Submitted by: Lucas Reuter and Alicia Belay of the Fargo-Moorhead AM Rotary Club
This is Momina, a new small business owner in Ethiopia. Her success is thanks to D5580 2018 WCS grant 19.01.08, which provided her and 50 other women with microloans and training they used to start and grow their own businesses. The project was established in partnership with the Gondar Fasiledes Rotary Club in northern Ethiopia.
In 2020, we have the opportunity to expand this microloan project in Ethiopia through a Global Grant. We hope to raise $50,000 for this Global Grant which will support small business development for at least 100 more women. Join us! We are asking clubs to consider contributions of $500 to make this grant proposal a reality. With a little bit of help from each club in our district, we can truly make a difference in the lives of these hard-working women, who will in turn provide meaningful contributions to their communities.
Please contact us by December 1st, 2019 if your club will join us in helping create more success stories like Momina’s.
We have chosen to enhance the experience for clubs who are supporting projects like this microloan program. If you choose to join this Global Grant, you will receive updates every quarter, a personalized thank you note from Ethiopia, and recognition on promotional materials.
Contact Lucas Reuter (lreuter@ft.newyorklife.com) to make your club’s commitment or to learn more about this project.
Thank you to the clubs that contributed to the 2018 microloan grant:
- Rotary Club of Thunder Bay (Port Arthur)
- Jamestown Rotary Club
- Grand Forks Noon Rotary
- Pelican Rapids
- Park Rapids
- Detroit Lakes Noon
- Central Lakes Rotary
- Fargo West Rotary
- Williston Rotary Club
- Rotary Club of Thunder Bay Fort William
- Fargo Moorhead AM Rotary
Progress Report, August 23, 2019
Source of fund: Rotary district #5580 and Gondar Fasileldes
Implementing Organization: Wogen children and Mothers support Association
Due to a lack of resources and a growing population, the availability of clean water, sanitation, healthcare and food in Gondar is not meeting local needs. All these factors negatively impacted the food and nutrition situation, and diminished access to basic social services.
A pilot project was proposed to put in practice involving women to incorporate the dimensions of alternative livelihoods and women empowerment through appropriate loan delivery mechanisms and capability building. It was proposed that the Rotary Gondar Fasiledes and Rotary club district 5580 initiate the microloan project, with the implementing organization and technical assistance from Wogen.
After the selection made by government stake holders, based on the selection of the participants seed money provided. Until now the beneficiaries are engaged in Injera making, vegetables and fruits selling, small canteen and handcrafts. we provided the support avail based on business plan of the Income Generating Activities. The activities are undertaken by beneficiaries with the view to generating income to help them improve their living. Wogen’s purpose of being engaged in such activity is to support the disadvantaged groups of the society, especially, women and youth, to generate the income they need for living by being engaged in and we have see the income increased among the beneficiaries .we provided revolving loan over the six months for 50 women.
Total of 50 poor women were provided income generating grants by Wogen to reduce poverty by financially, socially empowering poor and vulnerable people. The microloan project makes to access loans and make profit for living. Saving and management is increased entirely by members. The strength behind this microloan project is that it encourages a culture of saving among members who are required to save monthly. Members can then using their savings without necessarily having to sell their property.
As a result the Microloan project is funded by Rotary Club district #5580 and directly targets 50 poor women:
- The project is rebuilding local livelihoods and creates job creation and security by strengthening people's through training and microloan schemes to respond to poverty.
- A total of 50 women groups have been supported with income generating grants, reaching 21,250 USD direct beneficiaries.
- The women currently have savings worth 400 – 600 birr per individual through personal savings.
- 50 women groups with 21,250 USD direct and 256 /indirect beneficiaries are benefiting through income generating grants.
The following are success stories women benefiting from microloan project
Small restaurant business beneficiary:
“Six years ago, I was in bad shape, I was a commercial sex worker and too poor to help myself and my family. My life was terrible. I could not pay for my children’s education. We did not even have a decent house,” says Asefu, 35 one of the beneficiaries of women microloan project of the group.
Today, Assefu’s life is different after joining the small restaurants activity in Geberiel Sub City , Gondar ,in 2019.
“Injera “baking and selling business beneficiary: I borrowed money from the Microloan from Wogen which enabled me to open injera making and selling shop. I received from the Wogen a total of 10,000 birr and training, thank you for the loan I earn some money to care for my family. My children are now in school. We have even built ourselves a decent house with iron sheets,” Abeba says. Now my family is much happier now and looks forward to a bright future.
Vegetables selling beneficiary story: “Momina is 55 years old and lives in Gondar in the Norhen region of Ethiopia with her daughter and grandmother. She gladly explains the benefit of vegetables selling business that allowed her to save her time and money. She used to borrow with local lender with high interest rate and she wasn’t able to save before but now she has good saving account and she runs the business very well and she blessed the rotary foundation #5580.”
Injera making beneficiary story: Desta is a young lady woman who has been living in the slum area of the Gondar city, Addis Alem slum areas. Now she is 25 years old by age. Being family head, she faced many problems in the life. Her mother was daily labourer and had not left any property and income sources to her. Thus, the family background of Desta was so poor. She has responsibility of bringing up her sisters. She also decided to educate her and have responsibility of her family life. She had one younger brother, but he was not also position to help the family. Overall, there were all relatives of her are poor and they were not in position to help her. After she got loan from wogen and running Injera making business ,even though, she had not lost her confidence and not expected help or any type of aid from her relatives. She was self-sufficient lady and had confidence to struggle for survival. She had not lost her courage during the life crisis. She wanted to do hard work and provided good education to her brother and two sisters. Thus, she was committed and determined lady. Before she joined the microfinance scheme she was dropped out of college , now she able to save and make profit, she will finish her college study next year and she thanked Wogen and Rotary club for giving her support to run the injera making activity.
Vegetable selling beneficiary story :
Seada is one of the beneficiaries of fruits She says, I appreciate Allah and all those making the vegetables selling business a success and our sponsor who chooses to remain anonymous, Allah will replenish you and I pray that your pocket will not run dry.
The aim of Wogen together with Rotary International district #5580 is to ensure that the women who took the loan in Arada ( we work with) never goes to bed on an empty stomach... She finally thanked to our amazing team and volunteers that keep making each project we start on an outstanding success.
Handcraft business beneficiary: Kidan has been the main bread-winner for her family since her husband left her and her 3 children four years ago. She’s a relatively quiet woman with a determined determination to succeed. She joined microloan project and received loan of 7,500 birr to purchase supplies to make handcrafts. Since handcarts making is time-consuming processes. The weaved handicrafts sold almost every day. She also soon realized that handcrafts made a better profit. Today Kidan’s main source of income is her small business . She knows that her income is increasing , and she is looking for ways to continue expanding her business. She now receives orders every day from her customers. As a result of her increased income from handcrafts was able to pay for her children’s education. She also invested in home improvement – e.g., purchasing tiles for her floor and expanding the home. With profits from her business, she saved enough.
Vegetables selling beneficiary:
I would not have been able to achieve much without microloan project, because it’s very hard to get a loan from banks. I strongly believe that Wogen brought us up to where we are now." (Chekula)
This significant milestone highlights the profound impact microloans can have on their families. "My family and I used to live in inadequate conditions. Says Chekula. So much has become possible with small business. The benefit has not only been in terms of finance but also things like savings, dignity and independence.
