Ethiopia: Buusa Gonofa (BG)
A neighbourhood service for rural financing. In Ethiopia,
some 20 of the most reputed and performing rural reach only about 11% of
the rural population. At the same time, more and more MFI tend to « urbanize » their
operations in order to boost their financial results and reach operational
autonomy faster. BUUSSA GONOFA (BG) is a microfinance institution which
has decided, quite to the contrary, to operate in rural areas only.
Since
its creation in 1999, BG is supporting isolated rural populations of the
Oromo region, where droughts occur regularly.
SOS Faim support has several objectives:
- Increase BG funds for credits, extend BG operations into isolated areas without any kind of microfinance systems.
- increase the number of clients to 8 300 for the end of 2006 ;
- Develop a new approach to innovate participation of recipients in the process of granting and monitoring microcredits;
- Help BG to reach financial autonomy.
BG’s target population is regularly, if not constantly, victim of failing food supplies. In the Oromo region, many women and young people ho do not own their land, are forced to leave their villages to find a better future in town. With its system of financial services BG is contributing to limit rural exodus and to strengthen families in rural areas.
BG was created by the NGO ‘HUNDEE’ whose activities are complementary (offers non financial assistance to the same target population).
Financing: SOS Faim support to BUUSSA GONOFA amounts to 55 600 € per year.
