Diary from the field - cycling from Vietnam to Cambodia

Head of Lendwithcare, Tracey Horner, has embarked on a challenge of a lifetime. For the past seven days Tracey, along with ten other CARE supporters, has cycled from Ho Chi Minh city in Vietnam to Battambang in Cambodia (a gruelling 460km) to raise vital funds for CARE's poverty-fighting programmes. 

Before peddling off into the Mekong Tracey met with one of Lendwithcare's newest microfinance partners, MACDI, who are based in northern Vietnam. 

What follows is her diary from the first six days.


Day 1:

I left a very cold London bound for Hanoi and the first leg of my trip.  Since my trip comprises a field visit to our partner MACDI; a presentation to one of our corporate supporters, Hogan Lovells; a 460k cycle ride; and some beach holiday time at the end, I had to pack a rather diverse range of clothing!

I always look forward to visiting our partners and meeting some of the entrepreneurs we are supporting and although I am looking forward to the challenge of the cycle adventure; having never done anything like this before, and being under prepared I have a bit of trepidation about what might lie ahead.



Day 2:
 

Arrived in Hanoi at 6am and checked into my hotel. I expected it to be cooler in Hanoi than in the south of the country but not 15 degrees as it has turned out to be. I decided to have a wander round Hanoi to get my bearings, followed by a couple of hours sleep.  Min Thai, the CEO of our partner MACDI, came and picked me up for lunch and took me to Hanoi's Ethnology Museum which provided a fascinating insight into the different groups of ethnic Vietnamese. It became clear why so many of the Lendwithcare Vietnamese entrepreneurs have very similar names.  There are only around 60 different surnames in Vietnam, and each area has around five different surnames.  I ended the day with a little stroll back to the hotel, giving myself time to take in this vibrant city.



Day 3: 

Today we went on a trip to the famous Ha Long Bay.  It was a 6 hour round trip to get there but it was well worth it - despite the weather being cold, cloudy and foggy.  Later that day I met with Regan Leahy, from Hogan Lovells citizenship team, who is accompanying me on the field trip since she is taking part in the sponsored cycle ride later in the week.

Day 4:

Regan and I left the hotel at 8am to travel three hours to Hoa Binh province where some of the entrepreneurs we have supported through Lendwithcare are located.  The car journey gave us the opportunity to learn more about MACDI's work from Min Thai and in particular learn about the broader work they do in addition to microloans.  It is clear that Min Thai is passionate about her mission to improve the lives of poor people, particularity those living in remote rural areas of Vietnam.  


Life is very hard indeed if you are far from a town or city with few assets and no access to formal financial services. The closer we got to our destination the more obvious the difference became between the big cities and the rural communities. 




We arrived at MACDI's tiny office which is home to five loan officers and one other member of staff.  The office is rented at a very low cost from the local authority.  We also met with two local officials who told me how much they value the work of MACDI - particularly the work they do to improve the environment by helping people install bio gas facilities to turn their animal waste into gas.  


They also mentioned that they appreciate the training that MACDI give to borrowers, training in things like animal care, protection of the environment and home sanitation.





To see some of MACDI's assistance in action, Regan and I visited a home that was in the process of having a bio gas plant installed.  It was a very interesting process to see. It starts by digging a massive hole in which they put the chamber that the waste will flow into and later be turned into bio gas. 

MACDI worked very hard to set up a relationship with a local bio gas installing company to negotiate a good price for their borrowers. A part of the agreement includes after care assistance, which ensures that if there is any future maintenance needed the borrower is able to access this help for free or at a greatly reduced price.

This is the theme that ran through my visit, MACDI linking people with the private sector - and also trying to link borrowers to appropriate markets for their products.

After watching the bio gas installation, we visited a couple more entrepreneurs. Part of a Lendwithcare evaluation is to check a random sample of entrepreneurs that appear on the website and ensure that all the details match up with the loan that the borrower has received.

Every house we visited began with a ritual of pouring us all some green tea - delicious but there is only so much green tea you can drink in one day!

That night we stayed in the only hotel in the area.  It was very cold in this mountainous region - so cold that both Regan and I slept in our clothes!

Day 5: 

Regan and I left the hotel at 8am and ate a bowl of Pho (noodle soup) for breakfast and visited a number of Lendwithcare entrepreneurs.

The first women we met was called Phoung Dinh Thi. 

One of the things I always ask Lendwithcare entrepreneurs about is their children and on this occasion, as soon as I did so, Phuong Dinh Thi started to cry.  She explained how, her disabled daughter had died only last May.  

She had spent months prior to her daughter's death at home caring for her daughter and had to spend all their meagre savings on medical treatment.  As a mother who has also lost a child it was very hard to listen to Phuong Dinh's story and not be visibly moved. 

