“This is not a house of a poor person.”

“This is not a house of a poor person.”
shoes Malawi

Paulos discusses his business with us during our visit to Malawi in 2011.

One of the very cool things about my recent trip to Malawi is that I got to check in again on people I had visited on my previous two trips. Seeing the amazing changes since my first visit in 2011 blew me away!

In 2011, I visited Paulos Lungu at this shoe repair stand in the marketplace. The Saturday market mostly consisted of temporary stands, with a few roughly constructed shops. Paulos and his wife, Sequina, had received a Small Business Fund grant of $150 in 2005. They had invested in a shoe repair business, building off Paulos’ skills.

In 2011, he told me how he wanted to build a home for his family. He was already buying bricks (fired clay, to last longer than packed mud bricks) for their future home.

In 2013, they proudly posed in front of their new home – complete with a thatched roof!

The Lungu family in front of their own home in 2013.

During our visit in 2014, Paulos was eager to have us visit his house. He welcomed us inside, showing off the cement floor (no longer dirt!) and showed us where they were storing the iron sheets. They were slowly buying the corrugated iron whenever they had extra money at the end of the month.

Boyd and I with the Lungu family in 2014. Note the cement floor (rather than dirt), and how the windows can now be opened. Roof is still thatching, which needs to be replaced every year.

Seeing the Change

Just last month – 12 years after that small Spirit in Action grant, six years after my first visit – I had the honor of walking across the threshold of the beautiful, iron-roofed Lungu home. They will no longer live with leaks during the rainy season!

With the Lungu family in May, 2017. The floor is reinforced and they have replaced the thatch roof with iron sheets! They share some of their peanut harvest with us.

Before Spirit in Action, Paulos told us about how his life had been. He had no house of his own. He would stay at a relative’s house as long as they’d have him, then he would move onto another relative.

“This is not a house of a poor person,” Canaan Gondwe, local coordinator and mentor, said proudly of the Lungu home. If you have iron sheets over your head, you are doing well in Malawi. It is a sign that you have made it.

Paulos with one of his daughters. He is also a member of the local savings and loans cooperative, Manyamula COMSIP. His shirt – with the COMSIP logo – proclaims his entrepreneurial spirit.

Spirit in Action is 21 years old now, and it’s inspiring to witness and honor the deep roots we have, and the transformation we see, in places like Manyamula, Malawi.

Postscript: I can attest to Paulos’ good repair skills! When my sandals broke less than a week into the trip, I was annoyed. Then I remembered that I new a shoemaker! He reattached the toehold to the sole in a matter of minutes. He didn’t charge me for the repair – he said it was the least he could do after the incredible support he’s received from SIA.

In a matter of minutes, Paulos repaired my Kenyan sandals! The fix is holding tight!

The many ways a mill can benefit a community

The many ways a mill can benefit a community

Electricity coming to town changes everything. It provides new business opportunities: cellphone charging stations, welding shops, cafes where you can watch soccer matches. It also forces other businesses to adapt and change.

When the Manyamula COMSIP Cooperative (read more about them here) bought their gas-powered maize/corn mill in 2013, it was the best technology available. The mill grinds corn – the staple food – into a fine flour, adding value to the crops and processing the grain for eating.

Cooperative member feeding maize into the grinding mill. The ground corn is then made into a dry polenta-like meal.

People paid to grind their maize in town with the cooperative, with members paying a reduced price. Before the maize mill was there, they would have to walk long distances to other communities to grind. The cooperative took advantage of this business opportunity. In 2013, they earned over $600 from the maize mill facility.

Then the electrical grid arrived in rural Manyamula Village in northern Malawi. Mills that were connected to the grid could grind faster and cheaper. The cooperative saw their profits dropping. And so they adapted. Last year, they moved the maize mill from their building at the centre of town to the Matopoto zone, on the outskirts of town, where there is no electricity yet. The mill is profitable again, earning $35 every week!

Under Local Management…

The maize mill is collectively owned by all 150+ cooperative members. However, the mill is managed by the cooperative members who live in the Matopoto zone. (The cooperative has divided themselves into eight zones.)

Tanya singing with members of the Motopoto Zone.

75% of the profit goes to the main cooperative office, for low-interest loans and other community development programs, such as hygiene and healthy diet programs. The remaining 25% stays in the Matopoto village compound, benefiting the sixteen members and their families. These members also benefit from having the maize mill nearby. They can process their food right outside their homes!

But wait, there’s more!

At the end of 2013, the cooperative used their saved profits to start a “pig pass-on project.” They bought twelve pigs and distributed them to all the zones. The zone members were charged with raising the pigs and then passing on the piglets to the vulnerable members in their group. A pig is a valuable gift.

A grown male pig can sell for $50 and female pigs can have 6-9 offspring, generating more wealth. 

So far, 55 members across all zones have received piglets through the program! The members in the Matopoto zone have shared ten piglets amongst themselves. And the day that I visited them last month, they had another one to share. This time, they were sharing with a young boy in their community. He is not a cooperative member (yet) but they saw that he – who had lost his mother, and whose father drinks all day – could use some extra support.

The blessing of the pig.

It is this community spirit, this generosity, that fills my spirit and inspires me. When we support Manyamula COMSIP they use the funds effectively, they adapt to the changing business opportunities, and they spread the wealth so that everyone is uplifted.

Is it risky to invest in community leadership?

Is it risky to invest in community leadership?

This past weekend, on April 15th, the book I’ve been co-editing with Jennifer Lentfer for the past 5 years, was printed! It is now officially available for pre-order!

