African Woman Food Farmer Initiative

April–September 2007
By: Amrote Abdella, Senior Program Officer, AWFFI

AWFFI partners at Atuobikrom Epicenter in Ghana.

Introduction

Since the last Board update in April 2007, the AWFFI Microfinance program has continued to achieve great success. From May 18-24, 2007, The Hunger Project-Africa 2^nd Regional Conference on the Epicenter Strategy and Microfinance was held in Addis Ababa, Ethiopia. Highlighting the importance of the AWFFI and Strategic Planning in Action (SPIA) Microfinance Program in the overall Epicenter Strategy, the conference was attended by country directors as well as AWFFI Project Officers. The purpose of the conference was to exchange views and share experiences of The Hunger Project’s work in Africa. Discussions included the current savings policy, the role of AWFFI in regards to other non-credit activities such as literacy classes as well as the current procedure for direct credit. Some of the outcomes of the conference included a list of agreed best practices in microfinance to be replicated in all The Hunger Project program countries and a shared vision of the future of the integrated microfinance programs.

Summary of AWFFI Direct Credit Program

During the 2^nd quarter, a total of $231,638 has been disbursed to 2,760 women. The average loan size across all our program countries is $90 dollars. The total AWFFI partners’ savings at the end of the quarter was $203,217. The overall loan repayment rate remains high at 88.13%. Please refer to the table below for a country specific AWFFI progress analysis.

Country	Value of Loans Disbursed	Number of Loans Disbursed	Number of Partners Who Received Loans	Average Loan Size	Cumulative Repayment Rate at End	Cumulative Savings at End of Q2 2007
Benin	$49,564	45	698	$71	91.14%	$32,876
Burkina Faso	$63,677	193	904	$70	84.07%	$63,993
Ethiopia	$5,880	9	113	$50	125.06%	$5,052
Ghana	$41,576	58	544	$76	75.32%	$20,708
Malawi	$4,430	9	81	$55	77.71%	$893
Mozambique	$58,125	28	336	$139	57.67%	$6,802
Senegal	$3,700	4	29	$128	97.07%	$59,579
Uganda	$4,686	3	35	$134	97%	$13,314
TOTAL	$231,638	349	2,740	$90	88.13%	$203,217

AWFFI cashier in Burkina Faso.	Loan disbursement at Mpigi Epicenter in Uganda.

Country Update

Benin

During the 2^nd quarter, a total of $59,942 was disbursed to 818 partners through 58 groups. Of these 58 groups, 45 of the loans were disbursed to 698 women while 120 men received loans through 13 groups.  

Over the course of the 2^nd quarter, Vision, Commitment, and Action (VCA) sessions focusing on AWFFI were held at Ouissi and Zinvié epicenters.  Meanwhile, follow-up sessions took place at Dekpo and Avlamé where a total of 227 partners participated. The cumulative savings mobilized for the quarter reached $32,876. In Benin, The Hunger Project thus far has two government recognized rural banks: Avlamé, recognized in December 2005 and Dekpo in April 2007.

Burkina Faso

During the second quarter, a total of $63,677 was disbursed to 193 groups consisting of 904 partners, where the average loan size neared $70. The cumulative repayment rate for the quarter stood at 84.07%. From the 1^st quarter, savings increased from $46,269 to a total of $63,993 at the end of the 2^nd quarter. 

In Burkina Faso, The Hunger Project thus far has five government recognized rural banks: Nagréongo (May 2002), Zincko (May 2002), Loaga (December 2004), Toulfé (December 2004) and Nongfaire (December 2004).

Ethiopia

In May 2007, the second epicenter in Ethiopia, Debre Libanos, was inaugurated. Some of the major activities performed during the quarter include mobilization of new loan groups, VCA workshops, training on saving and credit management as well as bookkeeping. At the Debre Libanos Epicenter, 52 women were mobilized and formed four new AWFFI loan groups during this quarter.

