Lakimama focuses on women in loan scheme

By our correspondent

Lakimama Microfinance institution a brainchild of OXFAM (GB) is helping in the fight against poverty among members of the Waarusha community living in Enaboishu Division of West Arumeru district.

According to the project coordinator, Mr. V. Ole Saruni, a seasoned banker and microfinance expert, Lakimama offers small loans of between Tsh.100,000 - Tsh.500,000 to members of the Waarusha community with a clear focus on "women" .

The root of their poverty, he said, is lack of opportunity and credit and not lack of a desire to work in order to earn a living and lift themselves from the jaws of poverty.

While many members of the community have ideas for fostering their own self employment, a few can access the badly needed start up capital to establish a small business. By virtue of being poor, he said, these women have been cut off from the formal banking sector owing to lack of collateral or credit rating and continue to live on or below the poverty line.

According to Ole Saruni, the adage, ‘Teach a man to fish and he or she will fish for a lifetime’ can be said to be the fundamental precept for introducing micro-credit among the Waarusha community living in Enaboishu Division.

The loans serve as a renewable resource and can be used to stimulate another fledgling business.

Lakimama’s loans circulate throughout low income members of the Waarusha community until their effect is multiplied several times.

The members not only receive loans, they also form cohesive groups among themselves. The group is critical, said Ole Saruni, without it, individual members can not realize their full potential. By sharing their problems, challenges and successes, group members learn and progress together and form networks for mutual support.

Last modified: October 30, 2003.
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