In terms of its geography, climate and ethnicity, Ecuador is one of the most diverse countries on the planet – but it is also one of the poorest in South America. Many people have a difficult time feeding their families, financing their children’s schooling and paying for their families’ medical care - and all that although they have a job. Small loans of a few hundred Euros could improve their situation. These loans enable farmers to buy additional equipment and seeds to increase their harvest, or they give small entrepreneurs a chance to make profitable investments. In this way, they are able to escape poverty with dignity and by their own efforts.
The people living in poverty in the rural regions of Ecuador around Loja are given access to small loans and savings accounts. CoopMego, a local savings and loan cooperative, is supported in its efforts to make micro-financing available to women and men. By offering training and continuing education, we support the savings and loan cooperative in granting loans to groups of debtors and in advising its members. The intention is to establish 70 savings groups of 12 to 15 people each. As a result, the total number of people benefiting from the new microfinance services is approximately 6,000 people (i.e. the debtors plus their families). Working together with the applicants, the employees of CoopMego develop a plan on how to use the funds in a practical and meaningful way. This is important, because a loan used sustainably is an important step out of poverty. By cooperating with a local savings and loan cooperative, no dependencies are created. On the contrary – knowledge is gained in this region in the long term and sustainable development is ensured.
For only EUR 10, you can give a family in Ecuador long-term access to opportunities to save money and be granted loans and help them to free themselves from poverty on their own!
(translated by betterplace)