FINCA Canada

From the Corporate World to Social Enterprise

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With progressive work experience, increased leadership responsibility and rising pay, Andrew Muhwezi was a on fast track to success. So, what made him switch gears and pursue a career in social enterprise as Head of Sales and Marketing for FINCA’s BrightLife?

In this Q&A, Andrew reflects on his career in banking and energy, talks about his motivation for joining BrightLife, and comments on what the future may hold.

BrightLife is a social enterprise by FINCA in Uganda that unlocks economic productivity and wellbeing for low income people. It does so by distributing and financing basic service products, including solar home systems, cookstoves and appliances, that improve daily life.

Why did you leave a successful career in the corporate world to join BrightLife?

The desire was to be a part of a great team focused on creating meaningful social impact. BrightLife offered this opportunity in abundance.

I was motivated by the idea of bringing clean energy to tens of thousands of off-grid families. With BrightLife, I saw it could be done in a way that is affordable and convenient. At the same time, BrightLife offered a chance to build pathways for these families toward financial inclusion. Given my background in the banking sector, I found this to be an inspiring and noble mission.

Right when I was looking to join BrightLife, my previous employer offered me a promotion to a very senior role. They were shocked when I turned it down. But, I really wanted to help build something from the ground up, putting teams together, trying and testing business models, and contributing to creating a self-sustaining entity. It is a role that I am relishing at BrightLife.

How did your upbringing and career prepare you for joining a social enterprise?

I spent most of my childhood with my mother—the best mother in the whole world, if you asked me! We ran a makeshift restaurant for a living in the small town of Kabale in western Uganda. By age 5, I was running a UGX 200,000 ($55) chicken grilling and juice “enterprise.” I made and sold the juice, collected the money and banked it in an account my mother had opened for me. She made it clear that paying school fees was my responsibility, so early on I learned the importance of saving. This remained the case throughout my schooling.

Also, growing up, electricity and running water were luxuries for us. We had to walk some distance daily to fetch water. At night we made do with light from a kerosene lantern or candle. As you can imagine, there wasn’t much time or lighting left each day for studying. But I still had to meet my educational goals. With hard work and determination, I was able to make it all the way to university in the United Kingdom.

After graduation, I was fortunate to make great professional strides. I moved through the ranks to head two multi-million-dollar businesses. These were at two top multinational corporations in the banking and energy sectors. This was priceless exposure for me to leadership, strategy, sales and marketing, and financial modeling, among others. In those roles, I was charged with starting something new in both the business-to-business (B2B) and business-to-consumer (B2C) markets. That experience has been invaluable to my ability to execute my current role at BrightLife.

Having said that, there is still a lot for me to learn here. I approach my role with humility and an open mind!

What does BrightLife’s connection to FINCA and microfinance mean for you?

I am very excited about the link with FINCA.

First, having been a keen follower of FINCA and its work, I greatly respect what it has achieved over the years. FINCA pioneered Village Banking™ and took it global, revolutionizing an industry in the process. In Uganda, FINCA is a household name that resonates strongly with BrightLife’s customer base.

Second, even with BrightLife’s transition to installment payments, or pay-as-you-go (PAYGo), FINCA Uganda can still be a key distribution channel. Also, the microfinance link may provide additional solutions to financing clean energy products.

Third, we have an opportunity to design products that transition clients from BrightLife to FINCA Uganda, and vice versa. Together, we have all the necessary ingredients for a successful and impactful story.

BrightLife’s Head of Sales and Marketing, Andrew Muhwezi (left), visiting solar energy customer, Kawuka Godfrey.

What are some of the things that have surprised or challenged you in your role?

Not much surprises me. I knew from day one that we would have to put in loads of effort to build both scale and scope for BrightLife. It has been a roller coaster ride, but well worth it!

