Microfinance on Wheels!

Setting up a Mobile Microfinance Agency in the suburbs of Ouagadougou

Since 2008, EDM supports ASIENA in Burkina Faso in a capacity building program, as well as numerous innovative projects, such as the launch of a mobile agency, thanks to a Nissan van and some very motivated staff.

This project is funded by the French Foundation Le Mascaret and answers the need of some of the poorest people of Ouagadougou. These people might have left their villages in search of a better life in the big city, but end up living in the suburbs with none of the basic services like electricity or running water, and hardly enough money to make the journey back home to their hometown, if they wanted to. The families living in those neighbourhoods are excluded from the formal banking system and rely on moneylenders charging extortionate rates. They may have access to some microfinance services, but it usually involves travelling into town, so now Asiena is wishing to meet them on their doorstep. This project targets areas of the suburbs that are landlocked with difficult road access.

Indeed, these micro-entrepreneurs wish to start an income generating activity, but are hampered by lack of transport, basic services or income... Almost all of them are engaged in activities in the informal sector, whether they are petty traders or food sellers. It is mostly the mothers, who are the main breadwinner; as husbands, when they work, are mostly hired in the formal sector, and often working far away from home. There is no shortage of micro finance services in Ouagadougou, but very few are targeted towards the poorest people with no guarantees and no ID documents.

The Mobile Agency will reach out to these people with an offer of both financial and non-financial services, using the MUSO methodology**, which was tried and tested by Asiena with over 3,000 people in the regions of Dédougou, Diébougou , Nouna and Koudougou. The objective is to answer the needs of the families residing in these neighborhoods, promote the MUSO philosophy of solidarity and self-reliance and encourage them to do voluntary savings, as well as attend trainings on management topics or social themes like health, nutrition or gender issues.

Two months down the road, the Head of Operations and Development at Asiena and the EdM intern working on the Mobile Agency project have talked to a dozen groups. Over 300 women (and 10 men!) have been trained. These people urgently need access to a loan and saving scheme, but also acknowledge the need for coaching along the way, and the MUSO philosophy seems to convince them.
So steps have been taken to purchase and a van and it’s now a matter of weeks until these new MUSO are in place and the members are granted their first loans.

Author: Emilie Frapsauce
(Translated by Laetitia)

* Asiena, Association Inter-Instituts Ensemble et Avec "Together With" was established in 2002, it operates in Burkina Faso and Niger with a double mission of solidarity and self sufficiency, supported by three initiatives: mutual health organizations, saving and loan schemes and economic or social trainings.

** The MUSO methodology is based on the principle of MUtual SOlidarity, the members put their contributions in 3 separate boxes: a green box (the retirement fund , that is also used for loans for income-generating activities), a red box for social issues (births, deaths, illnesses…), and a blue box for external funding that is then redistributed to the members in the shape of small loans over 4 to 9 months. Monthly General Meetings are an opportunity the people belonging to the MUSO to attend training on economic and social themes. A MUSO can count between 5 and 30 members.