BRAC began in Bangladesh. It decided later to expand internationally believing that its model for addressing inequality and poverty would be applicable in other countries which face similar issues as Bangladesh. Because of BRAC’s roots in a country with a high level of poverty, its approach provides a useful template for other countries with issues of poverty and lack of empowerment. I had the opportunity to see that model at work in Rwanda last week and in Tanzania today.
A basic concept is that small loans to finance productive assets can be critical. At the same time education on financial literacy and empowerment of women are two additional critical elements. It is not just money that makes a difference but also attitude.
In Rwanda I visited the Gakenke branch of BRAC north of Kigali. I saw there a woman who with a loan equivalent to $100 was able to finance the food necessary for her chickens to produce eggs not just repaying the loan but providing her with a profit. Another woman had a pineapple farm where a $200 loan allowed her to increase productivity through investment in manure and mulch.
Today I traveled north of Dar es Salaam to Bagamoyo. We visited three different BRAC activities there. We started as in Rwanda with a visit to the loan group meeting. Then on to see the small clothes making shop which received finance from BRAC. That same branch of BRAC provided a loan to help a small pharmacy in that area. In both cases the loans were relatively small amounts but extremely meaningful.
Through a funding partnership with MasterCard, BRAC has established AIM, a program to empower women of all ages in Africa. This program has provided support to a day care center with the goal of empowering the woman leading it to continue it as an enterprise. We finished the day at a group meeting of an AIM Club. The club has provided training for women on basic financial and parenting skills as well as empowering them with self-confidence. That is a very powerful combination which I saw in action today.
The power of BRAC is its reliance on simple approaches that are tested and measured – and adjusted as needed to be successful. BRAC focuses on a low-cost delivery model that allows them to be financially sustainable with loans of very small amounts. And the focus is on creating self-sufficiency and empowerment. Very powerful tools for addressing poverty.
