A Joint Project of the Rotary Clubs of Stratford Canada and Ndola-Mukuba Zambia. The initial Micro Credit Loan Project created job opportunities for over 200 family units in Zambia involving ex-prisoners by providing capital to start their own business. The importance of this project has been recognized by local authorities in reducing repeat crime acts and the crime rate of the target group. Report covering: activities for period 1/07/02 to 31/12/02 Project beneficiaries: ex-prisoners and family members of prisoners. Six month evaluation report Written by: Kanyanta Sambie Date of report: 31 January 2003 ROTARY CLUB OF NDOLA-MUKUBA/PFZ MICRO ENTERPRISE PROJECT A job creation, income generating, self-sustaining prisoner rehabilitation project. PURPOSE STATEMENT This report highlights the challenges and achievement of the project during the past six months EXECUTIVE SUMMARY Total number of loan disbursed 236 Total value of loans disbursed 57,100,000 First loans 37,850,000 Second loans 15,650,000 Third loans 3,600,000 Repayment rate as at 31st December 64% Number of project sites 2 1.0 ACTIVITIES DURING PAST SIX MONTHS 1.1 Recruitment and Training: 36 clients were recruited, trained and were given loans in the months of October and November 2002. Twapia township 20 clients 6 men 14 women 1.2 Disbursement of loans: The total value of loans disbursed in October and November was K8, 600,000(eight million, six hundred thousand Kwacha) Twapia group K5, 000,000 Men K1, 500,000 Women K3, 500,000 Chipulukusu group: K3, 600,000 Men K1, 400,000 Women K2, 200,000 1.3 Loan repayments: 64% the loan has been repaid back (22/11/00 to 31/12/02). This sharp decline has been attributed to many factors, some being A-High medical costs: the high prevalence of Malaria and Hiv/Aids related infections among family members of clients, results in them having very high expenses. B-Selling goods on credit: when client to fail to sell their goods on cash, they sell them on credit. The major problem they face when they do this, is that customers may delay or fail to pay back on the agreed time. At times they manage to collect the money after two or three months later. C-Competition: clients engaged in traditional type of services or businesses (small groceries, Marketers etc) are facing stiff competition from others. Many people prefer to these businesses or services because they are easy to start and manage. 1.4 Other activities Project staff conducted a field tour visit of Chipulukusu with a T.E.A.R. fund team of medical students from the United Kingdom. Visit of Chipulukusu project by Prison Fellowship Africa Region Chairman Mr. Hyde who was very impressed with what the Project is doing for the focus group. He had a meeting with clients, he told them that if they repaid back their loans, they would be looking after a "chicken" that lays eggs they eat and sell. he also heard testimonies from some clients. 2.0 CHALLENGES 2.1 To find donors who can finance the literacy class project. The high illiteracy level among the clients makes it difficult for them to engage in other profitable businesses because these demand a level of literacy. Development of visual aids and other teaching materials will help many clients to understand what is taught to them. 2.2 To open up another office and meet the administrative expenses That will be incurred. This will be done when the repayment rate in the other townships is improved. 2.3 To source for donor/financiers to help project staff replicate Project in other areas. They has been a demand from Care groups (volunteers who work with PFZ in different provinces of Zambia) that project be extended to their provinces. 3.0 PARTNERSHIPS 3.1 Project staff have forged a partnership with C.E.T.Z.A.M. (Christian Enterprise Trust of Zambia). They aim of this partnership is to co-ordinate in loan recovery activities and monitor "Migrating clients". Some clients have developed a system where they borrow money from one institution, to pay off a loan from another. Other join and borrow money from two institutions. 4.0 FUTURE PLANS 4.1 In the near future, a co-operative approach(formation of Co-operatives) will be employed as against the current method Where clients form a group but operate their businesses on Individual basis. Clients in a co-operative will work together In a business venture to repay the loan, e.g. a carpenter's Co-operative which has wooden furniture shop. Project staff will provide loans to co- operatives in form of Materials instead of cash. TESTIMONY Francis Chibembe "the God Father" When some clients see Francis riding towards them on his bicycle, a smile always lights up their faces, but for some others, its darkens with fear and discomfort. Clients, who were trained, received loans and had used their loans wisely, always thank him because they have been able to lift and improve their standard of living. They see him as their "God father", who enabled them to face life confidently again. Francis is the projects training and credits officer. He is in his early fifties but is a robust man. You can tell by the way he handles and "zooms" his bicycle especially when he is going after some defaulting clients. His trademark, is the way he persists in recovering a loan from a difficult defaulting client. At times he goes after a client as early as 05.00hrs(5a.m.) just to catch his client. "No free lunch" is my motto says Francis, to support his motto, he will quote from the bible, 2 Thessalonians chapter 3 verse 10. Francis is an ex-prisoner. He was convicted in 1996 for misappropriation of funds and was given a 5-year sentence but served 3 due to good behaviour. When He was discharged from prison, some well wishers sponsored him to Bible College where he did his theological studies. He now pastors a church in one of the townships in Ndola. He has also done a course in business and entrepreneurship. He is the pioneer of the project. He has seen it grow from just ten clients to hundreds. He currently fits for the job of credit officer, because he understand what it feels like to be a ex-prisoner, he knows the townships in and out and has the desire to see it succeed so that other ex-prisoners can benefit like he has. Funds permitting, they will be a need to employ 2 more young credit officers to help him. AIZA PHIRI MALUNGA Lesa waluse(God is Merciful) A female ex-prisoner who was on death row for ten years in the Rebublic of Congo (former Zaire) "I did not know that I will ever come out alive from prison, each day that passed. I always thought this will be the last day on earth and the next day I will be hanged." Aiza Phiri Malunga was senenced to death for collabarating with armed robbers. Her role was to identify potential targets , find out all the weak and strong points of the targets and organize a hit. She was the one who ferried guns to the robbers and after they were used, she hid them. She was released from prison on a presidential pardon and returned to Zambia wher most of her relatives live. She was lucky her relatives accepted her and her brother began to teach her metal fabrication and wood carving. When she was skilled enough , she began to work for her brother. "Rotary/PFZ is a special project to me because it accepted me as I am and has enabled me to start my own business." says Aiza. Aiza underwent a 16 day business course and received her first loan on 1st February 2002. She immediately went out and brought scrap copper metal sheets to fabricate into various designs. Although Aiza is living with HIV she is confident about the future. She hopes one day to export her products to an International market. "May the good lLord continue to shower his blessings on this project, all Rotarians local, abroad and PFZ , Natola sana!" (thank you very much!) Aiza concludes. Aiza congregates with the United Church of Zambia and is a member of Women Christian Fellowship(W.C.F) group.