Microcredit
The project was launched four years ago and was intended for twenty families. Each family was given their choice of a cow or goats, depending on the land they had available. While the animals were delivered, families signed an agreement with Inshuti committing themselves to reimburse the animal costs within two years. Most families did not fulfill the expectation, for obvious reasons, in some cases delaying their reimbursement for a year. Nevertheless, 87% of the original expenses have been reimbursed.
Thus, our objective was reached in the sense that we employed microcredit as a means to finance a subset of the population that would otherwise receive no warranty from banks. We believe that microcredit empowers individuals (compliance with the agreements; the deadlines may not be met, however people need to remember that the lender always expects his credit). We have twenty-one families at Vunga, with a cow or goats, the great majority of which have repaid their debt. Being the first time we undertake this endeavor, we are but satisfied with the outcome.