Elizabeth's Story: The Power of Microloans in Tanzania

The farming village of Mtambula sits in the highland region of Iringa, Tanzania. There is a population of roughly 4,000 people, and like many places in East Africa, this is set to expand rapidly. At the time of writing, more than half of the community is school-aged.

In 2015, Five Talents partner in Tanzania, Mama Bahati Foundation, identified Mtambula as an area for expansion. After a period of sensitization, they started a Trust Group with just five members. The program quickly attracted interest, and membership has spiked as the women begin to recommend the group to their friends and families. At the moment, average savings per person range from as little as Tsh 40,000 (about $18) to Tsh 100,000 ($45), which demonstrates the level of poverty in the area.

Elizabeth Sanga joined the group after being persuaded by her neighbor. When asked why she joined, Elizabeth simply says that she was easily converted "due to the transformation I observed in my neighbors."

"Before I joined MBF group I suffered from a shortage of capital, [I was] out of stock and was about to close the business. Our village is so far from town that financial institutions feel reluctant to provide financial services. We used to borrow money from money lenders with higher interest rates. But now we thank God for MBF because now we can get a loan with a very affordable interest rate."

Elizabeth is a 26 year-old mother of three and a savvy businesswomen. Her children Josephine, Boniface, and Godfrey range from nine months to three years old, and when a member of the MBF team interviewed her, Elizabeth was also looking after her sister's two children.

Elizabeth's eldest child, Josephine, has just started primary school. Twenty-odd years ago, Elizabeth was doing the same, but unlike her mother, Josephine will progress well past primary school. Elizabeth said that she doesn't "have plans for further education" but would rather "make sure" that her children receive higher education levels than she did.

 After getting two weeks of pre-loan training I received my first loan in March 2015, It was Tsh 200,000 ($90) The loan was used to purchase stocks for my shop. I even remember what it was, 5 cartons of bar soap, 1bag of sugar, 1 bag of wheat flour, and other small retails stocks."

After a few years of saving small amounts and taking business loans, the Trust Group has had a tangible impact on Elizabeth's life. After one meeting, she ticks off on her hand the improvements, which range from the quality of her family's diet - which now consists of more than two meals a day - to her abilities to pay for all school costs, like uniforms, books, and other school requirements. The improvements are not limited to her domestic situation, business is going well, and Elizabeth is looking to expand her operations:

"My plan in future is to be the wholesaler in our village, I want to be a supplier to all of the retail shops within Mtambula and the nearby villages."

Learn more about Five Talents programs in Tanzania.

Special thanks to the MBF team and Five Talents UK for this interview and the accompanying photos.

Celebrating Growth: Five Talents' Board Chair Reflects on Latest Kenya Visit

I recently returned from an incredible trip to Kenya.

The purposes of the trip were to participate in the launch of Five Talents Kenya, to hold our regular Five Talents International Board Meeting, and to see the progress made in our programs (specifically our Kenyan programs) to date. We participated in a number of meetings and celebrations, but the highlight of the trip came when we were able to visit clients on their home ground and see the amazing transformation that has occurred in the lives of the people touched by this ministry.

Monday, March 7 was our first "official" day, and was taken up by our FTI board meeting, where we reviewed the progress of our programs world-wide, with a particular emphasis on our African programs. Although our programs are strong, we continue to be concerned about our ability to keep functioning in conflict areas, especially in Burundi and South Sudan. That said, it continues to be a source of great inspiration to see how our clients are able to keep operations running in the face of such hardships. As the Bishop of Juba told our Program Director, "Your friends come and visit when you are sick."

On Tuesday, we celebrated the launching of Five Talents Kenya, in a ceremony attended by five Kenyan bishops and an enthusiastic crowd. It was more of a worship service than a business meeting, and reflected our hopes for a bright future for FTK.

The highlight of the day, however, was our visit to "the field" that afternoon. We were able to see the Thungururu Community Bank in operation, and were able to meet Monica, a Five Talents client who used a small (approximately $50) loan to develop a thriving petrol station. We learned that there are now over 40 small businesses operating in the community!

On Wednesday, we travelled to two separate locations to see possibilities for additional expansion. My team went to Mbeere Diocese, where we learned that they are already starting savings groups in anticipation of Five Talents, and have over 8000 people lined up! Their drive is amazing!

