamoud, a BRAC Sierra Leone small enterprise loan borrower and the owner of a stationary shop in Freetown.

A different slice of the pyramid

BRAC’s microfinance program offers services that target both the bottom and mid-section of the pyramid, including the microloan and the small enterprise loan. As opposed to the microloan, which ranges from $100 to $300 and is provided to female first-time borrowers who need capital, the small enterprise program (SEP) provides male and female entrepreneurs with loans ranging from $700 to $3,000. These small business owners fall into the “donut” category of individuals who are overqualified for a microloan, but lack sufficient collateral to receive a bank loan. The main purpose of these 12-month small enterprise loans is to help entrepreneurs expand their small business, create employment opportunities, and provide new services. Additionally, microloan borrowers have the opportunity to graduate to an SEP loan once their businesses grow and needs change.

A few questions lingered in my mind upon first learning about this loan type: where do these business owners get capital to start their business? How had their business been performing before they took out ­­­­the SEP loan? And most importantly, is the loan creating a positive impact on their business and family’s standard of living?

Mamoud’s story

I was fortunate to meet a few of these SEP borrowers during my borrower verification, a type of Kiva-verification process that allows fellows to go into the field and cross-check loan details with the MFI’s and Kiva’s records. One of the enthusiastic borrowers I met was Mamoud, a 39 year-old single father with an 18 year-old daughter, and the sole owner and employee of a stationary store in downtown Freetown. His story answered many of my questions about the SEP loan, and inspired me to learn more about small enterprise loans and their impact on entrepreneurship in Sierra Leone.

The first few minutes of our meeting were interrupted due to his high volume of customers flooding into his store, which was exciting to see. He zipped between customers and ensured everyone had been helped – a sign of a dedicated businessman who puts his customers first  – before he sat down and shared his inspiring story.

Over a decade ago, Mamoud learned about the stationary business from friends, who showed him the ropes after he completed school, and allowed him to observe the high demand for office supplies and profitability of the stationary business. Mamoud then decided to start an enterprise on his own, so he took his knowledge, all of his savings (since he wasn’t eligible for a bank loan), and opened Mamoud K. Enterprises, right off the busiest street in downtown Freetown.

Mamoud has been in the stationary business for 10 years now, but recently realized that the income he was generating wasn’t sufficient to pay for his daughter’s education. Moreover, fluctuating costs of office supplies due to inflation were making it harder and harder for him to increase his inventory and accommodate turnover. Mamoud decided he would take a loan of 5,000,000 leones (about $1,150) from BRAC Sierra Leone to expand his range of stationary products and stock up on high-demand items. He took out an SEP loan in June 2011, and has since been able to purchase more pens, notebooks, ink cartridges, glue sticks, and printing paper (the biggest seller!).

Although Mamoud has only used his loan for 4 months now, and still cites inflation as a prevalent challenge, he has optimistically kept a clear and unwavering vision. Someday, he described, he wants his business growth to enable to export and import goods from neighboring countries, expand into a larger enterprise, and provide a strong educational foundation for his daughter’s future. A self-made businessman, dedicated father, and stationary expert who prioritizes his customers’ needs, Mamoud is certainly on that track.

BRAC SL offers small enterprise loans to male and female entrepreneurs who desire to expand their small business, starting at 3,000,000 leones (approx. $700).

Mamoud’s story opened my eyes to the impact of small business loans, and the growing need for such opportunities within the large community of Sierra Leonean entrepreneurs who struggle with similar challenges: high inflation, keeping up with growing costs that make it difficult to pay for education (or let alone, get by), and pushing business growth. These loans don’t just help entrepreneurs keep up with their inventory, business operations and utility costs, it fuels their dreams of growth and creating prosperity for their families and opportunities for their children. I encourage you to lend to small business owners like Mamoud, and help make dreams like his come true.

Tejal Desai is a Kiva Fellow working with BRAC Sierra Leone in Freetown, Sierra Leone. Please support entrepreneurship by joining BRAC Sierra Leone’s lending team and investing in a BRAC borrower today.