The book is a collaborative effort with 22 authors from 20 different organizations from seven countries, representing a variety of viewpoints on the international development and philanthropy sectors.

Is it worth the risk?

On her blog this week, Jennifer explained how this group of authors, all who saw the importance of working directly with people at the community level, came together:

When people in the aid and philanthropy sector learned about our approaches to making small grants at the international level, there were always questions that revealed how “risky” this seemed to people:

How do you find the groups? (In other words, “It’s much easier for us to fund the same, usual players in the capital cities who talk like us.”)

“How do you measure your results?” (In other words, “Small grants are too insignificant to make a real dent in any social issue.” or “Hard numbers are the only way I know if I am getting a return on investment.”)

How do you keep your overhead costs down? (In other words, “It’s too expensive to fund at the grassroots. It costs me the same amount of money to make a US$5,000 grant as a $50,000 grant.”)

We didn’t get it. For us, not investing in the wisdom, experience, and leadership of people most affected by poverty was an opportunity cost we were unwilling to bear.

In our minds, placing our relatively small amounts of money in the hands of people who are already doing something to address the challenges in their own communities was actually one of the least risky things we as funders could do, and also one of the smartest.

Youth learn about their rights and about healthy relationships at a workshop hosted by CIFORD Kenya.

The least risky way to support lasting change

Investing in these local leaders and grassroots organizations is the heart of our work at Spirit in Action. Manyamula COMSIP Cooperative, Community Initiatives for Rural Development Kenya (CIFORD), Samro Schools, and so many more community-based organizations are dedicated to working for positive change in their communities.

They do this by using their local knowledge and their connections with local officials, encouraging others to join them, and fostering a sense of solidarity and camaraderie that plants the seeds of change.

There are so many wonderful people and organizations supporting these grassroots partners. So many who honor the role of faith in their work and partnerships. We know that investing in local leaders is worth the “risk.” “Smart Risks: How small grants are helping to solve some of the world’s biggest problems” is dedicated to reframing the idea of “risky” grants; to instead look at the opportunity of small grants.

I look forward to hearing your thoughts on what we and our co-authors have to say!

A grant that gives hope

A grant that gives hope

Last week, I had the great pleasure of sending out the congratulations letters to the groups that received SIA grants at our last board meeting. I work with each of the grant applicants to more fully understand their projects and to refine their proposals. After weeks and months in communication the happy moment arrives when I get to let them know that SIA approved their application!

“Overwhelmed by joy”

Below is the reply I received from Vincent Atitwa, leader of the Matungu Community Development Charity cooperative in Kenya. They received a grant to start a table banking program to provide their members, mostly small farmers, with low-interest loans.

“First, I must say that I am overwhelmed by joy and happiness after learning that SIA funded our project. I say BIG THANK YOU to you and the entire team of SIA, together with their donors who made all the process possible. May God bless you abundantly so that you continue blessing others too.

“To me, this is not just a grant, it’s a grant that comes with a lot of hope and inspiration to our community.

“Finally God has answered our prayers. I believe that the SIA grant holds a key to unlock a lot of business opportunities for marginalized small scale farmers in our community. The businesses will create both jobs and wealth. I am happy to be associated with SIA and its activities, and I look forward to continuing working with you even in future after this grant.”

A Smart Risk

This grant partnership is a great example of Smart Risk #1 from the forthcoming book, that I co-edited with Jennifer Lentfer, about small grants.

Smart Risk #1: Investing in local expertise. 

Vincent and the rest of the team at Matungu Community Development Charity know the context of lending in rural Kenya. They know about the farming cycles and the challenges associated with the climate and markets. They know the community members and can talk to them when they have trouble repaying the loan. For all these reasons, we believe that it is worth investing in local groups.

Follow along this week on our Facebook page for all five Smart Risks! 

That second chance that makes all the difference

That second chance that makes all the difference

After years in a difficult marriage, Loveness Nkhoma found herself divorced, back at home, and unsure how to support herself and her three children. Canaan Gondwe, the local SIA Small Business Fund (SBF) coordinator in Manyamula Village, Malawi, recruited her to join the SBF program and start a new business. She quickly grasped the new business concepts and was a big help encouraging the other business leaders in her cohort.

In April 2015, Loveness received her $100 grant and opened a small shop in the village. She ordered vegetables, tomatoes, and other wholesale goods in bulk and then repackaged them into smaller quantities.

Loveness with her repackaged goods for sale.

It’s been two years and the business continues to provide all the basic needs for the family of four! Loveness has saved $69 and reinvested almost $200 back into the shop. She is able to pay school fees for her sons Adam (4th grade) and Raphael (5th grade) and has enough food for her 4-year-old daughter. The demand for their goods has been higher than expected! Loveness bought three goats with the profit. The goats will give milk and manure, in addition to meat.

When Canaan went to visit Loveness and check on her business, she was quick to say that she is happy with her progress and is thankful to SIA for giving her a chance. She is positive about her future and she feels secured and stable, a big change from how she felt right after her divorce!

Loveness with the three goats she bought with her SBF grocery profits.

Spelling “SIA” to Raise Money for Small Businesses!

Thank you to Joshua Brooks for running a half-marathon last weekend to raise money for the SIA Small Business Fund! He spelled S-I-A as he ran and raised $720, enough for almost five new small businesses. Check out his route here (or by clicking on the runner below). Then click the arrow play button on the bottom of the map to see his spelling in action! Thank you to all who contributed to the campaign!

Related Posts Plugin for WordPress, Blogger...