Microcredits

Unlike in most developed countries, the rural villages of Karagwe do not have a convenient access to banks. To overcome this shortage, KADERES began supporting Savings and Credit Cooperative Societies (SACCOS). Currently, KADERES is supporting 15 SACCOS in the District of Karagwe (overview map).

Instead of supporting the typical western profit approach of investment banks, our community banks are run by the farmers themselves. Not investment banker that run on commission decide who gets a loan, the community decides on it democratically. This social approach is based on a strong sense for community and teamwork. One of our proudest achievements is that some banks are now offering very low credit rates to HIV affected farmers. Almost impossible in a system solely based on profits, these caring communities like ours are taking the higher risks in order to help the most disadvantaged.

Before introducing our Microcredit banks, most individuals in the region tended to save goods (coffee, animals, land) rather than money. If a farmer had some immediate costs to meet basic needs such as paying for bills or going to the doctor they would sell some of their saved goods. Because pressured in time they wouldn't be able to achieve a high price on the market resulting in a value loss of their goods.

Today, through our KADERES-SACCOS, based in rural villages, farmers are able to receive loans to wait for better prices, start small businesses, send their children to school and much more.