Face to face: Oikocredit changes lives

Time to say goodbye

2011-02-06T20:28:00.001-08:00

The study tour 2011 is over. It’s time to say good bye to and thank everybody who participated in many ways in the study tour. It has been wonderful to share this experience with all of you.

Study tour souvenirs

In these 7 days I have learned much not only about our project partners, but also about Oikocredit members and investors and my colleagues in the region, especially Guatemala. I go back home with many thoughts in my mind: there is no perfect project but there is Oikocredit as long term partner for development. Being a social investor means creating real partnerships that go beyond financing especially in challenging times.

Study tour 2011 participants (Photo: A. Vargas)

Guatemala is a country of challenges and hard working women and men aiming for a better future for them, their families, their communities, and their beautiful environment.

One last effort

2011-02-05T21:27:00.000-08:00

We arrived very early in Guatemala City. As hotel rooms were not ready, the conference room became the place to leave our luggage and finalize presentations.

In spite of all, all groups managed to finish on time and delivered very good quality materials. Presentations gave a good overview of the project partners visited as well as raised interesting points for further discussion.

After the closing session, a group of participants went to Antigua for the last dinner together. Once again we had a good time and enjoyed Guatemalan food and marimba music.

Culture and nature in the Maya Biosphere Reserve

2011-02-04T19:11:00.000-08:00

Today I spent the day enjoying culture and nature in the Maya Biosphere: I will visit the ancient Maya ruins of Tikal. Tikal is located in a core zone of the reserve; where no sustainable forestry is allowed to preserve the primary forest. Because of its economic and touristic importance, the area where Tikal is located can be exploited for tourism under strict conditions.

Study tour participants on top of highest temple in Tikal

There is a clear difference when a forest is well preserved. While driving to the entrance of the archaeological area one could see some wild animals alongside the road. I saw a dead very dangerous and poisonous native snake and many colourful turkeys and other birds and animals. In the park, we spotted a female grown up monkey feeding and carrying her baby. In Tikal Park animals are not afraid of humans because nobody will harm them.

A beautiful forest

2011-02-03T23:18:00.000-08:00

It takes almost an hour to get to plot 3 in Carmelita’s forest concession. The road becomes even narrower due to the dense vegetation and everywhere there are deep holes that make it very difficult for the pickups to get through. I hope we would not get stuck somewhere and would have to push the car.

We stopped by a Chico Zapote tree where Don Luis made a demonstration how resin is collected. The tree is not cut completely, so it can produce more resin. It was also explained the exploitation of the Chico Zapote tree follows the same harvesting scheme as the whole concession: after the plot has been harvested, it will not be harvested again until 40 years later.

1 km further we went into the forest to see mahogany “father trees”, which are mahogany trees of specific characteristics that were left in the harvested plot to provide seeds for future mahogany trees. Along the small roads, the community plants mahogany, cedar, and other secondary trees, so the ecosystem keeps its balance.

It was nice walking in the Maya Biosphere Reserve. I am glad these communities are preserving the forest while also making a living. Thanks to sustainable forestry practices future generations would also get the chance to enjoy this beautiful environment.

Would you like some gum?

2011-02-03T12:03:00.000-08:00

The day started very early with a three hour drive to Carmelita, another FORESCOM member. Carmelita is a resident community located in the forest concession. The road is unpaved and pretty damaged, so sleeping was not an option.

Selecting xate for the US market (Photo: A. Vargas)

Upon arrival there was a presentation and a visit to Carmelita forestry facilities. I saw how Xate leaves are classified and packed to be exported to the US (the largest leaves) and The Netherlands (smaller leaves). Women are employed by Carmelita to do this job. Because the collection of Xate is not seasonal, these women have a steady income throughout the year.

Then I walked in this big room filled with squared blocks. They were made of resin collected in the forest concession from the Chico Zapote tree. The resin is boiled for some hours before it becomes gum.

When the group was invited to try the gum, I was a bit reluctant at first. But as more and more people dared, I decided to give it a try and it was worth doing it. The flavour is not something you can easily recognize. It was a smoky-woody flavour, but I could chew it as the gum I am used to. From now on, anytime I will chew gum I will remember the blocks piled waiting to start their long trip before arriving to me packaged as mint chewing gum.

Weighing gum block (Photo: A. Vargas)

Sustainable forestry in practice

2011-02-02T20:23:00.000-08:00

Can you protect the forest if you are living far away from it? Yes, if you are FORESCOM member called AFISAP. AFISAP is located only 25 minutes away from Flores (Petén) in San Andrés Municipality and manages a forestry concession 90 km away as non-resident community. How can they do it? They organizing themselves and involve the community to manage the forest in a sustainable way.

Nubia, general manager of AFISAP

The whole concession is divided in 8 plots, with a rotation cycle of 5 years. This means that if a plot has been harvested this year, it will need to pass 40 years before the same plot is harvested again, so the forest can regenerate in a natural way.

Afterwards I visited AFISAP’s organic agro-forestry farm and eco-tourism project. They have many species like mahogany, cedar, cacao, orange trees, xate, and Chico Zapote trees. The organic farm also produces organic honing. And in the middle there is a small plantation of medicinal plants town managed by AFISAP’s women’s group.

Serving communities in the biosphere

2011-02-02T11:27:00.000-08:00

FORESCOM is a community-based organization that provides services to its 11 members managing forestry concessions in the Maya National Biosphere. Forest concessions are licensed to communities for 25 years. According to Guatemalan law, all these concessions must be certified. Because of this communities acquire rights and obligations to manage the forest in a sustainable way.

Felisa, president of AFICC, chats with me (left) at FORESCOM facilities

After FORESCOM presentation, I visited the drying facilities and sawmill. It was the first time I saw how these look like. I learned communities can trace their timber thanks to a system of colours. To dry wood, FORESCOM uses timber rests as fuel for the ovens.

Associated communities use FORESCOM forestry and commercialization services to access international and local market opportunities. One of these communities is AFISAP, which I will visit after lunch.

Can you see any forest?

2011-02-02T10:42:00.000-08:00

I was lucky to sit at the window. As the plane was getting closer to Petén it was possible to see several little towns and... leftovers of the forest. In between there were many spots that have been cleared for livestock and agriculture. This is why sustainable forestry management is necessary to conserve the forest and to provide sources of income to the people depending on it.

This made me even more eager to meet our project partner FORESCOM.

Local time

2011-02-02T10:24:00.000-08:00

Why would you arrive at the airport 2.5 hours before your internal flight departs? Simple answer: Because you were advised to do so. Well, that happens to us. Our flight to Petén was scheduled to depart at 6:30, but an airline employee advising to be at the airport at 4:00 am to be sure to have a place.

Looking back I realized this person did not have real time in mind, but a local interpretation of time – half an hour to an hour later. We arrived at 4:00 am to La Aurora airport in Guatemala City and stood as first ones by the counter long before it opens. We were told later employees only start working after 4:30am.

Could anybody tell me what time it is?

Before the sunset

2011-02-01T21:40:00.000-08:00

The time came when we had to say goodbye to the people of CADECH. They prepared a farewell lunch in a typical restaurant. A local group was playing marimba and we could visit the traditional sugar cane mill.

Souvenirs I received from CADECH

To remember the visit, they gave us a lovely souvenir: a small version of the typical hat coffee farmers wear with our names engraved in it. We exchanged best wishes and hit the road again to Palo Amontonado, 3 hours driving from Chanmagua.

Around 5pm we arrived to Alimentos Campestres. It was good to arrive before the sunset as it gets very dark and the road leading to the factory is narrow and a bit dangerous.

This was the first time I saw first-hand how solar panels work to capture clean energy. Besides, I saw how bananas are being dried.

Bananas dried with solar energy at Alimentos Campestres (Photo A. Vargas)

Unfortunately there were no samples anywhere to take home. Wish me luck trying to find Alimentos Campestres snacks in the local supermarket.

