Grameen Foundation : Resource Center : Print Newsletter : Spring 2006 : Tsunami Survivors Rebuilding
Tsunami Survivors Rebuilding with Microfinance
In December 2004, the devastating tsunami took an estimated 220,000 lives and left more than 1.6 million survivors homeless. Grameen Foundation USA (GFUSA) quickly mobilized and conducted the only systematic, regional survey of how microfinance could help tsunami-affected countries with sustainable development.
It concluded that to recover from the disaster, tens of thousands of survivors would need funds and support to establish or restart small businesses. In December 2005, a year after the natural disaster, GFUSA established the first microfinance institutions (MFIs) in Banda Aceh, Indonesia, the worst affected area. The MFIs are YAMIDA and YKBS. At the time of printing, GFUSA had disbursed more than $400,000 in funding that allows our partners to provide loans to 4,000 survivors to rebuild their lives for the long-term. GFUSA’s investment in Banda Aceh impacts an estimated 20,000 people, when factoring in the microfinance clients and their family members. The success is thanks in part to Oliver Mannion, a volunteer MIS consultant in Banda Aceh and Technical Advisor Ahsan Habib, who brings more than 20 years’ experience at Grameen Bank.
An interview with Muslim A, a loan officer with YKBS. Muslim works in the villages of Lampisang, Lam Kruet, Keuneu, Lam Paya and Nusa in Indonesia, serving 255 microfinance clients.
GFUSA: What do you do as a loan officer?
A: My main duty is to survey and select new villages and gather women affected by the tsunami to start a microfinance program in their community with the help of the microfinance institution’s (MFI) branch manger. In meetings with the women, we explain our mission, vision and procedure of disbursing loans. After the gathering, we form a new center, organize borrowers into groups, give basic training on the Grameen methodology, disburse loans, check on loan utilization, attend center meetings to collect loan installments and savings, and deposit the money.
GFUSA: What is the need for microfinance in the area you serve?
Muslim: Now I am working for the microfinance institution YKBS in three sub districts (Pekun Bada, Lohokgna and Darul Imarah) of the Aceh Besar district. These three districts have been totally destroyed by the tsunami. Most families need financial help to restart their livelihoods. Although they are getting aid from other organizations, my thinking is that [the survivors] need long-term financial help and YKBS can give it through microfinance.
GFUSA: What are some of the popular businesses clients take on?
Muslim: The clients in Aceh start a variety of businesses but most use their loan to buy and sell dried fish, vegetables, and cakes. Other popular businesses are handiwork, tailoring, dress making, raising ducks and chickens, and opening a small grocery store.
Grameen Foundation : Resource Center : Print Newsletter : Spring 2006 : Tsunami Survivors Rebuilding
Grameen Foundation uses microfinance and innovative technology to fight global poverty and bring opportunities to the world's poorest people. With tiny loans and financial services, we help the poor, mostly women, start businesses and escape poverty. Our global network of 55 microfinance institution (MFI) partners including our Growth Guarantee partners has touched more than 34 million people in 24 countries. In addition, we introduced and now sustain technology initiatives (Mifos and Village Phone) in Cameroon, Kenya, Rwanda, and Uganda, bringing our total country outreach to 28.
+1-202-628-3560 www.grameenfoundation.org
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