The repayment rate in Ethiopia remains at 100%, where some AWFFI partners have even started early loan repayments. The income-generating activities that partners are engaged in continue to be diversified. While some are engaged in sheep/goat rearing, others are involved in vegetable/grain products and even petty trading. In regards to SPIA, a total value of $5,138 has been placed with 6 groups to benefit 70 partners. The repayment rate to date for the SPIA loans remains high, 94.9%, with a cumulative savings of $3,004 for the 2^nd quarter.

Ghana

During this quarter, a total amount of $41,576 was disbursed to 544 partners in 58 groups. Of this disbursement, $12,446 was disbursed to 23 new groups of 229 members in the Eastern Region.

Also in the Eastern Region, a total number of 311 partners from four epicenters (Odumase, Dwerebease, Adensua Besease and Ankoma) received training on Village and Loan Committee responsibilities, Savings Mobilization as well as Bookkeeping.  Also, AWFFI VCA sessions were conducted in Nkawanda and Odumase epicenter where a total 457 partners participated.  In the Eastern Region, 13 groups of 130 partners benefited from a $7,065 first time credit placement through the SPIA program. Total SPIA savings recorded for the quarter amounted to $2,505 for 40 groups of 404 partners.

In Ghana, The Hunger Project thus far has 3 government recognized rural banks: Atuobikrom (May 2005), Nsuta-Aweregya (May 2005) and Matsekope (December 2006).

Malawi

For this quarter, microfinance activities concentrated on the 6 epicenters: Jali, Nchalo, Nsondole, Mpingo, Ligowe and Mwaiwagwa. The activities focused on improving loan repayments, savings mobilization, partner trainings and loan disbursements. Also, training for the Village Loan Committee also took place for the new epicenter: Mwaiwagwa. The impact of the workshops was visible in the repayment rate that doubled this quarter compared to last quarter. The increase in the repayment rate is partly due to the harvesting season as well. The Ligowe Epicenter continues to repay very well with repayments above 100%.

During this quarter, loans were disbursed for both AWFFI and SPIA partners at Jali, Mpingo and Ligowe Epicenters. SPIA partners at Nchalo Epicenters underwent training in order to receive loans starting the 3^rd quarter. 

In Malawi, The Hunger Project thus far has one government recognized rural bank: Nsondole (November 2005).

Mozambique

For the 2^nd quarter, a total of $58,125 was disbursed to 28 groups with 336 AWFFI

members. The average loan size for this quarter was $139. During the quarter several meetings, workshops, mobilization and training were conducted in the communities of Chate, Djodjo, Maxinhe, Manhica and Chókwé Epicenter.

During the 1^st quarter, the challenge had been to pull AWFFI out from previous areas of intervention. With the opening of The Hunger Project office in Mozambique and the integration of AWFFI under the Epicenter Strategy, loan disbursement had been stopped in 3 areas.  As noted in the previous Board Report, it is the hope that the close partnership with the Africa Prize Laureate Celina Cossa’s General Union of Agricultural Cooperatives (UGC) will increase the recovery of outstanding loans in these former areas of intervention.

Senegal

A total disbursement of $3,700 to four groups benefited 29 partners during the 2^nd quarter. The average loan size was $128.  The cumulative average repayment rate for all the AWFFI credits remains high at 97%. At the end of the 2^nd quarter, a total savings of  $59,578 was mobilized, an increase of $3,429 from the 1^st quarter where the total savings was $56,149.

For the 2^nd quarter the focus was placed on finalizing the transfer for six rural banks. In line with the Epicenter Strategy, local bank accounts were opened and a total of $50,000 was transferred to the accounts. Meanwhile, workshop training was held for Ndioum Epicenter partners on May 23, 24 and 25.  At Diokoul, Sam Contor, Ndereppe and Diokoul loan committees were established and AWFFI VCA sessions were held. 

In Senegal, The Hunger Project thus far has established three government recognized rural banks: Mpal (October 2000), Dahra (September 2001) and Coki (December 2005).

