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Stories from CEDDISEC's Micro-Credit Program
To improve the economic security of rural and urban households that have been affected by the January 2010 earthquake and are currently excluded from institutionally based finance services, CEDDISEC, with support from Episcopal Relief & Development, has launched a micro-credit program.
CEDDISEC’s micro-credit program offers entrepreneurs loans ranging from 5,000 to 25,000 gourdes (US$120 to $625) to create or expand existing businesses. Loans and loan amounts are accorded to entrepreneurs with consideration to the entrepreneur’s ability to pay it back. The interest rate is low, but participants are required to make a savings deposit with CEDDISEC equivalent to 20% of the approved loan amount. Upon the full repayment of their loan and any interest due, clients receive access to their savings deposit, which they can invest in the continued growth of their business.
Here are a few stories from micro-credit clients:
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56, Urban Store Keeper
Yolande has been running her small shop in Port-au-Prince since 2004, selling toiletries, household items and soft drinks. After the earthquake, Yolande sacrificed her profits in order help her community, since so many of her customers had lost everything. When people could not pay the full price for necessary items, she would sell them at cost, or simply give them away for free. To start to grow her business again, Yolande applied for a micro-finance loan from CEDDISEC so she could stock high-turnover items like sugar, rice, flour and milk, and hopefully increase her income. In just three months, Yolande was able to save $175 toward her yearly rent, and is on track to repay her loan in full. When asked why people choose her shop to buy their goods, Yolande replied with a laugh and a smile: “Because at my shop I give away the jokes for free!”
Raymond and Marlène
Importer of Goods from the Dominican Republic
Raymond and his wife Marlène support their family of four by working together to import and sell goods from the Dominican Republic. Marlène is in charge of the purchases, and travels to the Dominican Republic at least once a month. Raymond is in charge of marketing and sales, and secures client orders for the types of goods Marlène will buy. In her most recent trip, Marlène returned with various types of beauty products (facial soap, shampoo, hair spray), as well as a kitchen stove! Raymond is proud of the work that his wife is doing, and is adamant that their business decisions are made jointly. Although their business was not severely affected by the earthquake, they have found it difficult to recover debts since many business clients sustained losses, and one even died. To keep their business running, Raymond and Marlène took out a loan of 25,000 gourdes (US$625) to increase their capital for purchasing and transporting goods and hopefully earn a greater return. The couple has also opened a joint banking account where they are working to increase their savings while keeping their earnings safe.
Genel
28, Urban Meat Seller
Before the January 2010 earthquake, Genel was attending a vocational training program to learn automobile mechanics. Due to the loss of the home he and his sister were living in, as well as the majority of their belongings, he was forced to drop out. In June 2011, Genel received a loan from CEDDISEC of 7,500 gourdes (US$187.50) to expand his newly started meat selling business. Genel rises every morning before 4am to travel into to Port-au-Prince to buy frozen chicken pieces, which he resells to individual consumers in Carrefour town. Genel usually finishes his day’s work by 10am, having earned a profit of 500 to 750 gourdes (US$12.50 to $18.75). This is Genel’s first time running a business, and his first time taking out a loan, but he is confident in his ability to succeed. His plans for the future are two-fold: first, he intends to open a bank account where he can keep his earnings safe from thieves like the ones who broke into his makeshift shelter and stole his savings. Second, he would also like to return to his mechanic’s course. As his business only requires him to work in the morning, he has the whole afternoon to return to his studies!
Anaslazie
50, “Madame Sara”
Anaslazie travels around the provinces surrounding Port-au-Prince, buying fresh local fruits and vegetables and transporting them to town in order to resell them to individual street vendors. The buying, transporting and reselling of Haitian produce is a traditional role for Haitian women, fondly known as “Madame Sara”s, and considered the backbone of Haiti’s market system. Anaslazie has been active in trading since 1986. In June 2011, Anaslazie received a loan from CEDDISEC of 10,000 gourdes (US$250) to expand her trading business. While she did not experience any major challenges in her work because of the January 2010 earthquake, she is grateful for the additional capital the CEDDISEC loan has provided, as it allows her to increase the volume of food she is able to buy and resell.
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27, Urban Clothing Seller
Since February 2011, Roseline has been selling t-shirts, beauty products, toothpaste, and telephone cards in Carrefour town. In June of that year, she received a loan from CEDDISEC of 5,000 gourdes (US$125) to expand her urban trading business. With her loan she is now also selling higher-priced and higher-demand clothing like jeans. Selling jeans, Roseline is able to make at least 2,400 gourdes (US$60) per month in net profit that is almost twice as much as she was making before. Roseline is currently studying to retake her secondary school final exams. She is also enrolled in an information technology course at a vocational school. With the savings from her business, Roseline hopes to buy a computer, which she hopes to use to launch a whole new enterprise.
Joinville
36, Barber
For the past 5 years, Joinville has run a barber shop out of a converted shipping container in downtown Port-au-Prince. Joinville lost his sister in the January 2010 earthquake when the house he and his family were living in collapsed. While his shop was not destroyed, there was a time when he just couldn’t keep his business going. In July 2011, Joinville received a loan from CEDDISEC of 6,000 gourdes (US$150) to purchase a new electric clipper. Today, business is thriving, since he is located very close to the Champ de Mars plaza, where a large tent city for earthquake survivors has established itself.
