Uvumbuzi will start a pilot project on the bicycle credit scheme with a group of rice farmers and traders in Mwea region, a rural area in central Kenya. The members of Kimbimbi Pioneer Group are interested in using bicycles for more efficient and on-time delivery of rice to consumers. The group has a membership of 38 people 27 of whom are women. The groups has already established its own savings and credit scheme, to which members contribute an average of Kshs 2000/month [Euro 20 equivalent]. The first phase of the credit scheme, covering 6-9 months will aim at enabling all the 38 members acquire a bicycle which they would be expected to re-pay within a period not exceeding 9 months. The second phase, covering, up to 15 months of project inception will aim at expanding the programme by allowing those who have repaid to acquire a second bicycle, or bringing in new groups into the scheme. Overall, the project aims at directly supporting 80-90 people with the credit scheme, and providing indirect employment to between 100 and 120 people through business spill-over. The Kimbimbi Pioneer Group has recently formed an affiliation with Fountain Enterprise Programme, which is a growing nation-wide business development assistance programme that aims at supporting small scale entrepreneurs improve critical aspects of business management. One of the challenges that the Kimbimbi Pioneer Group is facing is the need to have means for quick transportation of rice from storage points to surrounding small rural trading centers. Use of bicycles would greatly enhance their marketing activities which is an important part of the group’s business growth strategy.
31 March 2009
In Kenya they are also experiencing hinder of the credit crisis. The plan was to start with a bicycle project in Mwea late last year. 100 entrepreneurs from Mwea and surroundings would be allegeable via a micro finance organisation for a bicycle on micro credit. This would be the fierst time in the history of Cycling out of poverty that our local partner organisation does not provide the micro credit themselve, but cooperate with a local in micro finance specialised organisation. However, the micro finance organisation Uvumbuzi is cooperating with, was forced to freeze the all budgets late 2008. This caused that the women in the project could not start with the down payments for the bicycle. Furthermore, the micro finance organisatation is looking into changing the rules and conditions of the credits, such as timeframe, etc. This means that the favourable conditions uvumbuzi had organised no longer apply. As soon as the micro finance organisation has announced their new policy and opened up the budgets, we will look into what way we can continue with the project.
21 mei 2009
Earlier this year we announced that the bicycle micro credit project in Mwea Kenya was facing challenges due to the credit crisis. Our partner organisation in Kenya, Uvumbuzi, was cooperating with a local micro finance organisation for this project. Hence, they have the infrastructure for providing the credit. However, the crisis caused problems for the organisation, making it impossible for them to still use the favourable conditions that were agreed on earlier. Uvumbuzi has decided to still continue with the project, but to handle the project directly with the local community. The beneficiaries have, guided by uvumbuzi, structured themselves in a group, enabling the group to arrange the payments of the beneficiaries. Click on the film for an update. The give out is planned for mid June.
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