Uganda

The AWFFI program in Uganda continues to be implemented in six epicenters, three of which, Mpigi, Wakiso and Kiboga, are fully functional rural banks. The loans disbursed during the quarter totaled $4,686 that was placed with 35 women organized in three groups. The on-time repayment rate for the quarter stood at 97% while cumulative savings mobilized stood at $13,314. In regards to SPIA, a mobilization session was held at Mbarara Epicenter where a total of 10 groups of 105 members have been mobilized. In preparation for a disbursement in the 3^rd quarter, these 10 groups have formed a SPIA loan committee and opened bank accounts.

Also during the 2^nd quarter, AWFFI-Uganda hosted the Senior Program Officer in Mbarara, Kiboga, Iganga, Mpigi, Kiringente and Wakiso Epicenters. During this visit, the AWFFI Senior Program conducted an empowerment workshop and held meetings with the Board of Directors in the rural banks. 

In Uganda, The Hunger Project thus far has three government recognized rural banks: Wakiso (July 2004), Mpigi (January 2006), and Kiboga (January 2007).

Impact of AWFFI on Partners

The assessment of the AWFFI program goes beyond the quantitative analysis that the financial reports provide. For example, the impact and importance of the AWFFI program is captured in the stories of the women and men who benefit from our partnership. To capture the true impact of our work, every quarter, AWFFI Project Officers share a few stories of our partners from the field.  Here are two short AWFFI stories shared by our partners from Benin and Uganda.

Benin

Juliette, loan committee vice-president at a bi-monthly meeting with the AWFFI partners of Kpozoun (Zakpota).

Here, she is ready to monitor the 89 Zakpota AWFFI groups with AWFFI staff.

At AWFFI-Benin, we work with an extraordinary woman who has a remarkable leadership and is daring in any situation!  Her name is Juliette KETEHOUNDJE. She is 33 years old. She has three children. Since 1999 she started to work in group with 20 women before knowing AWFFI Benin in 2004. She lives at Zakpota in a village named “Allohounkodota”.

Today, more than 200 women are members in her group named “KPONDEHOU” what’s mean “take as an example” and she managed them very well. She never goes to school. Some things that appears a great success and surprised us is the organization of her group members. They meet regularly twice a month. People who didn’t come to the meeting three times successively are dropped out from the group. Also, members who came later or do quarrel are punished based on the group rules.

Under her management, this big group is divided into 20 small groups. Each group has a small cashbox in which members put 200 CFA at each meeting. This savings helps them to pay the loans for members who make voluntary or involuntary defaults. Their reimbursement rate is always 100% after 6 cycles of credit.

As AWFFI project don’t give loans to all members, this savings serve them to give credit to members who has not AWFFI credit.

Today, AWFFI Benin uses this strategy and she spread out this methodology in all her area. Based on her experience and remarkable leadership, she was invited by AWFFI on 24 August 2006 in Ouissi Epicenter to share her experiences with her peers. With this credit, they grow groundnuts, cassava, and maize in their farm. They make food process from all this product, and make, storage and selling of farm products.

Uganda

Mrs. Irene Sangala of Bwanalira village, Bwanalira parish, Bulamagi Sub County, is a 29 year old woman who owns a merchandise shop. Prior to the coming of The Hunger Project to her village, she was mainly engaged in subsistence agriculture an activity which could not earn her enough money to cater for her ever grown needs.  When she joined The Hunger Project, she was given a loan worth 150,000/$90 in November 2005. She invested this money in road side vending of tomatoes of which profits she bought 10 iron sheets for her house, as well as expanding her business enterprise and repay the loan promptly. She acquired yet another loan worth 300,000/$180 in November 2006. With this money, she has been able to begin construction of her house and expand her business enterprise where she is now operating a retail shop, and also catering for her children’s needs.

Sanitation and hygiene has greatly improved her quality of life and education for the children as a result of enrolling in a functional adult literacy (FAL) class in her village. She is now an HIV/AIDS animator and is encouraging other women to join FAL classes so as to be sensitized on HIV/AIDS and food production. Food security has also increased as a result of the VCAs she has been getting from The Hunger Project-Uganda. She says she is now engaged in agriculture for commercial purposes as well unlike before when she only grew enough to feed her family.

In her future plans she wishes to invest in livestock and also be able to save for her children who are to join school.