Food Crisis Taking A Toll on Microfinance Clients
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The food crisis is taking its toll on Opportunity’s microfinance clients. Opportunity International is one of the largest and oldest microfinance networks, and I’ve seen first-hand how a small business loan or a safe place to save hard-earned money can make a big difference in keeping food on the table for the poor. Yet in 16 years of working in microfinance, I haven’t seen anything quite like global reach of the current food crisis.
One of Opportunity’s clients in India, Selvi Mani, just told us:
“We have reduced our consumption of vegetables and meat. Last week, we went to the market and brought provisions for ($4.50) This week, the same items cost ($7).”
In Mozambique and Ghana, clients are tapping into their savings accounts to buy food, make their loan repayments, and keep their businesses going. The good news is that they have savings accounts for the first time in their lives—but the bad news is they are already eating through the small safety nets they had built up.
In Rwanda, clients are taking their children out of school.
Opportunity is focused on long-term solutions to hunger, and we’re convinced that basic financial services are absolutely critical in allowing the poor to manage their money and protect themselves from shocks. But meanwhile, we’re also tapping into our infrastructure of 6,000 loan officers worldwide who are now refocusing their weekly business training sessions – helping our clients cut costs, diversify their businesses, and manage their personal finances.
In the Philippines, Opportunity is preparing to sell emergency food supplies to clients at discounted rates. In Ghana, our Trust Groups (lending groups) are helping to identify those in the community who are most at risk.
In Malawi, Opportunity’s crop insurance program has yielded average increases of 150% for several thousand small holder farmers, and we are expanding this program in sub-Saharan Africa and Asia.
It’s all hands on deck, and that doesn’t seem likely to change any time soon.
-Susy Cheston, Senior Vice-President, Policy, Opportunity International
To learn more about our work, please visit www.opportunity.org
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June 7, 2008 at 9:32 am
The facts contained in “Food Crisis is taking a Toll on Microfinance Cliants” indicat In deed addressing problems faced by small microfinance cliants caused by the sever rise of food price should be a global agenda. Though, unable to provide tangible evidence at this time, my observation of some microfinances liquidated recently in Ethiopia for academic purpose entailes the situation of cliants is even sever those mentioned above. Moreover, the plan to extend the crop insurance program for small holder farmers in Malawi to the Sub Saharan Africa and Asia countries is a sensible strategy.
Hoping to get more information related to this and poverty.
Thank You
June 11, 2008 at 8:19 am
is it true that genetically modified crops which we consume daily in the United States are banned in Africa? just something I heard from one of our politicos
June 13, 2008 at 6:37 am
I wouldn’t doubt it, beacuse it might throw off the results of the pharmaceutical tests that the drug companies are performing on the african people.
June 15, 2008 at 3:14 pm
Raising 50% food production by 2030 (U.N. chief Ban Ki-moon told world leaders) but the issue is how? Present economic pattern of the globe only helps promoting urban economics. Major Asian countries which were producing and exporting food grain to the world now intend producing and supplying computer and electronic goods. Most countries do not pay attention to promote agricultural product through research to add on value thus become profitable. Consequence of urban economics is excessive urbanization. Urban related economic growth thrusts agricultural land conversion to cities and building to accommodate urban population and industries. Over 20% of farm lands of developing countries have been converted to cities and buildings for the past decades and Over 50% of farmlands of villages (close to cities) got merged with cities. Food shortage is as war on world, could be disastrous to collapse world economics. Food is first priority for each consumer, expensive food would prune consumption of other product’s and services.
• World absolutely need to pay attention the importance of rural economics and emphasize on agriculture and add on value to it.
• Present education pattern only facilitates urbanization to grow urban population. Change in education pattern so to improve student’s taste towards agriculture and its research that includes animal farming.
• Agriculture need to be profitable for the farmers.
• More allocation of fund and land to agricultural sector.
• Tough international legislation to arrest speculative gambling on essential commodities.
• Bring back the incentives to farmers to produce more without incurring losses.
• World population will grow and land will be less for us so maximum endeavor to scientific research so can use most land and water available on earth that includes desert land and sea.
• Main cause of food shortage is growth pattern of developing countries. So bio fuel alone is not responsible. The real culprits are shortage and speculation hoarding. However, growing crop for fuel in land for food is not justified scientists and research professionals can work on sourcing from sea, river, desert or unused land plants or other means.
July 30, 2008 at 6:41 am
Regardng the current uncertainties with food prices and the role of ever increasing demand from China and India. There is a greater need for us to conserve and be increasingly frugal about food consumption at home.
Simple food saving tips are things we need to get used to and practice more regularly. Most of these are common sense and can be quite creative. You can find a list of free food saving tips at sites such as http://www.foodcrisis.co.uk amongst other similar sites as well.
We all need to contribute to a fairer and a more foodwise program for ourselves.
November 7, 2008 at 9:37 am
I follow him to serve my turn upon him:we cannot all be masters, nor all masters.Cannot be truly follow’d.
January 8, 2009 at 1:07 pm
Thanks for the interesting article.
March 23, 2009 at 2:38 am
Nice site! Thanks for the great post
March 23, 2009 at 6:50 am
Nice site! Thanks for the great post