One of the biggest challenges of providing access to financial services to those living in poverty is the actual logistics of expanding the services into some of the most remote areas of the world. 92% of Rwandans live in rural areas. During my first field visit, I visited a small village near the border of Tanzania. After meeting several first time borrowers and hearing about their challenges and strong hopes for the future, we drove out onto the unpredictable mud roads.

Village soccer

There was no electricity anywhere in the village and I anticipated empty streets on the post sunset (pitch black) drive out. I was quite mistaken and as our truck’s headlights illuminated our path I saw village life in full swing with children playing, men riding bicycles, and women carrying giant bundles of bananas on their heads. The loan officer I was with said they had the roads memorized and he responded to my surprise with the question, “What are the rural areas like in the USA?” I honestly didn’t know how to respond, “Well, people would have electricity and satellite TV, but they might have to drive 20 minutes to get to a big supermarket…”

Rwandan Rice Paddies

A few more statistics:
56% of Rwandans live below the poverty line ($2 per day)
52% of the population is excluded from financial services
90% of Rwandans do not have electricity

These realities stand as giant road blocks to the microfinance institutions trying to include anyone and everyone who wants to make responsible financial decisions for themselves and their families. So how do you make it logistically possible for a person who lives 2 hours from the nearest bank branch (and has no form of transportation) to open a bank account or take out a small loan?  The microfinance bank, Urwego, that I have been working with has come up with some innovative ways to deal with these issues.

1. Branching Out: UOB (Urwego Opportunity Bank) currently has 8 full branches around Rwanda and 25 smaller credit offices. They have a presence in all of Rwanda’s 30 districts. These branches are strategically placed to allow access to the largest number of people.

Loan disbursement at a credit office in eastern Rwanda

2. The Traveling Loan Officers: In simplest terms, if the clients can’t come to you, go to them. Loan officers are based in branches around the country but may spend 4 days out of every week on the road, or better known as “in the field.” They will travel to some of the most remote areas in their region for initial visits, loan disbursement, repayment collection, and general follow-up.

A loan officer swamped with questions

3. The Bank Truck: NYC may have gourmet food trucks, but they’ve got nothing on Rwamagana, Rwanda, home base of UOB’s mobile branch. This truck is outfitted as an operating branch with a staff of 5. They are able to disburse loans, collect repayments, and accept deposits into savings accounts. The truck makes its way around the eastern province on a set schedule to visit the most inaccessible areas.

The mobile bank

4. The e-Wallet: Keeping up with technology, Urwego plans to significantly expand its outreach in Rwanda through the implementation of new strategies. This includes ATM’s, mobile money (loan disbursements and repayments through cell phones), and a platform allowing branch employees and loan officers to access the bank’s main database through a net book. This platform will significantly increase the number of clients these workers can handle at once since they can make updates directly from the field.

Kiva borrowers

I have been fortunate enough to visit several districts of Rwanda to meet with Kiva borrowers during my time here. I have heard the pride in their voices at receiving a first loan and I’ve seen their huge sense of gratitude for being given an opportunity. It was always difficult to get them to speak up about the challenges or ways things could be improved, but when we pushed hard enough they would say something along the lines of, “My friends in the next village would like a loan. Please allow them to do this.” I’m happy to say that Urwego is listening and is actively expanding the possibilities of financial services within Rwanda.

Whitney Webb is in the Kiva Fellows 16th Class, currently working at Urwego Opportunity Bank of Rwanda. Click here to join the Urwego Lending Team or here to browse profiles and make a loan of as little as $25 on kiva.org.

Want a fresh look at Kiva clients on-the-ground? This week fellows share stories and mixed-media that bring us directly into the cities, homes and pulperías of borrowers. From the marketplace in Bolivia, to the streets of Guayaquil, to the dumps of Kenya, we learn about the challenges of working in developing countries and the strategies loan officers and Fellows can use to mitigate them. Not to mention we can see the work of Kiva fellows and Kiva Field Partners in Cambodia, Honduras and Bolivia in living color. What’s even better than reading a post by a Kiva Fellow? Seeing what we see in the field for yourself!

