---

Egypt, Middle East

EGY04 - The Holiness Movement Small Loan Empowerment

• View report dated: August 27, 2020

• View report dated: December 12, 2021

• View report dated: April 4, 2024

---

Report Date: November 30, 2022

Report from BHW Egypt Partnership Facilitator Following Visit 3-4 October

We had several meetings with Holiness leaders while in Egypt, the main part being to visit some of the beneficiaries in Assiut. Originally, we were going to be there for two days visiting, then it was changed to one whole day visiting two or three villages but unfortunately security in the area was sketchy so we only went to one church/village and cut our trip to Assiut short by a day. As well as the visit in Assiut, I spoke at the Cairo church of the bishop of the movement and he and another of the pastors took us out to dinner one evening to an amazing Yemeni restaurant. 

While in Assiut the two men leading the loan programme gave us a comprehensive account of the funds received and how it had been spent so far. It was very impressive and detailed. They understand the issues and are keeping exceptional records. They are very encouraged by the impact it is having on the movement, the lives of the families involved, and the churches that are participating. 

Recent Events

Loan Programme

Pastors B and G are the two pastors who lead this work. B is the vice chairman of the movement. They develop relationships with the pastors who want to have this programme in their church and train the church how the programme operates. They are growing it slowly, so far 16 churches are involved with 46 loan groups in those churches. 20–30 more churches are waiting to join, that’s about 250 families. 

So far, 405 families have received loans from the 16 churches. Loans range from US$150 - US$250. Each loan group in each church is managed by a committee.  

Types of Projects

The people are developing many different types of businesses. Some are: small grocery stores; goat breeding; sale of manchester; hair salons; cattle feed; clothing store; bakeries;

shoes and sandals; buffalo milk and growing livestock. We visited some beneficiaries in one village north of Assiut. We had eight armed guards accompanying us which made it difficult to see all we wanted and to speak openly about the project.  

Repayment

So far there has been over 95% repayment. Two people with loans died from Covid so these had to be written off. Also, one church allowed someone to get a loan who should not have so the church had to repay it! They are very strict and probably must be to be fair. 

They charge 5% interest over a 12-month period. To date, the interest has returned around US$8,000 and this has been used to assist in administration travel, training, and to assist the pastors to get out and about to collect the repayments etc. 

 

Personal Stories

The lady in the long dress (photo above) had received a loan to purchase a sewing machine and it had radically changed the economic situation in her family. She was operating her sewing business in a building she was renting near the church.  

This little lady had purchased a young buffalo a few months previously and was growing it to sell as an adult. She would then buy another young one to grow again. She was the sole income earner for the family as her father had recently broken his leg in a work accident.  

A young, crippled man who was a real help in the church had taken a loan and bought some goats (photo below). He was also buying grass to feed them. It was a great help to his family. We prayed with him and his family that he would get better. 

Current Issues and Challenges

The cost of living has gone through the roof with prices of some commodities having tripled in price. This makes running a small business very difficult as when they go to purchase the next amount of stock, they get less stock than the previous time they purchased. Also, people have less money to spend. 

A lot of people in the General Assembly of the movement don’t understand how they can have so much money in the fund and try to get them to reallocate it. Pastor B who runs this programme must be very strong and strict. 

We had discussions about the need for him to find a couple of younger people to come into management who have the capacity to manage it and to withstand the pressures of those with other agendas. 

 

Comments

This loan programme is going extremely well and there have been immediate benefits for those involved. The pastors report a huge upsurge in attendance and commitment to the churches that are involved. It is a huge encouragement to the people with the loans as the church is seen to be investing in them and caring for them. The giving has gone up too which pleases the pastors! For too long the churches in these poor areas have contributed to poverty, now they are part of the solution. 

I am encouraging them that as the project grows with more funds coming in, that a percentage of the interest must be reinvested into the capital fund otherwise it will disappear in time. 

This is on track to be very impactful long-term. We are just seeing the front end of the benefits. We should continue with the current funding plan.