What are microcredits and how do they work? Microcredit is the term used to describe microloans that are usually granted interest-free - a system that is being used more and more in developing countries where many people live below the poverty line. Micro-entrepreneurs in particular are supposed to benefit from the loans. An example: A seamstress wants to buy a sewing machine to sew school uniforms that she can then sell. However, she does not have the money, about 100 euros, for the purchase. A bank will not give her a loan because she has no collateral. Through our internal microfinance fund, she has the possibility to get this money from us. She turns to the specially formed committee, which decides on her creditworthiness. If she presents a good concept, she gets the money, interest-free of course. She then has to pay it back within a certain period of time. Helping people to help themselves Many will ask themselves, why don't we just give her the money or the sewing machine? With our help for self-help, we ensure that a certain responsibility is learned and that the borrower develops sustainable, feasible business plans. During our visit in January this year, we "symbolically" handed over an amount for the microfinance fund from our donation fund. As the disbursement goes through various instances, it is ensured that the allocation of funds is transparent and conscientious. The committee, which consists mainly of women, was trained this week by Cobby Adjanor, the coordinator of our microfinance project.

Microcredit - promoting economically sustainable self- employment The women are the pillars of the family. They work in the fields, sell their produce at the market. Or they earn the important contribution to their livelihood with sewing and similar activities. With a micro-credit as start-up capital, they have the opportunity to expand their small farm and buy a sewing machine. A local women's group administers the funds, and only members can take out a loan. Thus, the women's group is also the controlling body for the fund. There is maximum transparency. The loan is interest-free and is paid back in short term, but in small instalments.

The Kekeli micro-loans - here we go! Besides building wells, one of the goals of the Kekeli Togo association is to support the people in Klologo with micro-credits and to help them achieve greater economic security. In February, the village board held a meeting with the person in charge, who was nominated by the association's president. The four-person committee defined the guidelines that would authorise them to receive the mini-credit. Fifteen groups were defined that could significantly expand their economic activities with mini-credit. At the end of May, a meeting was held with the representatives of all groups, strictly observing the Corona-related distance rules. The following key data were set: The interest-free loans of 40,000 F CFA (about 60 Euros) each are to be repaid in instalments within six months; the borrowers pay a membership fee of 2000 F CFA. According to these criteria, 50 people will receive a microloan in the first month; from then on, between eight and 14 more people will receive the loan each month. Thus, in the first year, 205 loans will be granted, and from then on, approximately another 168 per year. Since the loans are paid back quite quickly, there is always money in the fund. The committee advises the borrowers - most of whom are women - on how to invest so that sustainable success can be achieved. Given the current constraints individually; a joint organisation is planned for later to accompany the step into new gainful employment. (08. 06. 2020)

8 July 2020: The money is here! Klologo. Now it can really get started! 48 times the loan amount of 40,000 CFA was disbursed on 8 July - to 38 women and ten men. Some of the selected founders are still behind with the formalities; they will be able to receive their Kekeli Togo small loan of the equivalent of EUR 60 two weeks later. We are in the process of asking around how the money is being invested by the individual beneficiaries; we will report back. 3 September - Day of Joy At the same time as the food donations, another tranche for the Kekeli micro-loans was disbursed from the Kekeli Togo donation pot: 1,000,000 F CFA (approx. EUR 1,500) can now be given to further residents of Klologo who want to build up a livelihood with a subsidy or expand the existing small agriculture, etc. The micro- loans are granted without interest. The micro-loan of about EUR 60 is granted interest-free, the repayment in monthly instalments is fixed in such a way that the payments can be made without any problems; the repayments keep replenishing the loan pot. In this way, more and more Klologo residents are benefiting from start-up financing. With the micro-loans, Kekeli Togo contributes to the realisation of UN Goal 1, poverty reduction.