In the rural area of the Nyandeni District the unemployment rate is incredibly high and therefore the standard of living very low. Most people living of social grants, which is obviously not enough to sustain a healthy and future orientated living. Schooling, clothing, nutrition and housing are hard to maintain. Many families living at or under the poverty line.
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TransCape is encouraging people to open their own businesses in order to create an income. An individual or a group (max. 5) can take out R2000 each. There are exceptions for vegetable gardens if a fence is needed the loan can be raised to R3000. We like to see especially the members of the HIV/AIDS Support Groups opening their own businesses. The loan will be paid back without interest over the period of one year. The money will be used again to establish new Microfinance groups. |
| Before they receive the contract and loan, the project manger will evaluate their business plans, do a sight visit and give them a two days training in basic business skills and book keeping. |  |
Ones they have received the loan, they have got 6 weeks to start up their businesses and create their first income. After the 6 weeks, the project manger will visit for the first evaluation of the business and the first installment is due. We will be able to detect difficulties early enough and solve problems which might appear. Every month the project manager gets together with the groups for evaluation and installments.
The operational costs come to about 15% . This include diesel, communication, labour and stationary.
The beneficiaries are the people which do not have an income nor recieving a pension from the goverment. We give preference to woman and members of the HIV/Aids support groups.
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The kind of businesses which were established:
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The clients were able to better their living circumstances in many ways. The majority reported that they are eating better and maintain a healthier lifestyle. More then half reported that they were able to build another house or renovate houses. New roofs, cement floors, water tanks and even tiles. Six families were able to send more children to better schools and university. Otherwise new cupboards, beds and blankets were purchased. Some Stats: Female:Male Ratio - 38:6
Age Average - 37
Average Schooling - Standard 5.8
Average Income before per House Hold - R400
Increase in income through MF - 254%
MF loans that fail - 8.2%
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