Empowerment through microfinance

Problem

Unemployment is one of the main causes of poverty. According to the International Labor Organization (ILO) report, the world needed to create 600 million new jobs by 2020 to promote economic growth and ensure social stability. In 2012, 200 million people worldwide were unemployed, which corresponds to an increase in the global unemployment rate from 5.5% in 2007 to 6% in 2012. Young people between the ages of 15 and 24 are particularly affected, as they are three times more likely to be unemployed than adults. Unemployment rates in Cameroon vary between 2.9% and 5.4%, with unemployment in urban areas (12.6%) significantly higher than in rural areas (1.4%). 39.9% of the population lived below the national poverty line in 2007, with as many as 55% affected in rural areas. This shows that many of the jobs available are not sufficient to guarantee a secure income for families, which further increases poverty.

Goal

Our aim is to help people break out of the vicious circle of poverty by giving them access to microloans. These loans are aimed in particular at women and young people in individual or group projects. The loan amounts vary between 20 and 2000 euros and are selected on the basis of their sustainability and potential for success. Before the loan is granted, borrowers take part in training courses in basic business management to increase their chances of success. Our trained local staff assist borrowers in creating an optimal plan, including risk analysis and repayment schedule. Through regular progress reports and, if necessary, advice on adapting their activities, we aim to promote the creation of decent jobs in order to help combat poverty in Cameroon.