Birth of the Micro-Loan

The Problem:

Young adults from the community of Gbawe, near the capital city of Accra in Ghana, were graduating school and had a desire to work or create work for themselves. However, they had no money to begin their endeavours and no access to funds or services to support their progress.

The Solution:

PAAJAF (Providing Adults and Adolescents Jobs for Advancement in Future) created the Lifelong Initiative Network (LIN) in December 2012. PAAJAF initiated a partnership with the Sinapi Aba Trust, through which it has been able to provide micro-loans and other assistance as needed to the rural community of Gbawe, improving financial and economic outcomes for the region.

PAAJAF served as coordinator and it facilitated the loan granted to the Gbawe community through Sinapi Aba Trust’s Kasoa branch. The loan was granted to 15 members and an additional $1,250 was also granted to the team in 2013.

As reported in VibeGhana, PAAJAF’s LIN programme has been instrumental in providing loans to individuals who wished to begin small start-up businesses, such as selling plastic bowls or selling vintage clothing. The programme has provided these individuals with under $500 each, with which they could not only buy their supplies but it also allowed them to provide for their families with meals and health care.

The Sinapi Aba Trust had provided the initial funding of $1,950 to PAAJAF towards their micro-loan program in 2012.