The Flores Journey

(One of the small businesses started in Khayelitsha)

Friday I was invited to go to Khayelitsha and visit several of the businesses that have been started through the Income Generating Program or IGP. I have been very excited about this part of the Africa Jam program and had heard some good reports leading up to it. For one, the program has been noticed by some people that can really take this program to the next level. We have been told by the South African Government that if we can raise a certain amount of money in savings then they will give us a very substantial grant. The South African Government wants to invest money in programs that are bringing funds into the poorest communities, and that is exactly what Africa Jam is doing. This is great news for the IGP team because, success from earlier ventures have created much enthusiasm throughout the community.

Like I said we visited several of the businesses that have been created in the community. First, one of the “African Momma’s “ took the money that she was loaned and invested it into purses and wallets as well as sweets and other snacks. She told us that she had completely sold out of all of her purses and was going to stock up on more from the money that she had made. Money is paid back on a monthly basis, with interest and she has been making all of her payments.
Another woman we visited was not there but the son showed us the things that had been purchased with the loan money. We saw some red flags here because there was very little merchandise that she was selling. Whenever there is so little merchandise in the home we need to ask, ”Where is the money that was loaned going?” We told our loan officer to make sure to check back on this house and inquire as to where the money had been invested. Every once in a while a need comes up and the money used there. This is discouraged because they won’t be able to pay back the loan, not to mention lose their ability to purchase other merchandise to sell and actually make themselves a profit.

There were several other businesses that had been started; Women sold aprons, purses, candy and treats, cell phone minutes, chickens, and eggs. I went to the meeting after visiting several of the stores and got to meet the rest of the business ladies. All the women are older. This is the third month of this loan and all of the woman have been able to make most of their payments. There was just one or two who owed a bit more rand and promised to pay it the next day.

I am very impressed with where this program is going and how it is really empowering the “African Mamas” to make a living from home. It’s incredible to see the lengths that these women are going to and the kind of entrepreneurship that is coming out from the townships. We want the IGP to be able to function completely on its own without funding from outside sources and are definitely on the right track.

We are very encouraged by the potential of the government grant which will open up many more loans and businesses. The best thing about this, is that every other meeting we bring in a pastor to have some time with the group. It is a Christian based program so before every meeting is prayer and a little talk. This program is going to have some serious impact, especially because Christ is at the very center.

Bryan