Microfinance, Empowerment and Poverty eradication in Africa by Don Abiodun Odedeyi

Mrs Doyin Folorunsho Adebari sells toys in Makoko, a suburb of Lagos, South West Nigeria. She arranges her wooden stall early before school children even thought of waking up, cleans her environment and then display her wares.
Her first customer usually arrives at about 7:15am, that's one hour after she got to the same spot.
With a two-inch square umbrella, she painstakingly wait till 2:00pm when school children will be on their way home again and maybe sell some toys again.
Her total goods of 50,000 naira ($340), sent in fragments of profits that did little on her daily needs.
A visit by her long time friend changed everything.

"Mama Sarah introduced me to Susu Microfinance Bank, she took a loan from the bank months earlier and her business took a new turn."
Mrs. Toyin took out micro-loans to grow her business and hopes to provide improved living conditions for her children.
MICRO-LOAN
Micro-loan is a product of Microfinance. It is the supply of small loans to the poor.
It's daisy as many reject seeing themselves in the light of their present status: 'poor'
The word 'poor' mean "having little money", "lack or scarcity of quantity".
If you are down, don't play lip service about how mighty and high you are.
Self discovery is the first step out of a mess.
If you have little or no money, or means of creating wealth (big or small), you are poor.
It's easy to imagine that poor people don't need financial services. But poor people are of two types
1. Economic Active Poor
2. Non-Active Poor
ECONOMIC ACTIVE POOR
These are people who have skill(s) or trade that can yield income. They've practice or are practicing but their capacity to expand contribute to the national wealth is cut short due to financial constrain.
NON-ACTIVE POOR
Poor people who have no skill in a trade or engage in any act that yield income. If empowered, these category of people will cater for their utmost need first rather than invest in productive venture(s).
Microfinance institutions are established to cater for Economic active poor so as to empower them in their transition from dependent status to independent status as well as contribution to national GDP.
EMPOWERMENT
Empowerment, a near non-existing element in developing countries, still remains a major channel to financial freedom.
Empowerment increases the capacity of individuals or groups to make and transform choices into desired actions. These actions build both individual and collective assets, and improve their efficiencies.
If you have little or no money and you are skilled in a trade that yields income, your road to light is half-way done, empowerment through
ROAD TO RECOVERY
Mrs. Doyin walked into Susu Microfinance Bank located in Lagos, Nigeria 8 months ago, she saved $80 in 6 weeks. During this time, she attended a neigbhourhood meeting with other customers of the bank.
After six weeks of once in a week meeting and financial advice, she was given a loan of $400, no collateral!

Two weeks ago, Mrs. Doyin got another $800 loan. Only this time, she won't be showcasing her wares by the side of the road, taking shelter from the scorching sun. If you want to patronize her, you need to walk down Ajilete Street, number 4 Makoko: her new shop.
With no other shop like it, the neigbhourhood of Makoko now have a new super-mart.
Mrs. Doyin's next loan can be as high as $1300 (depending on her repayment record) and she is already thinking of what to do with the large sum.
"I want to open a new shop five streets from here, I want to diversify; sell food stuffs", a glitz smile filled her eyes.
She got the money to transform her business plus standby managers who advice on how best her investment can succeed.
Written by Don Abiodun Odedeyi
Twitter: @abiodunodedeyi
Facebook: Don Abiodun Odedeyi