Our group had the easier day, as we only had to drive for two hours over some really bumpy dirt roads to get to our meetings. It is easy to forget how challenging the logistics can be in this part of the world!

A personal highlight for me was the opportunity to meet with a young man by the name of Robert Martin. He introduced himself to me, and reminded me that he attended a seminar that I taught in 2012 on business, which emphasized Christian business principles. He is a teacher, and now has a thriving poultry business as well. In addition, he serves as the chairman of the board for the Community Bank! He credits us with giving him the skills and inspiration to start his business. Although I think he gives us too much credit, it is indeed inspiring to see what he has done with a little training and a lot of ambition!

Once again, I came away in awe of these people, and what they can do with just a little assistance from us, coupled with their own innate dignity and drive. It is a humbling experience to be a small part of this ministry!

Jim Oakes serves as a Board Chair of Five Talents USA.

Photos by Joe Paulini for Five Talents.

Sampson's Story: The Journey of Microfinance Business Development

Sampson grew up in an agricultural community amidst fields of maize, coffee, pineapples, and beans.

 While there are a few larger plantations in the region, most residents of Sampson's community are small-scale farmers. They struggle to eke out a living and meet basic financial needs. Many keep poultry or livestock to feed their families. A few sell in the local markets, but many business opportunities are yet to be explored. Development and escaping poverty are on everyone's minds.

With few formal jobs, lack of capital, and limited financial services, many young men in the region don't think small businesses can work. They turn to crime. Unemployment and alcohol abuse are rampant.

Sampson's story took a different turn. At the encouragement of friends and his local church, Sampson joined a Five Talents savings group. Here he learned financial management and business skills. He also gained access to savings and loans.

With advice from his group leader, Sampson took a loan of 50,000 Kenya Shillings ($500) from the community savings and used it to buy a small business for animal feeds.

He began sourcing and selling products to small farmers, quickly paying back his loan and using profit to further develop his business. Many of his neighbors were losing animals to disease or malnutrition. Sampson hopes to help these farmers protect their assets and strengthen their community.

Last year, Sampson took a larger loan of 120,000 Kenya Shillings ($1,200). He has been faithfully paying back and continuing to grow his business. Sampson has also been using his profits to construct and develop at home.

"I hope to do big things through our bank", he says.

The Thurunguru Community Bank is the third community bank opened in partnership with Five Talents and the Diocese of Thika. Its members now have access to a variety of financial services including savings accounts and educational, business, and emergency loans. The community bank is a source of pride and signals new opportunities for the residents of Thurunguru.

Learn more about Five Talents programs in Kenya and help more entrepreneurs like Sampson.

Make a gift to Five Talents today!

Photos (from top) by Joseph Paulini: Sampson welcomes bank and community leaders to his shop, Sampson serves customers, A collection of animal feeds ready for sale inside the shop, Members of the Thurunguru Community Bank Make a Transaction.

Katito's Story: Happy in My Heart

"My face portrays the happiness from my heart because I simply feel prestige being a member of Mama Bahati. It was a bit hard for me to join MBF as all know that the Maasai are not business people by nature."

Katito (36) joined our Tanzanian partner organization, Mama Bahati Foundation (MBF), in 2014. As a women and a member of the Maasai tribe, Katito suffers from a wide-spread ethnic stereotyping that has to a large degree been internalized by the Maasai themselves.

The Maasai have been nomadic pastoralists for thousands of years, and have had little opportunity or need to start small business. Now, as grazing lands are increasingly depleted, entrepreneurship is becoming a necessity. Despite the fact that times are changing, the Maasai and in particular the female members of the tribe are still seen as poor businesswomen.

Katito's Trust Group consists of just five members located in Izazi Senta, 56km from Iringa town. Three years ago, her husband left town to find work, and hasn't been seen of since. Now, Katito is focused on covering her children's school fees.

"The main business I am doing is food, but sometimes I supply fresh milk around the streets. For the short period I've been in MBF I managed to pay the school fees and other expenses for my three children who are studying at primary school. The business has been expanding day by day."

In 2014, when Katito joined her local Trust Group, she had just Tsh 50,000 ($23). Since then, she has diligently saved small amounts which has, in turn, unlocked loan capital. As with all of the Five Talents programmes in Tanzania and Kenya, Katito's group received financial literacy training and business advice from the local Five Talents partners. Two years on, her savings have increased threefold.

