Oct 16

Microfinance is often cited as a solution to many of the problems facing developing countries. Only a few years ago, financial corporations such as Danone were the stars of the case studies being taught in business schools and Prof. Yanus won a Nobel prize for his endeavours with Grameen bank. Microfinance has since boomed. In Benin, there is a ministry for “microfinance and the employment of youth and women” and in the private sector, there is an abundance of readily available microfinance “offers”. With the boom, the offers have become more complicated and it is no longer as simple as the original vision of “providing small loans to the poor”.

For EDEM, providing microfinance to poor parents of vulnerable children might be a solution to ensuring a family income if one of the parents is consequently able to become an entrepreneur. To find out how this might work we today reviewed the idea with microfinance experts and I certainly learnt just how much the microfinance “offer” has evolved! For example, the microfinance establishment performs all the “back-office” services of credit reviews, loan-issuance, receipt management and reporting (for which they charge a fee); however they take no credit risk themselves. Instead, the initial capital funding for the exercise comes from the charity itself and as loans are recovered, the capital can be recycled…

So whilst we continue our review of how microfinance might work I am getting to know this country better and better. Regarding food, the French influence extends to breakfast with baguettes readily available, but later in the day the old colonial influence wanes. Of the two main meals, one might be rice-based with thick, spicy, oily sauces to cover the accompanying “protein” (as all meat, poultry and fish are referred to); the other might be a different type of carbohydrate such as cassava or yams with only a sauce rather than anything else. Pineapple for desert; peanuts for snacks – although I’d never before seen fresh (not dry roasted) peanuts: they have similar taste but with their moist texture, it is an entirely different eating experience!

If you wish to make a personal contribution to the lives of these vulnerable children, please do so through the fundraising page:

https://mydonate.bt.com/fundraisers/beninvoluntary

All donations go to Youth Action Charity International (YACI) which directly funds EDEM in Benin.

Photo: downtown Cotonou is growing...