The Village Net (TVN) initially enters an African village by identifying the existence of an organized women’s group. The groups typically are comprised of poor, economically active women (generally small business owners such as traders. restauranteurs, farmers, etc.).
The groups are formalized with a charter, officers and policies, and generally require a weekly dues payment.
The women have identified a need for capital to sustain and grow their businesses. TVN uses the peer lending model of small groups of 5 or so women who apply for capital together and guarantee each others loans. The dues held by the women’s association are also used as a guarantee for the lender.
As soon as a commitment is made by TVN to fund microloans, the women begin the application process. From there, TVN works with borrowers and potential borrowers to identify resources needed to create viable and sustainable lives for themselves and their families, and a viable and sustainable future for the village. These resources generally are requested in the areas of education, health, and infrastructure (water, power, food, sanitation).
Microlending
The receipt of the 2006 Nobel Peace Prize by Grameen Bank and its founder, Muhammad Yunus, brought microlending to the forefront of economic development discussions. Grameen was founded in Bangladesh; the peer-lending model was intended to eradicate poverty by helping the poorest-of-the-poor achieve financial independence.
Literacy
The Village Net includes financial, health, language and civic literacy in its education goals. The microfinance program includes some form of savings and insurance and is considered a stepping stone to the ability to utilize commercial banking services. Health education and English language reading and writing are incorporated into all activities. We also believe civic education, and the understanding of the political process and the role that women play in policy-making, is critical to the long-term success of the women and their villages.
Capacity Through HUBs
The collaboration with WomensTrust increases by three times every effort made in Pokuase, Amasaman, Medie or Ofankor. Best practices will be adopted among the centers, and it is expected that program replication will continue with additional villages and through additional partnering organizations.
This HUB model will play a role in how The Village Net determines where to expand services. A cluster of potential village partners will always be sought. Our second HUB in Kenya shares staff and resources, and has the potential to touch the lives of 15,000 people in the two starting villages of Mwaani and Suswa.