"I am not scared to ask for the much bigger loans because; MBF officers have been giving us much training on how to manage and develop our small businesses. Through the profit earned, I want to purchase a piece land so that I can build a good house for me and my children. Through MBF and their partners, I am sure my plans will became true.

It's my advice for other Maasai ladies not to fear of taking loans for the business, the life has been changing, I am no longer dependent, I can do anything by myself. May God bless MBF and their partners to continue supporting low-income women in Tanzania."

Learn more about our programs in Tanzania.

Mama Bahati Foundation

Established in 2007, the Mama Bahati Foundation (MBF) now serves over 5,000 women across Iringa and Kilolo regions in the southern highlands of central Tanzania.

MBF was founded by the former Archbishop of Tanzania, Donald Mtetemela, after he met a lady called Mama Bahati who was struggling to make a living selling bananas in Iringa. The high interest rates she was forced to pay to buy the bananas wholesale on credit meant that making ends meet was nearly impossible. The Archbishop lent her a small sum at a much fairer rate of interest so that she was able to increase her profits, feed her family and repay the loan. Soon after this encounter, the Archbishop appealed to Five Talents, asking for support in establishing a microfinance project in Iringa, and MBF was born.

The Mama Bahati Foundation focuses its services on women who are typically even more marginalised in rural society than the men. Since the women typically bear responsibility for feeding, educating and caring for children, supporting women through microfinance means supporting the whole family. Enabling women to become financially literate income-earners can also empower them within the family and community.

Learn more about our programs in Tanzania.

Hamida's Story: More than a Survival Business

Here's an example of a micro-enterprise that has matured and expanded beyond what is sometimes called a "survival business." This stand in Iringa, Tanzania, is owned by a woman named Hamida and offers everything from soda pop to fresh fruit and vegetables.

Hamida was one of the first clients of Five Talents' partner in Tanzania, Mama Bahati Foundation (MBF) having joined in 2006.

Following the tragic death of her husband she had to find a way of supporting her children.

After attending a local meeting and seeing how friendly it was she decided to join a group. She received business training and a first loan of $30. She used this loan to invest in her fruit and vegetable stall and pay for her son's school fees.

Over the years Hamida's business has flourished and she now generates daily income of between $9-12. She saves some of this money and invests the rest in her business. She is now a trusted client and recently took out a loan of approx. $600.

Hamida says she can really see the difference that the training and support make in her life. She can now meet all of her household expenses and send her children to school.

Hamida plans to focus on making her one business stable before opening her own clothing line in the town. She also hopes to one day see the house that she started with her late husband completed.

Learn more about our programs in Tanzania.

Photos by Adam Dickens for Five Talents.

Building a Veterinary Business in Kenya: Geoffrey's Story

A decade ago, two out of every three Kenyans made their living as farmers. While the numbers have changed slightly, the vast majority of Kenyans are involved in agriculture or animal horticulture.

This has meant good business for Geoffrey Mwangi (29), a qualified vet who also owns a supply shop that serves the local community of pastoral farmers in Kairi.

Although Geoffrey is single and has no children of his own, following his graduation from Veterinary College in 2010, he found himself supporting his parents financially. He also offered to help pay his sister's school fees. Even as a qualified vet, this was a strain on his limited finances, and when a friend asked him to move to Kiari to take employment as a sales representative in another veterinary practice, he jumped at the opportunity.

In Kiari, Geoffrey found himself attending the local Anglican church, along with many of his clients. It was here that he was introduced to TCDT, the local Five Talents partner programme, and given the opportunity to join the Trust Group and start saving small amounts on a regular basis. After six months he had saved approximately ksh50,000 ($500).

'Before joining the group, I had many financial problems because I had nowhere to start financially. The reason I started to save was to have my own business – this has always been my vision right from the start. This is what I started saving for. I did not have enough savings to get a loan from a bank but the microfinance programme helped me to save enough. Because my income was very low when I first left college and I needed a large capital I had to save bit by bit, in small steps.

I took my first loan in 2012 for ksh100,000 ($1,000). I then bought my first motorbike which I used it in my field work when serving my customers. There was a very high return, it made travelling around convenient and easy and I was enjoying having it. I was able to repay it within 6-8 months. During this time, I was still employed in the Veterinary shop as a Sales Representative.

