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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: November 30, 2022

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Report Date: April 4, 2024

Report from BHW Egypt Partnership Facilitator Following Visit on 14th March

After the experience of our last visit when we tried to visit some of the beneficiaries, we decided this time it was not a good idea to visit villages around Assiut where most of their work is based. That time we were escorted by police and security personnel which made it difficult to see much and it wasn’t worth the hassle. 

This time, we went to Alexandria to meet with the pastors who are the leaders of the loan programme from the Holiness Movement. We spent several hours with them including a visit to the impressive Alexandria library and museum, B’s home and the customary meal, receiving a detailed report from them and speaking at Pastor B’s church on Sunday morning. 

They brought a very encouraging report and had made a PowerPoint presentation with photos and explanations of the use of the funds. The details are included in this report. On the 26th of March we met with the bishop of the Holiness Movement churches. He took us to lunch and expressed the appreciation of the Movement for the investment that has been made in their people. 

Recent Events

Activities

More funds have been sent from BHW with the final amount being sent in January 2024. The loans continue to turn over and will continue many years into the future. 

At the General Assembly of the Holiness Church each year the loan programme is reported on and churches are able to enlist if they desire to. There is resistance from some people, but it is voluntary and there is no pressure to join up. 69 advances have been made to churches over the time and the churches then distribute it out to the people who apply and who have been trained. 

The total amount of funds in the programme, that is the money in the bank right now or out in loans now, adds up to over EGP2.5M – the amount in US$ is around 133,000.   

Structure and Reporting

In this programme the interest rate is between 9% and 14% depending on the size of the loan. The loans began at EGP5k–10k but had to be raised to 15k because of the increase in prices. 

The first loan people can access is EGP5k (US$100) and once a person proves to be faithful, they can access larger loans. After two months the loanee starts repayment and they must complete it in one year. Part of the accrued interest is used to help the local pastor who has incurred costs operating the programme. 

Partnership's Influence within the Community

The influence of the loan programme is significant and will be ongoing for many years. There are now 17 churches involved in the programme and 712 families have taken loans. This means well over 3,500 people are benefitting from this right now. In February and August new loans are issued from the funds that have been repaid.

The general assembly of the church is very happy with the impact this is having in churches. Anecdotally, the churches that have the programme are showing increased signs of spiritual health and growth than those who do not have the programme. Relationships within the groups and churches have improved and families have become more positive in their outlook. Those involved in the loan programme have a WhatsApp group where they share stories and communicate.

The pastors that are involved are very positive about the programme and love the help that their people are getting. Generally, the loans are more successful in villages than they are in cities. the villages these loans are in are some of the poorest in the country. They have no access to other funds and if they did, they would be paying 25% interest. 

The loans cover several types of small enterprises. We were told about and shown photos of many including mini markets established in homes, dress, skirt and clothes making, clothes selling shops, shops that sell shoes, beauty and personal care products, bathroom products, soap and shampoo, tuktuk and scooter supplies, tuktuk maintenance, shaving and barber shops and hair dressing. There are several animal businesses - goats, chickens, ducks, fattening and growing buffaloes and cows. Several businesses have grown quite large. One person started making paper cups for cupcakes and then began to make the cakes and sell them. Then they made larger cups and cakes and now are employing five people and are about to get a larger loan to grow even more. 

 

Ideas for the Future

The leaders have enjoyed their experience of partnering with BHW and it has worked well with N as liaison. He is a Holiness Movement guy and where he feels most at home. It is their first experience of partnering with anyone outside the movement and they are keen to develop a new project with BHW. Two were talked about:

1) They would like to start kindergartens in selected churches that have the capacity to do it well. They have many young people graduating from colleges and universities who could lead these projects. It is actually quite easy to do as many of the churches have buildings and facilities that are not used for much of the week. They do not have to build anything, maybe make a few minor adaptations. In many villages where their churches are they are losing their children and young people to the Coptic church and even to Islamists who have a lot of money to provide programmes for children and young people. The Holiness Movement churches are largely the poorest people in the village and the churches cannot support a pastor adequately, let alone put something like this together. 

I am waiting to hear from them but have suggested that they give us a researched budget for the capital, set up costs and then the ongoing budget. I suggested that it looks something like this: capital – 1) the church finds 1/3 of the budget to be eligible to start a project, 2) they get a loan from the fund we have supplied them with for 1/3 and 3) we provide the remainder. They estimate around US$1,000 is about what they would need. Operations – that the people must pay something, even a nominal amount, and that we could look at supporting this with an annual grant.

2) Pastor B in Alexandria is a really good guy and well organized. He has established a youth centre in his church in an adjacent building (see photo). His church is urban and has more resources than most in the movement. Currently they get about 250 kids a week through the centre and more during vacation time and summer. They have table tennis, pool, a PS 4 and PS 5 gaming station which the kids have to pay to play on, a treadmill and table games. 

B wants to present a project to BHW to establish similar centres in other churches. The reason is similar to the previous proposal. The young people have little to do and easily get drawn into places for the internet, gaming and fellowship. They are putting together a budget for this. It would require a grant for capital and be self-sustaining at an operational level. There would also be evangelistic outcomes from his experience. They will let us know the plan sometime for discussion. 

 

Current Issues and Challenges

The fragile state of the economy of Egypt.
The impact of increasing costs on the poorest of the poor.
The mindsets of the poorest of the poor that are a constant challenge. 

Prayer and Praise Points

1) That the loan programme is up and running well and being managed very well. The amount in the pool is increasing despite the escalating inflation.
2) For leaders who have the vision to intervene in the lives of their people and come alongside them.
3) That so many families are having their economics impacted positively by the programme.
4) That there are noticeable spiritual benefits as well as economic. 

Comments

This is a great partnership, and real needs are being met in the context of local churches. There has been great oversight and administration, and the record keeping is excellent. This programme will continue for many years. 

Our 5-year provision of funds has come to an end and there is no reason to contribute to it any further. The current capital in the programme makes it viable and even with attrition, the impact of this will go on for many years.