What has helped a great deal is a team of positive-minded colleagues. Also, we are a new leadership team with energy, gusto and a desire to take BrightLife to the next level. Here are some of the things we have accomplished in the short time that we have been together:

  • Introduced a PAYGo financing platform that eases the ability of our target clients to acquire our products.
  • Partnered with Africell, one of the top telecoms in Uganda, as one of our sales channels and PAYGo partner.
  • Recruited a team of 40 sales agents across the country and hope to double or triple this number in 2019.
  • Established a presence in over 10 districts (4 satellite regions), making it easier for clients to find us.

How do you see the solar energy market evolving over the next decade and BrightLife’s role in it?

The opportunity in the solar energy market in Uganda is immense!

To give perspective, Uganda has a population of more than 40 million people. Most live in rural and semi-urban areas and 73 percent of the population lacks access to electricity. Worse still, this number does not consider the fact that even those who have access experience frequent power outages. The perfect solution to this scenario is renewable energy, of which off-grid solar remains the most convenient and affordable.

It gets even more interesting; BrightLife (in partnership with FIBR) recently concluded a baseline survey in Mityana district. We found that both on- and off-grid prospective clients have equal appetite for off-grid solar. This survey implies that the potential clientele for solar energy is more than 60 percent of the Ugandan population!

I believe that BrightLife is in a unique position to harness this opportunity:

  • We use a model (PAYGo) that allows poor families to pay for a solar home system in installments over time. For most people earning less than $2 a day, this model is the most affordable way to gain energy access.
  • BrightLife product manufacturers benefit from a relationship with FINCA Ventures. Seed capital and advisory support will continue to drive production of quality and cost-effective products for clients. We want our clients to get the best products at the most affordable prices.
  • FINCA’s experience in Village Banking™ taught us how to work with communities, women’s groups, saving and loaning associations, etc. We are fortunate to leverage a trusted brand like FINCA that has over 25 years of history in Uganda. Because of this proven track record, we can make quick inroads to communities most in need.
  • We are cognizant of the fact that there is a link between access to energy and access to finance. While our clients seek finance to uplift their businesses and families, they equally need clean energy to be productive over longer hours and enjoy a healthy life. We are therefore able to tailor products across this spectrum and graduate clients to either side of the equation—from BrightLife to FINCA Uganda, and vice versa. This is truly special!

Perceived Health Benefits of Off-Grid Products: Ugandan End-User Survey Results

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This research explores the health benefits that were perceived by FINCA International’s BrightLifecustomers using solar lanterns, solar home systems and improved cookstoves in Uganda. A mixed-methods study combined the input of 50 focus group participants, 782 randomly selected respondents and 70 follow-up interviews.

While a variety of themes were explored, such as productivity and energy expenditure, the most frequently cited benefits were those related to family health. Some health impacts have been mentioned in other studies, such as improved vision and respiratory health. Others, however, were new, including sleeping better at night and deterrence of pests. Customers were aware of these benefits, and these perceptions can be powerful motivators for adoption and usage of the products we studied.

The research study and report were led by Scott Graham and Anahit Tevoysan of FINCA International’s research team.

Executive Summary

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White Paper

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5 Ways to Give this Holiday Season

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The season of giving is here! As generous supporters of FINCA, we know that you are dedicated to fighting global poverty every year.  But do you know all the ways you can help increase access to financial services and life-changing products for those living in poverty?  As 2018 draws to a close, please consider the many ways you can make a difference by supporting FINCA’s work in 20 countries.

1. Make a donation…and it will be matched

There are so many women and men living in poverty who strive to achieve a good life for themselves and their families. Yet, they lack the opportunity to invest in their own hard work or to create healthier households. That’s where your support can make a difference. By giving the marginalized access to credit or access to clean energy products for their home, you are helping build a brighter tomorrow for them, their children and future generations. And this holiday season, thanks to a special 3-to-1 Matching Gift courtesy of the Government of Canada, your donation can go either further with four times the impact!

2. Give a meaningful gift to a loved one

Struggling to come up with a suitable present for a family member or friend? Why not try something different this year? Honor your loved ones by making a tribute gift in their name to FINCA. Simply visit our Gift Catalog, select one of the symbolic gift options and tell us in whose honor the gift is being made.

