Programs: Fonkoze
Announced:
October 12, 2010
Category:
Providing Small & Growing Businesses with Access to Financing & Business Services
Fund Amount: $269,892 Grant
Disbursed to Date: $269,892
Above, female entrepreneurs receive financing
to expand or start their own businesses.
See more in the Fonkoze Photo Gallery.
The Clinton Bush Haiti Fund grant to Fonkoze supported the recovery and development of small and growing businesses in Haiti by providing them with access to the professional services, business guidance, knowledge, and connections they need to become investment ready.
With support from the Clinton Bush Haiti Fund, Fonkoze recruited eight Haitian business analysts to identify promising small and growing businesses and evaluate their needs and potential for growth. Fonkoze worked to establish a voucher program with a preselected network of business development services firms, providing support for businesses that will help them become investment ready. Once deemed ready for investment, Fonkoze links these small and growing businesses to the capital they need to run thriving businesses. This program hopes to lay the foundation for strong, long-term development in Haiti’s private sector.
Bilha Fanfan: A Fonkoze Success Story
When Bilha Fanfan, a 34-year-old businesswoman, came to Fonkoze to apply for an interest-free loan, the beauty salon she had owned since 2007 was in poor shape.
The earthquake had cracked the inverter helping power her salon, leaving her salon with unreliable electricity for several months. Bilha would often lose power for as many as 3 days at a time, causing her to lose key business days, and her staff to lose work. Though Bilha used to get loans from local banks to finance her business, the interest rates simply became too high.
Just like many other business owners in Port-au-Prince, her situation was dire.
That's when Bilha learned about Fonkoze's Small and Medium Enterprise Recovery & Development program, which facilitates access of interest-free loans for micro-enterprises. She was invited to attend a management training session held by Fonkoze and eventually applied to receive a loan through Fonkoze's website Zafen.
22 days later, Bilha received a loan of $3500, allowing her to purchase a new inverter and batteries. The loan rescued her business, and now she is earning enough to successfully repay Fonkoze and see her salon grow and thrive.
With further funding and business development services available to her, Bilha is confident her continued relationship with Fonkoze will help her secure a stable future for her business and employees.
Why We Invested in Fonkoze
By supporting access to capital and business development services needed to build a vibrant private sector, Clinton Bush Haiti Fund's grant to Fonkoze reflects our commitment to creating economic opportunity by supporting small and growing businesses.
Transforming Lives and Livelihoods
With support from the Clinton Bush Haiti Fund, Fonkoze:
- Recruited Haitian business analysts to identify promising small and growing businesses and evaluate their needs and potential for growth.
- Facilitated access to capital for those businesses deemed investment ready, including putting them on the Zafen.org website.
- Established a voucher program with a preselected network of business development services firms, providing support for businesses to help them become investment ready.
About Fonkoze
Fonkoze is the largest microfinance institution (MFI) in Haiti, serving more than 45,000 female borrowers (most of whom live and work in rural areas), and more than 200,000 depositors. With a network of 41 branches covering every region of Haiti, Fonkoze is also the only microfinance institution that is truly national in scope. Fonkoze, in partnership with the Vincentian Family, DePaul University, and the Haitian Hometown Associations Resource Group, created a website called Zafen (meaning "It's Our Business" in Creole) that provides Haitian small and growing businesses with access to capital through zero-interest loans and grants. Fonkoze now wants to move up-market and use this program to identify other small and growing businesses, strengthen their business practices, and facilitate their access to capital. Learn more about Fonkoze at www.fonkoze.org.
