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FINCA Canada

The Value of Education: A Case Study from Haiti

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COVID-19 is giving Americans a powerful appreciation for what is lost when schools shut down. But in many of the countries in which FINCA operates, the lack of a robust school system is a way of life, and the value of education is taken for granted by few. It’s one of the greatest challenges parents face in building a brighter future for their children, and it’s why FINCA constantly looks to support education and educational institutions. In Haiti, one of those clients is Kerlande Toussaint. In a country where the average adult has less than five years of schooling, Kerlande and her husband Annesse both graduated from college and had many promising options to live abroad. While many people would jump at the chance to leave Haiti and build a comfortable life elsewhere, Kerlande and Annesse chose to stay. And precisely because they knew the value of education, they decided to become teachers in Haiti’s sprawling capital city of Port-au-Prince. They loved being teachers and Kerlande saw an opportunity for the couple do more. In 2006, she decided they should open their own small elementary school for children too poor to attend other schools. Those first couple of years were hard, but by 2008 their tiny school was up and thriving.

The First Disaster, Earthquake

In 2010, a catastrophic earthquake leveled much of Port-au-Prince, including Kerlande and Annesse’s school. But the earthquake did not shake their determination to give poor kids a chance to go to a good school. Within weeks Kerlande and Annesse had moved to their hometown of Gonaives, the capital of Haiti’s Artibonite department about 100 miles north of Port-au-Prince. Once in Gonaives they opened a new school on a plot of land in a poor and neglected neighborhood. They started with a single kindergarten class in late 2010. Among that first group of students was their eldest son.
Annesse Aristild and Kerlande Toussaint (shown here with their youngest son) know the value of education
Kerlande and Annesse (shown here with their youngest son) are proud of the school they built. They know first-hand the value of education.
Each year since they’ve added one grade. They’re able to pay teachers’ salaries and operating expenses with the modest tuition they charge and charitable donations that cover tuition for especially poor families. But to build a new classroom or buy books and equipment, Kerlande and Annesse need cash up front. That’s where FINCA’s loans comes in. “We really trust FINCA,” says Kerlande. “And we’re glad that FINCA trusts us. We used our loans to invest in the school. We know other people who get loans from big banks to buy cars or a motorbike. That’s not a good investment.” Thanks to their strong management and determination the school has grown into a bustling academic center, with more than 30 staff members and 600 children enrolled in grades K-10.

The Second Disaster, COVID-19

Just as in the United States, Kerlande and Annesse had the unthankful task of closing the door of their school in March of 2020. The risks posed by the coronavirus were far too great. Virtual schooling wasn’t an option given the dearth of computers and of internet access. So for five months learning simply stopped. By mid-August with relatively few confirmed cases, the government allowed schools to reopen. Like jurisdictions everywhere, the government had to weigh the potential costs with the potential benefits. And as elsewhere, it wasn’t an entirely smooth process. Teachers, students and parents were concerned about safety. And money was tighter than ever. But by the end of the month, Kerlande and Annesse had re-opened on a limited basis, with masks required and plenty of lessons on proper hygiene. There are no guarantees that they’ll be able to stay open, but Kerlande and Annesse are doggedly determined to succeed. Considering that they managed to rebuild after a devastating earthquake, it feels safe to think that they will find a way to weather the current pandemic as well. Note: The pictures in this article were taken in March, just weeks before Kerlande and Annesse closed their school.

How FINCA Canada’s Mission Supports Literacy

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International Literacy Day, celebrated each year on September 8th since 1966, is recognized throughout the world as a day to promote the importance of literacy and advance a more literate society. For many people, it’s hard to fully take part in their communities, both socially and economically, if they are illiterate. To address this issue worldwide, the 4th Sustainable Development Goal targets creating equitable access to education, acknowledging that literacy is an integral part of daily life. Through our mission and programs, FINCA Canada is supporting literacy and financial literacy around the world, especially for women. Read on to learn how.  