3. Make a lasting contribution with a monthly gift

By becoming a monthly donor to FINCA, you can create a reliable source of funds that promotes and sustains economic opportunities for poor families each year. A small monthly gift can have an enormous impact over time. If you are interested in becoming a monthly donor, visit FINCACanada.org/sustain.

4. Give your shares of stock to FINCA

Consider a gift to FINCA of stocks, bonds or mutual funds. Any securities you’ve owned for twelve months or longer, whose value has increased, are subject to capital gains tax when sold. By giving these securities to FINCA, you receive a charitable deduction for their full fair market value and you avoid tax on the capital gain.

5. Create a legacy

You don’t have to be Bill Gates or Warren Buffett to create a meaningful philanthropic legacy. Make a planned gift that will support poor families for generations to come. By including FINCA in your will or estate plan, you can help transform lives by providing the world’s poorest a path to a better life.

LaSalle Causeway Swing Band Offers Hand Up to FINCA Canada Clients

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In an interview with FINCA Canada donor Mark Sibley, we explore how one individual’s passion for music and global change lives around the world.

What instruments do you play and why is music important to you?

In 1992, I found myself with three kids, holding down a full-time job and being a Scout leader. My wife signed up for an evening class in instrumental music where they loaned you an instrument and helped you improve even if you had zero musical experience.  I was jealous as I had really enjoyed music in high school!  I joined her at her music class and I’ve never looked back. My trombone “chops” improved and eventually far exceeded my high school skills. I am now in four musical groups and playing two instruments, so music has become a serious hobby!

Tell us about the LaSalle Causeway Swing Band

The LaSalle Causeway Swing Band was formed in the fall of 2010 and currently has sixteen members. The founders – David Lysne and Hannes Friedli – had a picture of a collegial group of local musicians who would play big band and swing music for charitable purposes. Our current musical director, Rick Calich has reinforced our intent to play the best music we can while maintaining a relaxed, fun and informal atmosphere. We have improved greatly over the years but we distinguish ourselves from “bands for hire” because we volunteer our time. This allows organizations like the Independent Living Centre to have fundraising nights with silent auctions and a dance without a lot of their proceeds being eaten up in paying the band.

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Why does the band choose to leverage your holiday concert to support charities?

Years ago, the band decided to have one holiday season concert a year which we organize and sponsor on our own.  We raised thousands of dollars for causes like relief for Ebola, Syrian Refugees, the Tsunami in Indonesia, Hurricane Matthew, etc. as well as local charities.  Some people donate time or money directly to charities but we are donating our time and talents instead.

Why FINCA Canada?

A few years ago, I was in a position to sell one of my investments and rather than just pay capital gains to the government it made sense to donate mutual funds to a charity. I was looking for a charity that would generate a lot of “bang for the buck” in changing people’s lives for the better.  To me, a charity spending a dollar in a second or third world country would improve lives more than say a dollar spent by a Canadian medical charity.  After many hours of checking out various international charities, I settled on FINCA which took the concept of micro-loans, which I already supported and liked, and extended it to ideas like loans for more efficient cookstoves or solar powered battery-operated LED lights that could also charge mobile phones.  It then seemed like a logical extension to pitch FINCA as our international charity for this year’s fundraising concert!

What do FINCA and the Euphonium have in common?

When I mention FINCA as a charity I get a similar reaction to saying that one of the instruments I play is the Euphonium which is usually a polite version of “Huh?”.  However, as band manager, I was in the position to suggest FINCA as our international charity in September and after extolling its virtues, the band has supported this suggestion.  I hope to continue to increase awareness of FINCA’s great work (and the wonders of the euphonium) in the years ahead!

What change do you hope to make in the world?

Traveling to developing countries gives you an appreciation that we all have so much in common like wanting to improve your lot in life and take care of your family.  By luck, I was born in a rich country and so I hope to use some of my good fortune to help others.  I see FINCA as offering a hand up instead of a hand out.

