CSCODI Microfinance

James, Charite and our driver met us again for breakfast at 7:15 and we headed out to see the CSCODI microfinance operation. Headed by Saasita, it is run by and supports many of the women we saw yesterday. We were greeted and we greeted back. They asked us for our thoughts about their program as they were new at this, and don’t have any training in finance. They have received seed funding of $2,000 from CSCODI and have loaned it out to over 40 women. They are starting get repayments, but it is too early to talk about bad debts. We realized that we were fortunate to have visited Opportunity International (OI) in Kampala in 2008, so we drew on that experience to explain how OI operated.

Saasita leading the CSCODI microfinance group

Fortunately, the CSCODI group is following most of the key tenets of OI, but we encouraged them with a few items. Trust groups recommend possible members to confirm they are good credit risks. It is important to know what they will do with money and confirm the plan is sound. Lots of people will ask for money if it available but it needs to be paid back. We explained how the interest rate needs to be higher, hurting everyone, if people do not pay back their loans. We also stressed the importance of frequent and regular communication with the borrower.

It was great to hear how a women was able to buy and then sell clothes at the market due to her loan. Now women are able to pay for school fees which they were previously unable to do.

A woman involved with the microfinance program

We then drove with Saasita to see the general manager of the main government run microfinance organization, Pawicu Nbuja Issac. Called CADECO, it had all the feel of a big bank. The GM was obviously very busy as we were constantly interrupted. We weren’t sure if we should have been brought there, but we explained on the fly that we valued his expertise to help Saasita and her fledgling microfinance program. He was then very good at explaining that CSCODI must register the program in Kinshasa but they also need to keep separate all the various programs of CSCODI. He encouraged us that the paperwork is easy.

Funny how government can be invisible until you don’t want it to be.

Saasita, Pawicu Nbuja Isaac, Michael Ben, Brenda Ben at the CADECO office, Butembo

Michael made an offer that couldn’t be refused (USD $10) to buy a Kabila election hat. In 2006, Kabila was well known for giving away free t-shirts. For this election, he gave away free baseball caps.