PAMIGA funds small business in Sub-Saharan Africa
Praxis investments provide food, employment and more
Of the 996 million people living in Africa, over 386 million live in poverty. Microfinance institutions (MFI) allow these individuals to take out loans for necessary purchases to help their families or grow their businesses, as well as allowing people to start savings accounts and learn more about finance. PAMIGA (Participatory Micofinance Group for Africa) is a group of 14 locally-owned African microfinance institutions, and currently has active MFIs in Benin, Burkina Faso, Cameroon, Ethiopia, Kenya, Madagascar, Mali, Senegal, and Togo.
Loan allows mango drying plant to provide steady employment in Burkina Faso
The mango industry plays an essential role as both an export and a source of nutrition in Burkina Faso, which produces over 250,000 tons of mangoes each year. Mr. Tegara’s mango drying plant in the city of Mollé also provides steady jobs for 48 workers and positively effects at least 1,000 other individuals in the area.
Using a loan of about 3,500 USD (2 million FCFA) from one of PAMIGA’s subsidiaries, Tegara was able to ensure the smooth operation of the facility and expand production. Thanks to the success since their initial opening of the plant in 2007, the facility has begun manufacturing fencing for orchards and shrubbery alongside their mango drying work.
Tegara hopes that the plant’s role as a stable provider of employment will help decrease the emigration rate in the country. Burkina Faso is one of the poorest countries in the world, and many young people immigrate to Europe in hopes of finding employment. Tegara himself did this when he was young, but he has since returned in the hopes that he can make his country a better place to call home.
Additionally, Tegara is dedicated to running his operation in an eco-friendly manner. Burkina Faso is a Sahelian state, meaning that its climate is closely related to that of the Sahara desert. Tegara ensures that his mango drying plant actively protects the environment thorugh responsible land and water use.
Thanks to PAMIGA’s loans, Tegara is working hard to make his company and his country a better place.
Praxis Mutual Funds® supports organizations such as PAMIGA through investments in Calvert Impact Capital, an impact-investing institution that helps people around the world through community development financing. It’s part of the Praxis commitment to place approximately 1% of each of its funds to benefit neighborhoods and individuals through community development investments.