Empowered women

2011-02-01T15:43:00.000-08:00

The day started with a visit to CADECH’s wet and dry processing plants. In terms of environmental good practices, CADECH’s first priority was to address water management. A lot of water is necessary in the wet processing plant. Now they are recycling water for processing the coffee beans. I saw the machinery for washing the coffee and recycling water bought with Oikocredit’s financing.

At CADECH wet plant (Photo: A. Vargas)

CADECH next step will be an optimal use of waste after processing coffee. At the moment, they give it –for free – to its members to be used as fertilizers.

Before leaving Chanmagua I met two women members of the coop. Not only are Mrs Zoila and her daughter Marlene CADECH members, but also have been involved as members of the administrative board. Zoila was a member years ago and Marlene has just been elected.

Marlene and Ms Zoila (Photo: A. Vargas)

“It is because most decisions are taken at that level”, Marlene told me, “And women have another approach or point of view than men. I am very much aware of any opportunities for women and make sure that women also get the chance to profit from them”. It is not an easy task because agricultural coops are usually male-dominated. Mrs Zoila and Marlene are genuinely empowered women that pave the way for other women to dare to become actively involved in an important decision-making body of CADECH.

Yellow or red coffee beans: Which one should I pick?

2011-01-31T18:58:00.000-08:00

We arrived at CADECH – Cooperativa Adelante Chanmagua - offices in Chanmagua town, some kms away from Esquipulas (southeast of Guatemala) and close to El Salvador and Honduras borders. After a delicious lunch – I like Guatemalan food – CADECH reps gave us a presentation on the coop operations and challenges. CADECH members combine coffee growing with reforestation efforts. Then it was time for field visits.

It was busy in Freddy’s 1.75 ha coffee plantation. It is harvest period and there are about 10 seasonal workers. I wanted to try picking coffee. But there are green, red, and yellow coffee beans... and now?

Freddy, his sons, workers and CADECH reps in the coffee plantation

Today I learned Freddy and coffee farmers mixed both sorts of coffee in one plantation. Colour does not affect either the quality or flavour. Every sort has its strengths and weaknesses just as it happens with many things in life: it is not only the outside, but the inside what counts.

In another coffee plantation I was welcomed by a nice perfume coming from white flowers of orange trees that are planted to give shadow to the coffee plants. Some meters further there were pines planted also for shadow and reforestation purposes. This is quite of unique in the Central American region.

Oranges tasted good.

Sunny snacks

2011-01-31T15:18:00.000-08:00

It was a long trip. Not because the distance, but because of the road. Let’s be fair: the road is in good condition, but it is steep and has many curves. Deep in my heart I did not mind it much because I enjoyed watching the landscape: from the Altiplano to the dry area – where we will visit a project partner tomorrow – and again up to the tropical forest.

Guess what? During a stop, Carlos, the country manager, opened a box of fruits and local nuts snacks: Maya Mix by Alimentos Campestres - our project partner!

The snacks tasted better because they’re produced using solar energy. Everybody in the group loved them. It’s a shame we cannot buy them in Europe, the US or Canada because they would become very popular in not time. Is anybody looking for business idea?

Getting started

2011-01-30T22:37:00.000-08:00

At noon the last participants arrived from Antigua. As early birds, they spent some days in this city and around Atitlan Lake.

First lunch together in Guatemala city

The introductory meeting took longer than expected. After going over the agenda and practical and logistic matters, Oikocredit’s regional and country offices reps gave presentations on the operations with a focus on environmental matters. Andreas, an Oikocredit member from Germany living in Guatemala as journalist, gave some insights into the country from tips for intercultural relations to the concept and identity as indigenous.

The day closed with a dinner at a restaurant close to the hotel. It was nice Guatemalan food, which I have started to appreciate very much.

I look much forward to hit the road tomorrow. Can I have another tamal, please?

Oikocredit Guatemala and regional staff (Photo A. Vargas)

The office in Zona 10

2011-01-28T13:05:00.000-08:00

My day started pretty early. I could not sleep any longer because of the jetlag, so I decided to find out if the adapter I brought works (which was happily the case) and check my emails.

At lunch time, I met with Carlos and Augusto of the Guatemala office, and Eduard from Costa Rica. As we drive to the Oikocredit office I started discovering the less sparkling Guatemala City. This city hosts a significant part of the 56.2% of the population living below the national poverty line. 36 years of civil war and a highly unequal income distribution - the richest decile comprises over 42% of Guatemala's overall household income or consumption - makes Guatemala the 10th poorest countries in Latin America.

The office is located at the very end of the Zona 10 – between a wealthier and an emerging area - seems symbolic to Oikocredit’s role to promote global justice by challenging people, churches and others to share their resources through socially responsible investments and by empowering disadvantaged people with credit.

This was the last preparation meeting before the Study Tour 2011 Guatemala officially starts on Sunday, but the first time we meet altogether in person.

Climate change

2011-01-27T23:25:00.000-08:00

It was almost 4:00am (Dutch time) when I was ready to go to sleep. I woke up very early because of the rain. First thing I thought was: "Oh, my…! It is the dry season, but it is raining a lot". And then I found out a study tour participant did not arrive yesterday as planned. Her flight was cancelled because of the snow storm in New York, which I’ve learned has been the worst in years.

Lately there have been natural disasters and weather irregularities affecting people, communities and even whole nations in Central America and worldwide. More tropical storms and hurricanes, extreme cold temperatures, sever droughts, and heavy rains are continuously reported in the media. We continuously hear this wake up call, but… are we taking it seriously? Not only individuals, but also sectors and institutions are accountable for climate protection, fostering environmental-friendly and sustainable practices. Truth is that everybody can put its two cents before there’s a point of no return. How many of us are doing it actually?

A windy Guatemala city (from the hotel)

As I think of the project partners to be visited in the coming days - fair trade, organic coops, sustainable timber company, MFIs working in rural areas, and agri-processing companies using clean energy, - and many others that could have qualified for the study tour, it is clear Oikocredit has taken its role and responsibility as social investor seriously and long before "green", 'environmental-friendly", and "sustainable" was a household name in the among financiers in the microfinance sector. One example is the Mexico, Central America, and the Caribbean region, which is one of the leading Oikocredit regions in financing project partners with practices aiming to reducing or lowering their impact on the environmental criteria.

Rain has not stopped yet. Where did I put my umbrella?

A study tour to the Maya world

2011-01-26T21:57:00.000-08:00

After closing my suitcase, I realized it has only been 9 months since I went to Uganda for the Study Tour 2010. Because of the positive feedback, a new study tour was planned in 2011 with a focus on Oikocredit’s financing to project partners actively working on environmental issues and supporting vulnerable groups in rural areas.

Selecting Guatemala was not difficult. The country's portfolio includes project partners working in rural areas supporting indigenous groups and women and other partners involved in sustainable natural resources management, use of clean energy, and fair trade.

Guatemala is a well-known touristic destination because of its rich nature and Maya culture. At the same time, this beautiful country has a highly unequal income distribution, a tragic past of a civil war, and yet the percentage population living under the poverty level is striking, especially in rural areas.

Next Sunday Along with 15 investors and members of Oikocredit, the Guatemala team and staff from the regional office in Costa Rica, I will start a new journey to the hidden - for the regular tourist – Maya world, the real Guatemala. It is in these impoverish areas where in spite of the many challenges, Oikocredit continues financing grassroots MFIs, fair trade coops and environmental-friendly companies, which bring hope and opportunities through credit to the people and the environment.

It is time to witness again how the funds from our members and investors contribute to improve the lives of many Guatemalans in rural areas.

