Phakamani Foundation empowers people who have both good ideas and initiative by giving them business loans starting as low as $75 to as high as $1500. We currently operate in Mpumalanga Province in South Africa, one of the poorest areas of Southern Africa. We aim to add three new branches per year, including in 2011, and these may not be restricted to Mpumalanga.
Current branches:
- Masoyi
- Kobokweni
- Bush Buck Ridge South
- Bush Buck Ridge Central
- Nkomazi – West
- Nkomazi – East
- Gert Sibande district
- Another branch will be added in 2011
Phakamani borrowers operate a variety of businesses, providing valuable local services, creating jobs for themselves, and increasing income for their families.
These businesses include:
- Small roadside grocery outlets
- Home based direct food supply
- Old clothes, new clothes
- Making quilts, curtains, cushions
- Selling chickens
- Selling cell phone airtime
- Tupperware
- Making bricks
- Shelling nuts for market
- Renting chairs
- Sewing
- Knitting
- Selling cool drinks, ice blocks
- Direct-to-home frozen meat supply
- Tuck Shops at school
Safeguarding the loan environment
Critical to Phakamani’s plan are Development Loan Officers who most often come from the villages where Phakamani works. They visit the borrowers in their homes to monitor, advise and assist with broader needs and earn the right to have an input into spiritual needs, if this is requested.
Some statistics about organisations that follow Grameen principles are:
- Bad debt ratios are below 5.5% and often are less than 1%
- 70% of borrowers return for more than one loan
- The standard of living is raised significantly for borrowers
- Those dealing with the fallout of HIV/AIDS are better able to cope with living without additional worry