Advancing Literacy through Women’s Empowerment

With the start of a new school year, we are faced with a renewed appreciation of the importance of education. We are learning just how much students can struggle when they are removed from the classroom. But for many children around the world, this has been their reality for generations. For many, access to schools and technology, and ultimately literacy, are not a guarantee. Those who are most affected by this lack of education are girls. These 5 staggering facts highlight how women and girls continue to be left behind: 5-numbers-that-show-how-far-girls-are-left-behind But at FINCA Canada, we are working to change these statistics. We are proud to support women throughout the world who are: building schools in their communities, using expanded income from their FINCA loans to send their daughters to school, and working to continue their own educations. One example of how FINCA is empowering women to support education is Kerlande Toussaint and her husband who utilized a FINCA loan to start a school in a neglected neighborhood of Gonaives, Haiti. Valuing the importance of their own education, they wanted to provide an opportunity for all Haitians to learn. Starting with kindergarten children, including their own children, they added a new grade each year and now provide quality education for 600 students up to grade 10 as well as scholarships and boarding for some children who would otherwise not have the opportunity to learn. She hopes her students, like herself, will go on to attend university, creating more opportunities for their future. In support of Literacy Day and world literacy, FINCA Canada helps clients around the world who are working to improve literacy.  

International Literacy Day and Beyond

Since its founding, FINCA Canada has placed women at the core of its mission. And the support of our donors is instrumental in helping us to reach even more women and girls, especially as we continue working to counter barriers to education for young girls. But now with the prevalence of COVID-19, women and girls are at risk of falling even further behind—in literacy, as well as other social and economic areas. However, FINCA Canada is working to make sure this doesn’t happen. For example, in partnership with Global Affairs Canada and the James A. and Donna-Mae Moore Foundation, we are safely providing financial literacy training over the next year for 20,000 women in Haiti. Financial literacy is an important building block for empowering women to provide for themselves and their families and to give them the tools to withstand the impact of COVID-19. In fact, the World Bank found that women in developing countries, like Haiti, who are financially literate and are using multiple financial tools rather than just one or two, are far more likely to be able to endure crises. In many countries, more than half of FINCA’s clients are women, and with FINCA loans and financial literacy training women can grow their businesses and send their children to school. These women, with their expanded businesses, are creating long-lasting legacies through their children and their education. We cannot wait to see all that our clients and partners are able to achieve by next International Literacy Day!

What Is Financial Exclusion?

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In recent years, the term “financial inclusion” has become more prevalent in our everyday vocabulary. Around the world, countries and organizations are homing in on how they can foster a culture of financial inclusion. However, with all of the focus on financial inclusion, fewer people really talk about or define financial exclusion. And given that you can’t have one without the other, we at FINCA decided to explicitly define financial exclusion and highlight its impact.

Defining Financial Exclusion

Financial exclusion refers to individuals and populations without access to common financial services. These can include savings accounts, loans, cashless transactions, credit, and other traditional banking services. People are excluded because of their socio-economic status and because they can’t meet the requirements of a formal banking institution. This poses a huge challenge to populations, as whole groups of people are unable to participate in the financial sector. Ultimately, financial exclusion prevents these groups from accessing the resources they need to expand a business, pay for higher education, or any number of other actions that could help them work their way up and achieve a better quality of life.

How FINCA Helps to Alleviate Financial Exclusion

At the core of FINCA’s mission is alleviating poverty through financial inclusion. We work to aid those individuals and small businesses who are excluded by the formal financial sector. With a network of 20 community-based microfinance institutions and banks around the world, we provide access to financial services for previously excluded or “unbanked” clients. These unique opportunities include offering small loans to people with little to no credit history, combining traditional branches with agency banking, using alternative credit scoring and analytics, providing mobile wallets, using point-of-service biometrics and the use of mobile technology to reach people in remote locations. We take pride in witnessing our clients utilize our financial tools to catalyze their own economic growth. Below are two examples of FINCA clients who were able to improve their lives through access to financial services.