Liesbeth in Cambodia: project visit Seilanithih

2010-12-09T06:17:00.000-08:00

From the Philippines, I continued my trip via Bangkok to Phnom Penh, the capital of Cambodia. Even though the connection was very tight due to a delayed flight from Manila, I managed to arrive in Cambodia on time. Even my suitcase was there! Kao Kok, our country manager in Cambodia picked me up at the airport and drove me to the hotel. The first thing that struck me was the difference in traffic in Phnom Penh compared to Manila. My Philippino colleagues had already told me that it would look like Manila 10 years ago. The city was indeed much more quiet and relaxed. Cars were in the minority and there were no crazy eight lane roads like in Manila. The next day we visited Seilanithih, which is a microfinance institution (MFI) that has been a project partner of Oikocredit since 2007. After a presentation about the organizations achievements and plans for the coming years, we went to a branch in the province of Kampong Cham. The branch we visited started only a year ago and has approximately 800 clients. Loans are provided primarily for agriculture, business and services activities. Since over-indebtedness is a hot topic in the microfinance world nowadays, I asked the branch manager how he and his staff try to avoid it with their clients. He mentioned that it is very difficult to find the right information. However, if they know the client has already a loan with one of the other MFIs in the area, the loan is rejected. They make not only use of the information the client provides and use information from local authorities or, for example, neighbours. Another hot topic in microfinance is transparency about interest rates. The branch we visited had a sign on the wall which was even understandable for me, although it was written in Khmer (main language in Cambodia). It showed the loan types and amounts with the respective monthly interest rate levels (see photo).

Seilanthih branch manager next to sign with product & interest rate overview.

I also spoke to a few clients in this branch. The first one was Mr. Nuon Mek who is a 39-year-old rice farmer from the village Neang Lerng in Kampong Cham. We met him in the branch when he was making an interest payment (see photo). He has been a client of Seilanithih for 2 years and currently has a loan of KHR 2.5 million (EUR 449) for his rice production. The money is used for seeds, labour and other costs related to the production. With the income from the rice production and some soy bean and cassava production, he is providing for his wife, 4 daughters and 2 sons. The loan from Seilanithih is helpful because before he had only 1 hectare to grow his crops and now he has 3.5 hectares!

Mr. Nuon Mek makes an interest payment in a Seilanithih branch.

Afterwards we visited his place and met with his wife and some other family members. The first time I was in Cambodia, I saw two elderly people in their 70s. Until that moment I had not realized there are hardly any people of that age as a result of the Khmer Rouge regime. About 2 million of the 7 million Cambodians (at that time) were killed by this regime. Almost a complete generation has disappeared… Quite a shocking realization. When we headed home with the car, I wonderied how the Cambodians could still be so tremendously generous and friendly…

Mr. Nuon Mek together with his wife and 3 of his children with part of their rice.

We also met with Mrs. Khiev Orn, a 55-year-old woman who produces cashew together with her husband. For a year she has a 4 month loan from Seilanithih. Before she would finance everything from her own savings or borrow some money from her children that live in Phnom Penh. She has a loan of USD 1,200 to pay approximately 10 labourers during the harvest season to work on the 3 hectares of land. She also uses the loan for fertilizers. During the harvest season she and her husband sleep for 4 months in a hut in between the cashew trees to prevent the nuts being stolen. We also visited her house that was being rebuilt with concrete piles. When I asked Mrs. Khiev Orn who would live in the house while she and her husband were living in the hut, she explained that her children would live there.

Mrs. Khiev Orn showing us her cashew trees.

An interesting detail she mentioned was that she would not immediately sell the cashew nuts but would wait until after the harvest season. Prices are higher outside the season and she would earn a higher income. Smart thinking, I thought. I was happy to have had the opportunity to meet this business woman on the other side of the world!

Liesbeth in the Philippines: project visit UMFI

2010-12-08T05:58:00.000-08:00

On my next day in the Philippines Joyce, Andie and I fortunately left a bit later for the project visit, because we went to a nearby project partner in Manila, called Upland Marketing Foundation Inc. (UMFI). UMFI is a non-profit fair trade marketing institution for community based enterprises. UMFI is the marketing arm of 60 of these enterprises operating in 17 provinces across the Philippines. Products they market are among others coffee, Muscovado sugar, organic rice, jams, wine, vinegar, oil, honey, etc.

Photo: Staff representatives of UMFI and I in the warehouse in Manila

I visited the warehouse in Manila and met with the organization’s CEO Ruben Evangelista and Sales & Marketing Manager Mel Fonollera. In the warehouse the products are stored and sometimes even re-packaged (see photo) before distributed to the supermarkets in Manila where the products are sold.

Photo: UMFI employees sorting and re-packaging the rice in their warehouse.

It was very clear to me this organization has a strong social focus and is very committed to serving the communities they work with. This was also visible from the plans they have for the coming years. Beside stheir current products, they want to focus on cocosugar, dairy and other naturally processed fruits and vegetables. They stressed that they aim on these sectors because they want to support families in their major sources of income. UMFI also plans to develop new product lines (in cooperation with its R&D department) within value chains it is currently involved in. An example of this is Muscafe, which is an instant coffee product they produce. The sugar that is used in this coffee is based on the Muscovado sugar that UMFI already markets. Other plans for the future are related to working with export markets, and acquiring an organic certification. In the afternoon we went to a supermarket where the products of UMFI are sold. Here the CEO showed us how the products were displayed. He showed us a shelf which was almost empty, namely the one of the Muscovado sugar. Having a regular supply of sugar from their producers is very difficult and a challenge for the organization. As a result the sales fall behind, and profitability might be at risk.

Photo: CEO Mr. Ruben Evangelista in the supermarket where the UMFI products are sold.

Overall, it was interesting to see an organization at this point in the value chain and the important role they hold for the communities and families they support. However, it revealed also to me that it is quite difficult to be a marketing company with a social focus in the Philippine context and to do well at the same time. At around 5 o’clock we were back at the office and I left to my hotel, to prepare for the next two days in which I would provide training to my Philippino colleagues on how to write good project proposals. And as we say, good preparation is half the battle!

Liesbeth in the Philippines: project visit ASKI

2010-12-07T05:41:00.000-08:00

My second day in the Philippines started quite early, especially since I was still slightly jet-lagged from my flight. My Philippino colleagues picked me up at the hotel at 6.30 in the morning to go to Oikocredit’s project partner Alalay sa Kaunlaran Sa Gitnang Luzon Inc. (ASKI). After a quick breakfast at the Philipino version of Delifrance we headed to Cabanatuan City, three hours drive North of Manila, where ASKI’s head office is located. During the trip, some of us were sleeping (but fortunately the driver was not) when we almost bumped into a bus. They say traffic is bad in Manila, and apparently in rural areas it can also be quite dangerous. When we arrived at the head office, we were briefly introduced to some ASKI staff. We were supposed to have a longer meeting after we went for a visit to a group ASKI works with in the province Nueva Ecija. After being on the road for another hour, the ASKI staff explained with enthusiasm what their organization is about. Not only are they focused on microfinance but they also have many social development activities. As we say, they offer microfinance plus-plus!

The ASKI group we visited started in 2005 and began with a strong focus on social development. Since 2006 an agricultural loan group was started and we met 10 members of this group (see photo).

Photo: Members of the agri-loan group of ASKI in Nueva Ecija

Paula Patoc
Paula Patoc is a lady who looks very young but told me that she already has a few grandchildren. Paula Patoc has been a client of ASKI for 12 years through its individual lending program. She has several very small businesses: a mini-gasoline station, prepaid phonecards distribution, beauty products (I wondered if that would be her beauty secret…), a water filling station and a mini-pharmacy. Now she has a six month loan of PHP 25,000 (EUR 433) which she uses for all her businesses.

Furthermore, she has a housing loan for home improvement of the same amount. Her husband is part of a group lending scheme. Paula is a community organizer who tries (together with the help of ASKI) to organize the community to get things done by the local government and solve the problems they have. They have pushed for water projects, toilets, a day care center, among other community development projects. It showed me that ASKI does not only provide access to financial services, but empowers its clients to stand up for themselves and lobby with the local government to solve their issues. I also found it interesting to see the difference between men and women in this respect. The men of the community were focused on getting the local government involved in an electricity project whereas the women had a strong lobby for a toilet project to help poor families get proper toilet facilities.

Photo: Paula Patoc in her house in front of her mini-pharmacy.

