Having access to a microcredit implies also the responsibility of being able to repay it back. Not all the women are able to make the correct repayments due to a lot of different circumstances, like diseases or problems related to the weather, for example. This week we focused on the follow up process, and therefore visited some women that were not able to perform well their business and because of that have not been able to fulfill the repayments. Some of them require an advise from the field officer that is in charge of them, while other just need more time.
Rose Jackson lives in Mtongani and is a second credit beneficiary. She has three children: the eldest, a very young girl of about 17 or 18 years old who is expecting a baby, and two twins who are five months old. Her husband died suddenly last spring and she had to take care of all the family. She used to break stone at the quarry, but she had to give it up because now she has two very little babies to take care of and one of them is sick.
All these problems didn’t allow her to repay weekly the agreed amount of 23.000 shillings. The field officer that went with us to make the visit listened to her problems, understood the situation and encouraged her to go on with her business and pay back the money whenever she cans: “When you have 10.000 tsh, you can bring them; if other week you earn less, for example 2.000 tsh, you can repay that amount as well”. It is the only way she can detain the debt from increasing.
We then moved on to Kunduchi Pwani, where we would meet the rest of the women. When we arrived to the first house, the beneficiary that we were supposed to meet wasn’t there, so we walked some streets further and found her in another house. Fatouma, a second credit beneficiary as well, cooks samaki (fish in Swahili) in her house, but today she is not working. She tell us that it is not a good season for the fishermen, that are the ones who sell the fish in the district, and that she´s not feeling well today either. Almost all of the women who are dedicated to cook fish in Kunduchi Pwani explain us that they depend too heavily on fishermen for their business, and that now it is not a good moment for fishing.
The field officer that goes with us, Haika, proposes her to start a new business so that she can earn money and be able to repay the debt, and she says that she is thinking about buying dela (a typical local clothe) and selling it among her neighbours, house by house. Fatouma assures that the little amount of money that she has earn in the last days has been invested to pay the house’s expenses, as well as to buy food for her family, and that she has saved a little part to repay the loan. Our colleague tells her that it is a good idea to think about undertaking a new business and repaying the loan little by little.
We then approach the part of the neighborhood located in front of the beach in order to find Mwambua Rajabu, who is sitting next to another neighbor. She is a third microcredit beneficiary, and usually cooks chapati and fish, but now she can not do much: the fact that there is not enough fish does not even attract fishermen to eat her food, and these are her main customers. She has a debt of 20,000 shillings, and assures that she may be able to return it back this week, because she is participating in a community group of loans where money is lent to her. These groups of people, known in Tanzania as “saccos”, help each other by putting money into a pot weekly, and this money is used by a different person each week, depending on the needs. It is really curious how microloans are distributed and used individually, but debts are shared.
The last woman that we visit feels sick, and therefore is lying in the entrance of her house. She tells us that although she promised to repay her debt today, she felt ill and had to invest the money in medicines.
In microfinance projects, not all the stories are successful stories, because although women make an effort to go ahead with their business and to make them profitable, unexpected problems, such as illnesses, can appear, and have an influence in their repayment capacity. And of course, in their quality of life, which is a priority for everyone all around the world.