Growing Her Business and Providing For Her Family

In Latin America, Guatemala has one of the highest disparities in distribution of income and land ownership. With over half of the population living below the poverty line and 56% of citizens financially excluded, many people do not have access to basic financial services. However, for over three decades, FINCA has been working to decrease those numbers, helping hundreds of thousands of Guatemalans achieve financial inclusion and improve their quality of life. No-Longer-Facing-Fincancial-Exclusion-Lucia-Margarita-Stands-with-her-Daughter-at-her-Shop When Lucia Margarita Pacajoj Ticum received her first FINCA loan to support her small business, she had no idea how much it would impact her family. Lucia began her business selling hand-made trinkets and souvenirs thirteen years ago. Though she was making a small profit, the income from her business was not sustainable. However, with her first FINCA loan, Lucia expanded her business, adding backpacks, quilts and pants to her product line. Slowly, she built her business into what it is today—a bustling market stall with two employees supporting her production. Lucia has since used her increased income to add electricity and running water in her home and pay for her children’s school transportation costs. Lucia is the perfect example of someone with the determination to grow her business and improve her family’s lives. All she needed was access to financial services.

Brightening the Lives of Her Grandchildren

Over the last 20 years, the economy in Uganda has grown substantially due to wider access to basic resources. These resources include energy, water, health services, and education. However, with 41% of the population financially excluded, there is still much work to be done. Without access to proper financial resources, small business owners and entrepreneurs face obstacles in growing their businesses and increasing incomes. Knowing that financial exclusion is harmful to both excluded individuals as well as the greater economy, FINCA has helped many Ugandans access financial services. Furthermore, through our BrightLife and FINCA Ventures programs, we are bridging the gap between access to financial services and access to a range of other life-enhancing products. Jane-Nakintu-with-her-Cookstove-from-BrightLife Jane Nakintu’s life changed forever when her daughter and son-in-law tragically died, leaving Jane as the sole provider for her four grandchildren. In this new role, Jane’s main priority was ensuring the health and safety of her grandchildren. Now cooking for five, she spent hours every day bent over the traditional three-stone fire she used to cook meals. Cooking this much, Jane’s kitchen would become consumed with black smoke that was unbearable to stand in let alone breathe. Fearing for her grandchildren’s health, Jane decided to take out a small loan from FINCA to purchase a BrightLife cookstove. The new cookstove reduces toxic smoke, keeps her grandchildren safe and saves her money on charcoal. Jane now uses these savings to buy books for her grandchildren. She is extremely happy with her new cookstove, which was enabled through FINCA’s connection between financial services and life-changing products.

The Need for Increasing Awareness About Financial Exclusion

Financial exclusion is a difficulty that millions of people face every day. In the absence of financial resources, low-income individuals confront hardships progressing towards living a healthier, more sustainable and better life. After over 30 years of working to help these poor communities, we can say confidently that access to basic financial resources can transform lives, strengthen communities and alleviate poverty.

Information Security Notice

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The information below relates to a data security incident involving Blackbaud, Inc., a service provider to FINCA.

In July 2020, we were contacted by a third-party service provider, Blackbaud, one of the world’s largest providers of fundraising and donor engagement software for not-for-profit organizations.

Blackbaud informed us that they had been the victim of a cyberattack and that a criminal was able to remove certain data from Blackbaud’s clients. This included a subset of FINCA’s donor data. It is important to note that we have no reason to believe that donor credit card information, bank account information, or government-issued identification number (e.g.,  social insurance number) were impacted because FINCA does not maintain that information (if at all) in its Blackbaud database. However, based on the information provided by Blackbaud we have determined that the file removed may have contained some of the following for donors and prospective donors: contact information, date of birth, demographic information, giving capacity, and a history of donors’ relationship with FINCA, such as donation dates and amounts.

