A New Twist on Micro-Lending in South Sudan

A new twist on a now-familiar strategy: person-to-person micro-lending.

Peace Dividend is connecting individual lenders, i.e., people like you and me, to entrepreneurs working to rebuild South Sudan. The new twist is that PD is also working with the Sudanese diaspora as lenders to leverage their local knowledge and networks and reduce the riskiness of lending.

The group is supporting medium-sized businesses -- an important segment of the economy that isn't typically eligible for micro-lending and that may not have good access to commercial credit. So, PD fills a needed niche.

I really like their "Added Value":

Innovation - Peace Dividend proposes a novel way to reduce the risk of lending to SME’s despite Southern Sudan’s weak or lacking legal, court and regulatory frameworks, land collateral and credit bureaus. Peace Dividend‘s methodology reduces credit default risk by using informal mechanisms (such as group lending that proves so effective in microfinance, as well as Diaspora knowledge and networks which functioned effectively before the formalization of western markets) to mitigate moral hazard and adverse selection.

A Catalyst for Opportunity & Peace - Medium sized companies are a key source of jobs, production, and growth in post-conflict economies. Thus, in addition to the primary goal of expanding opportunities and income to populations recovering from conflict, Peace Dividend will also provide a platform for building peace dividends by providing key stakeholder groups with greater gains from their continued engagement and support of local and national peace processes.

All of the projects are in the "under evaluation" stage so check back in a bit and see what opportunities come up.

- Karol

Exclusive Interview with Jadot Niyomugabo

Enjoy an exclusive interview with Jean de Dieu Niyomugabo (“Jadot”), Indego Africa’s Rwanda Operations Manager. Born in Gisenyi, Rwanda, Jadot is a 2008 graduate of the Faculty of Law at the National University of Rwanda. Prior to coming to work at Indego Africa, Jadot participated in Mobilizing for Life with World Relief: Rwanda. Other work experience includes working as a teacher in Gacuba II/A Primary School in 2003, which he himself attended from 1989-1996, and working as the research partner of a Fulbright Scholarship candidate from 2006-2007. In his off-time, Jadot loves swimming and is one fantastic dancer!

In this interview with Senior VP Ben Stone, Jadot discusses his work with Indego Africa. Even if you only catch Jadot's signature sign-off at the end of the video, we're sure you'll enjoy!

What's Going on with Malaria?

World Malaria Day is April 25th. In advance of this, the World Health Organization has issued a report chronicling progress made over the past several years in the fight against this deadly and debilitating disease.

Most malaria deaths (over 1 million worldwide) occur in Africa (85%) so the disease impacts millions living there, compounding problems of poverty and adding to the burdens of human suffering.

The disease is treatable with medicines and preventable but sick people need to have access to medicine (often not the case) and prevention requires things like insecticide-treated bed nets or spraying to kill mosquitoes. And, of course, distribution of both prevention tools and medicine takes money. Funding for anti-malaria campaigns has increased dramatically over the past several years and the WHO report says this is leading to positive change: for example, fewer children are dying of malaria, as reported on here.

This is good news, but as this story highlights there's more to be done and reasons for optimism to be tempered. Spending may have increased but that by itself is not a sign of success: if bed nets or medicines aren't getting to the people who need them then programs need to be re-examined.

- Karol

Online Luxury Clothes Site Gives to Indego Africa

So much of the Indego Africa experience is about connecting with people you actually know and, once you're involved with the project, having closer access to the people of Indego than you're likely have in most consumer or international aid experiences.

I got involved because I was a close friend of Matt and Ben, and I've become a committed supporter because I can feel in almost all of my efforts that I'm only two degrees removed from Indego's female partners in Rwanda. I've never even visited the continent of Africa, much less met Indego staff there, but we talk to the same people, we handle the exact same products, and I think we're all drawn to the paradoxically close international experience that is Indego Africa.

And as Chair of the San Francisco Regional Board (give me a shout-out if you're in the Bay!), I've seen how personal relationships carry us forward, and can do a lot to contribute to the growth and well-being of good people who live far, far away.

