Originally published: June 6, 2008
Source: The One Blog
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 (USD4.50) This week, the same items cost (USD7)."
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.
Read the complete article: Food Crisis Taking A Toll on Microfinance Clients (The One Blog)