Presently, we have no indication that donor or prospective donor information has been misused. It is our understanding that Blackbaud conducted an investigation and ultimately paid the criminal’s demand with the intent that the criminal would delete the data. Although we have no way to confirm the data was deleted, Blackbaud has stated that it was deleted. Nevertheless, we recommend donors remain vigilant and promptly report any suspicious activity or suspected identity theft to local law enforcement. For more information about this incident, please visit Blackbaud’s webpage dedicated to this incident at https://www.blackbaud.com/securityincident.

We apologize for any inconvenience this may have caused our donors. Should you have any further questions or concerns regarding this matter and/or the protections available to you, please contact the Development Team at [email protected] or 202-280-5496.

Case Study: Women’s Empowerment through Financial Inclusion Technology in Haiti

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Deetken Impact, through its Ilu Women’s Empowerment Fund, supported FINCA Haiti to expand its lending services to individuals, micro and small- and medium-sized businesses. The investment aimed to grow FINCA Haiti’s network of branches and digital financial services and build its capacity to develop customer-centric and gender-sensitive financial products. FINCA Haiti partnered with Digicel, the largest telecom provider in the country, to offer clients (90 percent of whom are women) the option to make their loan repayments via mobile phone—a service called MonCash. MonCash is a digital wallet that can hold a currency balance in a digital account that can be accessed using a user’s mobile phone. And the phone doesn’t have to be a smartphone since it is code-based rather than using an interface. Instead of having to make a long and expensive trip to a FINCA branch, this new service allows clients—at no additional cost to them—to transfer their payments via mobile phone using a nearby MonCash agent. This case study speaks directly to the promotion of financial inclusion for women and equal access to capital, markets, digital technology and business development services. The initiative is a true testament to how access to credit, mobile technology and digital literacy are jointly contributing toward women’s economic empowerment. The case study was published by the British Columbia Council for International Cooperation (BCCIC) as part of its “Leveraging the Interlinkages: Gender Equality, Women’s Empowerment and the Sustainable Development Goals” report with the intention of presenting it to the Commission of the Status of Women (CW64) at the UN in March 2020. Read the case study »

An Update on FINCA’s BrightLife Program in Uganda

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According to the United Nations University, up to half a billion people globally could fall into poverty as a direct result of the economic impacts of COVID-19. And in countries like Uganda, which has had some of the strictest lockdown measures worldwide, citizens are already feeling the effects. With this context in mind, FINCA’s BrightLife program acted quickly to adapt its business structure to continue operating and providing its customers with what they need despite the country’s restrictions. This blog explores how FINCA’s BrightLife program has adapted its operations in response to COVID-19 to provide the communities it serves with what they need. Read on to learn about our BrightLife network update:

A Grim Reality

In an effort to thwart the spread of COVID-19, Uganda’s government imposed one of the strictest lockdowns in the world. From late March until early June, all non-essential businesses were closed, public transportation and private passenger vehicles were stopped, and Ugandans were mandated to stay at home unless in the case of an emergency. Since then the government has allowed some non-essential business and transportation to reopen but a strictly enforced 7:00 pm curfew remains. As a social enterprise providing clean energy products to some of Uganda’s poorest communities, the long-term lockdown and continuing curfew have presented enormous challenges to FINCA International’s BrightLife program. At the beginning of the lockdown, BrightLife was forced to close as a non-essential business. Consequentially, BrightLife had to furlough many employees and sales agents, as they could no longer sell solar home systems. More importantly, with the vast majority of BrightLife customers unable to work or otherwise earn money, many could not afford to make even the low weekly payments for their solar home systems.
Rebecca-Bafuna-with-her-Family
Rebecca Bafuna and her family are grateful that BrightLife came through for them after Rebecca lost her job during the lockdown.

