Malawi’s strengthening economy
Tuesday, May 11th, 2010 | Uncategorized | No Comments
While many Australians were able to pretty much dodge the Global Financial Crisis (GFC), and first world nations like the US and Greece buckle and tip under its pressure, few of us realized the impact it has had on small, underprivileged nations like Malawi.
It was expected that the GFC would rock Malawi because 4% of their GDP comes in remittances from nations such as the US. It was anticipated that a drop in investment, donations and exports of tea and tobacco would impact on the poverty stricken nation.
Luckily Malawi, was able to avoid much impact from the crisis and the economy is growing. According to Anita Last at Standard Bank, the GDP growth averaged 7.6% over 2009.
Ms Last wrote that while the economy is vulnerable, and needs continued improvements in infrastructure, the outlook for 2010 is a continued, although slowing, growth.
http://blogs.worldbank.org/africacan/the-impact-of-the-financial-crisis-on-malawi
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The cards have arrived
Saturday, March 6th, 2010 | Uncategorized | No Comments
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Look out for this image in your local cafe or restaurant because it should be hitting the streets any day now.
Avant Card has sponsored us with a free run of 15,000 postcards to cafes, theatres and restaurants around the country. That’s pretty incredible for a new foundation like us. What a great way to spread the word.
We were also very lucky that Quenton Miles volunteered to design and format the cards for us. We received our copies of the cards today, and they look beautiful.
So keep an eye out, and let us know if you heard about us through Avant Card or if you’ve seen the cards around because it’s good for them to know it’s working.
MicroLoan Foundation Australia – Review of 2009
Saturday, December 19th, 2009 | Uncategorized | No Comments
Our first full year has been a good start for the MicroLoan Foundation in Australia – and 2009 has been a great year for Malawians who have been able to borrow small sums of money from us.
We opened our first Australian office in Mulanje earlier this year (see previous post), and we’re pleased to report that Joseph Kaipa, our loans officer there, has been busy!
To date, Joseph has organized
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- More than 500 individual loans to women in more than 30 rural villages scattered around the tea growing area of Mulanje
- The average loan is A$82 (and historically at least A$81 of this will be repaid to lend out again)
- Businesses operated by our clients range from selling maize, to running small grocery stores, to cooking food, to even making beer!
- To date no loan has defaulted ie 100% recovery rate
- The oldest borrower is 67 and the youngest is 18!
- Thanks to these loans, 2,165 dependents are being supported, including 243 orphans.
April 30 was our official launch date, or Awareness Day, which we held in Martin Place Sydney. Despite appalling weather on the day, we got great coverage from local and state radio and we were even interviewed by Sky Business News who realise just how this type of lending is revolutionizing the world of the poor.
In May two of our team were fortunate enough to be invited to hear Dr Muhammud Yunus (the Founding Father of the microcredit concept) present to the British Council in London, and one of them had the privilege of meeting the man himself!
By the way, Dr Yunus was interviewed on ABC TV recently by one of Australia’s most intelligent interviewers, Andrew Denton on his ‘Elders’ program. The interview is a great insight into the 2006 Nobel Peace Prize winner, as explains how microloans can really help tackle poverty in poor countries. If you didn’t catch it, you can still watch it online via iview until the 21st December by going to:
http://www.abc.net.au/tv/elders/
or read the transcript by going to:
http://www.abc.net.au/tv/elders/transcripts/s2757468.htm
During the year various formal and informal fundraisers were run, but perhaps the most interesting was when one of our volunteer directors, Clive Hughes, entered the road race for the World Masters Games being held in Sydney. Apparently it was one of the hardest events he had ever entered due to strong winds and even stronger competition! Nevertheless in the end he raised more than $1,000, which is enough for 12 new loans affecting 60 people.
Christmas gift – still can’t decide?
Friday, December 18th, 2009 | Uncategorized | No Comments
Don’t know what you want for Christmas? Why not help us help someone in Malawi by asking for a donation to MLFA as a present?
If Kevin Rudd can give John Howard a goat for his birthday, then why not give (or ask for) a donation to MLFA that we can pass straight through to our office in Malawi. Perhaps you’ll end up helping someone get a flock of goats?
Let’s make 2010 even better
2009 was a great start for us, But we are looking forward to making next year even better, and we already have some fundraisers which should be fun to a part of as well as raise some valuable funds to keep our ever busy Joseph Kaipa even busier. We will bring you details in the new year.
Also, in early 2010 look out for the new MicroLoan Foundation AvantCard. As you might know these are those free postcards you can pick up in cafes, bars and restaurants. We are incredibly grateful that AvantCard has decided to support our work by producing and distributing these cards at no cost to us. Don’t forget to look out for the cards next year.