 

The Christmas Benefit Concert with the Odessa Children’s Choir was held on December 16th, 2018, at the Chalmers United Church in Kingston, Ontario

We are honoured that FINCA Canada was chosen by Mark and the LaSalle Causeway Swing Band as one of the charities to benefit from this years’ Christmas Benefit Concert.

We love it when groups or individuals raise funds that will benefit our clients! If you have an idea, please contact us at info@fincacanada.org.

 

The Power of Inclusive Systems: Meeting the Needs of Women Entrepreneurs in Developing Economies

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FINCA Canada, in partnership with the Government of Canada, is designing unique projects and services to meet the needs of women entrepreneurs in developing economies.

Sally Yacoub calls them the faceless and nameless of the economy: women entrepreneurs in the developing world.

In low income and rural countries, women are generally excluded from the global economy. They are not empowered to make financial decisions.

Through her work with FINCA Canada, Yacoub is helping to change this.

Sally-Yacoub

Yacoub is a Gender Officer. She describes her role as “bringing the experiences of women and men to the table equally in order to ensure that projects, products, and services meet the interests and needs of all.” However, Yacoub readily admits that this often means providing opportunities specifically for women. She points out that this is essential in order to help businesswomen in developing economies move past the many cultural and societal barriers they face, such as a lack of formal education and limited access to financial services.

In many large families, only the boys go to school. The girls will grow up illiterate and learn only rudimentary math skills. Additionally, many women in developing economies, particularly those in poorer areas, have no assets to their name—they own no property and have no bank account. These facts can exclude them from being able to access a loan through a traditional financial institution. Traditional banks see them as too great a risk. “Banks are often not interested in serving low-income or disadvantaged segments,” says Yacoub. This is where FINCA Canada is making an impact. “Through FINCA Canada’s microfinance programs, we are working to ensure these entrepreneurs are included.”

FINCA Canada considers these entrepreneurs through a different lens.

For example, it recognizes these business-owners in the community market share a powerful asset: trust in each other. These entrepreneurs work across from one another’s market stalls day after day. They know each other’s work ethic and credibility so they are willing to co-sign for on loans. FINCA provides group loans to business-owners allowing each woman to empower the other to succeed and the whole community benefits.

Along with each loan, FINCA Canada mitigates its risk by providing skills development training for its clients, such as basic accounting. This builds self-confidence and helps the clients make better business decisions.

With more than 16 years of experience serving and supporting people in developing countries, Yacoub has seen first hand the transformative power of financial inclusion.

I am very lucky to have seen how the financial sector can really have an impact on the lives of less-advantaged people,“specifically women. It can have immediate impact on whole family.

When women have access to capital, the gains ripple out into the whole community. Women business-owners tend to spend their earnings on home, food and their children’s education. Thus every dollar loaned contributes indirectly to the health and education of the next generation; but a non-traditional approach to risk and lending is required.

Yacoub is currently using her expertize to help FINCA Canada assess its programs in Haiti and the Democratic Republic of Congo. She will determine how to improve programming and services for clients and staff. While she’s excited about this new opportunity, Yacoub is clear about one thing:

Don’t make assumptions about the needs of low-income people. We want to act only as a bridge between our services and our clients. It’s critical we empower our clients to take more control over their lives.

Learn more about FINCA Canada. 

Support our work. 

FINCA Guatemala Develops Digital Apps for Microfinance Clients

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FINCA Guatemala is creatively embracing social technology to better serve and engage its clients. This year, it started conducting virtual meetings for its Village Banking™ clients in Guatemala City using a popular social messaging app. It also launched a new app that mines the power of social connections to expand FINCA’s client base.

Village Bank Group Meetings Go Digital

Village Banking™ was pioneered by FINCA’s founder, John Hatch, back in the 1980s. A Village Bank is a group of low-income entrepreneurs who come together to share and guarantee one another’s loans. This simple yet powerful idea empowered microentrepreneurs to become engines of development in their communities and has since spread around the world.

