Micro Finance in Malawi
Organisation: Opportunity International
The Adsum Foundation provided funds for a trust group in Malawi which brings together micro-entrepreneurs, those who are considered 'unbankable' because they do not have any collateral or live in isolated rural areas.
Chitukuko Trust Group has 10 members, the majority of them women, and is based outside Mzuzu town in the north of Malawi. They meet fortnightly to discuss numerous issues about their businesses and their lives outside them. These businesses range from selling fish and bread through to a bakery. The group receives training on issues such as business diversification through to loan repayment, and they also learn about the importance of savings and how to manage their income and profits sensibly.
If one member of the trust group is unable to make a repayment the other members assume this payment, so everyone is in it together. 98% of loans are repaid and lent out again so donations keep on giving, living up to Opportunity International's motto "Giving the poor a working chance."