Thank you and have a great break
To all those who donated money to date, we (and women in Malawi) are eternally grateful for your contribution. So, have an enjoyable and restful Christmas break, (after all 2009 has been a tough one for all of us), and see you in 2010!
Clive didn’t win – but he finished!
Tuesday, November 10th, 2009 | Uncategorized | No Comments
MLFA Development Director Clive Hughes took part last month in the World Masters Games 70km cycle road race and at the same time raised money for MicroLoan Foundation Australia.
Clive explains
“I finished the World Masters Games 70km Road Race that was held at Eastern Creek race course, Sydney. And boy, this was the hardest race I have participated in yet! I guess I was expecting as much, as many of the top 50 year old cyclists in the world were there, but what made it tougher was the wind that got up in the afternoon, just in time for our race.
It seemed that regardless of the direction I was going, there always seemed to be a head wind. Anyway, the winning time for the event was 37.6kph, and I was very pleased to exceed my stated pre race target of 32.0kph, with an average speed of 32.7kph.
Although my glutes ached liked mad afterwards, it was great to meet some of the overseas competitors, such as the 80 year old Polish cyclist who holds numerous world records and has a 55 year old wife – cradle snatcher! No wonder he blows other octogenarians away.”
Clive has raised over $900 in sponsorship for MicroLoan Foundation Australia, money that will go straight to the Australian MLFA office in Mulanje.
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Read the Manly Daily article about Clive:
African cause spurs Masters racer Clive
Malawi in the news
Tuesday, November 10th, 2009 | Uncategorized | No Comments
Malawi has been in the news recently. See these two recent videos from BBC News
Madonna opens new Malawi school
Ambulance bike saves lives in Malawi
Already helping more than 1,000 people
Friday, September 18th, 2009 | Uncategorized | No Comments
Although there is a long way to go to permanently establish our presence in Malawi, we would like to extend a big thank you to all those who have donated money to the MicroLoan Foundation so far.
You should be proud to know that the money raised to date has allowed Joseph Kaipa, the loan manager of our “Aussie†office in Mulanje, to write nearly 200 loans.
Your donation is helping give 193 women, and their 1,009 dependants a chance to start their own new businesses, and by so doing give them a chance to eradicate poverty for themselves.
It is wonderful to see the array of different businesses our clients are embarking on. For example, they are selling clothes, shoes, kitchenware, fruit , vegetables, doughnuts, and even goats. Sounds like a regular ‘Westfields’ (barring the goats I guess). Some enterprising souls are even making beer, which has got to be an improvement on the local Kuche Kuche brand!
And the great thing is that, due to a near 100% recovery rate we have been achieving, we will be able to recycle your initial donation and help affect the lives of another 1,000 people.
As said earlier, we have really only just taken the first small step in getting the Mulanje office opened. We want to grow the business by providing larger individual loans to those women who find they are successful with their initial small loans. We also want to extend our loans to well in excess of 300 women in this beautiful tea growing area of Malawi.
Please consider becoming a “Friend†of MicroLoan by making a regular subscription.
Also, please tell other people about the MicroLoan concept. Although we may appear to be a charity that gives nothing away, we do give the most precious thing – a chance to let the poor get out of poverty for themselves.
Sponsor a cyclist in the World Masters Games and help fund loans in Africa
Wednesday, September 16th, 2009 | Uncategorized | No Comments
Between 10th – 18th October, Sydney will host the 2009 World Masters Games.
The games, which are supported by the IOC, are designed to encourage mature athletes, of any ability, to partake competitively in the sport they play for pleasure.
This year’s games have attracted a record 28,000 competitors in 28 sports. This compares to the 2000 Olympics which had 10,600 competitors and the same number of sports. For more details go to: http://www.2009worldmasters.com/Sports-overview/default.aspx
One of our Directors, Clive Hughes, has entered the 70km road race for 50-54 year olds and is using the occasion to raise funds for the MicroLoan Foundation, so we can provide more loans to rural women in the Mulange region of Malawi.
Although Clive has cycled from childhood, he is only a recent convert to racing, and he believes that the Lance Armstrongs from yesteryear are probably safe from his cycling attacks. The winning speed for the last games in Edmonton 2005, was at an average of 38.5kph, whilst Clive is hoping to come in the top 50 with an average time of around 32.0 kph.  The road race competition is being held at the Eastern Creek Raceway, and Clive’s race will be the last held at the competition, starting at 3pm Saturday 17th October.
So come on, let’s encourage Clive to exceed his targeted average speed, by pledging him a certain amount (such as $1.00) per kph average speed. The more you all pledge, the harder he is likely to go to exceed that 32.0 kph target.
Also, if you can make it out to Eastern Creek, come out and support Clive and watch some high level racing without having to catch a flight to rural France.
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To pledge, simply send cut and paste (and fill in) the template below and email to MastersRace@mlfa.org.au
Sponsorship – World Masters Games 2009.
