Micro Enterprise Banking


There are many different models of Micro Enterprise Banking throughout the 3rd World today. It is said that 90% of the ME Banking is handled by women very successfully. Without an ME Bank Villagers would borrow money from the Local Money Lenders who charge exorbidant Interest rates taking all the profit from the Villager's hard work....up to 50% per month interest!

In Bali, Indonesia, we have established two separate Banks. Both run by a village Committee of Men and overseen by BATI for the first two years.

We offered two different communities a sum of money we called “Seed Money”. Initially the Banks were established for local Villagers to purchase a breeding Cow or a Calf. The cow could be “fattened” and sold or could be bred and a calf would hopefully be born. A Fattened Cow could be sold in the market for a profit and the profit split between the bank or else a reasonable interest rate was charged and the Villager kept all the profit except for the interest which was returned to the Bank.

After two years when all the monies were returned, we offered the two villages the opportunity to use the Seed Money to establish their own Banks and run it themselves calling on Bati should they need advice. Once the original Seed Money was doubled then they would pay back the “Seed Money” to us and we would start another Bank and get either of the two existing Banks to “mentor” the new Bank.. And so the cycle would continue.

The scope of borrowing has actually expanded quite broadly and Rice Farmers are borrowing from the ME Banks to purchase Bulk Fertilizer for their Rice Crops and by buying in Bulk and as a Cooperative, the savings are very good. Also one farmer borrowed sufficient to purchase a “Tractor” which in Indonesia is an implement used in the Rice Fields similar to a Rotary Hoe, that chops and buries the harvested stalks and prepares the field for the next planting. This is very efficient and now this Farmer has become a Contractor to other farmers in the area working their fields for them and improving production times. Farmers can now get three Rice Crops a year.


Onesu, Timor Project.

January 2010 in a Partnership with a Church from Java and utilizing a 15 Member DTS team from Ywam Montana, Bali Appropriate Technology completed a project in Onesu, Timor.

Background:

Some years ago a large Multinational Group had built an expensive Water System in this village in conjunction with the local community. The system when completed, relied on a Diesel Engine to Pump the water. Sadly the villagers were rarely in a financial position to purchase Diesel, therefore the pump rarely operated, and so water had to be carried by the women and children up to several kilometers for all their daily needs. For a village with so little resources, a Diesel Pump is really ‘not appropriate technology’.

We had been to this area on several occasions previously, building relationship and laying the ground work for the eventual project..... making appropriate changes to this Water System using 8 Hydraulic Ram Pumps that only operate using “Head” of water (Connect to definition of “head”) and no other form of energy such as Diesel, Petrol or Electricity.

Meetings were held with Community Leaders and any concerns by the local’s were worked through and dealt with so that we could press ahead. It is so beneficial to have everyone around the table and on the same page so that when we leave the project, the local community is committed to work together for the good of the Community.

For the actual project we had extra help by utilizing a team from the US to work alongside the local folks. This was not a case of "doing the project" for the Community, but a case of the Community being trained to build and operate their own system so that when we left they were competent to maintain and run the whole project on their own with no need for western money or services. Because they built the Hydraulic Ram Pumps within the local community, and all other materials needed could be purchased locally then they are confident to be able to repair and maintain any aspect of the project when the need arises.