Poverty Support
Zambia is one of the world’s poorest countries. It does not have to be like that.
Most people in Zambia do not have employment or steady income. Many are subsistance farmers, who are vulnerable to climate shocks, late rains and poor harvests. Malnutrion is common. So too is a background of malaria, HIV/AIDS, tuburculosis and grinding poverty. It does not have to be like that either.
Many people are willing to work hard, and many have a good business idea, but they may not have tools or access to finance to start a businesses. It does not have to be like that.
At Inspire Zambia, we have developed a few simple initiatives to help to raise people out of poverty – permanently. Giving food or a hand-out will not solve these problems, but giving people a real chance to help themselves will. We can help people to climb out of poverty. Because it does not have to be like that.
Micro Finance
Many people in Zambia have a good business idea, but lack the funds to start a small business. Our microfinance project provides small loans to people who wish to start a small business. Our borrowers are typically widows, who have children and grandchildren to feed.
With a small loan of €300.00 or €400.00, a widow can purchase a sewing machine, to start a business in dress-making, or buy feed, medicines and equipment to rear chickens. Some of our sucessful borrowers have commenced business making cement blocks and opened a small stall in the local market.
In each case, this is not a gift or a grant. The loan must be paid back and it is the recipient herself who does the hard work and lifts herself out of poverty. This works.
Based on starting capital of just a few thousand euro, we have assisted in the foundation and expansion of over 60 start-up businesses. These businesses have nearly all been successful and nearly all loans have been paid back. There have been exceptions, but by and large these small loans have been very successful in helping people to get themselves out of poverty -permanently.
According as the loans are paid off and we get our seed capital back, we can lend out the money again to another group of similar people, so that over time many more people can commence the same journey.
This is one project which enables people to lift themselves out of poverty and place themselves in a financially stable position within six months. It works.
Vocational Support
All of us need a bit of support from time to time. We cannot do everything on our own.
We have found that sometimes, people have skills, such as carpenters, welders, but they lack the opportunity or the education to further their business.
In order to support those who have skills but are lacking the opportunity to use those skills, we established an Enterprise Centre and Business Skills Integration Workshop to bring together skilled tradesmen in an organised and supportive way. Carpenters, mechanics, upholsters and welders came together to share their knowledge and resources, under the guidance of one of our volunteers, Emmanuel Phiri, so that they could grow successful businesses. We invested 50,000.00 kwacha (about €2,500.00) in raw materials, including wood, leather and steel, and we provided basic tools. Emmanuel is always on hand to give business advice and mentoring and to assist with budgeting and marketing. Tradesmen who had previously no access to funds or materials or a place to run a business, then worked together at this one location producing window frames, door frames and school desks as well as beds and domestic furniture. Once each business has been successfully established and moved out, a new person can start and so the cycle continues.
We have also provided vocational training, for six young men to train as carpenters when an Irish carpenter came on our volunteer trip to Zambia. Each trainee was trained in how to make tables, chairs, doors, shelves and other household items, and left with the tools necessary to make them, so that they are now equipped to sustain themselves and their families for life.
This is something which we hope to continue to expand dependent on the volunteers from Ireland who will come with us to Zambia.
Financial Skills Workshop
Some years ago, were were asked by some of the widows in our Microfinance programme for assistance with book keeping and financial planning. Out of this idea, our Financial Skills Workshop was born.
Many of our loan recipients, especially those who were new to business, can be lacking in basic education and financial skills. They struggle with keeping track of stock or calculating profits or planning for the success of their business. Our business people knew that their businesses were suffering and some were in danger of failure because of poor financial controls or understanding.
In response to their request, we run short training courses in book-keeping and financial skills for business people, and for those who aspire to run a business. These training courses are run by Irish volunteers in Chipulukusu every year during our volunteer trips. We leave behind a core group of young business people who better understand how to run their businesses, and who can pass on their skills to others.
Our business people have reported that the budgeting and financial skills they learn help them greatly in planning and running their businesses, as well as their family budgets, and contributes to keep them from falling back into poverty.
