Finally... a little "field work"

I had been waiting for this moment since starting my work in Microfinance in Mexico back in February ... the opportunity to get "down and dirty" in the field finally got presented to me when I was asked to join the Regional Manager on a number of project visits in San Luis de Potosi and Morelia. Although all this sounds very exciting (and parts of it definitely were!), I am exhausted, tired of the 3 consecutive 4 am wake up calls, of 40 min flights in very small planes and, who would have thought possible...tired of eating out!

But despite these minor disagreements, the experience was extremely interesting and enlightening in the fact that I got to see first hand the benefits of using Microfinance to help people better their lives.

I got to see two very different projects but in both cases the funds loaned could make a real difference to the future of these organisations.

First stop was in San Luis de Potosi to visit a Microfinance organisation (MFIs) called FinCrecemos. MFIs are similar to banks as in they give out loans and can sometimes provide saving/insurance products but the key difference is that they will offer small loans and will not require a guaranty (collateral) from their customers. Usually, MFI target low income women who aim to start or already have a commercial activity. Interest rates are higher than commercial banks (approx 7% per month) but a lot lower than their only alternative, ie loan sharks who charge in their area 10% per day!

In order to receive a loan of approx $200, they must create a solidarity group (in this case the minimum was 12 people), have had a address for at least 1 year and have or look to create a commercial activity (from anything to Taco stall to selling flowers..etc).

We were given the opportunity to meet a credit promoter (the woman who is the link between the MFI and the end clients), her supervisor, the Director of the MFI and a group of women who are receiving a loan. We interviewed all these people trying to get a 360 view of the whole process. It was eye opening as I got to see how a little trust could really go a long way!

Both the women working for the MFI and those receiving the loans were very serious about their responsibilities, enthusiastic and well organised. It was clear and accepted that this was a business to them and not charity. It made them feel important and trustworthy.

Not a bad result in terms of empowerment for women.

The second project I visited was a Fair Trade company called Fairtrasa, a fruit exporter (mainly avocado but incorporating grapefruit, blackberries, lime and even wine!) based in the Michuacan region of Mexico.

This project is categorised as a "production"project which we were drawn to because we aim to increase our support of Fair Trade organisations around the world. Unfortunately I was not able to go see the avocado producers (no time) but I did get a good understanding of the issues relating to fair trade organisations and how they aim to "put a little back into the community".

This project was interesting in the fact that it demanded an analysis of the business as a whole as well as the financial analysis required to give out the loan (so again, a different twist on the whole process).

In both these projects, I saw respect, drive and the desire to grow, develop, improve lives without the need to government intervention.

I am now tired but happy. I have interesting responsibilities ahead that span from the financial analysis of these proposals to finding new target projects in Mexico. Should keep me nicely busy for a while.

Off home for a well deserved rest.

PS: Am also v chuffed and slightly intrigued as to how I managed to get by (Spanish wise) translating what was said to me from Spanish into English (via french) as all my notes are in English !