Road Cycle Race
Pledge
I pledge to donate to the MicroLoan Foundation the following sponsorship in respect of the World Masters Games performance of Clive Hughes
Either
$_____ per kph average speed
(eg $1 and 33.0kph actual av speed = $33 sponsorship)
Or
$______ Fixed donation
Your Name:
Contact no:
Email address:
Our first office is open!
Sunday, July 5th, 2009 | Uncategorized | No Comments
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photo: Clive Hughes with the Tinyade credit group from the Mulanje branch
Mulanje, Malawi – home to tea and the “Island in the Skyâ€
We are absolutely delighted to announce that MLF Australia has opened its first lending branch in Malawi.
Our first branch is Mulanje, a town located in the southern part of the country, between the commercial centre of Blantyre and the Mozambique border. The area is known for its tea plantations, and the magnificent Mulanje Massif. The Massif is a spectacular granite rock plateau that reaches more than 2 kilometres into the sky and looks like Uluru with a serious extension.
In early May, Mr Joseph Kaipa (formerly of MLF’s Rumphi office in the north) opened Mulanje with little more than his Yamaha 125 motorbike. Since then, he has established six lending groups and with our help he hopes to increase this to more than twenty groups over the coming year.
photo: Joseph Kaipa – Branch Manager Mulanje
In mid June, our Development Director, Clive Hughes, travelled to Malawi (at his own expense) to carry out a review of the operation on the ground, and meet some of our new clients.
“I have to say I was incredibly impressed by what I saw. The micro lending activity is making a greater difference than I had ever imagined, whilst the actual operation itself is being run extremely efficiently. (This is no NGO gravy train!)â€
“It was great to meet some of the women our branch has already lent to, and see some of their businesses in action. One of our borrowers, Lizneti Ndelewa was borrowing money to fund selling second hand clothes. She was using the money to support herself and her 17 dependents, 8 of which were orphans! She deserved a medal, but her story is not unique.â€
“There were lots of great memories from my trip, but one that sticks out, was a short speech by the village elder at the conclusion of one of the lending group’s regular meetings. Every two weeks a repayment meeting is held, where all the women of a particular lending group come together to give their loan repayments to their group treasurer to pay into the bank. (NB no money is ever handled by MLF staff). Anyway, at the end of this meeting the head of the village stood up and thanked us all, not just for giving our clients the means to make money, but for helping to train these young women of his village in new skills they had never been exposed to before. I think he could see the beginnings of a quiet revolution where the women of his country could start to do more than simply bear children and keep a clean home.â€
“Our challenge now, in Australia, is to help Joseph Kaipa get this branch fully established. To this end, we will need to raise some considerable funds (in excess of $90,000) over the coming months to help provide the initial loan funding for the next 14 other lending groups. It is reassuring to know that he had a 100% recovery rate in his old branch and I am sure he will keep this record going.â€
Please help us establish our first lending office in Malawi and become a Friend of MicroLoan Foundation Australia today.
99% of all sub-prime loans are repaid in full …in Malawi in Africa
Thursday, April 16th, 2009 | Uncategorized | No Comments
Former financial executive Clive Hughes will explain why sub-prime loans could be one of the best financial innovations devised at the MicroLoan Foundation Australia (MLFA) Awareness Day on Thursday 30th April in Martin Place, Sydney.
At the Awareness Day (11.30am-2.30pm at the Amphitheatre in Martin Place) Clive, former CEO of a Sydney property company, will explain the brilliant concept of micro loans, which are made to the poorest of the poor who have no income, no assets and no job, (so called “NINJA†loans) and how 99% of all MicroLoan Foundation loans are repaid in full with interest.
MLFA provides small loans (otherwise known as microloans), basic business training and continuing guidance to groups of women in Malawi. They launched in August last year and are supported by world patron, Sir Bob Geldof, and Australian patron, Simon Tedeschi.
These loans are made to entrepreneurial, but poor, women who have the ability and motivation to make modest amounts of money so as to improve their lives. They use their small profits to put an extra meal on their families’ table, school their children or even build their first house.
At the Awareness Day Clive will introduce MLFA, and take you on a journey to one of the poorest yet most beautiful and friendliest countries in the world – Malawi. He will describe what MLFA has done there and what it will be doing in the future. Finally he will point out that, far from being a high risk category, poor borrowers are some of the most reliable clients a financial institution can have.
Clive explains
“MLFA has a “different approach to charityâ€, indeed it is the charity that doesn’t give, it merely lends a tool to the poor that the rich take for granted.
If you believe that a poor illiterate black woman in Malawi could be just as capable and motivated in her local business world, as a rich, highly qualified, white man in his western business world, you will understand why micro loans work.
Mind you given how clever the “professionals†in Wall Street have been over the last few years it might be unfair to women in Africa to make such a comparison!â€