Edgar
Another member of the group was Edgar, a rice farmer who already has his 11th loan with ASKI. When he started borrowing from ASKI he received a loan of only PHP 7,000 (EUR 118) and now he has a loan of PHP 45,000 (EUR 757). Edgar also saves with ASKI and part of this money he uses to pay off his loans. When I asked why he was with ASKI for so long he mentioned that ASKI has the lowest interest rate as other financing options would cost him 8 – 10% per month. He is using the loan for labour, inputs, etc for his rice production. He tried to produce in an organic way, but explained that it is difficult in this area, because it is mainly rain-fed rice production. As a result, weeds grow easily and it is very labour intensive to continuously weed the land. It would make organic production possible if they could have an irrigation facility, but it’s hard to get a group loan for that since some of the members of the group have land too far from the pump to make proper use of it. Luckily for me, Edgar’s plot of land was not far from where we met. Therefore he took me in his tricycle (see picture) to his land. Not completely fit for a tall European woman like me, but being a real Ugandan boda-boda fan, I really enjoyed the ride!

His rice field was not yet prepared for planting, but he hoped it would look like the neighbouring plots in a short time. He even offered me a hectare of land. I expected his sentence would continue with “if you marry my eldest son…” but he did not refer to anything like that. He just preferred hard dollars or euros for his plot. That sounds like an economist, which of course I liked!

Photo: Local transport in the Philippines

Later went back to the ASKI head office and met with the Executive Director (Mr. Rolando Victoria), the Director for ASKI Foundation (Ms Babylyn Dela Cruz) and the Director for Resource Mobilization (Ms Zoraida Libunao) who explained about the current positive developments in ASKI and their major difficulties. One of their problems is the PAR (portfolio at risk) level which is currently quite high. They have a lot of their loans in agriculture which is always a risky business, but especially in a typhoon prone country like the Philippines. Even though part of these loans have crop insurance it is difficult to get this because the insurance companies do not always pay out. On the other hand it strikes me that this organization wants to keep its focus on agriculture and is thinking about new products (value chain financing) and works together with e.g. Philrice, an institute for rice research.

Liesbeth in Kenya: Namachuma and Ugali!

2009-08-31T07:38:00.001-07:00

Day 3 continued
Project visits

The last client we visited was Mr David Kobaai. He and his wife have used the loans from the SACCO to build their house in Kajiado in about 10 years. They have a daughter, Sma, who is 4 years old. Mr Kobaai is a teacher at Iltareto Primary School and is a farmer (he is a Masai).
He has been with the SACCO for 17 years and has had six loans in that time. Currently, he has a loan of KES 200,000(€1900). He explained to us that a teacher’s salary in Kenya is not high, so he has other sources of income, but the fact that the salary is paid through the SACCO helps him to repay his loan on time. The repayment and interest are then deducted from his salary and he does not need to think about it. Being a Masai, he has both cows and goats but because of the drought, the cows were in a different area and we could not see them.

After this visit it was time for a different local experience - the food. We ate Namachuma (roasted goat meat) with Ugali (a maize-based dish). Normally, the Masai men would eat first and afterwards the women can eat what is left. For us, they made an exception and we ate together with the men.

Liesbeth in Kenya: building towards the future

2009-08-31T07:15:00.000-07:00

Day 3 continued
Project visits

At the SACCO offices we had met with a few board members. One of them, Mr Christopher Tomaka Meikoki Parkau (2nd person from right in the picture) is the present SACCO chairman. He was very eager to have us visit his house in Bissil and meet his wife and (some of his) five children.

We each received a nice Masai necklace as a gift. The Masai is a Nomadic tribe who live mainly in Kenya and Tanzania and are well known for their colorful clothes and jewelry. To save money they invest in this jewellery which they carry around everywhere they go. The jewellery does not lose its value, so it is a very inventive saving mechanism. I was impressed by their generosity in giving away their invesments. Who of us would go to the bank, take up our savings and give it to strangers?

Mr Meikoki joined the SACCO in 1990 and has had six loans so far with the organisation. He presently has a loan of KES 180,000 (€1700). As the principal of Lenkishon Primary School, he is trying to diversify his income by the construction of six, two-room apartments (see picture, right). In about a month the apartment block will be ready for occupation and they have all been rented out. The income from these apartments will not only add to the low income of a teacher, but is a good way to protect against damaging affect of the drought.

For Masai, their cattle are their pride. As a Masai, Mr Meikoki has quite a number of cows. The price for cows is low at the moment and it is difficult to find grass for the cattle. Therefore, they need to buy additional food for the cattle. The income of a principle is not high so therefore the income from the apartments will help him to provide for his family and at the same time keep his cattle in a healthy shape.

Liesbeth in Kenya: drought on the horizon

2009-08-31T05:16:00.000-07:00

Day 3
Project visits

We left our hotel early and headed out of Nairobi to the country side, to visit one of Oikocredit’s existing clients, Olkejuado. The teachers SACCO (savings and credit co-operative organization) is based in Kajiado, a few hours from the capital. The members of Olkejuado are scattered throughout the region.

The first Olkejuado client we visited was 46-year-old Lukas Matheka. Mr Matheka has been with Olkejuado for over 23 years with and is one of the founders of the SACCO. He is a primary school principal and runs a small cerials shop. He currently has his fifth SACCO loan of KES 500,000 (€4,700). He uses the loans for the development of his shop where his wife is working. The cereals come mainly from his land. Next to this he sells herbs, including stinging nettle which is good for blood pressure and general health. Country managers Edith and Carol were convinced and bought some of Mr Matheka's healthy herbs.

Mr Matheka explained to us that while the business was running well, they faced a severe drought that could influence the cereal supply, and consequently, the price levels and purchasing power of the community. The drought is a wide spread problem across Kenya and the East African region.

Liesbeth in Kenya: Free home delivery!

2009-08-28T04:49:00.000-07:00

Day 2
Project visits

Going to the outskirts of Nairobi, the country managers and I met with Joseph Ngaza and his wife. He became a client of Small and Medium Enterprise Program (SMEP) in 2003 and is part of a lending group.

All members of his group live in the same area and know each other quite well. Even though he is only 30 years old, he has already had seven loans. His first loan was of KES 20,000 (€ 190) through to his most recent loan of KES 600,000 (€ 5,600). He told us soon apply for another one soon of KES 1.2 million (€ 11,250). With the loans, Joseph opened a small shop and four points to sell kerosene, which is used for cooking and lighting.

Deus Manyenye, Oikocredit's country manager from Tanzania, asked him how many people worked for him. In total, he has eight employees including his wife. When we were visiting, she worked in the small shop, despite have a six week old baby who slept peacefully in a quiet corner of the shop, wrapped in a blanket. Their other daughter, aged six, was playing outside with some friends and enjoyed posing like a model for us whenever the camera was nearby.

With his next loan Mr Nganza wants to buy a truck to transport the kerosene to Nairobi and save on transport costs. Furthermore he wants to supply the transport for other kerosene sellers in the area and diversify his income even more. Currently he has only a motorbike, which he uses for the delivery of the kerosene tanks to clients. "Free of charge!" he told me with a smile on his face.

When he was asked by Simon Karimi (operations manager SMEP) what business he would choose if he had to choose between the two he was very clear about it: “The kerosene business, it is much more profitable!"

Joseph Ngaza and his story made it clear to me why I work in microfinance. With a small loan people are given an opportunity to improve their lives, and the lives of those in their family and community.

Liesbeth in Kenya: finding the market niche

2009-08-28T03:11:00.001-07:00

Day 1
Project visits

After three and a half days of conducting training, it was nice to leave the office on Thursday after lunch with three representatives from Oikocredit’s Kenya regional office. We were expected at the head office of SMEP (Small and Medium Enterprise Programme), a potential project partner of Oikocredit in Kenya. There we met with the CEO (Phyllis Mbungu), the finance manager (Simon Kamore) and the operations manager (Simon Karimi). Even though we met briefly, it was very easy to see they have a strong vision to improve the lives of the poor in their country, as well as growing their institution.

