Microcredit and Poverty Alleviation Programs in Ngweshe, South Kivu, Eastern Congo

More than 75% of the population of Ngweshe tribal chiefdom live on less than US $1 a day; which is well below the absolute poverty line. This population is among the poorest in DR Congo as described by the studies made during the formulation of the Document of Strategy for Poverty Reduction, whose draft was completed in 2006 by the DRC Ministry of Planning. It is estimated that a human being needs at least US $2 a day to start getting off the poverty line. The poverty of the 700 thousands people of Ngweshe stems from several reasons. First, there is no credit and banking system ever since the collapse of the DRC cooperative movement in the 1980s. Second, recurrent wars have swept over the region for the past 13 years, and militiamen have repeatedly looted the population. In addition to these two major problems, poverty has been exacerbated by: (a) the population densities of human settlements (sometimes 300 inhabitants per square kilometre in a rural area), where there is little space left for traditional agro-pastoral activities; (b) poor and infertile red soils and erosion; (c) a large percentage of marginal lands among hilly terrain and escarpments; (d) the drastic diminution of cattle (which is the cornerstone of tribal life in upland Kivu), due mainly to competition of pasture lands with human settlements and conversion of pasture to gardens of subsistence food crops or of perennial cash crops such as tea, coffee and the quinine tree; (e) lack of alternative income generating activities; and (f) frequent displacement of the population, so that the people cannot carry out their regular agro pastoral activities such as planting crops on schedule or caring for cattle.

To assist people in Ngweshe to rise above the poverty line, there is need to empower the villagers by providing access to: revolving microcredit, so that they can: (a) start up small businesses; (b) access seeds and training in good soils management, which includes opportunities to perform productive agriculture with manure and mulching; and (c) perform various income generating activities. FONDAMU conducted a survey in July and August 2006 among more than 4,000 people in Ngweshe. We found that the most popular opportunities people are seeking is access to microfinance and microcredit; the second one was food security through provision of seeds and better cultivation and soil management techniques; and the third one was to support farming and animal husbandry with small animals such as pork, goats, rabbits, guinea pigs, hens, and large animals especially cattle. There is interest in cows that would provide milk and manure, and which the people in Ngweshe use as the tribal way to save capital, to pay a bride dowry, to make friendship, or to purchase a piece of land.

A group of 4 women, along with Fondamu provincial coordinator for South Kivu, Mr. Vincent Mudekereza, have just signed up a contract for participating in a revolving microcredit program in Lubona, Ngweshe. They are lit with a kerosene lamp.

In January 2007 we started a revolving microcredit program with four groups of four women each. They are doing: (a) small animal farming such as rabbits and guinea pigs; (b) improved gardening of vegetables in the fertile valley bottoms; and (c) small trade of cassava flour, corn flour, chickens or goats. The microcredit was of US $50 each; and the first wave of recipient women has paid back US $55 each to FONDAMU after 4 months of the exercise; and they kept the merchandise capital of US $50 to 60 each. For the first time in their lives, Françoise M’Mukwakwa, Awa M’Ntahulirwa; Jeannette M’Shwagi, and Ernestine M’Buhendwa own either in merchandise or in cash a capital of US $50 to $60. They were jubilant in May 2007 when they paid back their credit to FONDAMU, and the money was passed on to the second in each group. We hope that within 16 months of taking turns, each of the four women in the group would have her own capital of US $50 at least. Then FONDAMU will add another US $50 for a second round; and each woman would enjoy a capital of US $150 at least and could expand her business or have more capital. It is in that way that people in Ngweshe will gain access to the credit, generate business, and build some capital so that they have more than US $1 a day to live on. Our goal for every Ngweshe person who becomes involved in FONDAMU revolving microcredit programs is to make at least US $2 a day for their living expenses.

Our microcredit program supervisor, Mr. Makiro Mugokere, has just acquired a bike to get around in the highland Ngweshe to coach the microcredit recipients.

To cover the 4,000 people in Ngweshe who have expressed desire to be involved in the microcredit program, we need a capital fund of US $50,000, and running costs of $25,000 for FONDAMU staff to pay regular coaching visits to the microcredit borrowers at least once a month, and at best twice a month, to coach them and to go over lessons learned, difficulties, solutions, and how their colleagues in the group are helping them run their small business or farming. When their colleagues take turns then these people will help them as well, and that would increase solidarity, friendship and love within each group. The needed capital funds and running costs (principally to purchase five motor bikes, fuel and lubricant, and some bonus salary to the FONDAMU microcredit coaches) amount to US $75,000.

Women carry load of goods to sell in local markets as a way to get out the poverty loop.

Please donate to FONDAMU to help 4,000 people in Ngweshe to start their own income earning activity through a revolving microcredit, so that they are empowered and own some capital to get above the poverty line level and support their own families.

Make a Monthly Donation	$ for months.
Give a one-time donation	$
Assist the Revolving Microcredit Program in Ngweshe
Support Running Costs for FONDAMU staff
Participate in the $75,000 Capitalization of the Microcredit
Support other Income Generating Activities (purchase of cows, better agricultural techniques, purchase and distribution of seeds)

A group of Fondamu supported widows, participating in our revolving microcredit program, are carrying loads of patato foliage as fodder for their rabbits being raised in their homes.