Case in point: SF regional board member James WIlliams introduced us to his friends Anna and Mike at luxury clothing site Muito Fina. The site sells the type of chic, only in-season and on-point fashions that leave fans on their facebook page hyperventilating in the comments of each post.

Muito Fina also makes a point of sponsoring a worthy case every month, and for the month of April, it has been Indego Africa. They're donating 5% of their April sales to Indego Africa.

So if you're looking to do some shopping, and you want to continue to support Indego, you can't go wrong by just clicking over to MuitoFina.com!

- Will Craven, Chair of Indego Africa's San Francisco Regional Board

ORI Students Excel at Indego Africa

As many of you know, Orphans of Rwanda, Inc. (ORI) is our closest NGO partner. By their description, "ORI is a 501(c)(3) nonprofit organization dedicated to assisting orphans and vulnerable young people in Rwanda who have been affected by the 1994 genocide and diseases such as HIV/AIDS and malaria. ORI’s principal mission is financing university education and related training for young people who, against tremendous odds, have completed secondary school and scored highly on university entrance examinations."

The following post is re-published from their blog:

Indego Africa, an innovative NGO dedicated to alleviating poverty by providing training and sustainable skills-building for Rwandan women artisans, is one of ORI’s closest partners. Indego currently employs six ORI students — five as part-time interns and one as a full-fledged employee. The ORI students lead Indego’s Hand Up Training Program, which enables Rwandan women working in local cooperatives to develop economic self-sufficiency through sales of high-quality handicrafts. The program also provides Indego’s artisans with a range of workshops in areas such as literacy, computer skills, Internet technology (IT), and financial management. ORI’s students deliver these trainings and, as they work with the women in Indego’s cooperatives, they develop their skills as leaders and managers.

Eugene Nteziyaremye, a second-year student at the Kigali Institute of Education, says that one of the best things about the internship is getting to “train the women in reading and writing Kinyarwanda and English.”

Valens Rutazihana (photo), a third-year student at the School of Finance and Banking, originally interned for Indego Africa and — after excelling in his role — he was asked to become part of the staff (his official title is Management Team Leader). For Valens, his work at Indego “is my contribution to build my country because I am not able to help the citizens financially but I have knowledge needed by most people who did not attend school.”

Our relationship with Indego is extremely special because it gives our students the opportunity to take what they’re learning in the classroom and through ORI trainings and put it into practice in a way that directly empowers others and supports Rwanda’s economic development. The ORI scholars are very pleased to work for Indego, which is one of many NGOs in Rwanda where our students are working either as interns or part-time employees. Our mission is not just about enabling students to graduate from university — it’s about preparing them to be leaders and dynamic professionals, which is why the Indego-ORI partnership is a model for our relationships with every company and organization that employs our students.

Indego Africa Thinks Social and Drinks Local with NYU

This past March, Indego Africa was one of the featured designers at the NYU Stern's Social Enterprise Association (SEA) Eco-Fashion Show event "Think Social, Drink Local". We are so grateful to our academic partners at NYU Stern for inviting us to participate in this event. A heartfelt thanks goes out to Erica Rotstein (MBA 2011) from SEA for spotlighting our important work and Denise Lee (MBA 2010) from the Luxury & Retail Club for an amazing showcase of our earrings. Thanks to Totally Photo for its great shots of the lovely models and Indego Africa’s earrings. The event aimed to highlight socially responsible, and local companies. There was no better way to do this than exhibit their goods on perfectly clad models wearing designs by Garbage of Eden Design, C. Marchuska, Alternative, Tribal Societe, and Recession Rags. Indego Africa's woven earrings stood out on their own, and paired with New York fashion they were a total hit!

In a swank, low-lit room with a runway down the middle and an open bar quickly serving up organic martinis in plastic cups, glasses of wine, and an unusually blue drink, trendy models mingled with students before the show began. Suddenly the music started, the spotlight focused, and hip models in outrageously high heals (and stunning disc earrings) pounded down the runway built at slightly below my 5'1'' eye line. As an Indego Africa intern, it was very exciting to see Indego's products among other amazing designers. To think that these earring began in the hands of our artisan partners and ended under the limelight in one of the trendiest cities in the world both awed and encouraged me. Though focusing on the high-end market is a strategic direction for Indego Africa, it turns out to also be a lot of fun!

