Mategemeo Women Association, a non-governmental organization based in Tanzania, will be partnering with Rockflower once again for the creation of a Revolving Loan Scheme in order to help local women break the cycle of poverty and maintain financial security in the event of an emergency. The organization has previously partnered with Rockflower to remediate their community’s acute water problem by creating a number of shallow wells that provided clean drinking water to over 300 households.
The Revolving Loan Scheme Project will work with twenty women who wish to start or boost their micro-projects in order to generate consistent income and break the cycle of poverty. Once the borrowers receive their funds, they will pay back their loans with 2% interest over the course of six months, which will allow the organization to cycle the money to other women looking to start small businesses.
Mategemeo Women Association will also provide free training in small business management, bookkeeping, calculating revenue, marketing and leadership which will allow them to successfully manage their businesses and finances. Some of the existing businesses in the program include the management of a poultry farm, and the sale of products like groceries, second hand clothing, shoes, stationery, and cosmetics.
Additionally, the organization will ask each of the women to contribute 15% of their net monthly income to an emergency welfare fund, which will be used to help members in the event of an emergency. This mutual aid fund will provide peace of mind to the beneficiaries, as they begin their businesses and face the uncertainties of maintaining financial stability and independence.
This project will allow women who have previously had little access to capital, to start or scale micro-projects through a sustainable fund that will grow over time and reach more and more community members. The business training and emergency fund created by Mategemeo Women Association will support the beneficiaries as they navigate owning a business and will allow for greater financial security and stability while contributing to breaking the cycle of poverty in Tanzania.