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Background: FOMO’s Microfinance is the provision of financial services to individuals within a Group who have little or no other means of access to credit or other financial services. FOMO’s Microfinance targets women headed households in the rural areas of Malawi. More specifically Microfinance is the provision of small loans, to undertake business ventures.
How it works: The Groups consist of 10 members in each group. The Group as a whole borrows money from FOMO and the individual in each Group borrows money from the Group. The group will assess the viability of the business venture, prior to the loan.
Supporting Women in Business
Pay-back and Control: The money is paid back with interest on a monthly basis to the Group and on a quarterly basis to FOMO. The group nominates a chair, secretary, and bookkeeper. The group is monitored on a day to day basis by the head of the village, (Chief). Monitoring and support is also undertaken by FOMO.
Risk: Contrary to most people’s initial assumptions, the rate of default on microfinance loans is usually surprisingly lower than that of conventional bank loans in developed economies. The Group is given financial and business support depends on that group’s mission and goals.
Malawi is one of the poorest countries in Africa and the world. A greater share of its 13 Million people is in great distress caused by poverty, disease and natural disaster. The lack of infrastructure, health care, education, clean water, electricity and with an income of less than $2 USD a day people are barely surviving. Trade, industry and education are the key to providing a better future for the children of Malawi. The challenges are immense, but to gain a foothold in the economy and the hope of a better future access to small loans to encourage enterprise is a major step on the ladder out of the perpetual circle of despair. There is energy, a hard working spirit and a desire to succeed, but all this is for nothing without financial support to gain those first steps into a world of growth. By supporting the FOMO’s Microfinance project you are giving hope and a future to many that would not even be noticed. Helping does male the difference