Weaving Promise

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by Rebecca Wolfe

Promise Badu loves his work and loves to share it. Operator of Dogbeda Vormawu Kente Training Center in the Volta region of Ghana, the twenty-seven-year-old has a passion for teaching others.

“The aspect I do enjoy most about my work is telling people (tourists) the history of the art/fabric, and teaching it.” Giving a portion of his tour speech, Promise elaborated. “Kente weaving is an ancient indigenous method in which thread (any colour) is set on a loom and woven into strips that are later sewn together into larger tapestries. These cloths are used for ceremonial events in Ghana. It can also be used as wall hangings, table cloths and the like. This ancient art has gained international recognition and tourists come from around the world to see how it’s made.”

Promise has, in some ways, followed in the family footsteps. Raised in a single parent household, he lived with and learned from his father, a master kente weaver and founder of the kente center that Promise now operates. All throughout his formal education, Promise was also receiving instruction in kente weaving. “As a kid,” he says, “I use to stay with [my father] and watch him do it, and helped him after school and on vacations.” His father had little taste for academics and so struck a bargain with his son: he would pay for his school fees until he came of age if Promise worked with him in the kente center on school vacations. Even with assistance from his father, Promise sometimes found it difficult to gather the funds to pay for his fees and textbooks, and often went to school without money for lunch. Promise fought to finish his education, and succeeded, graduating from Agortime Senior High School.

Soon after graduation Promise was hired by the president of Trinity Yard School, a fee-free vocational-secondary school on the west coast of Ghana. Working as the school’s kente instructor four years, Promise “learnt from the kids (students) and also made friends with visiting groups and volunteers from the US and other parts of the globe.” While there, Promise trained a young man named James Awotwe Niffio. Promise described him as “a smart, hardworking guy,” who struggled in formal lessons, but thrived in kente class. A 2012 graduate of Trinity Yard School, James has recently stepped into Promise’s shoes as the school’s official kente instructor. Furthering his own kente education, James is also “undergoing an intensive internship training at the center.”

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Graduation at Trinity Yard School

In the course of his time at Trinity Yard School, Promise came to strongly identify with the school’s mission to “educate and empower the youth… to honor the potential of young Ghanaians.” This is a vision which Promise now applies to his own community in the east of Ghana. “My dream is to raise the less privileged in my community with the help of my business,” he says. “Creating a business avenue to help them get a vocation on their own.” Most of the young people in his community, he says, “have limited access to formal education due to high levels of penury.” This is a struggle which Promise understands. “I have also gone through the same plight,” he says with great empathy. “I know the zeal embedded in these youths, but due to limited resources, they can’t realize their potential.” Lack of opportunities and resources is a condition which Promise hopes to change. He wants to provide “jobs to the jobless, training and educating the youths.” He praises Trinity Yard School, and its founder Rory Jackson, as a “LIGHT in the lives of many.” His time there, he says, “has motivated me to replicate his ideas… turning the center into a light in my community as well, because kids here need same thing.”

Promise long held a dream to empower the youth of his community, but without access to capital, struggled to see how it might come to fruition. After finishing up his time at Trinity Yard School and passing the baton of kente instruction on to his former pupil James, Promise returned to his hometown and began to develop a plan for growing the family kente center to accommodate such an effort. In April of 2015, Promise applied for his first Zidisha loan, one of the first major steps in his new and ambitious project.

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Strips of Kente Cloth

This first loan, for the small sum of $46.75, allowed Promise to repair several broken looms. Faithfully and efficiently repaying this loan, Promise established financial credibility with lenders. With his second loan, $93.50 funded in June of 2015 by three Zidisha lenders, Promise purchased colorful skeins of yarn. These first two loans helped Promise put “stuff in place” in the kente shop, developing capital and resources, building toward Promise’s long term goal of youth empowerment. Six months after this second loan, having repaid his lenders and spent the summer and fall building infrastructure and laying groundwork for a youth engagement and occupational training program, Promise again applied to Zidisha. This loan, a credit of $262 disbursed in January 2016, covered the start-up cost of employing three young members of Promise’s Ghanaian community.

