Microfinance project update – November 2025

Having started in March 2025 this project is now well underway and is making excellent progress under the leadership of the local Five Talents team. The first Savings and Loans group was set up with 34 members and has since grown to more than 70. The first six months were devoted to establishing saving habits and growing the fund from which loans can be requested. All funds are those saved by the group with no injection of money from outside. Members are encouraged to save whatever they are able and by September the amazing amount of over £3,000 had been achieved. After this six-month period members have been able to borrow up to three times the amount they have saved, paying back monthly plus an interest charge of 2%. This 2% interest rate makes the loans affordable for low income people from Tunguli and the length of a loan is typically three or six months depending on the amount borrowed. At the end of the year savers will earn interest on the money they have saved as a share of the interest paid on loans.

Five Talents are also training and coaching savers on business skills including creating business plans, knowing your market, calculating profit and loss, diversifying income streams and business continuity planning for resilience. This education adds great value for group members and increases the success rates of the investments made.

So far people have borrowed to fund a wide range of business and projects including:

•  buying farming irrigation equipment to overcome drought challenges

• buying and selling petrol

• buying and storing maize to sell when prices are higher

• buying and selling soap and clothing

This project is heavily based on the group supporting and trusting each other and we are thrilled to see such good progress. Such projects typically run for three years by which time the aim is for the group to be self-sustaining.

Check back for further updates in the coming months.