Research over almost thirty years has shown that women and micro-enterprise are a good fit.
• Women are the best savers
• They are the best credit risks
• They invest the loan funds directly into their enterprises
• They invest the profits in the health and education of their children

A ‘Client Community’ that can benefit from micro-enterprise development is identified after an appropriate feasibility study is carried out by the local staff in Africa, or the Caribbean or Guyana
• Each client community requires initial funding of approximately AUD$12,000
• A client group from the selected community is constituted, comprising approximately 70-100 people.
• The client group is ‘broken down’ into 5 savings groups, each comprising 15-20 micro-entrepreneurs.
• The savings groups meet weekly, where local staff facilitates training in saving group strategies, micro-enterprise development, running small enterprises, and bookkeeping.
• The weekly meeting also facilitates a mentoring process and acts as the meeting at which each member ‘banks’ an agreed upon amount in the local currency, as the eventual loans will be savings linked.
• The loans are made not to an individual specifically, but to the group which, (acting as co-lateral and guarantor), nominates which of its members will receive a loan and when.
• After a period of 3-6 months, the first beneficiaries receive their loans.
• In turn each group member will receive a loan.
• First loans will be approximately AUD$100-$150, loaned at a reasonable rate of simple interest, and repaid within 6 months.
• Upon the re-payment of the first loans and depending on the progress of the group’s savings, subsequent loans are made to first-time borrowers, and also new and larger loans are made to second-time borrowers. The fund is recycled in a revolving manner.


How the initial input of AUD$12,000 does its work and grows!


With the on-time repayment rate of almost 100%, plus the interest payments, plus the savings of the groups, the initial start-up of AUD$12000 will grow to a consolidated fund of approximately $54000 in 5 years.

This claim is based on a model which makes two assumptions:
(i) that the initial input grows by 10% every six months, and
(ii) that each borrower saves 90cents each week over 5 years.
• Yr.1: $12,000 grows to $14,500
• Yr.2: $14,500 grows to $17,569
• Yr.3: $17,569 grows to $21,258
• Yr.4: $21,258 grows to $25,721
• Yr.5: $25,721 grows to $31,112
Local savings: .90x52x5x100 = $23,400
Grand total after 5 years = $54,512

This model can be varied depending on the ratio of the interest rate to savings. If group members save more, the facility can reduce the rate of interest.

The first loan marks the beginning of the journey out of chronic poverty. Five years later, self-sufficiency is a reality for the client group as well as its community. At the end of the five-year period, the local savings comprise 42% of the consolidated fund. The fund remains in the community, continues to grow and to contribute to improvement in people’s lives

What can you do?
You can join this Partnership and take up the challenge to contribute to changing the face and circumstances of Africa and the Caribbean
• You can form an ‘associate support group’ and set yourselves the objective of raising the funds for a Client Community
• You can contribute directly to The Mutunga Partnership*
• You can take up The Mutunga $2 Challenge™