Simple Gifts

by Deborah Stein

In the eastern village of Pendembu in Sierra Leone, several groups of workers have banded together to make a little money in whatever way they can. Some sell palm oil, a popular commodity used for cooking, fuel and soap making. Others have purchased small quantities of spices, soup stock, batteries and other objects for resale at the town market, hopefully for a profit.

CRS has been working steadily in the area since the end of a civil war, which raged from 1991 to 2002. When war came to Pendembu, many residents fled, either to parts of Sierra Leone they thought were more secure, or across the nearby borders to Liberia and Guinea. Now that they are returning, Pendembu is growing into a larger town than ever before. CRS and our partners are working to help the residents settle back in.

Under one umbrella project, CRS is seeking out extremely vulnerable people in Kailahun district, where Pendembu is located, and supporting them in their efforts to get back on their feet. Our work is focused on increasing economic productivity at the community level and then weaving the communities together into the larger economic life of the rural district. One way CRS does this is by giving small grants to groups who are working together to increase their stability and income.

One group calls themselves Guvii, which means "think properly" in their local language. The members of Guvii had managed to remain in Sierra Leone during the war, but had to leave their homes to escape the fighting. When it was time to return to Pendembu, they decided to band together to earn a living.

Lucy Foray Gondoe, Guvii's chairwoman, speaks for the group. Shaded by the blazing sun in the shadow of a roadside hut, Lucy told me the key to Guvii's success — soap.

To our side was a little box on stilts, showcasing the three different types of soap that Guvii makes. Variety, Lucy told me, is one of the ways Guvii gains customer loyalty. Other groups sell soap, and everyone knows the soaps are formulated in the same way. But, Lucy explains, Guvii's customers expect — and get — the colors and shapes they are used to.

When I asked her about how Guvii came together, she graciously took the time to explain. When the five women and two men who belong to Guvii came back to Pendembu, they had practically nothing but their ambitions. Ten years of war had pretty well wiped out most of Sierra Leone's infrastructure. (More than four years later, roads, electricity lines, even access to clean water and basic sanitation are still not restored.) But in at least one way, the group members were fortunate: one of their number knew how to make soap. And she was willing to teach the rest.

The seven Guvii members got organized. They weeded backyard garden patches for neighbors. They formed work groups to farm for others, earning a little bit at a time. They each contributed about 2,000 leones (not quite a dollar). Then the Guvii members pooled their resources and bought a small amount of lye and locally produced palm oil. With these materials, they started mixing up batches of soap in November 2005.

Making Cents

Their business quickly grew. They went from using a gallon of oil for their base to five gallons. Now, a year later, they use 20 gallons for each batch of soap they mix. CRS heard of Guvii's work and decided to help them expand their business. Members attended a business skills training called Making Cents, facilitated by the American Refugee Committee and local partners, including Caritas. The training included lessons on basic bookkeeping, group management, problem solving and leadership. Then CRS gave the group a small start-up grant, with which they bought larger batches of raw materials. Buying in bulk lowered their cost for materials.

At first, the soap makers were practically giving their product away. Part of the reason their profits were so modest: they hooked their customers by offering a new product at low prices.

It worked. Customers were so interested, in fact, that now the members can't produce soap fast enough to meet demand. But they've got a plan for that, too.

With the profits Guvii has made, they can afford to give small loans to the group's members. They do this on a revolving basis, and each borrower is given a month to repay the equivalent of $20, plus 10 percent interest. (At first, I thought this seemed steep, but a CRS staff member explained that the local banks charge a much higher rate.) Borrowers typically use the loan money to expand their soap distribution area, pay school fees, or buy stock for a small trading venture. And the interest goes back into the group's fund.

Lucy says, "We have decided to open a bank account. Then we are looking for more funds so that we can increase our supply [production] because we have enough customers." By enticing neighboring villages to distribute the soap, Guvii operates as the wholesaler. Depending on its ability to save, the group believes it can expand its business throughout the district of Kailahun.

Before I left, Lucy gave me a square of their handmade soap. I thought of all the work that had brought the group members to that moment. A small, determined group of neighbors had taken an everyday object and turned it into a profitable, self-sustaining business. Their efforts would help them take care of themselves and their families for the rest of their lives.

Pretty good for a bar of soap.

Deborah Stein is an associate editor for Catholic Relief Services. She works in the Baltimore office. Deborah recently returned from a visit to CRS programs in Sierra Leone and Liberia.