The following principles are core to Phakamani Foundation’s work and approach:
- Poor People Matter! All people are valuable and should be given equal opportunity to survive and succeed in our market-driven economy. Access to capital is required to achieve this.
- Access to credit is a human right. We offer credit to traditionally non-credit worthy borrowers, without collateral, within the guidelines and principles developed by Phakamani.
- Lending to the poor is a privilege. The poor, like everyone else associated with Phakamani, will be treated with the utmost dignity – “He who is kind to the poor, lends to the Lord” Prov 19:17
- Extreme poverty is not inevitable, nor is it usually created by the poor themselves. The poor often have ideas and underutilised skills but need the capital Phakamani provides.
- Charity is not a long-term solution to extreme poverty.
- Credit needs to be affordable to the poor. While operational self-sustainability is the long-term goal, it is acknowledged that in the short term, this can only be achieved at considerable cost to the borrowers. During the initial five years of Phakamani, at least, operational grants will be raised to offset the difference between income and costs. This policy will be reviewed annually as volumes grow.
- A “bank” that comes to the people. Staff at Phakamani live and work in the villages that they serve and are available to advise and supervise the application of loan capital.
- Operational integrity at high levels. Charges payable by borrowers will never exceed the prescribed limits of the National Credit Act in each country we serve in. Salaries, bonuses or benefits paid to staff will be kept in line with NGO/NPO practices and norms. All accounts will be audited according to generally accepted accounting principles.
- Fund Raising Transparency. Grants will be raised from institutions, churches, businesses, aid agencies and individuals in a highly transparent, ethical manner. Loans will be raised on a commercial basis with priority given to those entities who offer preferential interest rates to organisations such as Phakamani.
- Serving the Community. Phakamani Foundation is an organisation founded on Christian principles to serve all people irrespective of colour, creed or religion. Wherever possible, the staff at Phakamani will attempt to address the wider spiritual and physical needs of each borrower.