A Helping Hand for Clients in Need

Normally when a customer misses multiple payments, BrightLife suspends their ability to use the solar home system. However, given that a solar home system provides customers with in-home lighting, a built-in radio, and a phone charging port, shutting off people’s systems completely during a pandemic was not an option for BrightLife. To help those who could not cover their weekly payments, BrightLife—with the help of FINCA’s generous supporters—covered the cost of over 4,000 customers’ payments for a full month. As a result, our clients and their families could still use their solar home systems to see in their homes at night, listen to important health information and updates on their built-in radios, and charge their phones to stay in touch during this crucial time. All of the customers that received a free month were elated. In the video below, listen to just a few customers express their gratitude to BrightLife for receiving solar lighting when they needed it most.
 

Adapting Operations to the Current Climate

Though BrightLife has partially resumed operations, it is still limited by the continued curfew and transport restrictions. Typically, the best time for BrightLife agents to visit clients is 6:00 – 9:00 pm. But since BrightLife agents need to be at their home by 7:00 pm, their ability to make sales and follow up with customers has been drastically reduced. Meanwhile, with transportation options still reduced and the curfew causing enormous traffic jams each afternoon, the workday in Uganda has been reduced to only a few hours each morning. Realizing these issues early on, BrightLife began developing an app for sales agents to help them streamline their in-person sales and after-sales service. Agents began testing the app in June, and by July, all sales will go through the app. Not only will the app save time by streamlining the sales process, but it also provides extra in-app training, and allows agents to see which of their customers have upcoming or missed payments so agents can effectively follow up with them.
Rose-Nayiga-speaking-to-an-agent
An agent uses a tablet during her conversation with a BrightLife client.

A Long Road Ahead

No one in Uganda has gone untouched by the effects of the coronavirus lockdowns. And while BrightLife has seen a decline in repayments, it is optimistic for the future. The majority of customers BrightLife has spoken to have expressed their eagerness to continue making their payments once they are able to resume working. Agents have also been eager to learn about and implement the newly created app to make their sales more efficient and effective. BrightLife offers access to life-changing products for people who would not normally be able to afford them. It is a critical service in the fight against poverty in Uganda, and BrightLife plans to continue working hard to help those who need it, pandemic or not.

How FINCA is using Mobile Banking in the Age of COVID-19

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COVID-19 is reshaping the way people live their daily lives. Social distancing and efforts to avoid unnecessary interactions have meant rethinking approaches to daily tasks, including money management. And mobile banking has become a go-to app. While mobile banking was common in North America before the emergence of COVID-19, usage has surged since lockdowns began. According to Fidelity National Information Services (FIS), mobile banking traffic in the United States rose 85% as the pandemic took hold. Other developed countries have also seen similar increases in mobile banking. Generous donor support, smart investments, and the proliferation of digital technologies have allowed FINCA Impact Finance to introduce many technological innovations similar to what we have in North America. As a result, FINCA’s microfinance clients are better prepared to survive in a world upended by the coronavirus.

Going Mobile in Haiti

Even in an extremely poor country like Haiti, half of FINCA’s clients have a smartphone or other ways to access the internet. And FINCA Haiti is putting the growing ubiquity of those technologies to work.
Sandrine Charles is one of many FINCA Haiti clients who will benefit from new mobile banking initiatives.
Sandrine Charles is one of many FINCA Haiti clients who will benefit from new mobile banking initiatives.
The most recent digital innovation from FINCA Haiti is its virtual branch. For many years, FINCA Haiti used the internet and social media to inform prospective clients about the microloans and other life-changing services it offers. But people still had to visit a physical branch office or wait for a visit from a credit officer to complete a loan application. The virtual branch does away with those in-person visits. From initial contact through application and disbursement, clients interact with FINCA Haiti completely online. While conceived of before the pandemic as a way to provide better service to clients and reach people in outlying areas, the virtual branch couldn’t have launched at a better time.