Mr Karimi took us thereafter to the Nairobi branch of SMEP and to a few clients related to this branch. The first person we met was Mrs Eunice - a 40 year old lady, living in Nairobi. She has been a member of SMEP since 2003. Her business is a small hairdressing salon in a mall in one of the suburbs of Nairobi.

When we dropped in the salon was full of women, waiting to have their hair straightened, weaved or braided. Eunice told us that before she came to this mall she had a small hairdressing salon elsewhere. Because of competition, she decided to find a new place to continue her business. She is the only hairdresser in this shopping mall and as a consequence, she can serve all the people living near by or working there. She explained that she still had some marketing to do in order to manage all of the women in the building as clients.

So far Mrs Eunice has received three loans; two of KES 50,000 (€470), and one of KES 200,000 (about €1,900). The loans were each through the SMEP individual loan scheme, which focuses on enterprise growth. With the latest loan she plans to expand her salon with a barber section and a small selection of clothes, which she was already successfully selling in the salon. In her shop she has three employees working for her and with this business she can support her husband and children.

After we asked her what the main challenge was at the moment, she told us that facing the general increase of prices in Kenya is difficult. For example, clients are used to paying KES 200 (€1.90) and are not happy to pay KES 250 (€2.30)for the same treatment.

I was very much impressed by the entrepreneurship of Mrs Eunice, who is faced with many business challenges while at the same time finding a market niche.

When we were leaving she offered to do my hair but unfortunately we did not have time...

Photograph: myself (second from right) together with Oikocredit and SMEP representatives.

Introduction: Liesbeth Sijtsma

2009-08-27T06:17:00.000-07:00

My name is Liesbeth Sijtsma and I work as a Loan and Investment Risks analyst at Oikocredit's office in Amersfoort, the Netherlands. As an analyst, I evaluate potential loans and investment projects against a strict set of Oikocredit's financial and social criteria. I then recommend whether to invest in or lend to the projects.

In August this year, I travelled to Kenya to meet with representatives from Oikocredit's East African office and visit potential and existing project partners. After spending the first three days conducting training sessions , I had the chance to meet with people who's lives have been changed by microfinance. Here are some of their stories.

To be continued…

2008-09-23T13:03:00.000-07:00

While at the airport’s waiting room, I think back of what I have been through the last days. Different people, different stories, different entrepreneurships: but the same dream of a better life and future for themselves and their families. I think about how because of that first loan, they got wings to become what they are today: empowered people, proud of themselves and willing to continue working hard until they achieve their dreams. At the same time, I also realize that without people and institutions believing in investment for development, this could have never been possible. There has been much achieved, but there is still much to do…

Awarding development without borders

2008-09-22T20:01:00.000-07:00

It was still half an hour before the event started, but many representatives of our partners were already in the conference room. I recognized the people of CLAEH and Cooperativa Artigas, and met many others. The room was crowded because there were more attendees than expected. Nobody minded standing up during the whole ceremony. This demonstrated their recognition and appreciation to the regional office located in Montevideo, which this year celebrated 25 years of operation in Argentina, Bolivia, Brazil, Paraguay, and Uruguay.
Central Lanera Uruguaya (CLU) received the Oikocredit Award 2008 for their excellent track record in achieving economic and social improvements for small sheep wool producers – without borders. CLU’s 2000 members belong to 40 cooperatives located in not only the most remote areas of Uruguay, but also in Rio Negro, a province in the centre of Argentinian Patagonia. I learned that CLU developed the Centex brand - high quality Merino wool – which is well-known in the Merino wool trade sector. This brand is exported to Europe, Japan and the USA. Next time I buy a sweater, I will search for one produced with Merino wool of the Centex brand. Let’s hope they have it at the local store!

Go, go... Oikocredit!

2008-09-21T19:25:00.000-07:00

The small cottages in Cerro del Toro are very cozy. Built in wood, they look pintoresque in spite of the grey and rainy day. I try to imagine this place in the summer with a lot of people and children playing by the swimming pool. In the large conference room, the Oikocredit delegation – three people from the Uruguayan office and two of us from Dutch office - were warmly welcomed. We sat at a large table, and were introduced to the players of… the Oikocredit wheelchair basketball team!

It was a nice surprise to see these young men wearing a white tee with our logo on. During lunch, it was uncertain if the basketball game will go on as it was still raining. But by the time we finished lunch, rain has stopped. The game can begin!

Some of them move using crutches, others need a wheelchair. We supported “our boys” along the line, and celebrated loudly every basket. The game was intense, and every point was disputed. The players demonstrated their high skills and outstanding physical condition: it demands much energy to play basketball and move with a wheelchair. At the end, the Oikocredit team lost, but it did not matter: everybody had a good time, and we witnessed again how investing in people can make the difference.

A new meaning of credit for development

2008-09-21T19:22:00.000-07:00

The last visit to a project partner in Uruguay brought me to Cerro del Toro (Bull’s Hill) where Cooperativa Artigas has a recreational complex called “La Colonia” (the Colony). This 2 hectare complex has rooms, small cottages, a pool, and basketball court. Why should a microfinance institution have such a place? The answer is simple: to promote better life quality for their borrowers. Cooperativa Artigas mission does not limit to providing loans, but improving life standards of their borrowers and their families: people with low-income and people with disabilities.
This MFI has a special focus on integrating people with disabilities into society, opening credit lines for two Uruguayan institutions addressing this target group. This is very unique because in Uruguay, as in many developing countries in the world, there is a lack of facilities and programs for these people. In some countries, it goes to the extreme that they are discriminated by society and even by their families.
Like Oikocredit, Cooperativa Artigas invests in people. No wonder the relation between both organizations already dates from 2001, five years before Cooperativa Artigas officially became Oikocredit’s project partner. Credit goes beyond providing a loan, but believing in people and empowering them to continue believing in themselves and in their dreams. Only then does credit bring development and a better quality of life.

When dreams become true

2008-09-21T19:08:00.000-07:00

After the ceremony we drove to one of the policlinics where Añece works as volunteer as part of there university education. This time, Sofía Seimur, another third year student, drove along.
Sofía’s dream was becoming a doctor. As she grew older she realized it would be almost impossible for a girl from San Carlos – a city located, 45 minutes by bus from Punta del Este – and from a low-income family to afford studying in Montevideo. But her fate changed. During the last high school year, her biology teacher informed the students that the municipality of Maldonado and CLAEH were offering a full grant to study medicine, which included education and transport. Sofía and three classmates applied, and Sofía got a grant.
From the first year of college, all students are sent to public health centres located in poor areas of Maldonado. For students coming from wealthy families, this is a confronting experience, which helps them to witness first hand what the social side of medicine should be. Students with a scholarship experience the satisfaction to give back to the community the benefit they have received.

The other side of the coin: not everything is shiny and sparkling around Punta del Este

2008-09-21T18:29:00.000-07:00

Punta del Este. Wow! I couldn’t believe I was going there. This beachside town, some 100 kms from Montevideo, is the place to be in the summer for the rich and famous from this part of the world. But… what are we going to do in such a place?

The rain and dark sky gave the right scenario to a hidden face of this city: the poverty belt around the summer mansions. Maldonado, a city next to Punta del Este, is the home of many people living in poverty after they emigrated, looking for job opportunities in any of both cities. We arrived to the Centro Latinoamericano de Estudios Humanos (CLAEH, Latin American Center of Human Studies) in Maldonado to attend a ceremony to place the first stone of the new building Oikocredit will support financing.

CLAEH made a statement by decentralizing medical education, not without resistance from other universities. They made this choice for three reasons: to decentralize medical education; to provide access to medical school for students with less resources and living outside Montevideo; and finally, to recover the social side of medicine: helping people without distinction. Oikocredit contributed to finance the implementation of this medicine career.

Some students granted scholarships attended the ceremony. Among them, Añece Smeding, a third year student, told me that before all medicine students had to study in Montevideo, the capital city. For Añece and her fellow students from outside Montevideo had little resources and it was not affordable due to the economic and social costs.

