Temwa - Sustainable Community Development, Malawi - Temwa and Deki Announce Fair Trade Microloans

Temwa and Deki Announce Fair Trade Microloans

Saturday, 14 May 2011 09:00

Just in time for World Fair Trade Day, we are delighted to announce a new project from Temwa in partnership with microfinance charity Deki – Fair Trade Microloans in Malawi. These microloans will be the first available which are interest-free as well as commission-free, thanks to a generous multi-year donation which will cover the costs of a staff member on the ground to oversee the project. This will make it possible for those previously denied access to finance to set up small businesses and work themselves out of poverty.

Deki offers a uniquely personal and easy approach to microfinance by allowing individuals around the world to invest as little as £10 in borrowers hoping to generate income within their communities. Lenders are then repaid within 6-12 months for reinvestment, donation or withdrawal. This allows a single loan to have a recurring impact on the ground. Microloans are around £300 and enable recipients to buy essential business investments such as farming equipment, sewing machines or fridges.

Temwa Malawi Programme Manager Tonderai Manoto is thrilled to be working with Deki. "This is a truly wonderful project which will allow us to increase our efforts against poverty in Malawi. We have already begun work on this project and we would like to extend our thanks to the donor who helped make this possible."

"All of our microloans are focused on helping people in developing countries to work their way out of poverty," said Vashti Richards, CEO of Deki. "Our existing field partners were chosen based on their community involvement. These charge minimal interest rates on microloans so they can offer other community services such as training and healthcare."

Of the partnership with Temwa, Richards said "We're really excited about working with Temwa as we can now move things up a notch. Thanks to their existing infrastructure in Malawi and generous funding for a loans administrator, we can offer these microloans interest-free. This is a first for Deki and we'd love to continue developing our network in the same way."

Jo Hook, the Director of Temwa UK is looking forward to working with another Bristol-based organisation which is making a difference in the developing world. "Deki's microloans perfectly complement Temwa's work in Malawi," said Hook. "We've invested a great deal of time and energy working with communities in the north of Malawi, we run a variety of projects which have all been decided upon by the communities that we work with. For the first few years, our main focus was on HIV & AIDS education and support services, and we now run a variety of schools support projects, agricultural, and skills training projects and help people build their confidence and capacity."

Hook explains the impact which these relatively small loans will have upon the communities in Northern Malawi, where Temwa's projects are based. "With an average income of around $1.25 a day, a small amount of money goes a long way in Malawi. Microloans will help those who have built their skills with us to take them to the next level. As well as helping them generate a sustainable income for their families, we hope this will have a knock-on effect building a thriving economy in the region."

The first fair trade microloans are expected to go online at www.deki.org.uk before the end of May. Watch for more updates on this project as it progresses.

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