In January 2013, Lackson Lungu bought two piglets with a Spirit in Action Small Business Fund grant. We gave the $150 as a grant, without the high interest rates and short repayment schedule that so often come with microfinance loans.
However, there was a string attached. We asked Lackson to pay-it-forward to help someone else in need, once his business was successful. Lackson was happy to comply and in May 2014 he gave one of the piglets from his successful piggery to Tiwonenji, one of the widows in his village of Manyamula, Malawi. (Read more of his story here.)
This pay-it-forward aspect of the Small Business Fund means that each grant sets off a ripple of change. Sharing the Gift can take the form of sharing piglets, teaching other women to bake and sell donuts in the market, teaching sustainable agriculture skills, and sharing seeds or food with more vulnerable members of the community.
Yesterday, Humanosphere, a news agency that focuses on stories of the fight against poverty, gave a shout-out to Spirit in Action for our pay-it-forward model. In her article, “Pay-it-forward model shows potential for microfinance in developing nations,” Lisa Nikolau notes that we are part of a movement that is looking at new ways to help people thrive, without getting them trapped in cycles of debt.
Nikolau quotes Muhammad Yunus, the man who helped develop and popularize micro-credit around the world, who said, “Poverty should be eradicated, not seen as a money-making opportunity.” And we whole-heartedly agree!