Trabalhamos Juntos (We work together)

Sorry for the delay in the posting over the past few days. We’ve had a ton of visitors come through the office lately and it has caused me to neglect my blog. On Monday we had our big Project Steering Committee meeting where we had to present the work of MMF in front of the representatives from CIDA as well as the Bank of Mozambique and ministries of finance and rural planning and development. MMF will come to a close here by the end of November unless CIDA and the Mozambican government decided to renew the partnership commitment between them and MEDA. We put forth a good presentation I thought but now we have to play that proverbial waiting game as the bureaucratic wheels continue to turn and decide on our future here in Mozambique.

But for the time being I will write another report on the trip up north. After our two days with Caixa das Mulheres de Nampula, Cremildo and I met up with a microfinance institution by the name of Ophavela. Now Ophavela has a unique lending methodology that I had yet to see during my time in Mozambique. They facilitate what is know as rural savings and loan programs for poor, subsistence communities throughout the rural districts in Nampula. Unlike most other MFIs who receive funding for client loans from international donors and development organizations, Ophavela sets up self-sustaining associations of 15-30 members whose loan capital comes from the pool of savings that they are able to accumulate as a group. This methodology works extremely well in these rural areas where the communities are extremely poor and depend on each other as a means to survival.

So Ophavela will go out into these rural districts (where not many NGOs dare travel!!) and train local communities on how to run these credit associations. The members receive basic training in money management, record keeping and, recently, some basic information on HIV/AIDS. After a two month intensive training period the groups are reviewed by Ophavela officers and approved for the next “maturation phase.” This involves less monitoring by the Ophavela officers and community activists and more sovereignty transferred to the association members. The groups each have some flexibility in designing the conditions of the savings and loans as well as the terms of membership in the association. They will meet once a week to collect the savings contributions, provide credit to willing members, collect loan payments and discuss any emergencies or general issues of the day, all in addition to some good hearted singing, laughing and socializing with their friends from the community. Each member knows that their contribution is important to the overall wealth of the group, working together to foster greater prosperity for the community.

We spent the first half of the day with Ophavela interviewing their staff at their head office in Nampula. The staff were incredibly friendly and eager to talk about their operations as well as their HIV/AIDS program that was currently being developed. They have done a lot of work already and clearly highlighted areas where they would need further technical assistance. After the meetings in the morning we headed out to see some of the associations that operated just outside of Nampula. Being the visitors from the “big city,” Cremildo and I received a royal welcome from the association members complete with singing, dancing and refreshments (coke and egg sandwiches!!). For communities whose members often survive on less than a dollar a day, such an outpouring of hospitality was very touching.

After we conducted our group interviews, the members would proudly present “the box” containing their savings and social security contributions. Each member would then present their weekly savings, often no more than 10,000 MZM (50 cents). While these savings seem quite insignificant by our western standards, they are a considerable sacrifice for families with little to no income. And members know that if they continue to make these savings they can apply for a small loan (no more than three times their accumulated savings) or receive the group payout that happens every eight months. This payout comes from the accumulated interest on loans (10% per month) as well as any financial penalties assessed for late payments and is distributed accordingly amongst the joyous members. The happiness that the members share for being a part of the association is remarkable as it provides them with the added financial security to get through what they call the “hunger times.” The spirit that they show, despite the hardships the surround them everyday, is truly an inspiration.