Making Room for Charity: Gift Giving to the Poorest Clients at CREDIT
Country: Cambodia / Fellow: Dave Weber, KF16

Dave gives us a rare on-the-ground glimpse (and video!) of Kiva Field Partner CREDIT World Relief’s unique Vulnerable Services Unit (VSU) gifts program, which works to support CREDIT’s highest-needs clients with critical household and other items.

What’s Easier Than Getting Robbed in Guayaquil?
Country: Ecuador / Fellow: Emmanuel M. von Arx, KF16

Guayaquil, Ecuador is not a city known for safety. But though Emmanuel, Banco D-Miro loan officers, and even (and often) Kiva clients have been victims of crime in Guayaquil, Emmanuel reminds us that there are still those in the city trying to grow. So what’s easier than getting robbed in Guayaquil? Lending to a client in Guayaquil, and laying a foundation for a less dangerous and less vulnerable future.

Video Blog: ODEF’s First Kiva Borrower
Country: Honduras / Fellow: Sandra Pina, KF16

If you’re a new lender, you might not be familiar with the Kiva borrower profile posting process. But even if you’re an old lender, you’re definitely not familar with ODEF Financiera, S.A.’s borrower profile posting process. Sandra’s video blog brings us along as Kiva’s newest Honduran Field Partner posts its very first loan on Kiva.

Going Green? Overcoming Cultural Barriers to Promote Green Loans (Part 1)
Country: Kenya / Fellow: Claire Markham, KF16

Sustainable environmental management is not often high on the list of Kiva clients’ priorities. Nor is it much of a concern in many of the places around the world where Kiva works. But why? In Part 1 of her discussion of overcoming cultural barriers to promote green loans, Claire explains the obstacles standing in the way of green loans.

Loans Available Here ->
Country: Bolivia / Fellow: Mariela Cedeño, KF16

Microfinance institutions provide entrepreneurs with the tools to start their own micro-enterprises. The trick, however, is expanding access to those that most need it, and letting these clients know it’s available. Mariela describes the strategies that Kiva Field Partner CIDRE employs to reach out to its clients, and shares a video from on-the-ground outreach in the marketplace!

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Kiva-style Microfinance, Reggaeton + a Journey though the Commercial Jungle
Loan Use, Agriculture Loans + Stuff Kiva Fellows Like
Starting Capital, Development Levels + Adventurous Borrower Visits
Going Pilot to Active, Meeting Borrowers + Technology and Social Performance
Costs of Kiva, Donkey Shares + the Law of Diminishing Marginal Returns

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Plus more on-the-ground videos from the past week:

CREDIT Microfinance Institution VSU Program Gift Giving: Takeo Province, Cambodia from David Weber on Vimeo.

In the developed world, the recent increased attention to global warming and the importance of environmental preservation and restoration efforts is something that’s hard to ignore.  It’s because of this ongoing Environmental Revolution that the majority of the population is aware of the increasing need to pay attention to our footprint. Regardless of whether or not people actually do their part or even believe in global warming, most people have at least been educated of the potential consequences of neglecting the environment and the harm we are causing both in the present and for future generations.

In Kenya, I have found this is not necessarily the case in my experiences so far.  This realization becomes abundantly clear to me as I sit in traffic worse than anything I’ve encountered before and watch as passengers in my matatu nonchalantly throw their trash out the window, despite the stench of the burning garbage piles next to the road already permeating the vehicle. I am not saying this is true across the country for all Kenyans but am basing these observations solely on my experiences thus far from living in Nairobi and travels to several other urban and rural areas.

One of my tasks at SMEP is to help grow their green and water loan program. When I realized the cultural barriers to going green, I appreciated the enormous challenges that would lie ahead of me. When the borrowers that we work with so often have to worry about ensuring there is enough food on the table or money for school fees, adding the responsibility of being conscious of their environmental impact can be a hard notion to sell. How can an MFI break through these obstacles and implement a successful green and water loan program when so much of the population, including our borrowers, aren’t environmentally aware?

This two-part blog post will attempt to answer this question. In this first part, I identify what the barriers are. In the second part, I will elaborate on the strategies that can be used to overcome these obstacles.

