Transition to Independence

WMI works with women at the village- level in very rural areas of East Africa (Uganda, Kenya and Tanzania) that have primarily agricultural-based economies. This is a region where roads are dilapidated, distances are great and transport is expensive. A reliable electrical grid still bypasses many villages. New borrowers report per capita income at less than $1.25 USD per day. Many WMI borrowers are AIDS widows, caring for 6 or more children, some of whom are orphans. They may be illiterate. They often live in mud-floored houses with dung-smeared walls. Healthcare is erratic and sanitation wanting. Families have little savings for emergencies. Village women are extremely hard-working, have strong entrepreneurship instincts and leadership qualities, and work cooperatively together. Though not formally educated, they are natural businesswomen: intuitive, innovative, market savvy and able to adjust quickly to changing market conditions and opportunities.

Despite well-reported challenges, microfinance continues to be a recognized strategy for sustainable economic improvement in developing economies. Although WMI has chosen to focus on East Africa due to commonalities, stability and geographical contiguousness, the model is applicable world-wide and is easily replicated. What distinguishes WMI and makes it successful is that our model:

Is structured to become financially self-sustaining;
Leverages an existing village social network to amplify outcomes;
Demonstrates a proven track record of returning dramatic social impacts with minimal resources;
Provides village-level access to capital and skills training;
Offers a unique program for ‘graduating’ borrowers to formal banking services (providing borrowers greater diversity and levels of capital, an opportunity to establish formal credit profiles, and access to multiple paths to success); and,
Is run locally by the women borrowers, thus not requiring a permanent “aid” presence.

WMI’s model delivers a triple bottom line:

1. It gets capital into the hands of impoverished women to start businesses and it provides them with the essential training to make those businesses a success. Result: more rural women supporting their families and improving their living conditions.
2. It builds human capacity in the local CBOs that operate the loan program in the villages. These CBOs provide the infrastructure for knowledge transfer for the entire community and establish a pipeline to deliver goods and services (like solar/fuel efficient stoves) village families need to improve household living standards.
3. It is bringing about structural change in the way banks deal with poor, rural women. WMI has engineered itself into the financial service value chain on the ground - networking village-level CBOs and local banks in a new configuration that had not been considered - and that has resulted in benefits to its partners, its borrowers, and the greater community.

Based on our experience since 2008, we anticipate the following outcomes/success factors:

Increasing numbers of sustainable women-run businesses will reduce poverty in target markets;
Increased incomes, improved household savings/assets, improved standards of living (health, education, wealth) will sustain the impact;
Women will have increased their skills and self-confidence, becoming better advocates for themselves, their families, and their communities;
Development of an infrastructure to support expansion of resources to villages, including improved basic services: clean water, lighting, and education;
WMI borrowers will be able to access diverse products and financial services from established financial service providers to meet their growing business needs;
Financial institutions will have gained increasing numbers of educated and successful rural customers; and,
A reduction in regional dependence on third-party international aid. Loans/training replace subsidies.