- Sierra Visher, Fundraising & Development Intern

Fair Trade v. Direct Trade

I had lunch recently at a restaurant in Arlington, Virginia and was offered coffee or a cappuccino. The regular coffee was fair trade. But the coffee used to make the cappuccino was "direct trade." I wasn't familiar with that term but have since discovered that direct trade is an alternative to fair trade.

Direct Trade is an effort by US coffee importer and retailer Intelligensia to do more and better for coffee producers. How?

Intelligensia works directly with coffee growers to help improve the quality of their coffee. They pay growers or cooperatives (not exporters) a 25% premium over fair trade prices. They closely monitor what growers are doing and the impact of these efforts, which requires a hefty commitment in terms of time/travel/education/etc.. And they expect growers or cooperatives to commit to "sustainable" social and environmental practices.

What's the big difference between Fair Trade and Direct Trade? For one, Intelligensia doesn't seem averse to working directly with family-owned farms (which Fair Trade doesn't do). But, the main difference may come down this: direct trade cuts out the fair-trade middleman . . . Intelligensia doesn't pay to put the fair trade logo on their coffee, instead they put their own logo on the product and that logo indicates the existence of a continuing relationship with growers.

Building a strong relationship with growers is a costly investment that may be sensible for specialty-coffee retailers operating at the high end of the market and serving discriminating consumers (who want to support this kind of support). This strategy may not work for importers buying lower-grade, cheaper commodity grade coffee. I was wondering about for craft products like those that Indego's partners produce . . . IA has the kind of continuing, deep relationships that Intelligensia has with its producers -- should IA be a Direct Trade retailer?

(Photo: coffee cherries ripening on the shores of Lake Kivu, Rwanda. One of my pictures.)

- Karol

Emelienne the Entrepreneur

Last week a downfall of heavy rains ruined Emelienne’s outside toilet. It cost her 25,000 Rwandan Francs (around $45) to repair but this didn’t phase her. She had the money to pay the bill and her family now has a new toilet.

Emelienne is one of the many master seamstresses at Cocoki embracing her newfound financial freedom. Two years ago Emelienne was living off of less than $2 a day. Today her oldest son, Salim, is off at secondary school and she is able to afford school fees for her three younger sons. “Now I can buy little things when I want to and save some money too," she told me. "I also no longer rely 100% on my husband for money and I can give my opinion on how the household income is used.”

Indeed, Emelienne’s husband has seen the financial benefits of his wife’s labor and unlike other men, fully supports his wife working. He knows her income is critical to supporting the family and has even extended to making dinner for his sons when Emelienne has to work late!

But let's re-focus on Emelienne. Emelienne Nyiramana is 33, married with four children, a master seamstress, and the Treasurer of Cocoki. Work with her and you realize immediately that she is one sharp woman and a born leader. With help from Indego Africa's business training programs, she has sharpened her negotiation skills, honed her deftness with numbers, and has lead Cocoki forward with confidence.

Thus, it was no surprise that Indego Africa encouraged Emelienne to apply for a spot in the fantastic Goldman Sachs 10,000 Women Entrepreneurship Certificate Program, which strives to "provide 10,000 underserved women around the world with a business and management education." The 10,000 Women program in Rwanda, built on the principles of core skills and mentoring, entails six months at Rwanda's esteemed School of Finance & Banking (SFB). To graduate, all participants must create a polished business plan for their company, which in this case would be Cocoki.

For three days last week a very excited Emelienne diligently worked on her application, which included multiple short answers and some challenging essays. Today Emelienne proudly traveled to SFB and submitted her application in person (photo). When she told her husband why she would be late that night even she was surprised by his response. “I will go directly home from work, take care of the kids, and cook dinner!” he said. And he did.

- Sarah

Photos! Indego Africa in Rwanda, March 2010

Please enjoy some of my photos of Indego Africa in Rwanda this past March.

Facebook slideshow HERE.

Flickr slideshow below (informational captions available).

- Ben