Try it at home - microfinance


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Using Kiva and his laptop, the New York Times' Nicholas Kristof discovers the power of microfinance - in Afghanistan. From the op-ed:

Mr. Abdul Satar had borrowed a total of $425 from a variety of lenders on, who besides me included Nathan in San Francisco, David in Rochester, N.Y., Sarah in Waltham, Mass., Nate in Fort Collins, Colo.; Cindy in Houston, and "Emily's family" in Santa Barbara, Calif.

With the loan, Mr. Abdul Satar opened a second bakery nearby, with four employees, and he now benefits from economies of scale when he buys flour and firewood for his oven. "If you came back in 10 years, maybe I will have six more bakeries," he said.

Mr. Abdul Satar said he didn't know what the Internet was, and he had certainly never been online. But Kiva works with a local lender affiliated with Mercy Corps, and that group finds borrowers and vets them.

Here's more on Kiva and the key principles of microfinance.

Join the Conversation

Agnes Alando-Hoffer
April 22, 2007

Social investments and microfinance? The successful UN Millennium Village Project near Kisumu in Kenya is one example. The local population is totally engaged in the ownership of this project, applying “clinical economics” and the concrete fundamentals of poverty reduction. Malaria rates have been halved; harvests have quadrupled and the surplus food has freed up children who once worked on the fields to go to school. Consequently, school attendance and performance has doubled. Simultaneous projects in health, water, energy and transportation, are transforming the lives of the villagers.

Katenderi David, manager of a Teachers' SACCO, Jinja, Uganda
August 22, 2007

I would like to know whether Teachers in our SACCO can access affordable loans from any where which they can repay at friendly terms. because MFIs including Governmnent lending institutions charge high rates. our microfinance lend to members at 18% per annum.

Patelli Paschal
August 27, 2007

for the gentlman in Uganda try this resource; this iste is in beta for microenterprise in Uganda.Tell them I sent you.

April 02, 2007

Todo mundo que me conhece sabe que não sou o maior entusiasta deste tal de microcrédito (ou microfinanças). Acho que há vários problemas e já tive a chance de falar sobre isto aqui. Mas isto não me impede de pensar...