Entrepreneurship & Microloans
A Novel Approach to Microloans
This microloan program is helping youth and women affected by war to both learn about and launch new businesses in their local community. We have initiated this program in coordination with our partner Bridging Gaps, which has launched similar programs in other countries, primarily in refugee or internally displaced camps.
Unlike traditional microloans, where payment back to the lender has led to stories of individuals selling their own organs and driving people further into poverty, Bridging Gaps takes a different approach. The loans are never repaid to the lender, but rather they are paid forward, to the next community member. By creating “community loan groups”, the initiative helps ensure the loan funds continue to circulate and are “paid forward” to the next group member. Community accountability is the best way to ensure the loans are repaid while no one is taken advantage of and predatory lending never takes hold.
Goma Small Businesses Reduce Suffering
These microloans are alleviating suffering in two major ways:
1) For young women: Poverty and economic hardship increases the likelihood of both teenage pregnancy and single motherhood, which can create a deeper spiral into poverty. Similarly, the destitute poverty that is present in most camps often drives women into prostitution. Giving women the ability to flourish by running their own business creates paths to a bright future.
2) For young men: Like our other programs, we are working to reduce the roughly 50% of former child soldiers who return to the militia. If they can provide for themselves economic, the rate of recidivism drops immensely.
In 2024 we provide 33 loans of $75 each across three of Goma’s internally displaced camps. Businesses included food stands, airtime stands and barbershops.