Añece showed me the large practice room. Next to it there is a cold area where corpses are kept. I did not dare go further than the entrance room. Añece’s enthusiasm revealed she was getting much more than medical education; she was able to share with others what she was achieving during the studies.

Microentrepreneurship and development in Uruguay: who really needs Oikocredit financing?

2008-09-20T02:05:00.000-07:00

For the understanding of many living abroad, Uruguay is a country that is not easily linked with poverty or disadvantaged people. Seldom are examples from this land mentioned in the discussions regarding development efforts or poverty alleviation cases. This is far from true, I was told. There is a silent, but broad part of the population that lives under poverty conditions, especially small farmers. According to The World Factbook website, 27.4% of the Uruguayan households live below the poverty line. This brought a new angle to my stay in this country.

Baby garments for export

2008-09-19T02:04:00.000-07:00

We had to wait some time outside a building before Flavio Saramani Laime appeared from around the corner. He apologized for being late as he was in the market dispatching some orders.
At the end of a corridor, there is a small apartment where the small garment factory is located. Wherever you look around, there are piles of baby clothes in pastel colours. He learned everything about the business from his father, who produced clothes for adults.
Flavio once studied business administration at the university, but he was not able to complete this education and only made it to the third year. His ability to look for market opportunities led him to a baby garment factory, after discovering a niche in the market. His feeling proved to be right: Flavio has been in the business for more than 18 years. During those years, he experienced growth and difficulties.
”In the most difficult moments, when I had much stock and could not sell my garments, I went to FIE and they understood me. They helped me by reprogramming my repayment schedule in a win-win situation. Thanks to refinancing my debt, my business was saved.”
While talking over a local soft drink, Flavio shared his dreams of exporting in the future. To achieve this, he needs to buy a shed and a storehouse where he could have a larger atelier with 50 employees and produce exports for Paraguay, Argentina and Mexico.
“One should not be conformist with what one has achieved,” says Flavio as he gives me his business card and we say good-bye.

And the winner is… Awarding outstanding social performance

2008-09-18T04:20:00.000-07:00

In spite of the little time left after the morning visits to FIE clients, I managed to dress up a bit to attend the award ceremony. My Bolivian colleagues were a bit nervous, wondering how many people would show up because of the difficult situation the country was going through – especially in the “Media Luna” region. To everybody’s surprise, there were even more attendees than expected. This high attendance showed me Oikocredit’s ability to summon people in the country. The event started with an institutional video of our local office. Because the event was during lunch, the brief speeches were interspersed with breaks. Many in the audience waited with some tension to hear the winners. With this award, Oikocredit wanted to show its recognition for the social impact of its project partners and their exceptional quality. Because of the particulars of the country, the award was given in two categories: microfinance and production. CRECER, the MFI with a strong focus on rural women living in remote places was the project partner awarded in the microfinance category. The award for a production project partners was given to El Ceibo, the organic, fair trade cocoa farmers' cooperative processing and marketing cacao. Both project partners received € 3,000 each for the financing of technical assistance projects. The award ceremony went very well. The time management of the event was perfect. Each member of the country office team did their best to make everybody – guests and staff from abroad – feel comfortable and supported. My compliments to all of them! At the end came a “sweet” surprise: an El Ceibo milk chocolate bar wrapped in Oikocredit’s blue paper. It is going to be hard not to eat it, and take it back to the office to share with my colleagues. I hope I will succeed...

Thinking on Christmas all-year round

2008-09-18T04:15:00.000-07:00

A narrow corridor between two buildings takes you to Ricardo Murillos’s atelier. Ricardo owns a small factory of Christmas statues for the domestic market. It was 1990 when he became a FIE client. After inheriting the family business - started by his father 60 years ago – Ricardo went by chance to a FIE office: because it was close to his home. Since then, he has remained as a loyal and one of the oldest clients. “I do not lend from anybody else but FIE. They treat me well and lend me money according to my possibilities and business particulars. In my case, I only earn money at the end of the year when I sell my Christmas sculptures in the domestic market. We only repay the loan when we have profits, which is at the end of the year. No bank would ever have agreed to those conditions, which could have endangered my business.” From his end-of-year income, he pays the school fees of his two children. They like helping in the atelier during holidays. In December, after selling his sculptures, Ricardo follows courses on new mould techniques, painting and others because “everything evolves”. We walked around the atelier and admired the “Holy Family” sculptures in different sizes and positions. They were still waiting to be hand-painted. It is a labor-intensive work that Ricardo shares with his wife and four employees. Ricardo does not have a shop, but he delivers his products to libreria Don Bosco – where people buy them as souvenir - and to fairs. He also has fixed clients that supply his sculptures to the domestic market. “I would like to sale my sculptures to Argentina, Cobija, Santa Cruz, and Chile.” This Christmas I will think of Ricardo every time I look at the Christmas sculptures adorning shops and homes.

We found Yaqueline! A quest with a happy-end

2008-09-18T04:10:00.000-07:00

It was 2004 when my colleague first met Yaqueline Callisaya. Then, she was a small vegetable vendor in the crowded Rodríguez market of La Paz. She had a “terrenito” (piece of ground) in Villa Adela, a suburb of La Paz, and many plans for the future. Yaqueline has been a FIE client for almost eight years. Thanks to FIE she began a vegetable stall in the market and when banks did not believe in her, FIE did. “Since the beginning they never denied me a loan, which helped me develop my business“. As we arrived to the Cancha Belén area of the market, we walked as quickly as we could to the place where she was seen as last. And there she was! She looked much the same as on the pictures taken four years ago. It was the same stall in a corner close to the street – but there were more than a few vegetables. Her friendly face and smile are even more beautiful in real life. While attending customers, Yaqueline told me that she used her last loan (10,000 Bolivianos) to become a tomato wholesaler, which means additional income to the family. As I took out the pictures taken in 2004 to show them to Yaqueline, the neibouring vendors became so excited that everybody surrounding the stall wanted to know what was going on. “Look, this is La Yaqueline. She has not changed anything!” “Can I also look at the pictures?”“Are these real pictures?” Yaqueline proudly told us that she was able to complete her house using a housing loan. But her life has not been a bed of roses for the past years. Two years ago, her husband, a minibus chauffer, had an accident. Yaqueline was so desperate that she couldn’t work due to stress but she was lucky to receive immediate support from the MFI.“The loan officers are very nice people. They help me in just a week time.” With this loan, the car was fixed, and Yaqueline could go back to work. Her face becomes very serious as she says that without both incomes, they would have not been able to make ends meet. Yaqueline still has many dreams. Besides sending her children to school, she wants to buy a stall when the new Rodríguez market is ready (construction will start by the end of 2008). Her ultimate dream is to open a mini market at her place to work closer to the children. Yaqueline has no doubts that FIE will support her to fulfil her dreams. “FIE has confidence in us, without any suspicions. Such loans bring good luck.” We take the last pictures and we kiss her goodbye. Before getting into the car, I took a last glance to the stall, where Yaqueline has gone back to business as usual…with a big smile. “See you in four years,” I was thinking. Who knows I will be back?

And they lived happily ever after… striving for sustainable relations with the borrowers

2008-09-18T02:02:00.000-07:00

Today, we will visit some MFI clients in La Paz. FIE FPP (Fondo Financiero Privado para el Fomento a las Iniciativas Económicas SA). FIE is currently one of the leading MFIs in Bolivia. Founded as a non-profit institution in 1985, FIE was formalized as a private financial fund in March 1998, when it became FIE FPP. Its relation with Oikocredit dates from 1996, even before it became a private financial fund. As long-standing project partner, I have heard much about this MFI since I start working for Oikocredit.

