Likoma Residents Achieve Financial Independence through IRFSL Project
The goal of the project is to provide financial stability and independence to every individual, regardless of their financial capacity.
Malawi: Residents of Likoma, Malawi, can now afford a smile thanks to the successful implementation of the Inclusive Rural Finance Sustainable and Livelihood (IRFSL) project by Opportunity International, with funding from Financial Access for Rural Markets Smallholder Enterprise (FARMSE), writes Oliver Malibisa.
The project has empowered over 1,556 shareholders with the necessary financial and economic independence skills to invest in various businesses, including fish enterprises, rental housing, and pig farming.
Gladys Kabefu, a member of the Tiyese group in Chiwoko Village, has reaped the benefits of the project.
Through investing K2,500 in shares for six months in 2022, she was able to secure a loan and purchase Chilimila fishing gear, boats, engines, and land, earning her a total of 700,000 Malawi Kwacha in the harvest.
"I am no longer dependent on my husband to provide for the family. I am now financially able to contribute and provide for their needs," said Kabefu, with a smile.
Another member, Nema Halidi, is one of the 1,356 women who have invested in individual businesses, including pig farming, rental housing, and gill nets.
The project's financial investment training has allowed her to pay for her children's school fees.
"I am grateful for the skills I have learned through the project. I now have multiple sources of income, including gill nets, a pig farm, and rental houses, which have helped me provide for my family," she said, beaming with satisfaction.
According to project coordinator Cosmas Mhango, Likoma was chosen for the project after a survey revealed that most of the island's residents lacked financial and investment skills.
The project aimed to connect them with government money-lending institutions, such as the National Economic Empowerment Fund (NEEF), and other banks, to provide loans and help them open bank accounts.
"We conducted a survey and found that the islanders had no access to banking services and lacked proper investment skills. They only relied on mobile money transactions, which is why we decided to implement the program in Likoma. Many of them have now benefited from financial skills and are able to invest access loans, and use banking services," said Mhango.
Opportunity International secured a three-year implementation project, with funding from the Ministry of Finance, to implement the FARMSE project under a consortium, that includes Rural Finance and Sustainable Livelihoods.
The project, which started in July 2022 and will end in 2033, initially targeted 52 groups in the area of three traditional authorities, but due to demand, the number has increased to 64 groups.
The goal of the project is to provide financial stability and independence to every individual, regardless of their financial capacity.
With 1,356 female shareholders and 210 male shareholders, women dominate the groups.