While effective in rural communities, Village Banking™ can face challenges in rapidly urbanizing centers, like Guatemala City. FINCA works with low-income clients, many of whom live in zones that are insecure. Village Bank group meetings—critical for client engagement, loan payments and new memberships—have come under pressure as clients worry about their physical safety en route to, and during, gatherings.

In response, FINCA turned to the world’s most popular messaging platform—WhatsApp. Mobile phone penetration rates in Guatemala are among the highest in the world, and FINCA established that most of its urban clients regularly use WhatsApp on their phones to communicate with friends and family. The app presented a perfect opportunity to reinvigorate Village Bank group meetings without requiring clients to leave the comfort and security of their homes.

For the pilot, FINCA Guatemala set up the WhatsApp group meeting space, signed members up, and assigned a loan officer to moderate the group discussions. The team used the experience and feedback from the meeting to script a template for subsequent virtual group discussions, ensuring that they stay on point and are fruitful. To date,  Village Bank meetings conducted via WhatsApp have been successfully rolled out across six FINCA branches around Guatemala City.

Developing Mobile Apps for Microfinance Client Engagement

At the same time, FINCA Guatemala was internally testing an app, called SoyFINCA, to help clients locate the nearest points of payment and facilitate potential client referrals. Following the app’s public launch in the Summer, clients who download SoyFINCA can now view more than 3,000 GPS-locatable payment outlets, including all FINCA branches across the country. FINCA plans to progressively add new features to the app, such as balance inquiries, credit requests and loan payment due date reminders.

But SoyFINCA is not restricted to FINCA clients; it is free to download for anybody in Guatemala on the Android platform—nearly 90 percent of all mobile phone users in the country. Universal access speaks to the major justification for the app’s development. Recognizing that client referrals were more effective for new client acquisitions than other channels, FINCA Guatemala designed the app precisely to facilitate those interactions. As extra motivation, SoyFINCA users earn commissions for successfully referring new clients. In the first 90 days, the app has been downloaded more than 1,000 times.

FINCA Introduces Agricultural Loans with Crop Insurance in Georgia

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FINCA serves more than 100,000 clients in the Eurasian country of Georgia. Sixty-two percent of these borrowers live in rural areas, and many work in agriculture to earn a living and provide for their families.

Earlier this year, FINCA Bank Georgia partnered with a local insurance company to enable smallholder farmers to simultaneously obtain special terms on agricultural (“agro”) loans and crop insurance. This partnership tackles three challenges faced by smallholders:

  1. A farmer in Georgia previously had to apply for agro loans and crop insurance at separate points in time and with separate institutions. Those with limited means were often financially excluded.
  2. Farming is seasonal by nature, which puts strain on farmers working to pay off debt prior to harvest.
  3. Agricultural activities rely on favorable weather. This creates risk beyond a farmer’s control.

By offering a one-stop solution that is designed for smallholders, requires no repayments until the agricultural business generates an income, and bundles agro loans with crop insurance for risk mitigation, FINCA is helping Georgian farmers become unstoppable.

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FINCA Bank Georgia client Tea Lakobashvili (L) with her young daughter and a FINCA employee.

Tea Lakobashvili is one such farmer. She lives in a small village called Tsinandali in eastern Georgia. As a widow, Tea and her young daughter depend on her 7-hectare vineyard to make a living. This year, she applied for and received the bundled loan from FINCA Georgia. She describes her experience:

Applying for the loan wasn’t complicated. The process was really fast. I am glad that this product exists because as a farmer, it gives me the security and peace of mind knowing that I am covered if a natural disaster strikes my vineyard. I feel so much calmer now.

FINCA’s BrightLife Program Impacts 100,000 Lives in Uganda

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FINCA International’s BrightLife program has impacted over 100,000 people in Uganda with life-enhancing clean energy products. This milestone, made possible by generous donors, comes three years since BrightLife started business-to-consumer operations in the country.

Launched to provide last-mile distribution and end-user financing for basic service products, BrightLife is core to FINCA International’s social enterprise mission. Against a backdrop of deep energy exclusion—73 percent of Ugandans are unserved by on-grid electricity—the program is enabling a growing number of low-income people in the country to access clean energy affordably and conveniently.