FINCA’s Mobile Banking Initiatives in Other Countries

Haiti isn’t the only FINCA Impact Finance subsidiary seeing a dramatic increase in the use of digital banking. In the weeks following the lockdown of their country, FINCA Kosovo reported a 2,000 percent spike in web chat inquiries and a 700 percent increase in Viber chats and Facebook Messenger inquiries. Meanwhile, FINCA Microfinance Bank Pakistan recorded a surge in the use of its mobile wallet. The mobile wallet includes a contactless payment feature, which has been a real game-changer. It allows clients to practice social distancing while remaining economically active. As the novel coronavirus continues to wreak havoc on countries in which FINCA works, more innovation will be necessary. If you are interested in supporting these efforts, please consider donating to FINCA’s Emergency Response Fund.

Boosting Relief and Recovery efforts through MFIs

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As the world grapples with the COVID-19 pandemic, the impact on people and livelihoods is likely to be felt for months, even years, to come. Researchers warn that up to half a billion people could slide into poverty globally, reversing three decades of progress. Governments have recently moved to jumpstart economies and ease social restrictions, but months of lockdowns, layoffs and stay-at-home measures mean it will take time for people and businesses to bounce back. In developing countries especially, where most people survive on the informal economy, the road to recovery is likely to be even longer and steeper. According to estimates, some 1.6 billion people in the informal economy could lose their livelihoods as a result of the pandemic. The pressures on, and limited resources in, developing economies make it difficult for governments to provide adequate—if any—relief support. That’s why a growing number of investors, donors, and other actors have rallied to step in and support low-income and vulnerable populations during the pandemic. Microfinance institutions (MFIs) can be critical partners in reaching the most affected populations effectively and efficiently. As institutions that serve people at the base of the economic pyramid—where the need for assistance is greatest during crises—MFIs already have the clientele, infrastructure and trust necessary for an impactful COVID-19 response. Against this background, FINCA Impact Finance recently helped form the Microfinance Coalition to add the industry’s voice to the COVID-19 response. The institutions in the coalition collectively serve more than 80 million people, nearly three-quarters of whom are women. If leveraged strategically, the world’s MFIs could save millions of livelihoods. The access they provide to credit, savings and other financial tools for self-employment activities will be even more needed in a post-pandemic world in which formal employment has been decimated. They can be core partners in putting emergency relief funds into the hands of the most marginalized until the economy starts to rebound. And they can leverage their offices and agents in the distribution of emergency supplies as well as up-to-date and accurate information about the virus. But to do any of this, MFIs need assistance and support from investors, policymakers and donors. MFIs need their investors to work with them to allow them to stay in business. They need policymakers to ensure that measures are taken to protect big banks that primarily serve the well-off also protect small banks that serve the poor. And they need donors to help them cover the losses that they are likely to incur and continue to onboard the world’s poor into the digital economy. The Microfinance Coalition stands ready to partner in COVID-19 relief and recovery efforts.

FINCA DRC Client Transforms her Business in the face of a Pandemic

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For more than 17 years, Eugénie Kabeya has been sewing women’s clothes from her tiny shop in Kinshasa, DRC. She became a FINCA customer in 2003, first as part of a village bank that was meeting in the Bandalungwa area. Later she became the president of her group and then managed to get an individual loan. Over the years, she built her business with a mix of grit and entrepreneurial spirit—and loans from FINCA DRC. But all of that changed with the arrival of COVID-19 in the DRC.
Almost overnight, things got worse. I started having less clients and life became suddenly hard. I had almost 20 years running this sewing business and had been able to support my entire family. I was able to cover everything I need with the money earned from this business. All of that changed.
According to Ms. Kabeya, it happened so suddenly, and people in her community initially focused on how to survive. That meant finding new sources to secure food and medicine. It also meant no one was thinking about clothes. She estimates that in the first month of the pandemic, she began losing 70% of her monthly revenue and could only retain 5 of the 12 employees she had. But in those first weeks, another idea sparked—one uniquely fitting for Ms. Kabeya’s skills and current needs.
When I first thought about producing masks, I doubted that it could work. I tried a few times, but eventually stopped thinking about it. But one day I was talking with the manager at my local FINCA branch about the difficulties I was facing with my business and she reminded me: I am a tailor! I could easily put that to use to make masks and help my business by selling them to compensate the losses I was experiencing because of COVID-19.
With the encouragement of the FINCA staff at Victoire Branch, Ms. Kabeya got to work by procuring fabric, thread and elastic. She drew the model, then jumped right into sewing. The masks run between $0.65 to $1.3. Because of word of mouth, she hasn’t had to sell any masks on the street, rather, orders started coming in from different people, as well as associations and small enterprises. With the quick sales, she was soon able to call two people back to work to support making masks. For her, that was one of the best moments.
It helped bring my life back to normal. I’m doing business and helping people protect themselves from the pandemic. And my prices are very affordable to low-income people in my town.
Ms. Kabeya tries to put her special touch to make each mask different, but most of the time, she said, customers who order clothes prefer having a mask made of the same piece of fabric as their clothes. But still, some let her be creative. More than that, she’s begun thinking creatively about her next steps for her business.
COVID-19 has taught me a different way of selling: e-selling really works! We think that in the future, we can better communicate our business through the internet and social media. We have understood that even though everything is closed, the internet still works, people communicate on social media, and even business goes through it. We plan to launch an online platform for selling all of our production.
To date, she’s produced 5,500 masks. And she is just getting started.