Typical Nairobi traffic on my way to work

What are the barriers?

There are a wide variety of reasons that going green is a foreign concept in Kenya:  lack of environmental education, inadequate waste collection, shorter time frame of decisions, and the side effects on the well educated, higher income population.  This is by no means a comprehensive list, but rather what I have been able to observe in my experiences in Kenya thus far.

When asked about whether Kenyans are aware of their impact on the environment, one of my colleagues responded, “People with lower to middle income levels are not aware of their impact. Everyone else knows but just doesn’t care.”  I will first focus on the enormous group of people who do not know about their impact and the challenges they face.

Lack of environmental education

In the developed world, children are educated about the environment from a young age. They are subject to repeat reinforcement of this message through means such as Earth Day.  In Kenya, these educational programs are simply not in place to inform children about such matters.  Children see their parents and friends act in a certain way and they follow; this serves as a repeat reminder to them that littering and polluting are acceptable. Without educational programs to inform them otherwise, how are they supposed to know to act differently?

Inadequate waste collection

Littering is considered to be an acceptable practice in Kenya. It is exceedingly common to see people throw their garbage on the street without hesitation. I think this is in part a result of the waste collection system; it is not a free service and if you would like somebody to pick up the garbage from your home, you are going to have to pay. In the slums, where disposable income is scarce, the residents simply cannot afford to pay someone to collect their garbage. Their only other option is to throw their garbage on the streets, and when the pile grows too large, they burn it.

Differences in time frame

In a country that struggles with famine, poverty and unemployment, the time frame of decisions become much shorter. The difficulty with environmental degradation is that many of its effects are often not immediate. One of the main selling points of caring for the environment is being able to ensure that future generations are able to enjoy the same beauty and cleanliness of the earth as we have been fortunate enough to experience. One of the motivations comes from knowing that our great grandchildren will benefit from our efforts now.

In the areas of Kenya which are devastated by poverty, such a long term time horizon does not exist. When concerns over whether someone will actually be able to provide food for their children that week are prominent, providing a clean environment for their great grandchildren becomes less of a focus.

There are certainly also immediate effects of environment neglect including a shortage of potable water due to a lack of proper waste management.  The lack of access to clean water can in itself cause a variety of illnesses.  Additionally, the conditions of many that live in polluted environments are at a heightened risk of diseases spreading more rapidly throughout the community. The difficulty here links back to one of the previously discussed barriers: lack of education. Many people are not aware that the challenges they face now with disease and poor water quality is in fact related to their own current actions.  Another reason the immediate effects are ignored is lack of proper infrastructure and waste management as mentioned above.

Side effects on the educated higher income population

The preceding three points are issues facing people in the lower to middle income segments of the population. What about the well-educated, higher-income individuals who do know about their impact on the environment but choose not to act on it? One of the reasons they often fail to change their behaviours is because there is very limited negative stigma attached to acting in a non-environmentally friendly manner.   It takes the contributions of everyone in society to make an impact; it is discouraging to make an effort towards a goal and look around and see rarely anyone else doing their part. What can be done to motivate all individuals to take their impact on the environment into consideration?

As you can see, there are significant obstacles to implementing a green and water loan program. However, this is not an impossible task and there are many ways to help microfinance clients to go green and educate them about their role in working with the environment rather than harming it.  The growth in environmental awareness has huge potential in helping generate additional income and cost savings for Kenyan borrowers. Please stay tuned for my next blog post where I address strategies that can be used to overcome these barriers.

Claire Markham is part of KF16, serving with SMEP Deposit Taking Microfinance Limited (SMEP) in Nairobi, Kenya. To lend to SMEP’s borrowers, become part of the SMEP lending team.

Doña Martina with her cow near La Paz, Bolivia. By Eric Rindal, KF16

This week Fellows look at the questions surrounding microfinance, or perhaps more specifically, Kiva-style microfinance: what is Christian microfinance in Rwanda? Where are these borrower profiles actually coming from? What is the everyday mentality of a Kiva micro-borrower? What’s this about Field Partners in the United States? What above-and-beyond services are our Field Partners offering Kiva Clients? And the ten-thousand dollar questions- “Why micro loans; Why small business; and Why poverty?” Through anecdotes in the field and insight from borrowers, this week Fellows try to give us a little illumination.

