Sept 2008 Update

The major focus of the Sept 2008 trip was to make micro loans in areas rarely (if ever) served by banks or NGO's. The CIP reviewed applications from individuals located in villages throughout the Tonkolili region. Below are summaries of the loans (in US dollars):

1. Cassava grating Machine investment - $1,523 - the machine is purchased within Sierra Leone, with repair parts readily available within country. The machine is moved from village to village, allowing villagers to process their cassava efficiently. A team of two will manage the machine, receiving 20% of revenue (encouraging profitability). This is our biggest investment.

2. Livestock - $260 - qualified candidates will receive a loan of five goats. After the first year they pay back three goats, and after two years they pay an additional four goats (thus two goats in interest). One goat goes to the extension worker managing the loan. Six goats go back to CIP (five principle and one interest) to be loaned again. A candidate must have a completed goat house to qualify. Completion of a goat project now qualifies and individual for tree or vegetable loans since they now have a free source of fertilizer.

3. Fishing Nets - $212 - CIP will invest in the initial costs for nets, thread and rope to enable a fisherman (hook and line) to more efficiently fish the local river. After paying for an assistant, repairs and interest of 15%, conservative estimates show favorable chances for success.

4. Groundnuts - $200 - In order to qualify for a loan, an individual must build their own storage facility using only local materials. Once completed, CIP loans five bushels of seed nuts are loaned. With extension assistance from CIP, two crops are harvested each year. At the end of one year, the five bags plus 1.25 bags are paid back. The farmer can then use the proceeds to improve the storage facility, possibly changing the roof to a more-permanent zinc (as compared to the thatch).

5. Cassava Planting - $327 - An individual is loaned up to 70 bundles of cassava (only after clearing and preparing up to 2 acres of land). The cassava yields valuable leaves and tubers. Interest is calculated at 15%, and loans are to be paid back after the first year.

6. Vegetable Gardens - $133 for five loans - In order to qualify for a vegetable garden lending program, you must first have a source of "free" fertilizer (via goats or sheep with a goat house built for easy retrieval). Because of the relatively low investment (making it economically inefficient to make just one loan), villagers are grouped in teams of five. CIP loans seed and watering containers, and provides an extension worker to coach the group on the most efficient methods of operating their garden. Besides having the available fertilizer, the farmer must also have prepared a nursery plot and land sufficient for crops. Loans are paid back after the first crop.

7. Oil Palm Production - $500 - This is a combination short term & long term loan. After preparing a proper nursery site, the farmer is loaned the funds for seed and poly bags, allowing them to raise 1,250 seedlings. After the first year, the farmer takes 600 plants and transplants them to 10 acres of land. The remaining seedlings are then sold to neighboring farmers, with 1/2 of the proceeds going to CIP to pay back part of the loan, and 1/2 going to purchase more seeds and poly bags. The farmer then raises more seedlings to continue paying back the loan. At the end of the sixth or seventh year, the farmer will begin to harvest palm kernels and process it into oil. They pay back the loan, calculated at 15%, but based on the value of palm oil. A loan of $500 would require a payback of 45-5 gallon containers of palm oil after seven years.

8. Library - $600 - A second library is planned for the Yoni Bana area. In order to qualify to open a library, the community must provided an appropriate building, a mixture of tables, chairs or benches, and a librarian from the local community. Land must also be allocated to the library for a garden. CIP invests in books (primary and secondary school text books), brings in current periodicals from the capital, and hires a local carpenter to build bookshelves. Patrons of the library are required to pay Le 1,000 (30 cents) each month for access to the library. Those who cannot afford the fee can work in the garden to earn their entry. 1/2 of all revenue goes to pay the librarian, with the balance going back to CIP.

9. Solar - $300 - Two solar panels brought from the US (7.5 watt and 12 watt) were loaned to the library at Rochen. In addition, funds were loaned to hire a local electrician to install the panels and connect them to a battery (motorcycle or car battery) to charge them during the day. At night, the battery would be used to power lights, allowing the library to operate at night (which is when most children are available to read). Further, the power would be used to charge cell phones, which is commonly done for Le 1,000/charge. If the library is able to charge 10 phones/day, they could earn over $3 per day, or over $900/year. The only item that is "imported" is the panel, which should become more available in country as solar becomes more cost effective. This is very much an experiment at this time.

10. Theater - $248 - A local theater group comprised of secondary school students have taken a loan for costumes and other initials costs for their productions. CIP calculated a loan at 15%, with payback occurring over a five show period. CIP hopes to provide a creative outlet for the students, entertaining productions for the community, and a profitable venture as well.

11. Sports for Women - $0 - CIP previously invested in uniforms and soccer balls for sport teams. The only change to the prior investment was to let the women of the community know that the investment was meant for both men and women. CIP hopes to have a gala in February 2009, with all teams competing leading up to championship games for both men and women.

12. Educational Toys - $55 - The toy program continues to be refined, with the focus now on the geometric shapes. These toys can be used to teach basic math all the way through geometry, and also can be used for a fun and creative game of balance and strategy. Ten sets have been made, with one going to each library and eight going to schools. Each school is being asked to give their feedback about the usefulness of the toys.

13. Mosquito Nets - $20 - Five nets were purchased for the local health center. This was purely a gift to the community, with no expectation of a return.

14. Radio Broadcasts - $50 - The CIP participated in two radio broadcasts (Mile 91 & Makali area), allowing the communities to hear what plans were being made, and explaining the loan process. Each show lasted about 30 minutes, with contributions being made to the stations to offset costs for fuel to run the generator to facilitate broadcasts.


CIP team members will follow up on each loan on a monthly basis, providing guidance as necessary. Dan Lavin will return to Sierra Leone in February 2009 to follow up on the loans, and make additional loans if funds are available.