New York Times columnist Nicholas D. Kristof wrote about Jane Ngoiri from Kenya last week. Jane, a 38-year-old mother of three, was pushed out of her marriage when she was pregnant with her second child. Her husband took a second wife, as polygamy is common for Christians as well as Muslims in Kenya. With small children, no home and no money, Jane turned to prostitution to survive.
Kenya's Largest Microfinance Organization
Jane Ngoiri lived in Mathare, one of the most dangerous slums in Nairobi, where crime and despair rule. Her life changed with the help of a a group called Jamii Bora, formed initially by fifty "street beggars". "Jamii Bora" means "good families" in Swahili. The antipoverty organization provides training for entrepreneurs, a sobriety campaign to cut down on alcoholism and a housing-program to help slum dwellers move to the suburbs. The group forced Jane to save some money and after she learned how to sew, she used her savings to buy a sewing machine.
Microsavings Make the Poor Less Vulnerable
Jane Ngoiri began buying secondhand wedding gowns and bridesmaid dresses for about $7 each, and then cutting them up to make smaller dresses. Her business took off. She bought a small house in a safe suburb and could keep her three children in school. While Jane's access to credit helped her start a business, the biggest help was the psychological push to save. Microsavings accounts work similar to normal savings account, but allow to save very small amounts. Minimum balance requirements and service fees are often waived. Investing in microsavings plans makes individuals less vulnerable to unforeseen expenses, which usually harm lower income individuals.
Ingrid Munro, Founder of Jamii Bora
Ingrid Munro is the founder of the Jamii Bora Trust, the largest Microfinance organization in Kenya. She gives all credit for Jamii Bora's success to a six-year-old street kid, whom she adopted with her husband in 1988 after he was crippled in an accident. The boy took her into the slums and introduced her to his friends and their mothers. Munro says she thought she knew about the poor, since she had worked for the UN. But her perspective shifted as she began working with beggars in Nairobi. Jamii Bora is unique among microfinance organizations, since everyone on staff is recruited from its members. Ex-beggars teach others about starting a small business and getting out of the beggar-mentality.
From 50 Beggars to Over 300.000 Members
Ingrid Munro, originally from Sweden, became an advocate for the poor in Kenya as the head of African Housing Fund, an advocacy group for the homeless. She says, she was completely surprised by Jamii Bora's success. In 12 years Jamii Bora grew from 50 beggars to 300,000 members, and became a regulated bank. Munro: "I thought it would be a small club, never in my wildest dreams would I have thought to start an organization like that. (Microfinance Now)."
Health Education and Health Insurance Allow Women to Save and Succeed
As a leader of microfinance in one of the poorest and most dangerous areas in Africa, Munro has provided a way out of poverty for nearly 250,000 people. Many of the women are HIV widows.
Critics say microfinance is not a panacea, but it becomes a powerful tool in combination with health education, health insurance and the incentive to save. Health education and insurance are crucial, Munro says: "When the women didn't come to work, they were either sick or their children were sick."(Microfinance Now)
Sources:
Watch a stunning 11-minute interview with Ingrid Munro telling the story of her organization Jamii Bora:
- Microfinance Now: Ingrid Munro, CGAP Microfinance Now, Blip TV,
- Kristof, Nicholas, Can Old Dresses Help a Kenyan Dressmaker?, New York Times, September 14, 2011
- Kristof Nicholas D. and WuDunn Sheryl, Half the Sky, Turning Oppression into Opportunity for Women Worldwide, New York, 2009.
Read more about microfinance:
Domestic Microfinance Organizations Help Small Businesses in US
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