As we wait for a taxi to go to the market, FIE’s loan officer told me something I could never imagined regarding this MFI. Every August, FIE asks a yatiri – a Bolivian shaman – to make a ritual offer to the Pachamama – an Andean Mother Earth deity – to bring good luck and success to its clients in the coming year, as well as protection against anything bad. With this yearly rite, FIE FFP materializes its approach and confidence towards its clients as key economic agents for the country’s broader development as well as its respect for local traditions. Their long standing relationships with their clients are based not only on providing them a loan, but also through standing by them in difficult situations.

The little house in the organic plantation: cacao is a family affair

2008-09-17T04:41:00.000-07:00

Our last visit is to the cacao plantation of the late Arturo Masias, one of the cooperative’s founders. As eldest son, Basilio Masias took charge of the farm on behalf of his siblings after his father passed away. Reina Condori, Basilio’s wife, and their four children greeted us. The youngest one is carried on Reina’s back and is only a few months old. She explained to us that the whole family is involved during the harvest. Even the eldest children of their relatives come to help after school. While Basilio climbs up the trees to pick up the cacao beans, she cuts them in two. Reina gave a brief demonstration. I was impressed by her ability to cut cacao fruits using such a huge and impressive knife. While walking around the plantation, where the last cacao fruits were hanging and I tried to imagine how the plantation would have looked before the harvest season, with the many yellow cacao beans hanging everywhere. Around the cacao plants, they grow organic bananas that are used to provide some shadow to the cacao and for family consumption. With pride, Reina told us that they were able to build a better house thanks to the premium they received from their cacao. After taking the last pictures, we left them as Reina must prepare lunch for the family and put the baby to sleep. We were invited for lunch back at El Ceibo quarters. It was nice to see some of the farmers again that we met the day before and say good-bye before taking the long road back to La Paz.

From microentrepreneurs to village banking managers

2008-09-17T04:26:00.000-07:00

Throughout the world, many village banks are successfully managed by women, and CRECER is no exception. At the moment, this village banking group has 15 members. They already are in their 46th loan cycle, with a total loan amount of 81,000 Bolivianos (9,321.49 Euro). Every 15 days the group meets and receives some education and training on banking and financial issues. The women speak Aymara and Spanish and call each other “sisters”. The village bank “Lago celeste A” is managed by: - Miriam Machaca is the president, she sells handicrafts - Teodora Condori is the vocal, she is a fisherwoman - Esperanza Chambil is the treasurer, she sews clothes and sells handicrafts - Magdalena Chambi is the secretary, she sells handicrafts, and is the youngest of the group - Gregoria Choque is responsible for education/training issues When we arrived, there was a clear barrier between “us” and “them”. Fortunately, Alberto managed to break it down through a play using Aymaran words. We laughed a lot, and from that moment, the bridge between our worlds was built. While they were making repayments, I sat in between them for a brief chat. Strikingly, any time I asked about their future plans, they respond unanimously “We want to continue growing with CRECER”. Gregoria supports Alberto during the trainings. Because she is not busy with repayments, we had a brief conversation. Gregoria is a fisherwoman and fish wholesaler in Tiquina town, on the shore of the Titicaca Lake. Since 15 years ago, she wakes up very early in the morning to sell fish in the local market. With her small boat, she is able to catch four to five large cans of fish – mainly ispi and carachi, which are common in the lake. Before joining the group, 11 years ago, her catch was not sufficient to provide for the family. Nowadays, Gregoria get more income thanks to the village bank “I use the loans to buy more nets, so I catch more fish and sell more. I have fixed customers”. Next to this, every six months she receives a small amount as profit that she uses for buying a quintal (46kgs) of rice or shoes for her children. She uses the additional income to pay for the school of her four children. CRECER support has been crucial in difficult moments. “CRECER also provides us a special loan when my children or I am sick, so I can continue working”. Gregoria’s husband works crossing cars and buses from one shore of the lake to the other. Due to the political and social situation in Bolivia, Gregoria’s husband only crosses two cars or buses a day. There is no bridge between the shores of Lake Titicaca because the population was against building one. At first sight, it is difficult to understand such a decision. Would it be a sign of respect to the lake because it is believed to be an important shrine of feminine energies on Earth in Aymaran cosmology? I wonder if I will ever find out…

The Aymara world: the challenges of adapting microfinance practices to a bi-cultural environment

2008-09-17T04:25:00.000-07:00

It is almost noon when we arrived at Tiquina. In a large room next to a church, the village bank group “Lago Celeste A” (Skyblue lake A) is about to start their session. They are monitored by the Batallas area branch of CRECER, which comprises a total of 185 village banks. With more than 15 years of existence, it is the oldest group from this area covering Tiquna and Copacabana, including the Isla del Sol (Island of the Sun). CRECER (in English: GROW) is a microfinance institution that believes that education in financial matters should go together with providing loans. This contributes to the success of their entrepreneurships. It also helps them develop fidelity with their clients. Such trainings involve using pictures as many of the women are illiterate. Also different participatory techniques are included. In addition, trainings are given in Aymara, a language spoken around the Lake Titicaca area in Bolivia and Peru. After briefly introducing us, Alberto Rodríguez – CRECER loan officer – started the training. This time it was on savings: why savings are important and what kind of savings exist (formal, semiformal and informal). They also received information about a health center they can visit for a general medical check. (Most of the women of village bank groups do not attend health centers for various reasons, from cultural to lack of resources.)

Back on the road: to Lake Titicaca branch to Crecer

2008-09-17T02:00:00.000-07:00

The road from La Paz to Tiquina, on the shores of Lake Titicaca, takes about two hours depending on the traffic. In a way, it shows the contrasts that you also find in the area itself. Getting out of La Paz and passing through El Alto one can see how the Western lifestyle gives room to an Aymaran world. Their world has been able to keep some traditions in spite of the long colonial period, as well as adapt others to shape itself to what it has currently become: an Aymara culture living in a bi-cultural world.
Located at 3,812 m (12,500 ft) above sea level on the border of Peru and Bolivia, the Lake Titicaca –known as Mamacota (Mother Lake) in native Aymara – has had a special role in the Aymara cosmology since ancient times. It is no surprise, then, that CRECER, our MFI project partner, started its operations in this area through village banks. Village banks usually are composed by groups of 12 to 15 clients that meet on a regular basis. 95% of CRECER clients are women, and 60% of them live in rural areas.

The cocoa experimental centre: technical assistance meets organics meets young farmers’ dreams

2008-09-17T01:59:00.000-07:00

It is a very sunny morning when we arrived to El Ceibo experimental center. Sergio Ichuta gives us a friendly greeting at the entrance. At 28 years old, he is deputy director of the agroforestry department. El Ceibo provides training and job opportunities for its members. This is welcomed by the farmers, not only because of the personal development, but also because they can give something back to the cooperative. It struck me how important it is to work for El Ceibo and share with other cooperative members in return for all the benefits they receive. But the farmers do not feel it as an obligation; they do it with pleasure because they see a direct benefit for themselves and their families.
We followed Sergio around the center where the cooperative tries growing different cacao varieties and use different techniques. For the first time in my life, I tasted the cacao fruit. It is greasy and its tastes is quite sour, but nice. A bit far away, I found Marta Sipe and Lidio Vaquiata doing seed grafting, a labor intensive job. Marta and Lidio are relatives of El Ceibo members. Dispite their different ages and stories, they share the same dream: to buy a cacao plantation plot. With the training and experience they gain working for El Ceibo and their savings they are confident that their dream will soon come true.