After another 6 months, I borrowed another loan which I used to restock the shop where I was working. I think it was for ksh150,000 ($1,500). Once I had repaid that loan I borrowed another loan straight away for ksh120,000 ($1,200) and bought another motorbike. The first motorbike I bought is rented out as a Boda-boda to generate some more income. I rent it for ksh300 ($3) a day, and on average I rent it out 6 days a week as we do not work on Sundays.'

In addition to access to loan capital and the resulting income streams, Geoffrey has also begun to receive small dividends from the group. These enabled Geoffry to earn an interest on his savings for the first time at a rate higher than savers in the UK can currently earn. And that's not all. Foundational business training is an integral element of each of the Five Talents programmes, and Geoffrey received a series of courses on financial literacy and business planning and best practice. In May 2014, following the completion of his financial training, Geoffrey took the plunge and borrowed ksh200,000 ($2,000) to start his own veterinary business. Members of the Five Talents team met up with Geoffrey during a visit to the area in November 2015.

'So far I think it has changed my life by 360 degrees. Everything that I have now can be traced back to the Trust Group. As a person who had no idea where to start, I was able to work and save enough to purchase my motorbikes and even get a bigger loan to start my own business. Now I am my own boss. I have also bought somewhere to build my own house.

The best thing that I have learned from the group is that unity will give you a bigger step ahead rather than accumulating just your own savings. It is very hard to keep your own savings because at any time you can go and get them and misuse them. When you are part of such a group, you know that what you are borrowing is directed to a specific activity that you want to undertake, and that activity must be profitable.'

The World Bank estimates that 80% of sub-Saharan Africa is unbanked. This is sometimes because the bank is simply too far or expensive for them to reach. Low levels of education mean that many lack the ability to negotiate the complexities of a formal bank. In many cases, the bank views these people as simply too risky to work with. The impact of that even the most simple financial infrastructure on the lives of entrepreneurs like Geoffrey is clear to see. Learn more about Five Talents programs in Kenya.

Published by Five Talents UK. Images by Adam Dickens Photography.

A Welder on the Way Up

When you're sitting with Antony in his workshop, the conversation often turns to education. Despite - or perhaps because - his father's financial difficulties forced him out of school at the age of thirteen, Antony places a serious value on education. Whether it's the practical welding training he undertook several years ago, the business training he now receives via his local Trust Group, or the schooling of his three children, it's clear that Anthony sees education as closely linked to personal and financial fulfillment.

After he had left school, Antony worked a number of short-term jobs to raise the fees to pay for a short course in the basics of welding and metal work. This training turned out to be a good investment. In the area of Kiambu County where Anthony grew up, new buildings were springing up every day, and his welding business quickly found its first customers.

For two years Antony spent most of his days shaping metal into doors, gates, and window frames in an open field. Despite the demand for his expertise, limited resources meant that Antony struggled to get his business to gain momentum. By this time, Antony had a wife and three children. Providing his children with a quality education was a priority, but because Antony's wife Lucy was unable to find work most months his single income stream was entirely used up with three sets of school fees and household necessities.

“Before joining the Group, I was really struggling. I wanted my business to grow, however I could not access capital or save any capital as my family’s needs would always take all my income. Mine was the only source of income as my wife stayed at home. My finances were still low as the business was in the early stages and I did not have a big client list.”

— Anthony

In 2012, Antony was invited by a long-term customer and friend to become the 64th member of his local Five Talents Trust Group. For the first 6 months, Antony would regularly deposit small amounts that ranged from Ksh 300 to Ksh 2,000 ($3 - $20). During this time, Antony's Group received basic financial training and began to learn the basics of good business. After six months of demonstrating his commitment to the group and the business training, Anthony's peers choose to offer him a loan of $190 from the pooled savings.

“When I applied for my first loan I realised that the group would work for me and that it was the financial partner that I really needed in order to access loans and pursue my goals... My first loan was worth Ksh 20,000 and I used it as capital to scale up my business. I was able to buy more materials and tools so that customers would find me with the stocks they needed. Successfully finishing my first loan repayment made me feel good although making repayments is demanding and never easy. You really have to be disciplined and focus so that the income is spent wisely to repay the loans and meet the important expenses.”

