Patiently moving forward
How can poor women become self-reliant and independent? Menschen für Menschen relies on microcredits. This is how they work:
The initial situation
Etagu Haile, 38, is a single mother. She is depressed: she can't support her children with her day laborer's job.
Self-help group for micro-enterprises
Menschen für Menschen organises Etagu and other women in a self-help group. There, the women learn how to run a micro-enterprise. They save 25 centimes every week for at least three months - this is how they prove their motivation.
Start-up capital for self-employment
We provide the groups with start-up capital, around 90 francs per woman. After a few months, the women receive their first loan. Etagu is cautious and only takes out the equivalent of 50 francs. She begins to trade in vegetables. She repays her debt to the group with discipline.
Repayment and second loan for growth
After a few months, Etagu has repaid her loan - so she can get a new one. She feels more secure and is now borrowing 100 francs.
Investment for self-employment
Etagu pays back the microloan, invests in new goods and can offer her children a decent life: She lives off her earnings of around 40 francs a week - by comparison, she earned 25 francs a month as a day laborer.
Interest profit is invested in the Group
Etagu pays interest of five percent. This increases the group's capital. More women are taken on and take out loans for their business ideas.
Formation of cooperatives
Four to five groups join together to form a state-recognized cooperative that functions independently: The Menschen für Menschen Foundation can end the aid.
The numbers
The self-help groups (SHGs) have 15 to 20 members. There are currently 22 self-help groups with 385 members in the city of Debre Berhan, thanks to Menschen für Menschen.
After some time, four to five SHGs merge to form state-recognized cooperatives. There are currently five cooperatives with 372 members in Debre Berhan.
Etagu's group has 18 members and is called "Siyalfe Waza". This means "patiently moving forward". Since it was founded at the beginning of 2019, the group has more than doubled the start-up capital of Menschen für Menschen through interest and savings contributions.
Success story: "If you don't have a donkey, you're the donkey!"
Start-up capital for women
Mothers in Ethiopia can start a small business and work their way out of poverty with just a small amount of start-up capital. With 90 francs, you can make a microloan possible - and thus help a mother to build up a livelihood!
