Case study to demonstrate how microcredit alleviates poverty
Wednesday, 1 March 2006
Case study to demonstrate how microcredit alleviates poverty
Hamida Nassanga is 47 years old and separated from her husband. She has 5 biological children, 3 in school and 1 grand daughter aged 8 years. She joined Mirco Credit Development Trust (MCDT) on 18th May 1998.
She is currently on her 9th loan and her current loan is $ 270 (Current exch. Rate: $1 = Ushs 1850) (she started with a much smaller loan and built up to this loan size).
Hamida’s life before MCDT
Hamida attained education up to primary seven and got married when she was very young. Later, due to marital problems, she and her husband decided to separate. She left her marital home with her children and secured a one-bedroom house in the middle of a slum in Kamwokya in Kampala, the capital of Uganda. Life was hard bringing up these children single on her own. She got a stall in the market and started selling foodstuffs but her income level regularly fell short to meet basic needs for her family. The insufficient diet for the family culminated in poor health for the children. Hamida, herself fell sick leaving her unable to work and during this period since she could not pay the market dues for her stall and it was handed over to another person.
Around the same time, a worse fate also befell her family when she lost her 16-year-old daughter who had a back street abortion and died in her arms. This death dealt a very heavy blow to her aggravating her health condition and her self-esteem. She blamed herself for having brought her children to the slum where they were exposed to so many social evils. She was in a state of depression for a long time and it was during this time of mourning/depression that MCDT staff sensitised her about credit facilities.
Life was hard and the house that she was renting was in a poor state such that when the rainy season started the family could not sleep comfortably as the roof was badly leaking. Hamida explained that she did not know anything about savings as she fed her family from hand to mouth and was constantly indebted to others in the community. She stated that she opted to join MCDT since there was no prior savings required, the pre-loan disbursement training period was short and there was the prospect of saving funds which could be accessed when in need. She joined so that she could expand her business and be able to look after her children better.
Hamida’s life after receipt of MCDT loan
Her life changed tremendously, when she got her first loan of shs 100,000= (which was worth around $50 at the time). She talked to her credit group members about her problems and somehow was relieved and felt supported as they also shared their problems with her. She immersed herself into her businesses, even getting involved in trips in the rural areas where she purchased foodstuffs to sell in her own business and supplying other food vendors.
Building up her business and has enabled her to manage her household expenses. She has in addition bought two cows kept in her home village and she bought a piece of land in a nearby village from where her and her family currently reside. She is particularly proud of the fact that that one of the children is now a qualified teacher and another is also training to become a teacher. Also, she has begun constructing a two-roomed house. She is confident that with continued support from MCDT credit, she will complete this house and looks forward to the day when she can tell her children that they are now moving in their own house.
