Funding provided by: Ghana Business Development Services Fund
Despite steps being made to meet the UN's Millennium Development Goals, Ghana is still burdened by extreme poverty, and for women and people living with HIV/AIDS (PLWHA) this burden can be crippling.
Rather than receiving charity, it's empowering for those living in poverty to have the ability to work and earn a regular income but many are neglected by mainstream banks and find it impossible to access loans that could help them start a small business. Microfinance has proved to be an effective and efficient method of combating poverty by extending financial services to the people that need it most.
In Ghana, only around 300,000 people currently benefit from microcredit so in 2009, AFAWI launched a microfinance program called the Livelihood Project.
The Livelihood Project gives low-income women and PLWHA the opportunity to gain a sustainable source of income by providing them with low-interest loans and, in addition, AFAWI supports them with essential business skills trainings.
Groups of up to four people can apply for a loan as part of a 'center' of five groups. The groups then act as guarantors for each other's loans. The groups are given business skills training before they receive their loan which they have four months to pay back after an initial two week grace period. Once their loan is repaid in full the groups are able to apply for further credit. All interest goes back into the Livelihood Project fund to lend money to other groups.
By providing affordable loans and business education, the Livelihood Project is able to support the economic participation of women, promote gender equality and improve the economic welfare of women and PLWHA.
The Livelihood Project has already made a big impact on people's lives. One group of PLWHA were able to buy eight rabbits and one acre of farmland with their loan. They employ a local farmer to cultivate the land to grow pineapples and to manage the farm, which had its first harvest in September 2010.
A national juice-manufacturing company purchases the pineapples and the group are breeding the rabbits to sell them once they reach a mature size. The group use the proceeds of their work to buy anti-retroviral drugs needed to treat their disease.
In order to continue offering this crucial financial assistance, AFAWI has set the target of raising $12,000 for the Livelihood Project fund. The money will provide loans to hundreds of poor women and PLWHA in Ghana, helping them create a sustainable future for themselves. If you'd like to contribute to the fund please send your donation to:
Name of Bank: Merchant Bank Ghana Limited (Achimota Branch)
Account Name: Alliance for African Women Initiative
Account Number: 000150100035666
Swift Code: MBGHGHAC
We're also looking for volunteers to share their entrepreneurial skills with the groups. Find out more here.
