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 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.

~
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
~

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)

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.

Praying Together: The Staff of Amasezerano at their Annual Trip

Before coming to Rwanda, we both had no idea what it meant to work for a Christian bank. Islamic banking, yes, that is something we had heard about before. But Christian banking?

To find out more, we interviewed the staff at our host microfinance institutions, Amasezerano Community Banking, Vision Finance Company and Urwego Opportunity Bank, and asked them five questions.

Question 1: Do you pray at work?

That is a definite yes for all three banks. Amasezerano holds daily devotions from 7 to 8 AM at the head office and all of the branch offices. Vision employees are allowed to sleep in a little longer. There, the daily devotions only start at 8 AM. At Urwego, devotions take place every Monday and Friday from 8 to 9 AM. All staff, from manager to driver, are required to participate. Devotions start with a song, which is followed by the reading and discussion of a bible verse and prayer.

Watch the employees of Amasezerano get their groove on bright and early on a Thursday morning:

Question 2: Do you have to be a Christian to work there?

Yes again. And calling yourself a Christian is not enough; you have to be able to prove it. All three banks require a pastor’s recommendation from job applicants to demonstrate that the potential employee is actively involved in a church. Employees at Amasezerano, which was founded by African Evangelical Enterprises, have to be Protestant.

Not all employees agree with this requirement as one of our interviews shows: “A pastor is not an authority that can speak in the name of God,” we are told. In general, most employees do agree, however, that it would be difficult for a non-Christian to participate in the required religious activities.

Job interviews also include questions about religion that would make any average American or European HR department get up in arms. “I was asked how I would act in a conflict situation and refer to Christian values in my answer,” Alphonse, Kiva coordinator at Amasezerano, tells us.

Urwego's Mission Statement

Question 3: Do you have to be a Christian to be a client?

No. Since Rwanda is 93% Christian, naturally, most clients are Christian. But, as a quick look at the Kiva portfolio of the three institutions shows, other religions are represented as well. Most notably, Muslims, who make up 5% of the Rwandan population, can be found among the clients.

“When looking for new clients, we don’t point out to them that we are a Christian institution,” Alphonse, Kiva coordinator at Amasezerano, tells us, “it really makes no difference to them.”

For some loan seekers, however, the Christian ideals can make a difference. “The clients feel that no matter where they are coming from they can be accepted. For example, if someone is HIV positive, they will still be told to trust that God will keep them alive, they should take the loan, and they must take their medicine and continue on living. It adds an element to the banking sector,” says an Urwego employee.

Question 4: Are there any Christian loan products?

Amasezerano offers a special loan product for churches and other Christian institutions called “Ganza Kingdom”. Clients benefit from an interest rate that is 3% lower than that for regular businesses. You can find one of Amasezerano’s Ganza Kindom loans here on the Kiva website.

While Urwego does not have any Christian specific products, they do ensure all of their loans have some sort of positive impact. Each loan product is subject to the Product Fit test, which ensures that at least one of the following attributes is met: dignity, authority, security, adequate provision, purpose, hope and meaning, freedom and adequate boundaries, and authentic relations and love. After a loan has been disbursed, Urwego focuses on positive client transformation and offers training on business management, home financial management and health management. These lessons are offered through the lending staff at regularly scheduled meetings.

Question 5: Does it make a difference for the employees?

For most employees, the answer to this question seems to be “yes.” Solange worked at a non-Christian institution before starting as one of Vision’s Kiva coordinators. “Christians do things differently,” she says, “I like the way employees treat each other here.”

The consensus at Urwego is that working for a Christian organization adds a lot of value to the expected low salary of working at an MFI catering to the poor. Peace, the Kiva coordinator, says, “It helps me build myself spiritually. It makes us have different experiences. People go above and beyond to help you find your place. Your boss will treat you more with respect because you are all the same in God’s eyes. You will be given opportunities to excel in other areas even if you fail.”

Others mention, “The social life is very strong in the company. Everyone will attend each other’s weddings, funerals, and celebrations of new babies. There are no strong barriers between employees. You feel like it is more of a home than an office. People will not judge you. You can tell everyone your pain and happiness.”

But there are also critical voices. “People here spiritualize everything,” one employee tells us. “We should not pray for the portfolio. We should pray to god to give us the strength to take action ourselves instead of asking god to change things for us.“

~

Kathrin Gerner is a Kiva Fellow (KF16) at Amasezerano Community Banking (ACB) and Vision Finance Company (VFC) in Kigali, Rwanda. Whitney Webb is a Kiva Fellow (KF16) at Urwego Opportunity Bank (UOB) in Kigali, Rwanda. Support their work by lending to a Rwandan borrower!

Previous posts by Kathrin Gerner:
Isabukuru Nziza, ACB! A Kiva Field Partner in Rwanda Celebrates Its Fifth Anniversary
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

Previous posts by Whitney Webb:
The Kiva Parachute: Landing in Rwanda

Rwanda: Brand New Rice Paddies (by Adam Cohn)

It has been a busy week for bloggers. The 16th class of Kiva fellows (KF16) hits the ground running and invites you to share their first experiences in their host countries across the globe. Arrive in Georgia just in time for harvest season. Continue to Sierra Leone to watch a new Kiva field partner go from pilot to active. Jump out of a plane in Rwanda – but not without a few parachutes – and learn more about agricultural loans. Bump into a Kiva borrower in Ecuador. Travel to Burkina Faso – a poor country rich in culture. Study the effects of technology on social performance of microfinance institutions in Cambodia. And to top it all off, immerse yourself in the generosity and kindness of the people of Paraguay.

The Velvet Season
Country: Georgia / Fellow: DJ Forza (KF16)
DJ is lucky to arrive in Georgia during the harvest season.

Full Hearts, Engines Ready: Going Pilot to Active in Freetown
Country: Sierra Leone / Fellow: Tejal Desai (KF16)
Tejal can’t wait to be a part of the transition BRAC is undergoing to become an active Kiva field partner.

The Kiva Parachute: Landing in Rwanda
Country: Rwanda / Fellow: Whitney Webb (KF16)
Whitney opens a few parachutes to soften her landing in Rwanda: people, humor and a little zen.

What are Chances of Meeting a Kiva Borrower in Guayaquil?
Country: Ecuador / Fellow: Emmanuel von Arx (KF16)
As Emmanuel gets into a taxi on his first day in Guayaquil, he also meets his first Kiva borrower.

The Cultural Complexities of Poverty Alleviation
Country: Burkina Faso / Fellow: Allison Moomey (KF16)
Allison experiences cultural complexities in Burkina Faso, a poor country rich in culture.

Can Technology Influence MFI Social Performance?
Country: Cambodia / Fellow: Dave Weber (KF16)
Dave uncovers the empirical and anecdotal evidence for the influence of technology on the social performance of microfinance institutions.

Agriculture Loans: What Makes Them So Different?
Country: Rwanda / Fellow: Adam Cohn (KF14)
Adam takes a look at the differences between agricultural loans and the other microloans on Kiva.

Navigating Asunción through an Amazing Network of Human Connections
Country: Paraguay / Fellow: Alba Castillo (KF16)
Alba wonders if the generosity and kindness she is experiencing in her host country will ever cease to amaze her.

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Updates from the past month:
Costs of Kiva, Donkey Shares + the Law of Diminishing Marginal Returns
Loan Sharks, Snapshots + “the Country with a Smile”
Update from the Field: Motorcycles, Ramadan + A Dollar a Day
Working Animals, Green Microfinance + The Ends of the Earth
Poverty Assessments, Bush Taxis + Meeting “My” Borrower
~

Plus more pictures from the past week:

Georgia (by DJ Forza)

Sierra Leone (by Tejal Desai)

Rwanda (by Whitney Webb)

Ecuador (by Emmanuel von Arx)

Burkina Faso (by Allison Moomey)

Rwanda (by Adam Cohn)

Paraguay (by Alba Castillo)

Rwanda Rice Paddies

Before my Kiva fellowship, I had never considered the differences between the loans which appear on Kiva. To me, a loan was a loan, and the only difference was the story of each individual borrower. That’s actually far from the case, and as Urwego Opportunity Bank prepared to roll out their first agriculture loan product, to rice farmers in Rwanda, I quickly learned about the differences between agriculture loans and other microloans.

First, consider the customers. At the two microfinance institutions (MFIs) that I have been working with, I have seen hundreds of loans processed in a matter of weeks, servicing a variety of customers from across Rwanda. As you may have seen in some of the other Kiva fellows’ posts, rural loans can be a challenge to service, often involving lengthy treks along unpaved roads.

Rwanda: Brand New Rice Paddies

Farms, by their nature, are generally located far from urban centers. As a result, a credit officer attempting to service agricultural loans has to invest a lot more time into reaching each borrower. Higher costs of servicing often correlate with higher interest rates. For UOB’s foray into agriculture loans, they will counter these challenges by working with five organized cooperatives of borrowers and will interface with a subset of 80 group leaders representing the cooperatives. Through these 80 leaders, 655 farmers will benefit from the loans. It also helps that Rwanda is a small, dense country with excellent road infrastructure, making travel to even the most remote farms not as challenging as in many other countries.

There are far more risks associated with lending for the purpose of agriculture, as compared with the production or sale of many other commercial products. If a furniture maker builds more chairs than he can sell, he can hold on to the inventory, with the unlikely risks of theft or fire damaging his product. A farmer, however, is victim to numerous other risks. Farmers could be victims to too little rain, too much rain, seeds that don’t bear fruit, an insect infestation, crop disease, or fire. If the farmer harvests their crop and can’t sell it in time, it will spoil and will be totally worthless.

According to Richard Meyer with Microfinance Podcast, farmers are also increasingly working in a global market, where prices fluctuate universally based on issues that can happen on the other side of the globe. If the price of rice drops in the US, rice exported from Rwanda and imported to Rwanda will also drop.

Unlike the furniture-making industry, for example, if a crisis such as weather or infestation strikes, all associated loans are likely to fail at once. To counter the risks in agriculture loans, many MFIs entering into the agriculture market offer, and sometimes require, insurance against some or all of these factors.

Rwandan Rice Farmer, Kiva Borrower

In all banks and MFIs, the money they have on their books is leveraged across many clients simultaneously. UOB’s average loan term is about 3 months, and during that time, lent money is inaccessible to the MFI until it receives repayments in small monthly installments. Some crops, however, require a full year between planting, growing and harvesting. And since farmers don’t earn money until the final product is sold, that’s up to a full year that the MFI is unable to use those funds for anything else. For their first agricultural loans, UOB will be lending to rice farmers, who operate on an 8-month cycle.

Eight months is still a long time for an MFI to have illiquid funds. This is where Kiva comes in: Kiva lenders often view their loans on www.kiva.org as long-term investments. As such, many Kiva lenders can tolerate a longer payback schedule, as well as the additional risk that comes with agriculture loans. Kiva’s partnership with UOB has made it possible for the MFI to take on the risk of extending loans to some of the poorest people on earth: rural farmers.

Agriculture loans have a tough reputation, for the reasons mentioned above, but also because of past experiences with subsidized credit for agriculture. Historically, many farmers who received subsidized loans knew that the loans were subsidized by donors or governments, so they often chose not to pay back the loan. For UOB’s agriculture loans, the deal has been arranged so that all funds from the sale of the produce will go directly to UOB. UOB will collect principal and interest, enabling payback to the Kiva lenders, and the net proceeds will then be distributed to the farmers.

The Kiva and UOB partnership holds a lot of promise for agriculture loans. In late July, the first loans were disbursed, allowing 655 farmers access to funds that commercial banks would not have provided, while giving lenders a much greater likelihood of being repaid.

Kiva will be posting these new agriculture loans over the next several days. To fund some of these loans, follow this link to see all of the currently-funding agriculture loans in Rwanda. If all of the agriculture loans are funded when you click, keep checking back, or click here to find other agriculture loans around the world.

Adam Cohn is a Kiva Fellow, working with Vision Finance Company and Urwego Opportunity Bank in Kigali, Rwanda.

RwandAir

Things became real when I stepped out of my NYC apartment for the last time and hailed a cab to the airport. It was one thing to say (repeatedly) “I’m moving to Rwanda to do a fellowship in microfinance. I’m so excited. And a little nervous.” It’s quite another to pack up your bags and actually board a plane to Rwanda, or Indonesia, or Paraguay, etc… I’m guessing more than one of us Kiva fellows had the inevitable panic attack prior to and during departure.

I have only been in Kigali for a week now, but so far I have found a few more “parachutes” to help me through:

The people

Daniel and Pelagie at Urwego

Coworkers - Aimable and Jessica

Finding the humor and just “going with it”

My first weekend in Kigali. Volunteering as a supervisor at Kigali Up, a local music festival. That orange slap bracelet means I am the boss.

Volunteers helping to make "Kigali Up" a success. The wonderful Kathrin (KF15 & 16) in the middle

Attending a coworkers wedding

Following instructions and bringing a broom up to the newlyweds at the end of the wedding.

Finding a little Zen 

Yoga on our front porch overlooking Kigali

Seeing "signs" when you need them the most

At the Gambian Horse and Donkey Trust, Saloum runs the Donkey Project and cares passionately about both local development and his long-earred charges. By Tim Young

Over the course of their fellowship, each Kiva Fellows class gleans a better understanding of innerworkings of microfinance and how a microfinance institution (MFI) can tip the scales of success. We begin to glimpse behind the scenes costs of Kiva to our Field Partners and to comprehend the reasoning behind “high” interest rates across the entire field of microfinance. We’re let in on the secrets to success which keep an organization running and financially viable for five years, and we learn about innovative development of programs- be they microfinance or donkey-shares- in a niche market. Over the course of our fellowships, we obtain these invaluable and instructive lessons piecemeal, and together can contribute to the conversation on a whole. Thus, as one class of fellows departs and another begins, this week our fellows share our insights with you!

Isabukuru Nziza, ACB! A Kiva Field Partner in Rwanda Celebrates Its Fifth Anniversary
Country: Rwanda / Fellow: Kathrin Gerner, KF15 & KF16

As Kathrin begins her first week of work with Kiva Field Partner Amasezerano Community Bank (ACB), ACB is also celebrating their fifth year anniversary as an organization. Kathrin demonstrates that ACB’s name, meanning  promise, or, “more precisely, covenant” truly explicates their “commitment to serving and empowering Rwandan people.”

Of Chinese Proverbs and Gambian Donkeys
Country: Senegal / Fellow: Tim Young, KF15

Tim introduces us to the strange and unfamiliar world of donkey-shares at the Gambian Horse and Donkey Trust (GHDT). Tim discusses the innovative development of the project, its parallels to microfinance, and the strides these donkeys have made in the area.

Cost of Kiva
Country: Nicaragua/ Fellow: Casey Cline, KF15 & KF16

Most of us know that Kiva’s 137 Field Partners receive interest-free loans from you, the lenders. But these loans aren’t cost free to the field partner, and Casey explains just what the costs of a Kiva partnership are.

The Law of Diminishing Marginal Returns
Country: Cambodia / Fellow: David Weber, KF16

As Dave gets to work in Cambodia, he gets down to brass tacks on the question of the seemingly high interest rates common in all of microfinance. Dave elucidates the issue by reminding us of one of the most basic rules of economics, and helps us to understand that: it’s really not that complicated after all!

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Updates from the past month:

Loan Sharks, Snapshots + “the Country with a Smile”
Cooking Classes, Autarky + Social Performance
Motorcycles, Ramadan + A Dollar a Day
Working Animals, Green Microfinance + The Ends of the Earth
Poverty Assessments, Bush Taxis + Meeting “My” Borrower

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Plus pictures from the past week:

Roger and Sandra: Keys to the Kiva Relationship. By Casey Cline, Nicaragua

Some ACB borrowers and one Kiva fellow in rural Rwanda. By Kathrin Gerner, Rwanda

Group photo Kiva style: The "group leader" is raising his hand. By Kathrin Gerner, Rwanda

Group photo Kiva style: The "group leader" is raising his hand

Birthdays are celebrated around the world, and Rwanda – the tiny East African country of 1000 hills wedged between the Congo, Uganda, Tanzania and Burundi – is no exception.

For its 5-year anniversary, the staff of Kiva’s field partner Amasezerano Community Bank (ACB) left its offices in Kigali for the shores of beautiful lake Kivu (unfortunately not named after Kiva) at the Congolese boarder. The trip was an occasion to remember key events in ACB’s history – mostly joyous, sometimes somber – but above all to celebrate.

Kathy Guis, Kiva Senior Field Support Specialist, aptly summarized ACB’s beginnings in an earlier blog: “After the horrific genocide that occurred in Rwanda in 1994, an NGO called African Evangelical Enterprises-Rwanda (AEE) started offering material support—food, clothes, other necessary items, to the many widows and orphans that the genocide, and the civil war that preceded it, left in its wake. Eventually, AEE decided that lending money was a more sustainable way to empower Rwandans in need, and in 2006, Amasezerano Community Banking S.A. was born. Their name means promise, or, more precisely, covenant—their commitment to serving and empowering Rwandan people.”

Since its inception, ACB has grown at a remarkable rate. Blondel Tumaini, Director of Operations, credits ACB’s focus on agricultural loans. “We try hard to reach the underserved clients in the rural areas of Rwanda,” he says, “and we will continue to open more branches.” He adds that ACB’s success would not have been possible without the commitment of its staff.

ACB is in fact all about teamwork. The staff doesn’t only work together, but they pray together every morning, and they don’t miss an occasion to sing and dance together (with remarkable talent!). If you want proof, just take a look at the photo gallery below.

From your Kiva fellow, grateful to be allowed to become part of your team for a few short months, to everyone at ACB: Isabukuru Nziza! Bon Anniversaire! Happy Birthday!

Kathrin Gerner is a Kiva Fellow (KF16) at Amasezerano Community Banking (ACB) and Vision Finance Company (VFC) in Kigali, Rwanda. Having gotten a little too distracted by Rwanda’s beautiful sights and scenery as of late, she used a rainy afternoon to finally sit down and write this blog. To find out more about ACB, visit its Kiva partner page or the ACB website. Or show your support by lending to one of its borrowers or joining the ACB lending team!

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

Hi Everyone! Decided to make a Video blog post to show you a little bit what life is like as a Kiva Fellow in Kigali!

A traditional Zulu hat (by Daniel Jung, South Africa)

Learn about the tradition of Zulu weddings in South Africa. Find out how Kiva’s partners adapt the concept of microfinance to fit their country-specific needs: from loans targeting borrowers affected by emigration in Ecuador, over a preference for group loans in El Salvador, to lending coupled with various training programs in Rwanda. Finish off your weekly reading by learning about crime-fighting Kivans in Nicaragua.

Zulu Weddings
Country: South Africa / Fellow: Daniel Jung (KF15)
Daniel tells us about Zulu weddings and explains how borrowers earn income by making mats, clothes, and jewelry required for the traditional ceremony.

Migration and Microloans
Country: Ecuador / Fellow: Kate Bennett (KF15)
Kate uses the example of “five dudes from New Jersey building a spa” to illustrate how Fundación Alternativa helps Ecuadorians stay in Ecuador by targeting borrowers affected by emigration.

Communal banks? Why not just an individual loan?
Country: El Salvador / Fellow: John Gwillim (KF15)
John is intrigued by Fondo Esperanza’s preference for group loans and does some research to find out more.

More Than Just Money
Country: Rwanda / Fellow: Carolyn Nold (KF15)
Carolyn shows us how Urwego Opportunity Bank empowers borrowers by providing training in household financial, business, and health management.

Fighting Crime…..Kiva Style
Country: Nicaragua / Fellow: Jason Jones (KF15)
Drawing from personal experience, Jason tells us about crime in Nicaragua and how Kiva lenders help fight it one loan at a time.

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Updates from the past month:
Roads, Remittances + the “Little Paris” of Togo
New Partners, Country-Specific Microfinance + Stories of a Kiva Fellowship
Mosquito Nets, Rock Climbing + Clearing the Air
Instability, Trust + A New Home
Unsung Heroes, Community Alliances + and Mission Statements Made Reality
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Plus more pictures from the past week:

South Africa (by Daniel Jung)

Ecuador (by Kate Bennett)

El Salvador (by John Gwillim)

Rwanda (by Carolyn Nold)

Nicaragua (by Jason Jones)

When asked to comment on these trainings, the Director of Transformational Impact at UOB said, “people often think that poverty is just financial deficit. However, it also means disempowerment.  Training in household financial, business, and health management empowers people.  Additionally, training clients helps them understand what will happen to their business if they get sick or mismanage their money.” The Director also noted that training client in these areas reduces risk for UOB, because the better the run the businesses are, the more steady the repayments of the loans.

UOB training modules are purposefully aligned with the Rwandan government’s response to the largest healthcare threats to the population (and therefore the economy): HIV/AIDS and malaria.

HIV/AIDS in Rwanda: The Rwandan genocide of 1994 increased the risk of HIV infection, and thousands of survivors contracted the virus as a result of systematic sexual violence and rape against women. An estimated 70 percent of woman survivors who were raped during the conflict were infected with the virus. The rise in the prevalence rate was especially significant since approximately 800,000 people, 20 percent of the entire population, were killed during the genocide.

 Furthermore the differences in HIV prevalence between men and women are significant, with higher prevalence among women ages 15 to 49 (3.6 percent) than that of men in the same age cohort (2.3 percent). HIV prevalence also varies between urban and rural populations. Sixty percent of Rwandans live in rural areas, where the prevalence (2.2 percent) is below the national average of 2.8 percent. At 7.3 percent, prevalence in urban areas is more than three times higher than in rural populations.     

Building upon the National Strategic Plan for 2005–2009, the National HIV/AIDS Strategic Plan (NSP) for 2009– 2012 aims to reduce the incidence of HIV in Rwanda by half, reduce HIV morbidity and mortality, and ensure people infected with and affected by HIV have the same opportunities as the general population.

*National Institute of Statistics of Rwanda **UNAIDS  ***UNGASS  ****WHO/UNAIDS/UNICEF

Malaria in Rwanda: Approximately 90% of Rwandans are at risk of malaria. Malaria is the leading cause of morbidity and mortality in Rwanda responsible for up to 50% of all outpatient visits. In 2005, Rwanda reported 991 612 malaria cases. In 2006, malaria was responsible for 37% of outpatient consultations and 41% of hospital deaths, of which 42% were children under five.  http://www.who.int/countries/rwa/areas/malaria/en/index.html

Thanks to government and ministry of health efforts such as passing out insecticide treated nets and increasing awareness, there has been a dramatic decrease in the prevalence of malaria in Rwanda. Deaths due to malaria have dropped to only 7%, a dramatic 60% reduction in just over two years of rapid scale-up. Health center utilization rate is over 70%, with only 10% of patients seeking treatment for malaria (http://www.malariafreefuture.org/rwanda/success.php). 

However, with this success comes some anticipated new challenges. For example, as there are less cases of malaria, net usage could also decline and also reductions in natural immunity to the malaria parasite could occur. These new challenges mean that the work is not done, and that initiatives surrounding malaria awareness, prevention, and treatment need to be continued.

UOB is joining these efforts to combat malaria and HIV/AIDS through its non-financial services. Within the healthcare curriculum, there are modules on malaria, HIV/AIDS, and diarrheal disease. I attended an HIV/AIDS session. After everyone introduced each other, the leader encouraged everyone to participate, and announced that she was there to explain important concepts and that everyone must pay attention:

She began the lesson with a review from past sessions on financial management: What is a loan?  What is the consequence if you don’t pay?  As I listened, I realized that these borrowers had just been introduced to the concepts of loans, saving, and investing rather than flat out spending. This further affirmed the notion that simply giving aid will never be a sustainable way to achieve economic development. These borrowers were learning how to manage their money and look after the health of themselves and their families. The conversation then tied in the concept that one’s health can affect one’s ability to pay back their loans, and how their businesses could suffer from being ill.  The lesson emphasized understanding what HIV/AIDS is, how it is transmitted, and how one can protect oneself from it. The lecturer concluded the lesson with the powerful message that “HIV/AIDS is another source of poverty”.

After the lesson I was given the opportunity to interview some of the borrowers.  The first woman I spoke to was Beatrice.  She runs a business selling shoes and her husband sells chickens. Before her loan she sold water and sodas, and she was making 1500 RWF a day to help provide for her family; now she makes 5000 RWF  a day (about 8 USD). This increased income has allowed her to save 2000 RWF a week that she will use to pay for school fees.

Before she came to training, she said she did not know what a loan was, how to use it, or how to save.  Before, she used money to buy things without understanding the value in investing and using the returns from her investment to purchase goods.

Mary Rose and me.

I then spoke with Mary Rose, who runs a business selling clothes. She uses the loan to help pay travel expenses to Kampala, Uganda where she buys the clothes. She and her husband have 4 children of their own and have adopted 4 children as well. She stated the HIV/AIDS lesson has helped reaffirm the importance of her remaining loyal to her husband for her own health as well as the health of their relationship.

She said she is looking forward to family planning training and the ability to teach others in the community what she has learned about how to use a loan, run a business, and practice healthy living. Through this statement, Mary Rose truly illustrated how using the community group lending model to spread awareness on health and financial management can be sustainably effective.

This week, the fellows in Africa continue to get their bearings in the field. Learn about the importance of trust in Cameroon, find out how political instability affects businesses and microfinance in Uganda, and take a trip to a fellow’s country mountain home in Cameroon.

Trust: Members of a trust group in Rwanda wait for their loan together (by Carolyn Nold)

Instability and Microfinance in Kampala
Country: Uganda / Fellow: Michele Wehle (KF15)
Michele learns about protests in Kampala and their effects on borrowers.

A Little Trust Goes a Long Way
Country: Rwanda / Fellow: Carolyn Nold (KF15)
Carolyn shares how the principle of trust allows both her and a Rwandan lending trust group to achieve their goals.

My Country Mountain Home
Country: Cameroon / Fellow: Faith Garlington (KF15)
Faith invites us to her new country mountain home in Uganda, which is a little bit like the one of her childhood in the Smoky Mountains of Knoxville, Tennessee, yet worlds apart.

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Updates from the past month:
Unsung Heroes, Community Alliances + and Mission Statements Made Reality
Personal Connections, Supply and Demand + A Culinary Excursion
Farewells, Mistaken Identities + Micro-Microfinance
Earth Day, Celebrations + Exceeding Expectations
Trash, Delicious Treats + Community Outreach
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Plus more pictures from the past week:

Uganda (by Michele Wehle)

Rwanda (by Carolyn Nold)

Cameroon (by Faith Garlington)

When I discovered that I would be traveling to Rwanda, I knew life was about to get awesome.  However, admittedly upon preparation for my departure to Rwanda, I couldn’t help but have the occasional “gulp” as I thought about moving to a new country and starting a new role at institutions I feel privileged to be exposed to. I therefore adopted the commonly known phrase “Luck favors the traveler” as my mantra and complacently resigned myself to the assumption that I would have to place trust not only in my own abilities, but more importantly in the people that I had yet to meet.

My initial impressions of Rwandan society have reaffirmed the trust I established at the onset of my journey.  Not one person has refused to assist me, whether it is asking for directions or handing me my shopping bag that I left on the back of my chair. Unlike other places I have traveled, one will find in Rwanda that people are unequivocally proud of their country.  Therefore, they treat visitors to their country with the same hospitality that I would imagine most provide to a guest in their home.

Perhaps there is no higher level of trust than that I instill in the moto-taxi driver every morning and evening as I commute to and from my MFIs. I had never been on a motorcycle prior to coming to Rwanda, and I empathize with the driver of my first ride.  As he dodged through traffic, I shamelessly held onto him for balance (and my life I suppose).  It was only after I peaked from under my over-sized helmet that I realized that no one else holds onto the driver.  My awkwardness with the moto-taxis is gradually fading as I place trust in these drivers to deliver me in tact. In fact, I already anticipate missing my morning commute once I have returned back to the states.

Another kind of livelihood that relies on trust is that of the members of the lending groups of microfinance institutions.  During the first week at one of my MFIs, I was invited to witness a loan disbursement for a lending trust group.  The group consisted of 45 members, and the meeting began with the discussion of whether or not a person should be allowed to join the group.  In order to be permitted, a person must be vouched for by another member and trusted by all members through a vote.  The person had been accused of stealing a bicycle and therefore it was decided that he must wait to prove his trustworthiness before joining.

On my visit to the lending group there was also a batch of American exchange students observing the disbursement process. In their honor, a few of the borrowers within the group were asked to stand up and describe their businesses and how the loans via their “little trust” have helped them expand their enterprises.  One woman described how within only 4 loan cycles, she has been able to increase her loans from 100,000 Rwandan Francs to 1 million.  She described how her tailoring business is expanding so that now she will offer training services to those who wish to acquire sewing skills.  As I listened to the members of the lending group describe their successes, I realized how vital these loans, and the trust needed to facilitate them, are to their businesses.

After the students had the opportunity to ask questions,  members of the lending group were given a chance to ask questions of us as well.  The most obvious yet profound question was, “Why are you all here?”.  These individuals could not imagine why over 20 mzungus(foreigners) would be interested in their businesses.  The Kiva coordinator answered that in addition to the innovation and aptitude they have displayed as entrepreneurs, it is quite extraordinary to those not regularly exposed to microfinance that trust and community relationships are just as (if not more) effective than the traditional physical sources of collateral.

Members of trust group wait for their loan together

Therefore in my inaugural weeks I have witnessed the feats that can be achieved with trust.  Trust ultimately inspired my decision to journey to this place and have an amazing introduction to Rwandan society. Trust is what allows borrowers with no other means of collateral to acquire loans that will enable them to improve the quality of life for themselves and their families.  Having a little trust can take you a long way.

Transportation is an apt topic when so many Fellows are saying goodbye (Sierra Leone pictured)

We’ve officially hit the point in the Kiva Fellows cycle where the current batch says goodbye just as the latest group is getting their bearings at Kiva HQ. Fortunately, there are a number of posts this week to help us through the transition and cheer us up. If you’re interested in a comprehensive image gallery of the hot designs for share taxis in Rwanda, we’ve got you covered. We’ve also got stories about micro-micro-businesses in Sierra Leone, visiting research fellows in West Timor, and the intersection of medicine and microfinance in Bolivia. Plus, take long trips to the field in Armenia and Peru, and catch up on the impact of microloans in South Africa.

Note: Speaking of goodbyes, this will be my last “Update from the Field”. It’s been a pleasure sharing stories by Kiva Fellows with you each week and I look forward to seeing what the 15th class does with this space once they settle in. Cheers!

Economies of scaling down
Country: Sierra Leone / Fellow: David McNeill (KF14)
Instead of buying in bulk, consumers in Sierra Leone often buy precisely what they need at the time and nothing more. Microfinance has a role in serving this market but David wonders about the additional ways we can scale down services.

Share Taxis Around The World: The How, Why & Design
Country: Rwanda / Fellow: Adam Cohn (KF14)
Adam’s comprehensive gallery of share taxis includes “That Bieber Fever” and “King of Hip Pop Officer Ricky The Boss” plus tons of fantastic paint jobs.

25 Years Working Where the Need is Greatest
Country: Peru / Fellow: Noreen Giga (KF14)
Noreen introduces us to some of the clients served by her partner microfinance institution, including a restaurateur, a women who now owns a few cows, and a shop-owner.

Unusual Roles of a Kiva Fellowship
Country: Liberia / Fellow: Carlos Cruz (KF14)
How does a Kiva Fellow get mistaken for a woman, a priest, and a diamond trader? Carlos shares the humorous back-stories plus a few more roles he’s taken on during his Fellowship.

New Beginnings
Country: Armenia / Fellow: Caree Edson (KF14)
While she finishes up her time in the field, Caree takes us to meet a new microfinance client, sheds light on why some MFIs are for-profit, and explains a few of the day-to-day loan management duties of loan officers.

Herbal tea and witch doctors
Country: Bolivia / Fellow: Clara Vreeken (KF14)
Clara devotes her final post to how her MFIs combine medicine and microfinance, including loans for health services and working with witch doctors to ensure women who follow indigenous practices receive medical attention when necessary.

West Timor Research Insights from a Boren Fellow
Country: Indonesia / Fellow: Lisa Skowron (KF14)
Lisa helps connect a graduate student in international affairs with her MFI and then interviews her about her research on financial inclusion in West Timor.

Sala Kahle: Saying Goodbye to KwaZulu-Natal
Country: South Africa / Fellow: Alexis Ditkowsky (KF14)
Many Kiva Fellows are saying farewell this week and Alexis is no exception. Read the note she shared with lenders to her MFI’s clients and check out a few final pictures from the field.

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Updates from the past month:
Earth Day, Celebrations + Exceeding Expectations
Trash, Delicious Treats + Community Outreach
Cute Pigs, New Toilets + Everything is Relative
April Fools, Terrible Coffee + Getting Attached
Social Quirks, Justin Bieber + Lots of Carbs
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Plus more pictures from the past week:

Indonesia (by Lisa Skowron)

Sierra Leone (by David McNeill)

Armenia (by Caree Edson)

Peru (by Noreen Giga)

Liberia (Carlos Cruz)

South Africa (by Alexis Ditkowsky)

Bolivia (by Clara Vreeken)

Rwanda: That Bieber Fever

Poda-Poda, Tro-Tro, Marshrutka, Jitney, Bemo, Bush Taxi. It seems that they have different, funny names in each locale, but they all refer to the same concept: the shared taxi. A share taxi is a vehicle which travels around a fixed route and either departs when it’s totally full, or allows customers to hop on and off wherever they want. In Rwanda, they are also a zeitgeist of what’s hip now; an opportunity to unabashedly tell the world that you have the “Bieber Fever” or that you are a die-hard Eminem fan.

Share taxis here in Rwanda range from larger, roomier Coaster buses to the loud and attention-seeking minibuses. The minibuses are a much more entertaining way to go. Similar to Timor’s bemos which Stephanie mentioned in her article, the minibuses in Rwanda are where the action is. Each one is navigated by a driver, while a “bus conductor” manages the money and calls out to potential passengers to ensure that the interior is always packed. In Addis Ababa Ethiopia, I loved listening to the conductors heading toward Bolé road shouting “bolebolebolebole” as the taxis drove by.

Rwanda Minibus: Drake

I met the owner of a minibus in Kigali which was decorated in luminescent green and purple paint and paid homage to Canadian Degrassi Jr. High actor-turned-rapper, Drake. As I marveled at the paint job, he explained to me that minibus painting is a relatively new phenomenon here in Rwanda. Apparently minibuses in neighboring Congo have been custom painted for some time, and until a few years ago a minibus owner would have to get their ride painted there. Artists have recently started cropping up in Kigali, and now each minibus tries to outdo the next in terms of decoration.

As Stephanie learned in Timor, the minibus owner in Kigali believes that having a hip paint job will attract more customers. He confirmed that particularly schoolchildren will wait until a minibus comes along which reflects their taste in music or sports. For 25,000 Rwandan Francs ($40), the owner can get a fresh, custom paint job, so when Bieber gets replaced by the next teen idol, Kigali’s minibuses will reflect that trend. While the cost of a new minibus would likely exceed the maximum Kiva loan size, I wouldn’t be surprised if I saw a minibus owner requesting a loan to paint a Rebecca Black minibus next year.

Aside from being a personal statement, another benefit of traveling by minibuses is that it is a somewhat “green” way to go. Back in Seattle, I am guilty of commuting daily as a single occupant in my personal car. I use that same car to head into the city and drive in circles looking for a parking spot. Kiva Fellow Caree Edson reports that the marshrutkas in Armenia can hold around ten passengers comfortably, and commonly carry double that number with many passengers standing. I’d estimate that the typical Kigali minibus is stuffed with 20 people at rush hour. A minibus is always available and is always a carpool.

The crowded seating inside a minibus has a few benefits. If the passengers can communicate over the decoration-corresponding music, a great amount of interpersonal interaction takes place. Politics are debated with strangers, potential boyfriends and girlfriends are identified, and friendships are made; all impossibilities when traveling alone in my Jetta back home.

Mikrolet: East Timor

Cameroon Bush Taxi

Minibuses are so crowded due to the economics of necessity. They are found where affordable transportation is needed and are packed to the limits of local liability to keep costs down. I’m told that gas prices have skyrocketed back home; perhaps I should be considering launching a share taxi service in Seattle when I return!

While I consider whether a coffee-celebrating or carbon-reduction-boasting paint job would attract more riders in Seattle, I invite you to take a little minibus trip around the world with these photos provided by Kiva Fellows.

Adam Cohn is a Kiva Fellow, working with Vision Finance Company and Urwego Opportunity Bank in Kigali, Rwanda.

Kiva Fellows celebrated Earth Day around the world (Rwanda pictured)

Kiva Fellows observed Earth Day by sharing projects initiated by their partner microfinance institutions and host countries and by celebrating Kiva.org’s first batch of “Green Loans”. The upbeat mood also extended to anniversary parties at MFIs in Jordan and Armenia, enthusiastic endorsements to travel to Colombia, and reporting on a great opportunity for Kiva clients in Mongolia. Fellows also visited with borrowers in the Philippines, South Africa, and Armenia, and took us on a typical commute in Mexico City. All in all, a very busy week as members of KF14 wind down their time in the field.

Spazas + Tuck Shops: Corner Stores in South Africa
Country: South Africa / Fellow: Alexis Ditkowsky (KF14)
The difference between a spaza and a tuck shop is still a matter of debate but no one disagrees about the importance of corner stores in South Africa.

Colombia: Lose your perception of the past and come visit!
Country: Colombia / Fellow: John Gwillim (KF14)
John enthusiastically endorses Colombia for your next trip abroad. Beaches, mountains, jungles, colonial cities, modern amenities, and friendly people – it’s hard to go wrong.

Time, Love, Money & Energy
Country: Philippines / Fellow: Kaajal Laungani (KF12)
Inspired by the wisdom of a martial arts champion, Kaajal asks borrowers, “Do you have enough time? love? money? energy?” and shares their thoughtful responses.

Celebrate Good Times, Come On!
Country: Jordan / Fellow: Alex Silversmith (KF14)
Alex’s partner MFI celebrates twelve years of impact with cake, pashminas, watches, and a few of their 57,000 current clients.

The Subway Show
Country: Mexico / Fellow: John Farmer (KF14)
A trip on public transportation can quickly transition from entertaining to awkward to uncomfortable. John recounts one such morning in Mexico City.

Expectations
Country: Armenia / Fellow: Caree Edson (KF14)
Caree’s experience meeting with borrowers and business owners all over Armenia has met (and exceeded) her expectations of microfinance.

Additional XacBank Kiva borrowers eligible for interest rebates in savings accounts
Country: Mongolia / Fellow: Amber Barger (KF14)
Amber has been assisting her MFI in a special program: Kiva clients who pay back their loans early or on time receive a partial rebate on the interest paid, deposited straight into a savings account!

Happy Earth Day from Kiva Fellows around the Globe!
Countries: Armenia, Bolivia, Rwanda, Jordan, Cambodia, Ghana / Fellow: Compiled by Caree Edson (KF14)
While there is plenty of bad news about the environment to go around, Kiva Fellows took a moment to highlight environmental initiatives at their partner MFIs and in their host countries in honor of Earth Day. And in more good news, Kiva just launched a series of “Green Loans” so lenders can support environmentally conscientious businesses.

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Updates from the past month:
Update from the Field: Trash, Delicious Treats + Community Outreach
Cute Pigs, New Toilets + Everything is Relative
April Fools, Terrible Coffee + Getting Attached
Social Quirks, Justin Bieber + Lots of Carbs
Fun Facts, Field Visits + Back to Basics
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Plus more pictures from the past week:

Armenia (by Caree Edson)

Cambodia (by Stephanie Sibal)

South Africa (by Alexis Ditkowsky)

Jordan (by Alex Silversmith)

Mexico (by John Farmer)

Philippines (by Kaajal Laungani)

Mongolia (by Amber Barger)

Colombia (by John Gwillim)

One of the unfortunate sight-seeing adventures that you never sign up for when you travel (especially in developing countries) is the unseemly amount of trash cluttering the otherwise beautiful landscapes. In Armenia, it isn’t possible to see the horizon through the smog most days and the streets are covered in cigarette butts and litter. I found no exceptions to this as I inquired from other Kiva Fellows about the dire situation in their countries. Environmental education and reform are simply not a top priority in many countries. But the future of climate change initiatives are not entirely hopeless…

Overlooking Yerevan, Armenia

As an organization that works internationally, Kiva is concerned about this issue and has decided to shoulder the responsibility as well by launching a new line of “Green Loans”.  Many microfinance institutions do their part by extending green loans to clients that are environmentally conscientious.   You can read about some of these Kiva loans in the US, Mongolia, and Bolivia by clicking here. In honor of Earth Day this year, I decided to focus on the positive and report, with the help of my fellow Kiva Fellows, on the Earth-friendly initiatives that are happening across the globe.

In Armenia, SEF International strives to educate clients on environmental concerns. Rouzan, the Kiva Coordinator at SEF, tells me that SEF International’s loan contract obliges the borrower to act responsibly towards the environment, humanitarian and legal spheres.  There is also a fee in case the contract in this section is overlooked. Apart from that, most of SEF’s farmer clients are engaged in organic agriculture for internal consumers.  Through its loans, SEF International encourages the implementation of advances in organic agriculture. The office also makes a point to recycle and participates in Earth Hour each year by shutting off all electricity for an hour.

There are other nationwide events such as “Clean up the Earth Day”, in Armenia, where the government mandates that all citizens should spend the day picking up trash and brightening the appearance of their neighborhoods.  With garbage cluttering many of the parks, there are also festivals that take place to educate and encourage the neighborhood to keep their parks clean. The majority of cars in Armenia have been converted to run on natural gas. Most consumers opt for this choice as natural gas is quite a bit cheaper than petrol, but it also happens to be better for the environment. It is a bit tough on the engines of cars that are not originally built to run on natural gas and takes an awful lot of power away (you can see marshrutkas puttering slowly up hillsides in every town) and the possibility of explosions are ever present as customers wait 20 feet away from filling stations for their cars to be filled, but it is certainly commendable that an entire nation is switching to natural gas and finding a way to work through these set-backs.

A natural gas filling station in Armenia

In Bolivia there is a lot of pollution on the streets because of old buses and cars that run on gasoline. Kiva’s Bolivian partner, IMPRO has provided loans to 21 taxi drivers to convert their cars from gasoline to biogas.  The following was contributed by Clara Vreeken, the Kiva Fellow in Bolivia:

IMPRO’s client Emilio is a taxi driver in the capital of Bolivia, La Paz. He was one of the first taxi drivers who converted his car from gasoline to biogas with a Kiva loan in 2007. When I was interviewing him, he explained the environmental advantages of this change: “When a car drives on gasoline, it produces toxic gases. However, when it drives on biogas it doesn’t. Moreover, biogas is healthy. And nowadays, according to the climate changes, I would advise that all vehicles should function on biogas.  Working all day on gasoline, I used to spend around 100 bolivianos ($15 dollars) a day. After having changed to gas, I spend around 40 bolivianos (6 dollars). So there is an enormous difference.”

Emilio with his car

Adam Cohn contributed a story from Rwanda where plastic bags are illegal and there is a surprising absence of garbage on the ground throughout the country. “At supermarkets they abuse paper bags like they abuse plastic ones in Asia. At all the other markets, kids run around selling either paper bags or reusable bags like we have in the states or like those that rice comes in. And for those that don’t want to pay for them? *Gasp* they bring their own!!  I’m tellin’ ya, Rwanda is a model for the developing world.”

Submitted by Adam Cohn, KF 14, Rwanda

From Alex Silvermith in Jordan: In Jordan, a country that shares a border with Iraq, Syria, and Saudi Arabia, the Royal Society for the Conservation of Nature (RSCN) and its development arm, Wild Jordan, are implementing multi-pronged conservation efforts around the country to rejuvenate pockets of wilderness badly damaged by commercial over-use and inattention. In a country the size of Indiana, where 75% of the land is desert, RSCN has partnered with local residents in conservation efforts in 6 wilderness areas. A hut system, online shops, and hand-made products from locals all help sustain the conservation efforts. As a result, you can stay in wetland lodge run by local Chechens or buy local goat leather from the Bedouin that live near Petra. While conservation efforts still have a long way to go towards raising awareness amongst the general population — one need look no further than piles of strewn trash to pinpoint popular picnic spots — sustainable conservation efforts reflect something exceptional in a region better known for the indoor ski resort of Dubai or oil pipelines of Saudi Arabia.

You wouldn't know you were surrounded by desert in every direction, Dibeen Forest Reserve

Stephanie Sibal reports that “Cambodia as a whole has started a couple of projects towards bettering the environment. For example, there are ads encouraging shoppers at Lucky Supermarket to use canvas/recyclable bags– if you buy one, the proceeds go to the Ministry of Environment.”

“Also, Cambodia has a lot of lush jungle that is home to many endangered species such as Asiatic black bears and Indian tigers that have fallen prey to illegal poachers. With very little money coming in from the Ministry of Environment/central government to protect the wildlife parks, there are quite a few American and French NGOs based here in Phnom Penh that have hired and trained more full-time park staff to monitor the area and they’re hoping that will cut down on the poaching.”

Mei-Ing Cheok contributed the following story about fishing boats in Ghana:

It is a real shame though to see the rubbish piled up on the sandy beaches – more often than not, empty water sachets – and sometimes floating in the water. Waste management has a long way to go in Ghana. Nonetheless, it is heartening to see that the government is making an effort in other areas.

Fishing has long been a major industry and source of livelihood (and protein!) for many people in Ghana. However, bad fishing practices – by both local and foreign fishers – have depleted the fish stocks in Ghanaian waters. The government recently took the bold step of banning certain destructive fishing practices, such as light fishing (the use of light to attract fish at night) to allow fish stocks to recover.

Bojo Beach

There is of course short-term pain with this ban as fishermen break old habits and adopt alternative methods of fishing. Further, there is more to be done, especially in dealing with illegal fishing by foreign trawlers, to sustain long term fish stocks and the livelihoods of the coastal communities. However, the Ghanaian authorities have taken a commendable step in righting its marine eco-balance and they are setting a great example for the rest of the world (particularly, the Western governments).

Read more about this in Gone Fishing.

When it comes to environmental challenges, we all need to clean up our act. It’s refreshing to hear new and innovative ideas from around the globe that will affect the next generation and create new Earth- friendly habits.

Happy Earth Day from the 14^th class of Kiva Fellows!!

To learn more about Kiva’s exciting new line of green loans or to lend to one of our environmentally conscious borrowers go to www.kiva.org

Most of the photos for April Fools' Day were ready before we even hatched our plans (Cambodia pictured)

We hope you enjoyed our April Fools post on Friday! While we were entertaining ourselves pulling it all together, we also found the time to attend to some serious matters: coffee in Colombia is no joke (in a bad way), some borrowers are easier to locate than others, and oftentimes Fellows must say goodbye to people and places before they’re ready to. We also learned about the “No Pago” movement in Nicaragua, the elections in Peru, what daily life is like for a Fellow in Bolivia, and how to sensibly and respectfully collect past-due payments in Ghana. Somehow there was even time to host a previous Fellow and a documentary film student in Colombia and to visit borrowers, eat chocolate, and stop for the view in Armenia.

A Movement called No Pago / Un Movimiento se llama No Pago
Country: Nicaragua / Fellow: Karen Gray (KF14)
Karen provides helpful context for the “No Pago” (or “No Pay”) movement in Nicaragua and what her partner microfinance institution is doing to ensure that it only signs on clients who are willing and able to pay back their loans.

Why does most coffee in Colombia taste like dishwater?
Country: Colombia / Fellow: Nick Hamilton (KF14)
It’s safe to say that Nick’s high expectations for coffee in Columbia have been shattered by reality: the best coffee is exported and what’s left is pretty much unpalatable. Poor guy!

Blast from the Past: KF7 turned microfinance professor visits Colombia to do field research
Country: Colombia / Fellow: John Gwillim (KF14)
Catching up with Fellows is always a treat, particularly when they visit with a documentary film student in tow and a presentation about microfinance models to share with your MFI.

Performing meaningful work for Kiva while learning a new culture
Country: Bolivia / Fellow: Clara Vreeken (KF14)
Clara walks us through her day-to-day life as a Kiva Fellow in La Paz: giving trainings, meeting with clients at the office and at their businesses, updating lenders, and enjoying the opportunity to speak Spanish.

Owe Money, Pay Money
Country: Ghana / Fellow: Mei-ing Cheok (KF14)
Mei-ing is very relieved that her partner microfinance institution takes a much gentler and more respectful approach to collecting on delinquent loans than loan sharks back in her native Singapore.

What was your last business trip like?
Country: Peru / Fellow: Noreen Giga (KF14)
From the city to the mountains to the jungle and back again, Noreen battles altitude sickness, temperature changes, and limited transportation options in her attempts (only some of which were successful) to meet with Kiva clients.

My Heart has Taken Root
Country: Uganda / Fellow: Nila Uthayakumar (KF14)
Knowing that her time was limited, Nila tried to resist getting attached to Uganda. But the people, markets, and natural beauty of her home for the past two months pushed back and she now finds herself utterly enchanted just as she prepares to leave.

In Peru, the race for President heats up
Country: Peru / Fellow: Geeta Uhl (KF14)
Geeta provides a thorough run-down of Peru’s presidential candidates and some of their, um, colorful campaign slogans.

Special Update from the Field: Beaches, Safaris + Cambodian Glamour Shots
Countries: South Africa, Armenia, Cambodia, Mexico, Ghana, Uganda, Sierra Leone, Peru, Rwanda, Bolivia, Colombia, Nicaragua, Benin, Indonesia / Fellows: Compiled by Alexis Ditkowsky (KF14) with the 14th class of Kiva Fellows
In case you missed our hard-hitting April Fools’ Day coverage of what being a Kiva Fellow is REALLY like, you can revisit examples of how to sleep through reporting, torture your coworkers with your karaoke stylings, fabricate excuses to go to the beach, and so much more.

“The Good Family”
Country: Armenia / Fellow: Caree Edson (KF14)
Caree’s been on a winning streak during her past few visits to the field: chocolate, coffee, beautiful views, adorable livestock, and meeting with friendly borrowers tends to make for a pretty great day.

~
Previous updates from the field:
Social Quirks, Justin Bieber + Lots of Carbs
Fun Facts, Field Visits + Back to Basics
Carnival, Collaboration + Cheese-Making
Man’s Day, Singing Fellows + Learning How to Count
Videos, Epic Commutes + Going Beyond Microfinance
“Christmas”, Trekking, Adversity + Good Company
~

Plus more pictures from this past week:

Ghana (by Mei-ing Cheok)

Bolivia (by Clara Vreeken)

Peru (by Noreen Giga)

Peru (by Geeta Uhl)

Colombia (by John Gwillim)

Colombia (by Nick Hamilton)

Armenia (by Caree Edson)

Uganda (by Nila Uthayakumar)

Nicaragua (by Karen Gray)

Where Kiva Fellows actually spend their time (Indonesia pictured)

Kiva Fellows are nothing if not creative. We’ve gone to elaborate lengths to convince you that it can be hard to visit borrowers and that when we’re not trekking for miles, we’re doing elaborate calculations or dealing with databases and reporting. In truth, it’s all a front for an extended holiday from our regular lives. You thought our recent Carnival coverage (here and here) represented a change of pace? Think again!

Frolicking at Foreign Monuments
Country: Armenia / Fellow: Caree Edson (KF14)
While masquerading as a Kiva Fellow in Armenia, Caree is actually spending her time decorating ancient monuments and historical sites.

Safaris in Swaziland
Country: South Africa / Fellow: Alexis Ditkowsky (KF14)
Why work on deliverables when you can be hanging out with rhinos? The alleged “border run” is a favorite work-avoidance tactic for Kiva Fellows.

Pretending to be a Princess
Country: Cambodia / Fellow: Stephanie Sibal (KF14)
Not only does Stephanie spend all day dressed up as a Khmer Princess, she also documents her transformation in professional Cambodian glamour shots.

Going out into the field but only if there’s food involved
Country: Mexico / Fellow: John Farmer (KF14)
One Kiva Fellow does actually meet with borrowers, but only if there’s food involved. John followed up his recent visit to a tamaleria with a very important stop at the ice cream shop.

Staying Hydrated
Country: Ghana / Fellow: Mei-ing Cheok (KF14)
Mei-ing takes her health and hydration very seriously. Fortunately, she has discovered the wholesome goodness of Star beer, which she claims has prevented heat strokes on many an occasion.

Jungling and Rivering
Country: Uganda / Fellow: Nila Uthayakumar (KF14)
Nila was intrigued by the similarities between her name and the infamous River Nile, which proved to be as good an excuse as any to leave the office. She’s since been investigating the coincidence by traipsing through tropical forest and lounging by the river’s source in Jinja, Uganda.

It’s getting hot in here
Country: Sierra Leone / Fellow: David McNeill (KF14)
Did you know it’s hot in Sierra Leone? Like, really hot? Fortunately, David planned ahead and packed a hammock. Good luck to anyone who tries to pry him from it in the middle of the day.

Karaoke in Chiclayo
Country: Peru / Fellow: Sherrise Pond (KF14)
Sherrise spends most of her free time entertaining the residents of Chiclayo with her tone-deaf singing at Karaoke bars all around town. As Sherrise has been heard to say, “Any time of the day or night, it’s time to pass the mic!”

Watching the Wheels
Country: Rwanda / Fellow: Adam Cohn (KF14)
Adam has chosen to indulge in the Rwandan pastime of lying by the side of the road, watching traffic go by. Adam prefers his choice spot above Lake Burera to staring at his laptop at the MFI head office, but plans to leave just in time to catch a flight to Bangkok in May.

Always Ready for Winter
Country: Bolivia / Fellow: Clara Vreeken (KF14)
Clara’s been wearing a winter hat since her first day in Bolivia and chances are pretty good that she won’t remove it until long after she leaves. (She’s discovered that Bolivia can be surprisingly cold and you never know what the weather will be like in the Netherlands.)

Mud Man
Country: Colombia / Fellow: John Gwillim (KF14)
For centuries, locals near the Cartagena/Barranquilla mud volcano have warned tourists about the the mud’s transformative properties but John just wouldn’t listen. They fear that he’s become the latest incarnation of “Mud Man”, destined to aimlessly roam the countryside until the mud finally washes off.

Life of Leisure
Country: Nicaragua / Fellow: Karen Gray (KF14)
Karen is taking her Kiva Vacation, er, Fellowship very seriously. From eating cheese to smoking cigars to just being a vaquera on horseback, she’s loving the opportunity to kick back, relax, and practice her español.

Let’s go fly a kite
Country: Benin / Fellow: Gareth Davies (KF14)
Aside from trying to keep his head above water while running the Kiva operations at his MFI, Gareth is testing out new eco-friendly travel methods which he hopes will “take-off” in Benin.

Playing on the Playa in Peru
Country: Peru / Fellows: Geeta Uhl (KF14) & Noreen Giga (KF14)
Geeta was sick of the torrential rains in Ayacucho and Noreen couldn’t stand the crowds in Lima, so they decided to stay put at the Playa San Bartolo. These super Fellows are making great progress on their Peruvian tans!

And an epic update from Lisa in West Timor:

What’s the point of being on an island if you can’t go surfing all the time?
Country: Indonesia / Fellow: Lisa Skowron (KF14)
Lisa writes, “Sorry to break the news to you, but there has been some fallacy in my past blog posts about my ‘experiences in the field.’ I arrived in Kupang, West Timor, Indonesia in late January bright eyed and bushy tailed, ready to make a difference in the world working with TLM. However, I found that Edwin Au-Young (KF13) had already done all the work and TLM was running like an all-star, well-oiled machine. So what is a girl to do in that scenario after trekking 9,519 miles from Chicago? Surf!

The next morning I took the ferry out to Rote, an island 2 hours off the coast of West Timor, and began practicing my surfing skills. Now that I’ve spent 99.9% of my time in Indonesia surfing (sorry Kiva!), I’ll be competing in the Oakley Pro 11 in Bali. I hope to make the highlights reel with my wicked backhand re-entry!! Win or lose, at least I’ll get to spend the week partying it up!”

Plus more pictures from “the field”:

Indonesia (by Lisa Skowron)

Mexico (by John Farmer)

Cambodia (by Stephanie Sibal)

Sierra Leone (by David McNeill)

Ghana (by Mei-ing Cheok)

Uganda (by Nila Uthayakumar)

Swaziland (by Alexis Ditkowsky)

Colombia (by John Gwillim)

Nicaragua (by Karen Gray)

Bolivia (by Clara Vreeken)

Armenia (by Caree Edson)

Rwanda (by Adam Cohn)

Peru (by Sherrise Pond)

Benin (by Gareth Davies)

Peru (by Geeta Uhl and Noreen Giga)

Many Fellows get around in fanciful local taxis (Indonesia pictured)

While it may have been a slower “official” news week than usual, I can assure you that the Fellows are keeping busy. One Fellow spent hours searching fruitlessly for borrowers in the jungle, another has been suffering from serious gastrointestinal issues (aren’t you glad he didn’t post about that?), and the rest of us have been plotting something very special for the end of the week. In the meantime, you can catch up on social quirks in Rwanda, transportation in West Timor, the importance of corn in Guatemala, and the latest from Mongolia all while taking a look at photos from South Africa. Enjoy!

Hissing, High Fives & Apologies; Some Habits I Have Acquired In Rwanda
Country: Rwanda / Fellow: Caitlin Ross (KF14)
Adapting to a new place is great while you’re there but potentially awkward when you return home. Caitlin figures out which habits she should leave in Rwanda (hissing) and which need to come back with her to the States (high-fiving strangers).

Photos from KwaZulu-Natal, South Africa
Country: South Africa / Fellow: Alexis Ditkowsky (KF14)
There’s nothing like a quick trip to the field to keep a Kiva Fellow motivated. Check out pictures of borrowers, loan officers, and a very cute goat.

Hear that?? It’s Kupang Bemo Rap!!
Country: Indonesia / Fellow: Lisa Skowron (KF14)
Kupang, West Timor takes its taxis (“bemos”) VERY seriously and you can vote for your favorite at the end of Lisa’s post. Fortunately, listening to Justin Bieber for an authentic Kupang Bemo experience while voting is optional.

Corn People: A Staple Food and the Key to Human Creation
Country: Guatemala / Fellow: Gustavo Visalli (KF14)
Gustavo shares insights into the history of corn for the Quiché Mayan people and its essential role in everyday life today. Pasta and rice with a side of tortillas, anyone?

A field partner grows from the pilot to active stage
Country: Mongolia / Fellow: Amber Barger (KF14)
Read all about how Credit Mongol transitioned from a pilot partnership to an active partnership with Kiva and how Amber and previous Fellows guided them through the process.

~
Previous updates from the field:
Fun Facts, Field Visits + Back to Basics
Carnival, Collaboration + Cheese-Making
Man’s Day, Singing Fellows + Learning How to Count
Videos, Epic Commutes + Going Beyond Microfinance
“Christmas”, Trekking, Adversity + Good Company
~

Plus more pictures from this past week:

Guatemala (by Gustavo Visalli)

South Africa (by Alexis Ditkowsky)

Rwanda (featuring Caitlin Ross)

1)      Hissing

Here in Rwanda, it’s acceptable to hiss at someone in order to get their attention.  A simple “tsssss!” is effective for: attracting the attention of a moto-taxi, calling a waiter or bartender, getting someone’s attention on the street, among other things.  When I first arrived here, the hissing phenomenon struck me as being very rude.  But, after 5 months here, I am coming around to it.  The sound carries surprisingly well, so it is more effective than the seemingly more polite attention-getting mechanisms, like waving, or saying “excuse me”, especially in a noisy restaurant.  I have been refraining from the whole hissing thing, however, because it is a habit that I am afraid of taking back with me to my native San Francisco.  I can see it now; being at one of my favorite bars or restaurants in the city, and, forgetting myself, hissing at a waitress, waiter, or bartender.  I imagine this slip-up might warrant an extra ingredient with my drink order (read: saliva).  So, instead, I’ve opted to use my favorite word in Kinyarwanda:

2)      “UMVA!”

“Umva” (OOM-vuh), meaning “look” or “listen”, is possibly the most versatile word I’ve come across so far in Kinyarwanda.  It can be used to get someone’s attention, to emphasize a point, begin an argument, etc, etc.  Due to my aforementioned paranoia about becoming too comfortable with hissing at people, this word has become a prominent part of my vocabulary.  However, no matter how enthusiastic I am about my new favorite word, I doubt I will be successful in starting an “umva” trend in the Bay Area.

3)      “Sorry, sorry”

Let’s face it; I am a klutz.  I am constantly exhibiting my lack of motor skills in public by tripping, falling, spilling stuff, or walking into people or things.  In this way, my life in Rwanda has been no different.  Except for one thing; whenever I do any of the previously mentioned embarrassing things in front of people, passers-by will give me a concerned face and utter a very sympathetic, “ohhhhh sorry, sorry”.  At first, it struck me as odd; I’m the one who bumped into you, why are you apologizing?  After a while, I became accustomed to this expression of sympathy, and have since started doing it myself.  Now, whenever someone stumbles, drops something, or bumps into me, my first reaction is to apologize.  Not because I think it was my fault, but because I sympathize with the person for their bout of clumsiness.  Believe me, I do.  I think I am currently on the receiving end of about 5-10 “sorry, sorry’s” every day.

4)      High-fiving strangers

Maybe it’s because, as a pasty-faced foreigner, I stick out like a sore thumb all the time.  Or maybe it’s the general friendliness of the Rwandese culture.  Maybe it’s a little bit of both, but I seem to receive a lot of high-fives whenever I am out and about in my neighborhood.  This happens particularly during my post-work runs around Kigali (which many people do around here.  Yayyyy sidewalks!).  Whenever I set out for my evening run, I am usually greeted by packs of small children or adolescents who will give me high-fives as I run by.  It’s sweet, encouraging, and I admit, it makes me feel like a bit of a rock star.  A series of high fives from a group of school kids can be motivation to keep going, especially when I am red-faced and breathless towards the end of my route (which is due to the altitude here in Kigali, at 5144 ft.  It definitely has nothing to do with the multitude of French fries that have weaseled their way into my diet since my arrival in Rwanda.  Nope.  Nothing at all).  When I attempt to tackle the hills of San Francisco upon my return, I’ll miss those high fives.  Among other aspects of Rwandese culture, of course

Field visit to the Bugesera province. Many high-fives were had.

The Kiva Coordinator, Jean Baptiste, and I at the desk we share at ACB headquarters.

Caitlin Ross is a member of KF14 in Kigali, Rwanda, where she is doing back-to-back placements with Amasezerano Community Banking, S.A.  She is currently trying to cut back on her French fry intake.

Also, she will probably still try to make “umva” happen in San Francisco upon her return.

Lend to an Amasezerano borrower here: http://www.kiva.org/partners/170

Join the lending team!  Click here: http://www.kiva.org/team/amasezerano

Fellows, tourists, and locals celebrated Carnival all over Latin America (Colombia pictured)

This past week was all about collaboration: Fellows coordinating across continents to profile entrepreneurs and organizations who believe International Women’s Day should be every day and community members coming together to celebrate Carnival in all of its elaborate glory. We learned about public health in Peru, making cheese and cigars in Nicaragua, the impact of climate change in Bolivia, and the challenges faced by a microcredit saleswoman in Guatemala. Life as a Kiva Fellow is busy as always!

Carnival de Barranquilla
Country: Colombia / Fellows: Nick Hamilton (KF14) & John Gwillim (KF14)
Celebrate Carnival de Barranquilla vicariously through Nick’s words and John’s stunning photos. You’ll feel like you’re right in the middle of the action.

Celebrating Women around the World!
Countries: Cambodia, Ghana, Rwanda, Armenia, Bolivia, Mexico, Kyrgyzstan / Fellows: Stephanie Sibal (KF14), Mei-ing Cheok (KF14), Adam Cohn (KF14), Caree Edson (KF14), Klaartje Vreeken (KF14), John Farmer (KF14), Charlie Wood (KF14)
Supporting a family entails enormous personal and financial sacrifices for many women but economic empowerment can help alleviate some of the burden. This group post highlights the successes and challenges faced by select women from around the world and organizations and people who are committed to making fundamental improvements in their lives.

Empowering women through microfinance in Ghana
Country: Ghana / Fellow: Mei-ing Cheok (KF14)
Mei-ing lays out the legal and cultural roadblocks to female financial empowerment in Ghana and the many ways her partner microfinance institution (MFI) is dedicated to its clients, from loans to savings to academic scholarships for clients’ children.

Celebrating Carnival in the Andes
Countries: Peru, Bolivia / Fellows: Geeta Uhl (KF14), Noreen Giga (KF14), Sherrise Pond (KF14), Clara Visser (KF14)
After your trip to Colombia for Carnival, head down to Peru and Bolivia to see how they celebrate it in the Andes. Check out the traditional costumes, paint-covered Fellows, multitude of parades, and so much more in the photos.

Mud torrent, climate change and food crisis in Bolivia
Country: Bolivia / Fellow: Clara Visser (KF14)
Clara’s partner microfinance institutions (MFIs) are working hard to assist clients who are suffering from the impact of rising food prices and climate change, including recent mudslides in La Paz that destroyed at least 1500 homes.

“No Pasa Nada”
Country: Peru / Fellow: Noreen Giga (KF14)
“No Pasa Nada” is a ubiquitous phrase in Peru and it’s now the cornerstone of a recent public health campaign targeting HIV/AIDS discrimination. It’s catchy, it’s clear, and it sends the message that “Nothing is going to happen, discrimination is ridiculous.”

The Microcredit Saleswoman
Country: Guatemala / Fellow: Gustavo Visalli (KF14)
Gustavo shadows a loan officer in the highlands of Guatemala and discovers a very different dynamic between door-to-door saleswoman and potential clients than he’s used to in the United States.

Say Cheese For Kiva Student Loans
Country: Nicaragua / Fellow: Karen Gray (KF14)
Karen conducts important taste-testing at a local university where students have invested small loans from Kiva’s partner microfinance institution (MFI) into making cheese and selling it on campus.

What are they smoking in Nicaragua?
Country: Nicaragua / Fellow: Karen Gray (KF14)
A double-header from Karen. After learning about making cheese, she visits a tobacco-grower (and Kiva borrower) who makes cigars in Esteli, Nicaragua.

~
Previous updates from the field:
Man’s Day, Singing Fellows + Learning How to Count
Videos, Epic Commutes + Going Beyond Microfinance
“Christmas”, Trekking, Adversity + Good Company
~

Plus more pictures from this past week:

Colombia (by John Gwillim)

Peru (by Geeta Uhl)

Guatemala (by Gustavo Visalli)

Nicaragua (by Karen Gray)

Bolivia (by Klaartje Vreeken)

Ghana (by Mei-ing Cheok)

Peru (by Noreen Giga)

Solidarity - A group of Ghanaian women after their weekly meeting with their loan officer

The beauty of microfinance is that it gives people at the wrong end of the income spectrum opportunities to step out of the poverty trap. It also provides women the confidence and security that comes from earning their own income, leading to greater gender equality.

Financially and economically empowering women, studies have shown, has a greater ‘trickle-down’ effect, as they tend to spend more of their earnings on the household expenses such as school fees and healthcare. Thus, it benefits not only themselves, but also their families and even their communities.

This International Women’s Day, Kiva Fellows celebrate individuals and organisations around the world who have contributed to the advancement of women in their communities. We salute you.

Cambodia: From Housewife to Entrepreneur

By Stephanie Sibal

Norn, entrepreneur from Cambodia

Norn, a petite 28-year-old former housewife with two young children, used to rely solely on her husband’s US$5 per day income as a blacksmith. With her loan, Norn braved her first ever trip outside her tiny neighborhood to buy groceries and opened up a store in front of her home. She can now make up to US$15 in gross income per day. While the ins and outs of running her own business are an ongoing learning process, Norn is thankful. She now has regular customers who have also become her friends. 

Ghana:  Freedom from Hunger

By Mei-ing Cheok

The Christian Rural Aid Network (CRAN) provides thousands of micro loans to women in rural and semi-urban areas through its Freedom from Hunger programme. George Tokpo, Director of Operations, says, “When we empower women, they are able to provide their families. We acknowledge that women are more responsible when it comes to the upbringing of their children.” Mr Tokpo added that women make better clients, “Women are able to find jobs much more easily than men. They’re a lot more adaptable. If one business fails, they will pick something else up very quickly. This lowers the likelihood of defaults.” (read more about how microfinance is empowering women in Ghana here)

CRAN team: Gifty (in charge of borrower profiles), George (Director of Operations) and Cecilia (journal updates)

Rwanda: Francoise’s Fabulous Story

By Adam Cohn

In the video blog, meet Francoise, who started selling bananas with her first loan and today, owns a provision shop, land and is on her way to starting a farm. This goal-driven woman is providing for her family of eight and doing a great job of it.

Armenia: A tale of two women

By Caree Edson

Hripsik in her hair salon

Women’s Day is also celebrated in Armenia and because the holiday falls on a Tuesday this year, the government has declared Monday a holiday as well ensuring a nice long weekend for everyone.  While inquiring about women borrowers who stand out in SEF’s history of lending, I was immediately directed to Hripsik Movsisyan and Raya Martirosyan. These women lead vastly different lives -one owns a salon in the city, while the other works on her family’s farm in the countryside- but both represent the warmth and strength that I have come to appreciate in the Armenian people.

Hripsik is a hardworking widow with two children. She opened a salon in 2009 and applied for a loan from SEF for an air-conditioner to make her salon more comfortable during the hot summer months in Yerevan. This was a great move for the business and Hripsik was able to pay off the loan years before it was due in full.

Raya with her family and their cattle

Raya Martirosyan has been teaching math in a school in a tiny town named Agarak for the past 30 years. Unfortunately, her family cannot survive on her low wages and her farm is necessary for additional income and stability. She applied for a loan to buy cattle and has been paying her loan back consistently since September.

These women represent the struggles that many Armenian families face and the risks and hard work involved in making ends meet.  This coming women’s day should be a celebration of all the women making sacrifices everyday to better the quality of life for themselves and their families.

Bolivia: Guadalupe Cárdenas, a Remarkable Woman

By Klaartje Vreeken

Guadalupe (in blue) and women from Comité Cívico Popular de la Ciudad de El Alto

Guadalupe Cárdenas was beaten up by a policeman and lost her child in 2002. Three years ago, she started a new institution called Comité Cívico Popular de la Ciudad de El Alto, which fights for women’s and their children’s rights in El Alto, the city above La Paz where many poor Bolivians live.

The first campaign Guadalupe started was helping poor mothers to baptize their babies and to get their legal papers. Her institution provides the dresses for the babies and has so far, baptized around 10,000 babies.

In 2010 Guadalupe also campaigned against cervical cancer. Using an ambulance, they screened around 3,500 women for cervical cancer For 400 women, the cancer had already reached an advanced stage. However, Guadalupe’s group also managed to detect early stages of cancer in around 1,000 women.

Mexico: Champion for the People

By John Farmer

Pily, she's no zombie

CrediComun’s Kiva Coordinator, Pily, is a strong young woman who took part in the UNAM (the largest university in Mexico) student demonstrations in 1999, when the university announced that tuition would rise from practically nothing to around $150 per semester.  “We were a generation that protested, that mobilized; we risked our lives for something more than selfish interests, and we refused to play the role of a zombie.”

Her resume further illustrates her activism: working with street children in Chiapas, building houses for (and with) the poor on the outskirts of Mexico City, and working in the organic food industry. She has served as Kiva Coordinator for six months, and is moving to a new position within the company — she’ll be developing the social projects that CrediComun undertakes.

Kyrgyzstan: Man’s Day

And finally, we do have a tribute to men. Check out Charlie Wood’s recent blog on how to be a manly man.

Happy International Women’s Day!

The contributors to this blog are part of KF 14 (the 14th class of Kiva Fellows) scattered around the world.

Find out how you can lend to a Kiva Entrepreneur or become a Kiva Fellow.

Last week, Kiva Fellows took you to places you may not have known existed (West Timor, Indonesia, pictured)

The Fellows will be covering International Women’s Day later this week but let’s take a moment to acknowledge its lesser-known cousin in Kyrgyzstan, “Man’s Day”. And while you’re appreciating culture and history in far-off places, take a trip to Peru and West Timor through photos, visit borrowers in Uganda and Rwanda through video, learn a little something about communicating in South Africa, and catch up on the latest from Liberia, Ghana, and Mexico (home to the “Singing Fellow”).

What does Lima look like?
Country: Peru / Fellow: Noreen Giga (KF14)
Find out why Lima is nicknamed “El Pulpo” (“The Octopus”) and learn about an unusual local business: transporting a washing machine around the neighborhood and renting it by the hour.

The Meaning of “Now” in South Africa
Country: South Africa / Fellow: Alexis Ditkowsky (KF14)
“Just now” and “now” are much fuzzier concepts than a type-A American was prepared for. Plus pick up a few more South African-isms in the post and in the comments.

Knowing and Understanding, Saber y Entender
Country: Liberia / Fellow: Carlos Cruz Montano (KF14)
Carlos explores some of the barriers to understanding between borrowers and microfinance institutions (MFIs) through examples from Liberia, Paraguay, and Guatemala.

The Rookie (El Novato)
Country: Mexico / Fellow: John Farmer (KF14)
The most important thing you need to know about this post is that there’s a video of John singing his own song about microfinance, a highlight from his 45 hours of loan officer training.

Video Blog: The Kiva Story
Country: Uganda / Fellow: Nila Uthayakumar (KF14)
This week, Nila introduces us Adella, Deborah, and Florence, three borrowers who discuss their loans, their businesses, and how they’ve used their profits.

Video Blog: Francoise, A Kiva Borrower’s Story
Country: Rwanda / Fellow: Adam Cohn (KF14)
Bright colors, catchy music, and the story of Francoise, a smiling borrower who started with a $25 World Relief grant and is now her family’s breadwinner.

Gone Fishing
Country: Ghana / Fellow: Mei-Ing Cheok (KF14)
Mei-Ing gives a detailed overview of the fishing industry in Ghana and how recent government regulations are impacting lending decisions at her microfinance institution.

Huh, There’s a West Timor?
Country: Indonesia / Fellow: Lisa Skowron (KF14)
In case you weren’t familiar with West Timor, Lisa shares a gorgeous slideshow from her first month plus some startling statistics about Indonesia’s poorest province.

Ensuring a manly man’s day
Country: Kyrgyzstan / Fellow: Charlie Wood (KF14)
Kiva Fellows learn about and participate in a wide range of local holidays. Charlie appropriately celebrates Man’s Day in Kyrgyzstan with a trip to an entrepreneurial eagle hunter.

The next generation of microentrepreneurs
Country: Peru / Fellow: Geeta Uhl (KF14)
Jumping off of last week’s post “Kiva Field Partners: More than just microfinance“, Geeta describes how her partner offers classes and activities for children of borrowers.

Five things you may not know about Rwanda
Country: Rwanda / Fellow: Michelle Curtis (KF13)
Before saying goodbye to Rwanda, Michelle shares some of the important things she’s learned, including how to count with her fingers. (FYI, five is a fist and seven is a fist with two fingers poking over the top like rabbit ears.)

~
Previous updates from the field:
Videos, Epic Commutes + Going Beyond Microfinance
“Christmas”, Trekking, Adversity + Good Company
~

Plus more pictures from this past week:

Peru (by Noreen Giga)

Ghana (by Mei-Ing Cheok)

Indonesia (by Lisa Skowron)

Guatemala (by Carlos Cruz Montano)

South Africa (by Alexis Ditkowsky)

1.     Plastic bags are illegal – since 2006 plastic bags have been replaced with brown paper ones.  This is one of the reasons Rwanda is cleaner than many bordering East African countries.  No nasty plastic littering the streets, or smouldering in rubbish pile burn offs.  Rwanda also has a long history of community organised cleaning days, called Umuganda, which means Rwanda is litter free and full of green spaces (see a previous Kiva Fellow’s explanation here).  There is definitely a common sense of pride and involvement in keeping Rwanda beautiful.

2.     It is impolite to eat and drink in public unless at a restaurant.  Some say this cultural phenomenon stretches back to times of famine when eating in front of a starving person without sharing would have been callous.  In fact, with Rwanda’s high poverty levels today and many people struggling to afford even one meal a day, this still remains a good reason not to flaunt food in front of those less fortunate unless you have enough for all.  Regardless of where the practice originated, you will almost never see anyone eating and walking in public, it is considered the height of insolence and shows you up as uncouth and uneducated….or an unwitting visitor.

3.     The thumb is not a finger and don’t expect it to be counted as one.  Okay, this is a bit stupid but it has really provided endless entertainment.  In the absence of a common language it’s helpful to resort to sign language.  Five is indicated by holding up a fist; a bunch of fives.  Seven is a bunch of fives with two fingers poking over the top like rabbit ears.  Brilliant!

4.     Rwandans do not refer to each other along ethnic lines any longer.  To ask someone if they are Hutu or Tutsi is not only irrelevant but inconsiderate.  Irrelevant because ethnicity is not always clearly defined and unlike 16 years ago, decisions on property rights, jobs and status are not based on what ethnic group you belong to.  Inconsiderate because it shows a lack of respect and understanding for Rwanda’s painful and divisive history.

5.     Rwanda is the most densely populated country in Africa, and eighty percent of the population are involved in agricultural production. Rwanda is resource poor and their major exports are tea and coffee (some of the best I’ve had!), which only occupy 1 and 3 percent, respectively, of total cultivable land.   The majority of Rwandans are subsistence farmers and every square inch of the land is heavily tilled.   It also leaves many of the population vulnerable, both because land is scarce and farming is a precarious and challenging occupation due to terrain, weather and lack of modern equipment.

It places microfinance at the heart of possibilities for rural economic development in Rwanda. Micro enterprises and small businesses offer opportunities for vulnerable rural communities.  They have a role in construction, transport, trade and services, production of manufactured goods and processing of agricultural products, a largely untapped source of income and one that the microfinance industry can nurture.*  In addition, reaching the majority of the population via the agricultural sector through flexible loan products for farmers is one of the challenges MFIs such as Urwego Opportunity Bank and Vision Finance Company are actively seeking to address.

The green patchwork of highly cultivated plots of land in the north of Rwanda

*Source: International Fund for Agricultural Development

Michelle Curtis is a KF13er who finally said goodbye to the wonderful folks at Urwego Opportunity Bank and Vision Finance Company in Rwanda this week.  She has been truly inspired by the passion and commitment of those she was fortunate enough to work with.

Michelle and I traveled to Rwamagana, Rwanda to do some training and to observe a borrowers’ group meeting. Each woman gave an update on their loan and the state of their business. One woman in the group really impressed us with her savvy and her long-term goals. Francoise took us to her shop and gave us the low-down on what she’s been up to. Take a look at the video to see her story:

Adam Cohn is a Kiva Fellow, working with Vision Finance Company and Urwego Opportunity Bank in Kigali, Rwanda.

This is the third in a series of four posts.  The first two can be found here:

1. Current state of Microfinance in India
2. The issues, players and outcomes

Evaluating capacity to repay

About a month ago, it seemed like all I heard about was clients’ who were denied loans, or who got loans significantly smaller than what they needed.  At the time, I was concerned about how many people weren’t getting the finances they asked for. Then I heard about the suicides in India and was glad to know that the Kiva partner where I’m stationed, ACCION Texas-Louisiana, carefully considers how much to lend each client.

It’s an issue every Microfinance Organization has to take seriously.  Kiva Fellow Julia Kastner gave a few examples of why loan size matters in an earlier blog post.  I think Kiva Fellow Carlos Cruz Montano in Paraguay puts it well; “It’s in the best interest of the microfinance institution that their clients are not overindebted – it is their objective to improve members’ standard of living.”  Not only does overindebtedness put the organization’s investment at risk, it also goes against their primary goal.  Carlos goes on to say “In Paraguay there is a credit bureau that all banks/MFIs report to and I believe Fundación Paraguaya is well protected against borrowers with too much debt.”

Image copyright Joe Kohl

Here in the US, ACCION has access to a lot of formalized systems to help with determining who to lend to, and how much.  They look at the applicant’s credit score, as reported by TransUnion (a formal Credit Bureau).  They request official pay stubs, tax forms, bank statements, and other documentation to verify the applicant’s capacity to repay. For collateral, they look at titles, leans, insurance, sales receipts, tax appraisals, and other legal documents, as well as doing an in-person inspection. And they require a business plan and other documentation about the applicant’s business. Not all of these documents are required for smaller loans.  But in order to get more than $5,000, the client has to prove their capacity to repay.

The process works similarly in other countries, even when these formal systems are not available.

For example, CRAN in Cape Cost, Ghana, relies much more on education, the borrower, and their co-borrowers to determine a good loan size. Kiva Fellow Jacqueline Gunn explains:

“The loan product itself is Credit with Education. Each client undergoes a five week training course to understand the process, the expectations of the individuals and the responsibilities of the solidarity group. This training means that they often ask for a loan of appropriate size from the beginning.

The structure of the solidarity group is key. During the approval process, both the loan officer and the other 4-5 members of the group are involved. The loan officer interviews the applicant about their business.  They conduct an assessment in person to evaluate the potential for income generation. The group also assesses their fellow solidarity group members’ businesses to make sure they are happy that the loan is an appropriate size.”

The Loan Officer Jacqueline spoke with said

“I don’t want my clients lying in bed at night worrying for me to come and visit to get more money, it will ruin their life.”

And in Rwanda, this is how it works, according to Kiva Fellow Caitlin Ross:

“Amasezerano’s (ACB’s) main way to make sure that clients can repay their loans is a thorough analysis of their businesses, cash flow, and collateral to make sure they can make their payments.

For salaried individuals, they have certain systems in place; for example, an individual can take out a limit of 8 times his/her monthly salary.  However, if he/she takes out a loan of 8 times his/her salary, the repayment period is automatically set at 24 months (as opposed to 4, 12, etc), lowering the monthly repayment amount and spreading it out over time, so (s)he isn’t giving too much of his/her salary to the repayment process each month.  It’s set up like this so, theoretically, the client will always have enough to live on while still making monthly payments.”

Pressure to lend

As Abhishek wrote earlier in this series, the explosive growth of microfinance in India was one of the major causes of the current problems there.  The key is to grow without losing sight of the social agenda of the organization.  Back in the US, ACCION Texas-Louisiana does this by offering business education, and has set up employee incentives to mitigate the risk.  But ACCION is also growing quickly, and intends to continue doing so.

ACCION Texas-Louisiana is a not-for profit, but they still focus a great deal on growing their loan portfolio.  The biggest reflection of this is the Loan officers’ loan disbursal goal.  If they don’t meet their goal for enough months in a row, they lose their job.

However, Loan Officers also are given incentives not to make bad loans.  They lose their commission if their active loan portfolio has too high a delinquency or default rate.  Besides, they don’t get to decide whether an applicant qualifies for a loan, or for how much; Underwriting does. Underwriting is separate from the loan officers, has rigorous guidelines, and uses an automated system to do a first pass evaluation on applications.  They’re also not paid based on how many loans they approve, which would be an obvious conflict of interest.  As the CAO told me

“At the end of the day, if we don’t think the loan will help an applicant, we don’t want to give it to them… we don’t want to give them just more debt.”

Fundación Paraguaya is also balancing growth with careful internal incentives.  According to Kiva Fellow Carlos Cruz Montano:

“Microfinance is growing fast in the country and until recently they were the only institution offering loans with no collateral to poor women. Fundación Paraguaya is responsible for its own decisions, meaning that if they are not competitive or interests are above market levels, other institutions will take their customers…

Loan officers’ incentives take into account the number of delinquent loans…. Incentives are based on a number of categories. Between them are size of portfolio, new loans, and delinquent loans. Other measures are tied to institutional objectives.”

Pressure to repay

Going back to the issues in India; would these problems occur if there was no expectation they repay their loans?  Probably not.  But then no loans could happen in the first place; even clearly beneficial ones.

For most of my fellowship, I sat across the cubical wall from the collections department at ACCION.  All day, I could hear them calling individuals who were delinquent on their loans.  They were always respectful, but also clear and direct. Sometimes I heard them offering to restructure the repayment schedule so the individual could still repay it. Mostly I heard them trying to contact clients, explaining the situation, and asking for details from the clients.

Different partners handle delinquencies and defaults in different ways.  Various Kiva Fellows have already written about aspects of this, such as how some loan officers use social pressure to collect on loans, what the job of a debt collector is like, and how one lending group handled the delinquency of one of its members.

For group loans, it’s important to remember that pressure to repay comes not just from the microfinance institution, but from the rest of the group as well.  Kiva Fellow Caitlin Ross describes how Amasezerano’s (ACB’s) in Rwanda prepares for that:

“For solidarity groups, ACB makes sure that the members of the group have a contract in place amongst themselves as to what they will do if a member defaults on his/her payments, such as; if a member misses a few payment, and another member pays for him/her, then the member who missed a payment might give the member who paid for him/her one of his/her cows for compensation.  The credit officer is very involved while the group members are making this contract amongst themselves, to make sure the processes are understood, as are the consequences for missing payments.  So while collateral is not required by ACB when giving credit to solidarity groups, a contract amongst the group members themselves laying out a process for missed payments is a requirement.”

These are examples of what is happening in debt collection.  The challenge is to show that usurious collection practices or physical coercion are not. And that requires external oversight.

To learn about oversight and regulations from external agencies, tune in on Tuesday for the next installment in this series: “What is the industry doing to protect borrowers?”

Bridget Lewis is a Kiva Fellow at ACCION Texas-Louisiana in San Antonio, Texas.

Want to volunteer with the Kiva Fellows Program?  Learn more here and apply to be a Fellow!

You know that feeling.  The one you get when you’ve gone online and put in your $25 towards a loan of $850.  Then, a few hours later you receive “the update” from Kiva; an email to say 33 other people have done the same thing.  The loan has been fully funded.

It’s a beautiful moment, where elegant software design harnesses people power.  There is something wondrous about it. It restores my faith in the world, in humanity.

So perhaps you can imagine how I’m feeling now.  One of the MFIs I’m working with, Vision Finance Company, rallied together, overcoming considerable technical hurdles, to hit their loan posting targets for December – three days ahead of schedule.

Fiona, Bright & Solange. The new VFC Kiva Coordinators and their supervisor. Pulled out all the stops for December.

As I write this, 53 have been fully funded and I know by sunrise in Rwanda tomorrow morning, the remaining 20 are likely to have been funded by upwards of 2000 social lenders from all over the world.

Not that impressed?

Let me give you some idea of the scope of human involvement required to make this happen. And perhaps most inspiring, the speed at which it was possible.

Every month, every single loan you see on Kiva’s website has been reviewed by volunteer editors and translators.  In December, many editors take holidays and field partners are advised to have all loans for December posted in the first two weeks of the month – or they may miss out on reaching their fundraising target.

No editors, no approved loans.  Its one of Kiva’s many checks and balances, and driven by hundreds of volunteers.

The crunch was on.  First week into December I sent a worried email to the VFC Kiva Supervisor asking how many loans had been received from the field.  “Will we hit out target?” I said, “I’m worried”.

You see, for some MFIs, not hitting the monthly target set by Kiva can mean they lose precious interest free capital with very real effects on liquidity and the ability to disburse future loans.

On Friday 10 December, we had a total of 5 loans in the office. We needed closer to 75 posted in under a week.  Loan officers had met, interviewed and signed up plenty of Kiva borrowers, but they were waiting for cash to disburse the loans.

Without a definite date of disbursement, accurate repayment schedules cannot be created and no loans can be posted to Kiva.

An impressive flurry of activity ensued.  A directive had been issued to all branches.  Kiva loans were an absolute priority.  And disbursement for all loans must take place by Wednesday 15 December.  No exceptions.

This was no mean feat.  Head office effectively mobilised the entire organisation from admin and finance staff to loan officers to branch managers and even borrowers.

5pm on Tuesday 14 December loan officers rolled in from various districts in Rwanda to patiently deliver Kiva profiles and photographs.  The paperwork was piling up.

The two Kiva Coordinators worked until 10pm that night to have profiles drafted and ready for review in the morning.  By midday on Wednesday 15 December, I had played my role (admittedly unglamorous) by editing and publishing all prepared drafts – ready for final approval.

24 hours later, countless editors across the globe had  logged in and done their bit…we were rocking and rolling.  48 hours in, thanks to thousands of online lenders, almost all of VFCs December loans were funded.

What a team!  From MFI loan officers to branch managers, upper management, supervisors, Kiva Coordinators to Kiva editors and finally to you the Kiva lender.

Thousands of individuals, sophisticated software, the internet and collective human will managed to pull this off in just four days.

Yep, wondrous is definitely the word!

Michelle Curtis is a Kiva Fellow working with Urwego Opportunity Bank and Vision Finance Company in Kigali, Rwanda.  She is currently in the business of building lasting connections between entrepreneurs and lenders across the world.

Be a part of the Kiva power house in Rwanda. Visit Kiva’s field partners Urwego Opportunity Bank, Vision Finance Company or Amasezerano today.

Get that feeling!  Be a Kiva Fellow, apply today.

It was a rainy day, and I was heading to a local cafe to do work on a social performance audit for Hekima Microfinance, one of Kiva’s partners in the DRC. I hopped off the bus and was waiting to cross the street when the prison truck drove by, and I saw them: about 20 perfectly normal-looking, approximately middle-aged prisoners piled onto the truckbed, wearing their signature pink jumpsuits. Being a fairly experienced traveler, I thought I had mastered the art of ‘playing it cool’ when faced with something out of the ordinary. Not this time; I couldn’t help but stare. I had never seen a truckbed full of mass murderers before.

Genocide perpetrators in their pink uniforms. Photo credit: Global Research

It’s not that I expected genocide perpetrators to look like anything but normal people, but I don’t think that anything could have really prepared me for the fact that this is exactly what they looked like; normal people. Like you and me. Except unlike you and me, these people clad in pink helped hack thousands of their neighbors to death with machetes for 100 days in 1994. And yet here they are, out every day amongst the people whose family and friends were killed in the atrocities that they helped to commit. As I look around at the people of Kigali who are going on about their day while the perpetrators are being carted through the downtown area, I wonder; how does Rwanda move on after experiencing something so unspeakably awful?

The perpetrators in pink jumpsuits are actually part of this process of moving on. While some of the worst offenders are spending their lives in prison, the Rwandan government came to the conclusion that giving harsh life sentences to all those involved in the genocide of 1994 would only deepen the grudge that caused the Hutus to take up arms against the Tutsis in the first place. To help encourage restorative justice in Rwanda, the Rwandan Government established a system of Gacaca courts, based on the traditional court system. Gacaca literally means “justice on the grass”, and in these village courts, perpetrators are cross-examined by the very communities in which they committed their crimes. Both perpetrators and victims are involved here, and the process is meant to simultaneously encourage repentance from perpetrators, and forgiveness from survivors. In this system, perpetrators are often encouraged to come forward and admit their crimes for a lesser sentence. Which brings us back to our prisoners in pink.

Perpetrators in pink awaiting Gacaca trials. Photo credit: Star Africa News

Perpetrators who are considered to be minor genocidaires are allowed to serve minimal sentences and be re-integrated into society, but must wear their signature pink jumpsuits during the re-integration process. This is symbolic of Rwanda’s approach to moving on; in order to live after a genocide, a nation must move upward and onward without forgetting the atrocities of the past. Living and working in a country where there has been a genocide in my lifetime has been an incredibly complex experience, and I don’t think I’ll ever be able to fully comprehend the atrocities that happened in this beautiful country 16 years ago. All I can hope to do is continue to learn about the 800,000 victims of the 1994 genocide, and by doing so, do my small part to keep their memory alive.

I learned much of the information in this post through the Kigali Memorial Centre, founded by Aegis Trust.  They’ve really done a great job educating the public about the atrocities of 1994: http://www.kigalimemorialcentre.org/old/index.html

Caitlin Ross is a member of KF13, working with Amasezerano Community Bank in Kigali, Rwanda