In the ten months since this second loan was received, Promise has fully repaid his lenders and his training program has grown considerably. An August 2016 loan of $348, the most recent sum to date, enabled the purchase of yarns, shuttles, bobbins, and other materials for weaving, as well as supplied the funds to hire two additional young employees. “These loans helped greatly in laying the foundation of the dream,” Promise says.

At this time, the Dogbeda Vormawu Kente Training Center employs nine people. Three work on a full-time basis, two are in training, and four operate on contract. “Work normally starts at 7 AM,” Promise says, describing a typical day at Dogbeda. “You have everyone busy in their various looms, except those training may be assigned to other things.” Weavers take breaks as needed throughout the day, closing up shop around 5 PM, though sometimes special projects will keep them there until 8.

As Promise’s business grows, so do his dreams. “I have been using the funds I get from the sales of these beautiful kente clothes as a source of income to enlarge, renew, and purchase more working materials for my center.” He is delighted at the success of the program, grateful for the opportunity to employ young people in his community. Ultimately, he wants to see the center expand to locations all across Africa. “I want to be a source of motivation and inspiration,” he says. “I always count myself fortunate to have gotten to this level of my business in which I can give a helping hand to few people in my community. My dream is to see more of them not only inspired and motivated but make available resources and jobs for them.”

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Promise’s Training Center

“I would like to say a big thank you to the Zidisha team, lenders, and to all that are making this program work effectively to help young entrepreneurs raise and expand their business,” he said on his loan profile. “I believe with the help of this platform and the support of the best lenders, together we can achieve the targeted goals, that is making a difference by providing jobs and positioning the youths for the future in my community.”

With a name like Promise it is likely that this young man knows better than most the potential for ingenuity, for bright and productive futures, that young Ghanaians hold. He himself is an example of this promise; promise coming to fruition. Thanks to Promise’s effort and dreams, and financial support from Zidisha lenders, more young people will have the opportunity to fulfill their promise and see their communities grow and thrive.

If you would like to assist another entrepreneur of promise, head over to our loans page and contribute to one of the loan applications posted there. Help a community thrive and a business grow.

 

Emerging trends in microfinance

Financial inclusion continues to be one of the key challenges in the microfinance sector today that would play an integral role in shaping its performance in the future. At the Mexico G20 summit last summer, 17 countries led by the Presidents of Chile, Indonesia, and Mexico publicly committed to advance financial inclusion. Although the term microfinance has been associated with the working methodologies of Muhammad Yunus of Grameen Bank and with organizations such as Opportunity International, Accion and ASA, its employment as a tool to fight against poverty has always been debated, since its usage still lacks a necessary component to creating successful entrepreneurship values.
The concentration of MFIs have been growing in the regions of Africa, Latin America and Asia over the years, and this trend is attributable to the increasing below-poverty line population in those regions alongside the proliferation of the urban poor. Primary sources of funds for early MFIs were generated from savings of clientele and venture capitalist funding. However, the scenario has been changing rapidly. Nowadays, Central Banks across the globe have been taking initiatives to allocate financial services to the poorest of the poor; this in turn, has enabled hundreds of MFIs around the globe to become profitable in the long run. Commercial banks have begun to acknowledge the profits they can achieve from the low end of the retail market and mobile phone operators continue to discover innovative methods of allowing the poor to access mobile-based banking services.
Over the past year, there have been various trends that have emerged in the microfinance sector as businesses and individuals continue to realize the benefits of microfinance. Some innovative trends that have been adopted by microfinance institutions as they try to make their solutions more sustainable are listed below-
   Specialized Microfinance Institutions: Microfinance institutions are focusing on customer specific demands, which vary across a wide range of customers and according to the location. Last year saw an increasing progress in translating the needs of the poor into improved context-specific product offerings and policy approaches. A set of providers across the globe accelerated experimentation with innovative products that better match people’s savings needs and behaviors. For example, Jipange KuSave in Kenya tested the provision of interest-free loans with a third of the amount held back as savings. Opportunity Bank in Malawi has a commitment savings product for farmers that allow them to lock away their post-harvest payouts and distribute it over the year to smooth cash flows.
   Diversification of Microfinance Institutions: Microfinance institutions believe in offering broad range of products and services under an umbrella of microfinance that previously started with small loans, now offers money transfer, insurance and savings services as well.
    New channels: Branchless banking and franchisee-based services have become extremely effective and prevalent these days to approach potential clients who live in rural areas. One of the top developments in Kenya’s branchless banking industry was the launching of M-Shwari in Kenya, which provided access to savings and loans to M-Pesa customers. Through a partnership between Vodafone, Safaricom and the Commercial Bank of Africa, M-Pesa customers can now apply to CBA for a mini-loan and sign up for an interest bearing savings account, directly from their phones. Since its launch in November, M-Shwari now has 1million users.
   Turnkey Solutions: Most of the microfinance institutions have started offering services to their clients that differ from traditional services like savings, insurance and loans. Some MFIs offer services such as supply chain management or assisting with marketing infrastructure to grow micro-businesses.