Standing by the farmers: Inocencio’s story

2008-09-16T04:54:00.000-07:00

Outside the gathering facility, I met 44 year old Inocencio Figueroa Herrera. He lives in San Antonio town, and is the president of Cooperativa Sejana. His two hectares of organic cacao farm provides for his family. He grows organic citrus, oranges, mandarines and bananas.
Don Inocencio has worked very hard to get where he is now. He left his hometown in Oruro’s western area, looking for a better life in Alto Beni. In 1973, he bought his first piece of ground. As an immigrant from an Andean area, he grew potatoes, quinoa, cañahua and raised some sheep/ovines, but this did not generated sufficient income to provide his wife and eight children. His personal journey took him to Northern Chile as worker, where he discovered he liked agriculture, especially irrigation activities. So he came back to Alto Beni to produce cacao. In the beginning, it was very difficult as he had little knowledge about the different varieties, yield, and quality of cacao. Six years ago, he became a member of the Sejana cooperative. Before that, he accepted any price a wholesaler would offer for his cacao, which was not enough to make ends meet. Through El Ceibo, he received training to convert his plot into an organic farm. This process took him three years.
Without much problem, Don Inocencio climbed to the top of a large in-house facility shows me how to roar the cacao. “Thanks to El Ceibo I’ve learned good techniques to grow organic cacao. Moreover, I have developed myself. I receive a fair price for my cacao and many benefits to have a better life. El Ceibo provides guarantees as well as loans in difficult times.”
The cooperative provides emergency health loans and jobs for members. Don Inocencio would like to equip his cacao plot with new tools, a cacao drier with rails, and a small pick-up truck for transporting. He is grateful for the warm welcome from other members. “I do not feel isolated anymore.”

Meetings at El Ceibo headquarters: Oikocredit from the farmer’s perspective

2008-09-16T04:46:00.000-07:00

Sapecho is a small town in the Bolivian Amazon that hosts El Ceibo’s central offices, gathering facility and experimental center. El Ceibo is a second-tier cooperative or organic, fair trade cacao farmers from Suyungas, Coranavi and Laricaja provinces in Alto Beni. We were welcomed by a committee of representatives who share with us the story of the cooperative. It was founded in 1977 representing 11 cooperatives. After 31 years, El Ceibo has 49 affiliated cooperatives and 1400 members, benefiting more than 6000 people. Not only do El Ceibo produce organic cacao, they also manage the whole production chain: commercializing chocolate products for the domestic market as well as cacao-based products for the international fair trade markets in Europe and Japan. Oikocredit’s relationship with El Ceibo began in 1987. The same year when they began to pay a fair price for their products (they would get a certification in 1997, although they had fair trade practices long before). This first loan was used for working capital. Oikocredit’s financial support for more than 20 years is acknowledged by El Ceibo members. “For us, Oikocredit is an institution that has helped us to commercialize. In Bolivia, banks do not have any confidence in cooperatives. Oikocredit has a special relation with coops. Oikocredit is a partner for the development of the cooperatives in Bolivia,” says Saturnino Mamani.

A journey to the Bolivian Amazon – Who are the real farmers behind the successful cooperative El Ceibo?

2008-09-16T01:58:00.000-07:00

Virginia, from our regional office in Uruguay will join me in this trip. None of us have visited El Ceibo before, so we had many expectations. We left the hotel very early for a two day trip to Sapecho, in the Alto Beni area. Getting there and coming back would be a challenge. To make sure our photos turned out well, Antonio Suárez, a local photographer, was engaged as part of the team. He deserves all the credit for the beautiful pictures he took in Bolivia that feature in this blog. Felipe Sandoval, El Ceibo’s financial manager, will accompany us too. As Felipe is the son of a cooperative member, El Ceibo supported his studies at university and later offered him a job at the cooperative offices in El Alto. In a country as Bolivia where unemployment is rife, a well-paid job after finalizing his studies is a one in a million opportunity. When he told me about how El Ceibo supports the development of its members and their families, it was obvious that he was very grateful for everything the cooperative has done for him.
The shortage of gasoline in the capital city obligated us to go from gas station to gas station to fill up the tank. Two hours later than planned, we left La Paz for our eight hour journey to Sapecho. The first views of the Andes, with llamas and alpacas crossing the road are impressive. It feels as of you could touch the sky by raising your hand. As one starts descending, the landscape changes and the empty mountains become greener and greener while trees become higher. This beautiful view takes your attention off the very dangerous road ahead, which makes me experience first-hand the difficulty El Ceibo farmers have when taking their cacao to their chocolate factory in El Alto.

Just arrived in Bolivia!

2008-09-14T07:06:00.000-07:00

It takes more than 14 hours flying to arrive to Bolivia. El Alto International Airport is located in at 4150 meters (13,615 feet) above sea level. At first moment, it is difficult to take it easy to avoid any effects of the soroche, the altitude sickness. It’s cold and misty as the car drives down to La Paz city. The disturbances in the country seem not to have reached the capital city, which still sleeps in this very early Sunday morning. After some sleep I will prepare for the visit to cacao producers in Sapecho in the Bolivian Amazon tomorrow.

Just arrived in Bolivia!

2008-09-14T01:57:00.000-07:00

Trip with a mission

2008-08-30T07:04:00.000-07:00

As corporate communication officer of Oikocredit’s international office based in Amersfoort, the Netherlands, I get the chance to visit some project partners abroad. Today I heard that I would accompany our managing director, Tor. G. Gull, to Bolivia and Uruguay by mid-September to attend the first Oikocredit Award to Social Performance ceremonies. This is the first time that Oikocredit organizes such an award, so I looked forward to attending these events. Moreover, this was my first time in Uruguay, which made this trip even more exciting!
Besides attending the ceremonies, we would also visit the awarded project partners in both countries. Not only did these long-standing Oikocredit project partners achieve institutional growth but also have a broad social and economic impact on its members or beneficiaries.
Furthermore, I go to Bolivia with a specific mission: to find three beneficiaries of and MFI project partner in La Paz city who were interviewed in 2004. I have only seen them in pictures, but with the support of our Bolivian office I am sure I find them.

Ups and downs
It was a shock to us in Amersfoort when we heard Ms. Lucia Cusi de Quenta passed away in 2005, and Mrs. Alicia Fernández died only three months ago. Since their first encounter in 2004 with one of my colleagues, they have been our ambassadors in many publications and events where we shared their stories as examples of how fair financing can effectively make the difference in the lives of entrepreneurs in the South.
It was a relief to know that the third beneficiary, Mrs. Yaqueline Callisaya was found still working in the same market in La Paz. I am curious to know how she is doing and if she remembers Oikocredit

Trip with a mission

2008-08-30T01:55:00.000-07:00

As corporate communication officer of Oikocredit’s international office based in Amersfoort, the Netherlands, I get the chance to visit some project partners abroad. Today I heard that I would accompany our managing director, Tor. G. Gull, to Bolivia and Uruguay by mid-September to attend the first Oikocredit Award to Social Performance ceremonies. This is the first time that Oikocredit organizes such an award, so I looked forward to attending these events. Moreover, this was my first time in Uruguay, which made this trip even more exciting!
Besides attending the ceremonies, we would also visit the awarded project partners in both countries. Not only did these long-standing Oikocredit project partners achieve institutional growth but also have a broad social and economic impact on its members or beneficiaries.
Furthermore, I go to Bolivia with a specific mission: to find three beneficiaries of and MFI project partner in La Paz city who were interviewed in 2004. I have only seen them in pictures, but with the support of our Bolivian office I am sure I find them.

Ups and downs
It was a shock to us in Amersfoort when we heard Ms. Lucia Cusi de Quenta passed away in 2005, and Mrs. Alicia Fernández died only three months ago. Since their first encounter in 2004 with one of my colleagues, they have been our ambassadors in many publications and events where we shared their stories as examples of how fair financing can effectively make the difference in the lives of entrepreneurs in the South.
It was a relief to know that the third beneficiary, Mrs. Yaqueline Callisaya was found still working in the same market in La Paz. I am curious to know how she is doing and if she remembers Oikocredit.

Ups and downs
It was a shock to us in Amersfoort when we heard Ms. Lucia Cusi de Quenta passed away in 2005, and Mrs. Alicia Fernández died only three months ago. Since their first encounter in 2004 with one of my colleagues, they have been our ambassadors in many publications and events where we shared their stories as examples of how fair financing can effectively make the difference in the lives of entrepreneurs in the South.
It was a relief to know that the third beneficiary, Mrs. Yaqueline Callisaya was found still working in the same market in La Paz. I am curious to know how she is doing and if she remembers Oikocredit.