Why COVID-19 in Haiti Could be Devastating

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On Sunday, March 8, 2020, FINCA International’s marketing director, Bob Price, flew from Washington, DC to Port-au-Prince, Haiti. Bob had originally planned to visit Haiti in November of 2019, but violent protests against the government had forced him to push the trip back. While the protests had ended, Bob now was flying out in the days just before the full reality of the coronavirus in Haiti (and United States) descended. The purpose of the trip was to check in with local staff and clients on a suite of activities that FINCA Haiti had launched over the previous year: a new branch in Cabaret focused on agricultural lending, a “virtual branch” for the growing number of clients who were finding out about FINCA via the internet and social media, and the roll-out of a digital field automation (DFA) system that would relegate paper applications to the dustbins of history, reduce the cost of loan processing and allow credit officers to give clients real-time credit decisions. The itinerary had Bob working his way up the country’s western coast – Monday in Cabaret, Tuesday in St. Marc and Wednesday in Gonaives with a quick trip inland to the tiny town of Savane Carree. On Thursday, he’d be back in Port-au-Prince to discuss takeaways with the local management team and to visit clients in the bustling market of Croix de Bouquets.

The Coronavirus in Haiti has Changed Things

More or less the trip happened as planned, but the rising threat of the coronavirus in Haiti changed the focus. When Bob purchased his ticket in mid-February COVID-19 seemed far away. It was devastating China but hadn’t traveled much beyond. There were fewer than a dozen confirmed cases in the U.S. By the time Bob boarded the flight in Washington, DC on the morning of March 8, it was clear to many that things were going to get worse. But in consultation with FINCA management it was assumed that not much would change before he returned on March 13, a mere five days later. That turned out not to be the case. Italy went on lockdown on March 9. On March 11, the World Health Organization declared the virus a pandemic and the first U.S. travel restriction went into effect. President Trump declared a national emergency the day of his return. And Haiti began closing its borders just two days AFTER he returned. What all that meant for the trip was that COVID-19 coloured all conversations. It also made it abundantly evident – quickly and forcefully – just how vulnerable Haitians were going to be when COVID-19 arrived. Haiti isn’t ready for the coronavirus.

