Bernt and I are going back to the Congo on January 8th. Before leaving for Africa, we are going to raise SEK 200.000, in order to provide for the loans to the ten entrepreneurs we trained in October. We will have additional classes with them, both individually and as a group.
Five entrepreneurs will form a loan group. In the group, the members are responsible for each other’s loan repayments through a limited personal guarantee, which amounts to 25% of their own loan. In the loan group it is essential that the members get to know each other well and take interest in each other’s financial planning.
Primarily, Bernt and I will go over their budgets. They will have to itemize their investment cost estimates, and we will go through their sales budgets and total budgets together. Their estimates must be realistic considering the amount of time it takes before their products are marketable. If you start an egg production business with newly hatched chickens, you will have to wait six months before they are old enough to produce eggs.
Before the loans can be paid out, each entrepreneur will sign a promissory note and a personal guarantee. These will be written in French and in Swedish, possibly also in Kikongo. There must be no misunderstandings and the terms have to be perfectly clear to everybody. When it comes to the rules and regulations of the business loans we will further refine the formulations to avoid any misunderstandings.
So far, we have raised SEK 90.000 which means we need another SEK 110.000. We have contacted several companies as well as individuals about contributions to our entrepreneurs. We are optimistic and we believe that the money will come, either as loans or as gifts. We are negotiating with banks in Brussels and the Congo for free of charge money transfers. All funds we receive will go to the entrepreneurs.
“The Congo, the rich country with the poor population” will be the heading for the next blog.
• Entrepreneurship – a way out of poverty
• Education and training in Starting your own business. Tool no 1
• Business loans as a help to get started
• You can adopt an entrepreneur in the Congo
• We make it possible for you to follow your entrepreneur month by month
• Matadi Support Group www.matadi.se