A Dream Comes True

By Kai T. Hill and Sebastian Niyungeko

Seeing her husband work in the fields of neighbors just to put a little more food on the table didn't quite sit right with Jeanne Uwimana.

After years of tilling the family's small farm just outside the capital of Bujumbura, Burundi, her real dream was to start a small trading business. That would at least lessen her husband's load and generate more income for her family. But getting the capital to do so would prove difficult.

Her first quest for this dream went belly-up when a local scammer sold Jeanne and fellow residents on forming a farming co-op. It didn't take long for him to disappear after collecting their hard-earned rent for farmland. Seeking a loan from a local tradesman was also out of the question, as they generally tack on interest of 50 percent.

"We were all very disappointed because the persons that we considered more intelligent and worth standing up for us were now using their intelligence to steal and abuse us," Jeanne says. "They were impoverishing us more."

On a Better Road

After months of feeling hopeless, Jeanne heard about Catholic Relief Services' Savings and Internal Lending Communities (SILC) program. Catholic Relief Services has been helping poor families around the world improve their lives through microfinance since 1988. SILC was introduced in Burundi in 2006.

With help from a well-regarded person in her community, Jeanne formed a small savings and loan group with some of her neighbors. Within a few short weeks of forming the group, she had generated enough money to fund her small business and build a small nest egg.

"Thanks to God, I believe I have finally found a way to realize my dream. Only after two weeks of contributions, I was given a credit of about $4.50. This amount allowed me to start trading cassava flour and fresh [fish]," she explained, beaming at how she also paid the money back in two months, with only 10 percent interest.

"To date, I already have had my second credit of about $9 and my commercial activities are going forward," she adds.

Microfinance and Self Sufficiency

SILC was introduced in Burundi nearly two years ago in two districts outside of the capital of Bujumbura.

"Burundi is one of the poorest countries in the world. Having access to a small microfinance loan is a significant opportunity for poor families to start earning revenue to help feed their families," says Kevin Doyle, head of programs for CRS Burundi. "With each loan, they make a small profit that gradually adds up."

CRS provides training on savings and lending techniques to partner staff and field agents who best know these communities and scout for participants.

Savings groups consist of 10 to 25 members, who may meet in any open space to advance their savings and distribute credit. Five of the members head the group and organize the meetings. Minimum savings amounts, usually about 50 cents, are based on what the poorest member of the group can afford. The groups also set aside contingency funds to help with unexpected disasters or medical needs. Once the groups are up and running, field agents monitor the process for 10 to 12 months until the group group becomes self-sufficient, says Sebastian Niyungeko, the SILC program manager for CRS Burundi. As of March 2008, there were 133 SILC groups organized by CRS partners in Burundi. This year, the project will begin to reach poorer countryside areas.

For Burundians like Jeanne, microfinance is a means to help improve their economic situation and secure a better future for their families. The extra money they earn allows them to send their children to school and be prepared in the event of failed crops or a natural disaster.

"These financial profits enable me to support my husband in the family expenditures, especially to supplement the daily rations [we receive]," boasts Jeanne.

Kai T. Hill is an associate web producer for CRS. She works at the Baltimore headquarters.

Sebastian Niyungeko is a project manager CRS Burundi.