Why COVID-19 in Haiti Could be Devastating

Haitians almost uniformly live in close quarters, have minimal access to health care, little or no savings or other form or financial security, and rely on daily face-to-face interactions for their livelihood (market selling, light manufacturing, food stalls). They are paid and pay for pretty much everything with cash.
Haiti Market
Most markets in Haiti are incredibly crowded, providing an easy avenue for coronavirus transmission.
Given their reality, it is impossible to imagine that the basic precautions being recommended in the U.S. and the rest of the developed world – social distancing and closing down non-essential services – could be feasible in Haiti or any of the other countries in sub-Saharan Africa, South Asia or Central America where FINCA works. The first morning of visits included an hour-long conversation with the Cabaret branch manager and a credit officer who is pilot testing the DFA system. They discussed and demonstrated how the technology would change FINCA’s business and improve client’s experience in working with FINCA. There is no doubt that the benefits are huge. As just one example, most credit officers spend as much as an hour or two each morning putting together the paperwork that they will need for the day. When all the information is on a tablet, she can be out the door in minutes. But the technology doesn’t circumvent the need to visit clients to assess their business. After leaving the office, Bob and the credit officer went to the town’s market to meet a client. The journey had them weaving their way down a street cheek-to-jowl with pedestrians, motorbikes, cars, vans and buses. The market itself was even more crowded. With vendors’ goods spilling out of their stalls, the main corridor was perhaps three feet wide. Getting to Charité Marcelin’s little shop required pushing past people nearly constantly. There was no way that Charité could run her business and also practice social distancing or basic hygiene. While the conversation with Charité didn’t turn to COVID-19 specifically – on March 9 the virus was the leading news story but it wasn’t yet the only news story, her response to one question was perhaps prophetic. Asked what happens if she couldn’t work, Charité said she wouldn’t survive long. “I spend each day’s profit as fast as it comes in.” By that evening the stories coming out of the U.S. was of panic buying, grocery shelves depleted of meat, flour and toilet paper. COVID-19 was becoming much more real. Could something similar happen to Charité and her customers? If the U.S. could see shortages, what would happen in Haiti?

Limiting Community Spread of COVID-19 in Haiti will Hurt

On the morning of Wednesday, March 11, Bob’s first visit was to a school in Gonaives run by Kerlande Toussaint and her husband Annesse Aristild. The school educates some 600 children from pre-school through middle school, one of the larger FINCA-funded “businesses” in Haiti.
Haiti School
On March 11, 2020, the school run by Kerlande and Annesse in Gonaives, Haiti buzzed with some 600 students and dozens of teachers and administrators. Due to the spread of the coronavirus in Haiti, it had to close eight days later.
Annesse explained to Bob that FINCA loans have helped them build the school over the years. While Annesse might be able to get loans from a commercial bank, he and Kerlande “stick with FINCA out of loyalty.” They also love the new technology that FINCA is rolling out. But no technology that FINCA provides can address the fact that schools in Haiti absolutely require physical presence. Kerlande had noted to Bob that the school’s only computers are used by her and the other administrators. If it was necessary to close the school to slow the spread of the coronavirus in Haiti, there would be no distance learning taking place during the shutdown. And just eight days after Bob’s visit the government of Haiti issued just such a school closure decree. The government’s decision to close schools was certainly the right move. Hundreds of children and adults milling about reasonably cramped schools like that run by Kerlande and Annesse would be an ideal location for virus the spread. But the school closure would have devastating effects on the students’ education as well as on the financial situation of the teachers and of Kerlande and Annesse. And with no public support for the school, it is certainly possible that the school itself would not survive.

Haitians Need Our Help

As the United Nations and the World Health Organization have noted, low-income countries like Haiti are poorly prepared for COVID-19. Haiti, for example, has fewer than six ventilators per million people a rate that is 30 times smaller than the U.S. (a still insufficient 180 per million people). The numbers of doctors, nurses and hospital beds is similarly woefully inadequate for what could be a huge demand for medical care in the coming weeks and months. Whether there is still time to bolster Haiti’s health care system before the pandemic hits with its full force is an open question. But if the health care response doesn’t respond to the demand, Haiti will face the possibility of debilitating social instability. It is clear that the time for action is now. And once the pandemic has ended and even while it rages, it will be incumbent on FINCA and entities like it to be there to help rebuild ravaged lives and economies. This chapter is just the beginning of Haiti’s coronavirus story. If we don’t act, the stories to come could be less pleasant to read.

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