— Antony

During the months it took to repay the first two loans (the second of which was for about $600), Anthony continued to benefit from the business and financial literacy training. Over time, the fruits of his work ethic were beginning to pay off. The combination of his growing capital and sharp business sense lead him to rent a large workshop on a busy street. With the remaining balance of the second loan, Antony was able to help his wife, Lucy, start a small grocery business.

When members of the Five Talents UK team visited Antony's Trust Group in November 2015, he was servicing his 3rd loan of Ksh 120,000. Depending on the rate of work, Antony's company Rafiki Metal Works was turning an average profit of Ksh 1,000 ($10) per day. His growing customer base has meant that Antony has hired two of his neighbours to keep up. And that's not all! Lucy's grocery business has also flourished.

Hearing Anthony speak about his plans leave the listener with little doubt as to his future successes: "I would like to expand my business by having another branch in a different location where I could reach more clients. The welding business has a ready market in developing areas like Murera Sisal and it is a potential place to work from. I also would like to increase my sources of income. I would like to build some rental houses that would give me a monthly income."

For the moment, he is focused on paying his children's school fees, but having seen the combined benefits of the welding course and the business training provided by the Trust Group, Antony says that when he feels his business and family are financially secure, he will pursue a more advanced business management course.

Learn more about Five Talents programs in Kenya and help more families like Antony's today.

Reporting from Five Talents UK with Adam Dickens Photography.

Staying the Course in Burundi: While Many NGOs are Fleeing, Five Talents is Here to Stay

Following the national elections earlier this year, political violence in Burundi has contributed to an economic downturn and a loss of investment and aid.

 Over 200,000 residents have fled to neighboring countries and there is fear of ongoing violence and reprisals. As a result, many development agencies and nonprofits have scaled back or relocated their operations.

Meanwhile, the people of Burundi face increased insecurity, higher health costs, and a loss of jobs and business opportunities. Four out of five Burundians live on less than $1.25 a day and each job supports an average of 7 or more dependents. According to Unicef, "The potential impact of the current crisis and an economic downturn on children cannot be underestimated. It could be devastating."

Despite these challenges, Five Talents is committed to staying the course in Burundi. Five Talents works with over 25,000 savings group members in Burundi and is pursuing an ambitious plan to expand into another 230 communities. We work with local church partners and leaders, especially in rural communities.

Our savings groups continue to operate and expand and are bringing communities together to focus on local solutions. Through small group savings and loans, families are able to access capital in times of emergency and are cushioned against the impact of decreased government funding of social programs. These groups are very grateful for "friendship in times of trouble" and our regional program coordinator, Claudette appreciates the support and prayers of all those who she knows and those who she does not. The knowledge of people who are praying and committed to walking together gives them courage.

Join us in supporting families in Burundi. Your gift helps to build peace and creates hope and opportunity for the vulnerable poor.

Political and Economic Change in Myanmar

Election results in Myanmar point to new opportunities for the poor.

Five Talents is working to spark micro-enterprise development in what, until recently, has been one of the most closed societies in the world. This week's election results points to new reforms in Myanmar, with a broad victory for Aung San Suu Kyi and the National League for Democracy. The election is a milestone in Mynmar's transition from decades of military dictatorship. It is the country's first general election since a nominally civilian government was introduced in 2011. That was the same year that Five Talents began work in Myanmar, strengthening pre-existing savings groups and helping to expand their growth outward into impoverished communities.

More than a third of Myanmar's 51.4 million people live on about a dollar a day. Rural poverty is widespread and urban slums surround factories with low paying jobs and an absence of public services. In September, the minimum wage was raised to $2.80 per day. Workers hope for additional changes with the new leadership.

Meanwhile, Five Talents is eager to continue equipping entrepreneurs across Myanmar with access to savings groups, small business training and loans. Take a glimpse at some of the lives impacted and small businesses developed through Five Talents work in Myanmar:

Businesswoman puts Parable into Practice

Esperanza is a mother of 6 children from Bolivia who sells empanadas and flavored ice in the local market.

When she joined a Five Talents savings group, she committed to saving 30 cents per week, sacrificing slightly more than a dollar of her hard earned income each month.

"When I saw the sisters of the church [come] to save together, I thought it was difficult to save for me because there are many expenses that I have to pay: rent, electricity, water, studies of my children, my business supplies, etc."

