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International, Global

INT05a - Key Family Empowerment

• View report dated: September 15, 2022

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Report Date: August 31, 2021

Report from BHW Partnership Facilitator 

Recent Events

Activities

In May 2020 the first loan was approved for Abel and Anita Rachete in Bujumbura, Burundi. It was to establish a small shop supplying mainly wholesale food products. The business began well despite the onset of COVID and a number of other issues which are outlined here.  

Before we identify the issues that are currently putting the business under strain it is important to note that it is still functioning but there will be a delay in beginning repayments. This often happens in small businesses and as you will see, there are mitigating circumstances in this case.  

The border with the DR Congo has been closed since May 2020. This has meant it has been more difficult to bring in goods and supplies from the Congo, a major source of product. Because of this the prices have also increased as levies and taxes have all increased. 

COVID has caused many issues. People have less money so are merely surviving. Less food is available for purchase as people use more of their own produce and in survival mode, they grow their food to eat, not to sell. As well, many people are sick and many have died - in many cases removing the breadwinner of the household. Many more people have gone into poverty like never before. As well, because of COVID there have been less functions and gatherings being held. Selling to caterers was a significant part of the business and this has pretty much stopped completely. 

Early in 2020 in the first throes of the COVID pandemic the President of Burundi died. This caused political confusion and businesses stopped operating as it was too dangerous to stay open. Gangs were looting and people wanting power were demanding payments from businesses so the shop wasn't functioning for a couple of months. 

Then came the worst issue. In May 2021 a flood swept through the area of the shop causing a great deal of damage and Abel and Anita lost 10 sacks of rice with a value of around US$300. This was a large loss at the time and it is going to take some time to recover from that loss of product and the income and profit it would have generated. Rice is a product that has little profit margin and they rely on a large turnover. As well, they have had to spend extra money to ensure this does not happen again. Until the COVID restrictions are fully lifted and the borders between Burundi and DR Congo are open it is hard to know when businesses will return to some kind of normal and peoples' lives will stabilise again. 

 

Ideas for the Future

The plan is that each of the six key families are able to start small enterprises and so generate an income for themselves. 

Discussions have been had with Daniel (right) in Bukavu, DR Congo about a soap making business. He has been trained to do this. However, from the plan he submitted it appears that this is not a viable business option. The costs of production are just too high and the margins he was able to generate too small. We are waiting to see what happens with this one.  

Currently we are in discussion with Alimasi Chrispin about a hardware shop. He lives in Goma. He already has a small shop and is looking to make it larger. Communication is the largest issue here. He and his family were near to the recent volcanic eruption and he had to quickly relocate.  

Alex lives in Bujumbura and is a barber. He has tried to set up a barber's business but is not quite ready to do that. He has regular employment and for a number of years the owners were quite flexible about his hours so he could go out and do his training with little problem. However, the attitude of the owner has changed and he now wants Alex to do more hours. The balance between being a barber and a trainer is at the heart of his dilemma, even when thinking about starting his own business. 

 

Context  

It is important to remember the context of this partnership. The purpose for setting up the businesses is that they will generate income for the six key men in this area who are involved in training church leaders. Currently they are supported from outside the country and this cannot continue. The income in the source country is diminishing and there is little hope of it increasing into the future. 

The development of the work in a general way has been severely impeded by COVID. Abel (on right), the leader and the only one with sufficient English, lives in Burundi and has not been able to travel in the DR Congo where most of the team is living. This has especially impacted the development of this small enterprise project. 

 

Prayer and Praise Points

1) That the Gospel work continues on despite all the issues they are facing.
2) That they have all so far escaped the ravages of COVID, the rampaging militia groups, floods and volcanic eruption. 
3) That the impact of COVID would dissipate very quickly.
4) That those still working out a project would find something viable. 

 

Comments

To be frank, until someone can get there and give time to deal with each of these men directly I cannot see that any more projects will get going. There are too many barriers, especially the language issue. It is possible to communicate with some of them in a general way but when you start talking about technical economic concepts it is obvious that comprehension from both sides evaporates.