MICRO FINANCE
Summary
MenelikEducation’s aim is to contribute to economic development within our existing Area Development Programmes by supporting Menelik Micro Finance (MMF).
MMF is a MenelikEducation owned, locally registered microfinance organisation operating in the DRC through its local office. MMF will seek to strengthen its partnership with local authorities, so that together we can integrate microfinance services aimed at helping alleviate poverty.
More broadly, this project will help finance entrepreneurs and farmers who have a capacity to develop/enlarge their business, creating employment opportunities for the disadvantaged and vulnerable and thereby contributing to bettering children’s lives in the communities.
Objectives
The main objectives are
• Economic Development
MenelikEducation is seeking potential opportunities and new initiatives for economic development in the DRC. We will launch pilot initiatives in Kintambo area and Maluku to serve as examples of good economic development practices. In addition, MenelikEducation will seek stronger partnerships with farm associations; increased cooperation with financial and agricultural companies; opportunities to facilitate training on new technology in various fields such as animal breeding and land cultivation; and capacity building of the local government to ensure economic development activities are sustainable.
Menelik Micro Finance (MMF) will be involved in the economic development projects through providing loans direct to beneficiaries, as it does now.
Beneficiaries
Beneficiaries are people requiring a loan for working capital, business start up or consumption.
They must be economically active and go through a loan assessment process in order to qualify.
MMF has a proven methodology for loan assessment – based on the business, income streams and resulting capacity to repay. Loan officers make a recommendation and this is considered by the Trustees committee, which ensures management oversight, controlling risk.
Indirect beneficiaries will be families of the borrower, since it is essentially a family loan. Others will benefit through sustainable jobs created.
Gender
Microfinance institutions around the world have prioritised access to financial services for women. Because of the positive impact on families, MMF sets a minimum standard of 80% female clients.MMF will find other ways of addressing gender equality, including having women in leadership. MenelikEducation new coordinator in the DRC is a women.
Disability
Many people in the DRC, including children have different kinds of disabilities, and nearly 98% of people with disabilities in the DRC are unemployed. MMF’s work on development programme integration aims to provide another way of reaching clients with disabilities who might not otherwise be able to access financial services within the usual mainstreaming policy.Long-term benefits
The sustainability of the project is assured by MenelikEducation performance and credibility as an organisation. In addition, by building MMF’s equity, they can expand and strengthen their profitability to the point where they can leverage beyond a 2:1 debt to equity ratio maximising the investment even more.
MMF will provides access to credit to enable people to start and expand a range of different enterprises. Job creation helps minimise pressure on land usage as people do less subsistence or non-sustainable activities.
Project partners will include: The Vice-Prime Ministe office, Local Authorities and Development banks – information and knowledge sharing and problem solving. Other relevant partner organisations will take the management role in this project, facilitating training and resources and raising finance.
Budget/FundingAll MMF’s costs will be covered from interest income and fees meaning 97% of funds raised will go direct to the client.
Leveraging – a loan of $1,000 can be leveraged 4 times = $4,000 – enabling us to help more people.
Loans – The average loan is - $500
A donation of $10000 would allow 20 women to start a business each and increase their monthly income by up to $200/month.
Thank you so much for your interest in this project.
Thank you!