When her mentor shared the biblical parable of the Five Talents, however, Esperanza took it as a personal challenge.

"The day when we learned about the talents, I received the challenge of working with what the Lord has given me. "

"I saw that it is possible to start a business with very little money because if we are good servants with what the Lord has put in our hands, then He will entrust more. So I accepted the challenge to use some of the money from the group to invest in my business to grow my earnings."

The following week during their regular meeting, Esperanza borrowed a loan of $7.25 from the group. She used this money to expand her business and began increasing her profit each week, paying back her loan and setting aside more money for her business and for savings.

"I invested the money buying more materials for my business, and I went to sell my raspadillos (flavored ice). I [earned] a lot of money and [learned] how to separate some of our profits for everything, offerings, mercy, business supplies, etc. And I was very happy to do so."

Esperanza has experienced much pain and hardship in her life. Kidnapped as a young woman she was forced into early motherhood. Despite all of the challenges, she is grateful for God's provision and protection. She is glad that she can provide for her children and can serve as an example to other women in her community.

"God has truly been good to me, since I received Him in my heart. I have always seen His love and protection. When I did not know the Lord I suffered problem after problem. . .I had many wounds in my heart. Now everyday I'm happy because the Lord shows me that the good Father is with me. When I'm happy we laugh together. . .When I'm worried, He shows me His word to help me; at all times He is taking care of me and I'm grateful for that."

Help more women and men like Esperanza access mentorship, savings, loans, and business development. Make a gift to Five Talents and offer help, hope, and opportunity to families in need.

The Power of a Small Loan: Anne's Story

When she was younger, Anne showed promise in school and finished high school earlier than the average American teenager. Despite this, as an adult Anne's options were limited. She and her husband supported their family of five on a single income stream from his small tailoring business. Every shilling was spent on necessities without room for saving or investments to grow their income. Their credit history with the local commercial bank was poor so accessing business loans was impossible.

Anne joined her local Five Talents Trust Group in August 2013 on the recommendation of a close family friend. At first, Anne's savings ranged between ksh 300-ksh 350 (about $3) a month. This was the few small coins she could spare after her daily visit to the market.

After a number of months of saving and business training, Anne was invited to take a loan of ksh 5,000 ($50) from the group's pooled savings which she used to buy in a small flock of free-range chicks. By repaying this loan, Anne unlocked a much larger loan of 60,000 ksh ($600) which went towards renting a small plot of land and purchasing a larger flock of chicks consisting of both layers and broilers for eating. When we visited her in late 2015, business was going well. Anne and her husband had completed construction of their new house, and all of her three children were attending school.

Anne proudly told us 'Being in the group made me more assertive to grow from a housewife and help generate an income to support my husband. I have learned that savings regardless of how little can boost you a lot in the future and that coming together as a community can help you go far. I am proud of my growth and bringing change to my life.'

Learn more about our 1,000 Friends Program and the opportunity to bring transformation and hope to communities across Eastern Africa.

Reporting by Five Talents Kenya and Five Talents UK with Adam Dickens Photography.

The Power of Micro: A Mother's Testimony from Central Burundi

Virgnie has five children but until recently none were able to attend school.

Her eldest child never even set foot in a classroom because the family's financial conditions were so difficult. Like many in central Burundi, Virgnie faced extreme poverty. When Virgnie joined the Five Talents financial literacy program, however, things began to change.

"My status changed when I joined the savings and credit group. I am so glad because now I can send my children to school."

How did this happen?

After learning basic financial literacy and business skills, Virgnie was able to access a small loan of $14 from her savings group.

She used this loan combined with the knowledge she gained in her training to begin selling cassava, banana and vegetables. Eventually she began providing produce to two local restaurants.

"With the profit, I have improved my family life", Virgnie says.

During the first year of her new business she was able to send two of her children to school, covering the school fees as well as the cost of uniform, shoes, and stationaries from her profits.

(Above: Virgnie's neighbors and members of her savings group gather for a meeting)

Virgnie hopes to expand her business and plans for her other children to join school in the near future. Her neighbors have taken notice of the change and began asking her for advice.

"I am a role model in my community and even my neighbors have [now] joined savings groups", Virgnie says.

Walk with us and help more women like Virgnie build a brighter future for their families. Click here to donate now.