Microfinance and microcredit
Better Globe works with microcredit and microfinance to support the farmers who live around our plantations. We strive to create possibilities for them to benefit from Better Globe’s existence and expertise and the opportunities that arise because of the plantations located in the vicinity.
Microfinance is a term used primarily in the context of being able to help people who lack their own collateral and are hence entirely excluded from the financial market for getting loans. Collectively or individually, poor people can borrow small amounts of money to finance their business, thereby increasing opportunities to make money themselves. To borrow money and “do it yourself” has a tremendous impact in terms of increased competence and reduced dependency.
Various forms of microloans have quickly become a well-established method in almost all organizations for helping the poor create a better life for themselves.
Financing of microloans is made through Better Globe donation packages, which includes 1.50 euros earmarked to establish and fund loans to people who have no possessions or documents to show evidence of past success or credibility.
The microfinance concept is based on being able to lend money to those who lack access to banking, collateral, or steady employment, and who have nothing else to offer banks in return other than their own word. Microfinance is based on credibility and mutual respect, which has proven to be a fantastic combination. It also has the power to single-handedly defeat poverty. The repayment rate on these loans is extremely high for all the microloans issued worldwide. This appears to be due to the collective social responsibility that is at common interest that exists among lenders, borrowers, and the community at large.
There are many fine examples of microfinance and various initiatives of this kind worldwide. Better Globe will help microfinance poor farmers in East Africa, prioritizing the communities around our plantations in various parts of the region.
Mboti outgrowers water project
Better Globe’s first microfinance project is an initiative of Mboti, in the Mwingi East district in Kenya. The area is home to 12 people per square kilometer, and poverty is widespread. The area has no water available, and the narrow rivers contain water for only a few days after each rainy season.
The project involves 100 farmers and their families. These farmers, in association with Better Globe and the agro forestry cooperative Sacco (Savings and Credit Cooperative), encourages its members to save money and give credit to each other. Read more about Better Globe project in Mboti »
Contribute to the microcredit operations
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Microcredit operations are financed primarily through the donation packages, in which 1.50 euro is earmarked for microcredit activities connected with our plantations. |
Read more about microfinance and various types of projects conducted in Africa by Better Globe Forestry on their website »