Fouty July 2009

Name: Benjamin Fouty
Post: Parakou
Contact: or moc.liamg|lenrepmipdemmedtahT#moc.liamg|lenrepmipdemmedtahT

Brief Project Description:

The Village Savings and Loan Association (VS&LA) system is a nice micro credit organization that encourages people to save and provides them with loans too small for banks to provide. These loans can still be very important in taking the first steps toward moving out of subsistence living. The system also teaches principals of accounting and personal responsibility in a way formal lending institution cannot because they do all the accounting for the members.

I have two functioning VS&LAs in Parakou, Palaki, which was a pre-existing tontine that I started working with in November, and more recently, God Does All, a group created by a member of Palaki.

Every third week, the groups gather to collect a fixed amount, in the case of these groups, 1500F. At the start of every month, they disburse small loans, in the case of Palaki, 20,000F each and God Does All, it will be 10,000F each. The size of the loan grows with the amount saved, and gives members an understanding of how to manage affairs. The groups are self policing; after introducing the system to them and a couple warm-up meetings, they can operate independently. I still go to most of their meetings but have left Palaki on its own for extended periods and found it to be functioning perfectly. No member has ever defaulted on a loan although a couple members have missed reimbursements. Once the groups get the material, they are self-sustaining.

Please see the attached forms that are the ledgers for the group.

Dates of Project:

Group “Palaki” started November 28, 2008 with 16 Lokpa women and has since grown to 21. They have collectively saved 391,650FCFA, loaned 1,325,000FCFA and had 965,000FCFA repaid. The next meeting is 3 July and will be for loan repayment and new loan disbursal.

The second group, “God Does All” started June 26, 2009 with 15 women (including one from the previous group) and one man and has saved 27,000FCFA. Their next meeting is July 17, 2009 and will be another collection and their first loan disbursal.

Number of People Involved: A total of 36 men and women are members of the groups, plus Ibrihim the Corps des Volontaires Beninoise volunteer who translates.

Item Number Unit Price Cost
Padlock 6 500 CFA 3.000 CFA
Notebooks (48 page) 42 100 CFA 4.200 CFA
Rubber stamps 2 1.000 CFA 2.000 CFA
Tin boxes 2 5.000 CFA 10.000 CFA
Total Cost 19.200 CFA

Amount Requested: 19.200 CFA


GAD Coordinator: This is a great project – I am particularly pleased to see that a member of the first group was instrumental in setting up the second group. Ben also submitted spreadsheets breaking down each groups’ individual and collective savings and loan history if you would like to see them. Recommend funding.
GAD Finance: I am impressed by how well the micro finance organizations are functioning, especially the “Palaki” group. Recommend funding.
GAD Specialist: Agree. Recommend funding.

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