Indonesia: Grameen and Saudi Company to provide microfinance in Aceh
Jakarta, Indonesia-Relief -- Grameen Foundation USA has finished its assessment on possibilities to help tsunami victims in 4 tsunami-affected countries by providing microfinance. In Indonesia, Grameen found 5 local NGOs that suitable to channel the $11 million microcredit over the next 3 years. Main distributor of Toyota in Saudi Arabia, Abdul Lateef Jamil Group will fund the microfinance projects.
In a conference co-host by Third Millennium Foundation on Friday to mark the 5 months anniversary of tsunami at the International Center for Tolerance in Brooklyn, New York, Grameen unveiled its plan to provide $8,170,000 for the first year, up to $17,760,000 for the next three years. Other than $1 million fund from Jamil Group, money to fund the project is already received from Northen Rock Foundation ($184,000), Skoll Foundationa ($25,000), Third Millennium Foundation, and Calvert Foundation.
''The tsunami devastated local economies and wiped out tiny businesses that had enabled many families to live above the poverty level before this natural disaster,'' said Alex Counts, president of GFUSA, told the conference. ''Our report concludes that microcredit--small loans ranging from just $50 to $400 for entrepreneurial individuals--could have a dramatic impact in restoring hope and economic promise for thousands of families in Indonesia, Sri Lanka, India and Thailand.''
In Aceh, the 5 NGOs that already identified to help Grameen are Save Emergency for Aceh (SEFA), Center for Aid in Resolving Aceh (CARE), Rumoh Kita, Yayasan Mitra Dhuafa (YAMIDA), and Yayasan Kariya Bunda Sejahtera (YKBS).
For the first year, starting from July,
Grameen recommends to provide $1,96 million to enable those NGOs provide microcredit to 9,390 new clients that will benefit 46,950 people. Totally for the next three years, the NGOs could provide $11 million microcredit to 34,180 new clients that will benefit 170,898 people. The average microcredit that will be provided to each client (family) is estimated at $322.
The Grameen project was started after Abdul Latif Jameel Group -- which had previously worked with Grameen to develop a major finance initiative in the Arab World and has supported the expansion of an experienced Indonesian microfinance institution (MFI) -- approached Grameen and proposed an innovative collaboration that would allow the foundation to study the problem and develop high-impact responses.
The Jameel Group committed all of the funds required to undertake a comprehensive, multi-country survey to determine how microfinance could be best used in the post-tsunami recovery effort. Knowing that money speaks louder than words, they also committed $1 million to implement the recommendations of that survey.
Grameen Foundation USA believes that microfinance has tremendous potential to play a critical role in helping people and communities recover from the tsunami. Microfinance could help: fishermen need loans to rebuild their boats and repair or replace equipment that was damaged or lost; farmers need funds to reclaim flood-soaked lands and purchase livestock and equipment; shopkeepers and traders need to replace depleted inventories and purchase food and other items for resale; and craftspeople need money for supplies, new sewing machines and more. © lanSource: reliefweb.int
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