BrightLife products include solar lanterns, solar home systems and improved cookstoves targeted at Ugandans earning less than $4 a day. Customers can affordably acquire the products through pay-as-you-go (PAYGo) financing, which allows them to pay over time through monthly installments. Moreover, by working directly with manufacturers, BrightLife can bring its products to market at the lowest possible cost to customers.

BrightLife customer, Businge Hope Lydia, at home with her daughter in Uganda using a BioLite HomeStove.

Ugandans using the products perceive improvements in safety and health outcomes, which they attribute to their BrightLife products. BrightLife expects additional impact with the introduction of productive use appliances into its product mix. These assets, such as solar-powered water pumps and maize grinders, allow customers to increase productivity and generate additional income.

Expect more from BrightLife

Beyond energy inclusion, BrightLife is also contributing to the effort to bring more Ugandans into the financial fold. PAYGo financing enables unbanked customers to build credit profiles, which opens the door to accessing broader credit and savings options. BrightLife is working closely with FINCA Uganda, the local microfinance institution, to design tailored financial products for BrightLife energy customers. The goal is to build a bridge to more impactful financial inclusion.

With an eye toward impacting the next 100,000 lives, BrightLife recently amplified its human resources. It has recruited stellar marketing, customer experience, operations, and finance talent with vast experience gained from industry-leading companies. BrightLife has also onboarded dozens of new sales agents following weeks of training on the program’s mission, products, and values. BrightLife can now count on a network of 45 sales agents to take its impact to the next level.

3 Reasons Why We Need to Empower Rural Women

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Rural women are incredibly important. They contribute to food security, help improve nutrition in their communities and develop economies around the world. In fact, rural women make up 43% of the agricultural force in developing countries.

Yet, rural women are also one of the most marginalized and impoverished groups in the world. They lack land ownership, have higher illiteracy rates and earn significantly less than their male counterparts.

This International Day of Rural Women (October 15), learn why these women need to be economically empowered.

1. Rural women do not own land

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Women account for almost half of the world’s farming population but only 20% of them own the land they work on. In many families, ownership of farms is passed down to males in the family. Some women farm on communal lands or work as day laborers on larger plantations.

In many countries, laws inhibit women from owning land. Often, even when rural women do own their own land, the land is of a poor quality that isn’t arable.

When women own the lands they farm on, they can make better decisions to grow their businesses. They also gain the power to contribute to decision making in their household and community.

2. Rural women lack literacy skills

More than half of rural women in the developing world are illiterate. Without basic literacy skills, these women are limited from engaging in trade, skills training or accessing technological resources to grow their farms. They are also less likely to invest in modern farming advancements, such as mechanical tools.

Outside of the agricultural sector, illiterate rural women are limited to informal and low-paying jobs, inhibiting their ability to save funds for the family.

3. Rural women need financial access

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A rural woman’s chances of receiving credit to support her farming business are markedly lower than a man’s. Purchasing farming equipment, fertilizers and seeds can be expensive. Studies show that if rural women had the same access to economic resources as men – such as agricultural loans – they could increase their farm outputs by 20% to 30%.

For decades, FINCA has enabled millions of women farmers to access the loans they need to purchase supplies and equipment for their farms. With financial help, these women have been able to grow their farming businesses, increase their yield and support their families.

Anarda Virginia Dávila Núñez is one such woman. In a small village in Honduras, Anarda owns about 17 acres of land, just half of which is arable. The hardscrabble farm does not yield much but Anarda is proud of what she owns and has achieved. And she is grateful to FINCA for her achievements.

With loans from FINCA, Anarda is able to hire four people to work with her during the harvest seasons to pick the crops from her corn farm. Each harvest yields about 4,000 pounds of corn.

“FINCA loans have helped me a lot,” she says. “I was able to help my six children get ahead and they all completed their education. Also, I have been able to buy these lands, which were formerly my father-in-law’s.”

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