Can Microfinance Revolutionize Car Ownership in Developing Countries?


When most people hear of microfinance for the first time, they often ask whether or not it actually works to benefit those in need. It is an excellent question to ask since it is supposed to benefit those who are vulnerable, poor, or simply need some extra help. As it turns out, microfinance is an amazing way to benefit those who currently have no access to capital and it comes along with many amazing testimonials regarding how a person’s life has changed after being given access to funding they may have never had.
For those who are unaware, microfinance is a basic way to provide loans and financial services to those in developing countries who currently do not have access to them. This type of strategy is one of the best ways to help many citizens become financially stable, which allows them to be able to provide for both themselves and their families during tough economic times. Since statistics have shown that over half of the world survives on less than $2 each day, microfinance is one of the best ways we can employ to help these people.

Microfinance May Impact Car Ownership on a Large Scale
As stated earlier, microfinance provides a large number of amazing benefits that can help both families and the local economy that they live in. One of these benefits that may soon be possible is the potential for those in developing countries to own their own cars. Since most citizens do not have access to car loans, owning a car may never be a possibility for them. However, microfinance has a huge chance of providing these citizens with access to car credit from a microloan. While the loan will not be providing them funding for a car specifically, these loans can help people get their feet off of the ground if they are trying to start a business of their own. Imagine that there is someone who owns a farming business, but has to walk three hours away, in order to pick up their much needed supplies. This means that their total trip will take six hours and by the time they return they will have to continue working. This is not only extremely tiring for the individual but cuts down on their productivity for the day, as six hours of their time will be spent walking. Less time for them to work means less money for them to be able to feed both themselves and their families.
If those same farmers have access to microfinance, they will be able to invest in certain items that can help their business to grow. Eventually, with the help of your loan, they are profitable enough to purchase a car and can now travel to the next town to pick up supplies. With this car, they have more time to work, can make more money, and the local economy improves. Without your loan, this would have never been possible. Success stories like these are what make microfinance such an amazing tool for developing countries to utilize. And there are several additional benefits that come along with your loan.

Microfinance Benefits
  • Ease of Accessibility

    Most banks out there simply will not provide loans to those who do not have any existing capital or assets. They want to see some sort of income that many people simply do not have a consistent basis. Because of this, many people cannot qualify for loans to help their small businesses or families in these developing countries. Microfinance gives citizens easy access to financing that has the potential to end poverty in many areas.

  • Creating New Jobs For The Community
    Job creation is essential for the sustainability of any area in order to help improve the lives of many citizens. Microfinance helps in a huge way by providing jobs for those who are looking to start local businesses of their own. Since these people now have funding to help their business costs, they have the ability to work and are running a business that aids in supporting the local economy. It is beneficial for everyone.
  • Ensures Continual Education
    It is very unfortunate that many children living in developing countries must be pulled out of their schooling because of economic issues. Microfinance ensures that these children can continue their education since their families now have access to funding in order to help enrich the lives of themselves and their community.
Guest post by Eve Jamieson