This is an excellent Endeavour to reach out to the poor farmers by lending small loans to further their cause for a sustainable lively hood. Economic prosperity is nothing but creating an virtuous cycle of income generation & accumulation to most vulnerable section of society especially small hold farmers worldwide. Population in sub sharan Africa largely depends on agriculture to earn for their living. This organization named “Juhudi Kilimo” lends money to small famers to purchase agricultural equipments and transport. The business model followed by them looks attractive ie, is they give six months training to the borrowers on financial literacy and animal husbandry . The small loans are paired with asset as well life insurance to overcome the risk of debt to the borrowers as we all institution.
Their approach is good and useful they focus more on providing loan for purchasing physical assets rather than giving direct cash to the borrowers, So this helps the borrowers to use the assets to generate income for their living rest they can use to repay the loan. Current model of micro finance lending puts the borrower back to the wall , charges exorbitant interest rate which sometimes becomes more than what they earn. Anyone can visit their site at http://juhudikilimo.com . They believe in lending at a lower interest rate, staggered payment and longer repayment period which aligns with customer’s earnings. The juhudi kilimo is built by Aleke Dondo known as father of micro finance in East Africa. I believe more than giving subsidies and freebies it is always a right model if implemented in true spirit , Economic activity through development has to start from the bottom , Giving them all the support , latest know how to improve production , Frequent assistance and guidance in supporting them with latest information about climate and other technical knowledge. Juhudi kilimo ‘s is an ideal example by combining a business model through empowerment by facilitating the society to grow along with the organization.