life on loan

It's easy to feel overwhelmed by the poverty and disease in Africa, and to wonder if normal two-name people (that is, the non-Bono and non-Oprah) can make any difference. A variety of complex factors created this crisis, and no one solution can fix everything. But microloans are a good way to start.

Microloans aren't new, but they've gained new attention in recent years. Like so many good ideas, this one is simple: reputable organizations identify potential loan recipients in the developing world and share info about these folks with richer Americans, Europeans, etc. who then loan a few dozen or few hundred dollars. The recipient uses this money to start a small business (like a food market, general store, or transportation business) and eventually repays the loan in full. The rich American can then loan the money to another 2/3 world entrepreneur, theoretically repeating the cycle indefinitely and using the same money to give freedom and dignity to many different people.

Microloans also help prevent the spread of HIV; many recipients are women and the income generated from their small businesses dramatically reduces the likelihood they'll barter their bodies for food. (One recent study in Botswana and Swaziland reports women who lack sufficient food are 80% more likely to engage in "survival sex.")

It takes so little money to lower that percentage--for the cost of a nice restaurant meal you can help someone eat well for a long time. And although most of us could easily afford to give that amount outright, the recipients almost always repay the loans in full.

Alice Mbithe is in that category. Despite only receiving a primary school education, she's successfully run her own small grocery business for years to supplement her husband's income. As I type, this sweet lady is using the money my brother, sister-in-law and I loaned her to set up a fruit and vegetable stand that will support her family of five, pay hospital bills, and provide medication for her youngest daughter.

We connected with Alice through Christian Missionary Fellowship. Their microenterprise program provides a 27-hour training course for prospective microloan recipients (covering everything from bookkeeping and saving to integrity and faithfulness) and coordinates weekly meetings for accountability and support. Loans range from $8 to $400 and the program already has 190 clients.

I make part of my living writing advertising copy, so I try to avoid the trite. But I have to say it: while no one, even Bono, can change the world alone, you can change one person's world. And it's a blast.