Say a Little Prayer for the Portfolio: 5 Questions about Christian Microfinance in Rwanda
Country: Rwanda / Fellows: Kathrin Gerner, KF15 & KF16, Whitney Webb, KF16

What does a “Christian” microfinance institution do differently than the rest of Kiva’s Field Partners? Kathrin and Whitney, intrigued by the question, walk us through a Top Five FAQ. But at end of the day, the upshot is the same: extend access to microcredit to the rural poor.

Wrap your Arms around Me
Country: Ecuador / Fellow: Marcus Berkowitz, KF16

Marcus pulls us onto a typical busride in Ecuador, complete with Reggaeton, sardined-crowds, and just enough breathing room to get by. It’s just one of the many obstacles rural borrowers would face if required to make the long trip to Kiva Field Partner Cooperativa San Jose’s office for each repayment- but luckily, CSJ’s Ventanillas Rurales program is working to spare them the trip.

High-tops in The Commercial Jungle: The Life of a Shoe Salesman
Country: Nicaragua / Fellow: Jim Burke, KF16

Jim guides us through Mercado Oriental, the largest commercial market in Central America, to the area’s most entrepreneurial shoe salesman: Kiva Borrower Marcial Salvador. In the bowels of the market, tucked among 60-blocks of small businessmen and women, we enter the world of Marcial’s micro-enterprise.

Meeting Karsinah: Maximizing My Social Return on Investment
Country: Indonesia / Fellow: Laurie Young, KF16

While Kiva lenders don’t make money on their Kiva loans, they do cash in on something less tangible: the social return. Though usually in the form of journals, the thrill of repayment day, and the personal connection that the most basic borrower profile can facilitate, for some lucky Kiva Fellows in the field, there is the ultimate social return: meeting the borrower herself!

A Day in the Life Part I: Kiva Coordinator
Country: Burkina Faso / Fellow: Allison Moomey, KF16

Allison has been working to get Kiva’s first partner in Burkina Faso, Micro Start, off the ground. But as with all Kiva Field Partners, past and present, this work would be impossible would Micro Start’s Kiva Coordinator (that’s ‘KC’ in Kiva-speak). Allison walks us through a day’s work in the Micro Start’s KC’s shoes.

New Orleans: A Developing Country in America?
Country: United States / Fellow: Rebecca Corey, KF9 & KF16

Coming to New Orleans after her last fellowship in Tanzania, Rebecca acknowledges the differences, but she can’t help but draw some comparisons. One thing is clear: the success of microfinance in development can bridge the gap between Tanzania and New Orleans.

Why micro loans; Why small business; and Why poverty
Country: Bolivia / Fellow: Eric Rindal, KF15 & KF16

As Eric settles into the lifestyle of a Kiva Fellow, he seeks to answer the lingering questions surrounding his work in Sierra Leone and Bolivia. Taking on the “big questions” of Kiva this week, Eric turns to his KC and his borrowers for a little elucidation.

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Loan Use, Agriculture Loans + Stuff Kiva Fellows Like
Starting Capital, Development Levels + Adventurous Borrower Visits
Going Pilot to Active, Meeting Borrowers + Technology and Social Performance
Costs of Kiva, Donkey Shares + the Law of Diminishing Marginal Returns
Loan Sharks, Snapshots + “the Country with a Smile”

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Plus pictures from the past week:

Ashley, a Kiva New Orleans borrower. By Rebecca Corey, KF9 Tanzania, KF16 New Orleans, USA

Happy, a Tanzanian Kiva borrower. By Rebecca Corey, KF9 Tanzania, KF16 New Orleans, USA

Marcial Salvador selling high-tops. By Jim Burke, KF16, Nicaragua

Discussing a group loan during a borrower verification. By Laurie Young, KF 16, Indonesia

A borrower profile picture in Burkina Faso. By Allison Moomey, KF16, Burkina Faso

And finally, a video of Amasezerano employees getting their prayer on in Rwanda: