Missionminds South Africa Missionaries In Depth

Bryan & Claire Flores

Mission South Africa

Micro LendingReal BusinessesPriscilla Msengana Doreas MenziwaAfrica Jam Update 2009

Micro Lending

Micro Lending

Banker to the Poor:"I never imagined that my micro-lending program would be the basis for a nationwide "bank for the poor" serving 2.5 million people or that it would be adapted in more than one hundred countries spanning five continents. I was only trying to relieve my guilt and satisfy my desire to be useful to a few starving human beings. But it did not stop with a few people. Those who borrowed and survived would not let it. And after a while neither would I." (Muhammad Yunus") Winner of the 2006 Nobel Peace Prize.How It Works Applicants will submit a business proposal to the Africa Jam board. The board will then consider the application and business plan and make judgments as to the likelihood of the success of the business.Individuals chosen to participate in the income generating program will be given 500 rand, which is currently equal to about $67.00. These participants will be held accountable through continued weekly meetings. Some areas of accountability will include; producing receipts of business purchases, as well as reports on the progress of the business. The Loan Officer and Africa Jam Staff will work directly with the borrowers, meeting consistently to provide support, offer encouragement, give advice, and discuss ideas to see that the business thrives.We have personally budgeted a portion of all the monthly support raised, to go directly towards this income generating program.

Africa Jam Goals:1. Distribute at least 10 loans in Khayelitsha 2. Maintain an 80% loan repayment rate Distribute 40,000 rand = $5,364.834. Accrue 5,000 rand in interest making the income generating program self sufficient. 5. Equip and train entrepreneurs to effectively run their businesses with responsibility and work ethic.6. Empower the youth and their families.

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Real Businesses

Brick making is a common business in the township of South Africa. A typical brick making business with a sole brick maker can produce about 40 blocks a day. Demand is much greater. The entrepreneurial brick maker borrows a couple hundred dollars to buy more material, an additional mold and hire an employee. This microloan will allow the owner of the brick making enterprise to grow their business and produce additional income that can be used to improve their standard of living while creating new jobs for their community. A family that may struggle to put food on the table is given access to a hundred dollars. They take the money buy some chickens and feed and now they have fresh eggs in the morning. Buy a rooster and now the family has even more chickens and a source of income. They have the dreams they just need to ability to make these dreams possible. Priscilla Msengana

Priscilla Msengana "She is our best business. She was running a spaza shop in 2008 when her husband lost his job and she had to use all her business money to help her family survive, so the business closed. She was very excited about the IGP in 2009 because it was a new start for her shop. This is her full time job and she runs it very effectively. She is now able to provide for her family and even has enough money to send her children to school functions such as dances, etc..."(Ryan DeCook, Africa Jam ) Doreas Menziwa

•Doreas Menziwa (MamLady) "She started a fruit and veg shop on the corner of her street. She now is selling chips, sweets, chicken feet, popsicles, etc. She works full time so her daughter has been managing the store most of the time. In her work she makes only R1600 plus R220 .about 250.00 dollars. from the government (per month) to feed and clothe kids and grandkids (6 people in a 2 bedroom house). Now that she has started the business she has been able to stop asking neighbors to borrow money for bus tickets for her and her children. She has been able to consistently provide food and electricity for the house. And best of all she is turning 50 next year and will be retiring from her domestic work that shes done her whole life in order to take over MamLadys Fruit and Veg full time. She is excited to be her own boss for the first time in her life. -Unfortunately Doreas wasn't around the day that I took pictures, so I dont have one of her." (Ryan Decook Missionary from Colorado) Andy and I got to feast on one of these while we visited South Africa in April of 2009. They were very good. (Bryan)Africa Jam Update 2009

Out of the 12 business loans given in 2009, for a total amount of R31,000, the businesses we saw started were pool table hire, hand bags, winter jackets and clothing, fruit and vegetable shop, spaza shops (general stores), photography, chickens, frozen meat, and beauty products.Out of these twelve businesses, 6(5 women and 1 male) are still running effectively and providing income for their families.Those who have businesses that failed find themselves in no worse condition than before taking out a loan, because IGP only secured against and recollected what they purchased with Africa Jam money.We are planning our end of the year celebration for those involved at the Spur Restauraunt. Some of the women have never eaten at such a place in their entire lives.There is a growing sense of unity, community and trust amongst the staff and the borrowers which is also giving them more ownership of the project and IGP more credibility in the community.

•Because of these success stories we are hiring 2 more people next year and have a goal to see 50 businesses started in KhayelitshaTestimoniesFinanceHome-PagePast-MonthsPage-4