Phuong Dinh has one other child and she said that the loan from Lendwithcare has helped her a lot since she was able to buy some pigs and chickens as well as 10 geese which will provide an income for her and her family.  In the future she would like to buy a motorbike as this would make her life a lot easier - it is very remote and she has to walk a long way with a very heavy load to take her rice to the mill and then the local market.  She would also be able to take her son to school which is a 6km walk away.

Between visits we stopped along the roadside many times to buy produce from local people; Min Thai said she always likes to buy from the local people. She is actually in the process of setting up a website to showcase products to others in Vietnam and help her clients find a market for their products.

At the end of a long day of meeting Lendwithcare entrepreneurs we returned on the three hour journey to Hanoi and spent the night in Hanoi.

Day 6:

The next day we visited Hogan Lovells in their Hanoi office to give a presentation about Lendwithcare and have a meeting with Hogan Lovells and the MACDI staff. 

Min Thai took the opportunity to set up the sale of a pig from one of her borrowers to a Hogan Lovells staff member. As the new year (Tet) holiday is approaching it is common for people to buy lots of food for the celebration.
 

Later that day I flew from Hanoi to Ho Chi Minh city to stay the night at a colleague's house. Tim Bishop works for CARE International UK but is based in Vietnam as a Regional Private Sector Engagement Specialist, he has been working for many years on promoting the role of business and markets in development and has a fantastic blog, which I highly recommend.   

Tomorrow the cycling starts ... and I have to say, I'm not quite sure I'm ready for this ... I'll keep you posted!

By Tracey Horner

Green Microfinance - supporting renewable energy in Vietnam

Biogas facility in Vietnam © MACDI 2014

In recent years a growing number of ‘green microfinance’ initiatives have encouraged eco-friendly microenterprises and supported the use of renewable energy. One such programme is implemented by Lendwithcare’s partner in Vietnam, the Microfinance and Community Development Institute (MACDI). MACDI provides loans to rural households so they can install household plants that use animal waste to generate biogas, a clean fuel that can be used for cooking, lighting and heating.
According to Minh Thai Dinh Thi, Director of MACDI, the motivation for providing biogas loans has as much do with the economic as the environmental benefits. She explains that “since households do not need to spend money on buying firewood, and for the poorer families the time spent by women and girls gathering firewood, biogas plants simultaneously save money, time and also reduce deforestation”. 

Biogas offers other compelling advantages. It promotes better health through eliminating smoke from cooking with firewood. It also reduces harmful pathogens from animal waste that might lead to illnesses (the Asian Development Bank estimates more than 70 million tonnes of animal waste is improperly disposed of each year in Vietnam, contaminating the environment and often finding its way into streams and rivers). Importantly it also converts animal manure into an improved fertiliser, saving farmers money on expensive chemical fertilisers. Many families who have installed biogas plants have also commented that their general environment looks cleaner with less foul odours and flies. While the biogas technology can work in most climatic conditions it seems particularly suitable to countries such as Vietnam with generally warm temperatures and sufficient rainfall. 

Biogas being used for cooking in Vietnam © MACDI 2014

However, despite the potential benefits, the adoption of biogas technology has been slow. This is mainly because of the relatively high cost of biogas plants for people living in rural areas with limited financial resources. To overcome this obstacle, starting in 2011, MACDI has been providing households with loans for between US$500-700 with a long repayment period of between 24-36 months to install the biogas plants. On average, households with at least two cattle or six pigs can generate sufficient biogas to meet their daily basic cooking and lighting needs and the investment pays for itself after about three years. To date, almost 400 families have benefited from the loans. MACDI negotiated with a specialist company to build, service and maintain the biogas plants to ensure they are correctly and safely installed so that they have a long life span. MACDI also provides borrowers with training on management and upkeep of the biogas plants to ensure that they receive the best returns from their investment.

Most of MACDI’s borrowers are small-scale farmers who grow rice and maize and typically raise livestock and poultry. Whilst previously the pig, cattle and buffalo manure and crop residue was left to rot or burned (wasting valuable plant nutrients), households now feed the manure mixed with water, but also some crop residue and other organic matter, into the biogas plant where it decomposes. Under anaerobic (without air) conditions the rotting matter produces biogas which is pumped into the home, usually the kitchen, and used for cooking, lighting and in the winter months heating as well. The slurry which has a high nutrient content is used as a fertiliser and crop yields of vegetable crops such as potatoes and onions, fruit, sugar cane and rice have reacted particularly favourably. The biogas generally comprises  just under 60% methane, almost 40% carbon dioxide and a small fraction of other gases such as hydrogen, nitrogen  and hydrogen sulphide. Although methane is a damaging greenhouse gas, since it is burnt the process is essentially ‘carbon negative’.

The potential for biogas in Vietnam is huge, with more than two-thirds of the population earning a living from agriculture, animal husbandry and fishing and most have traditionally relied on wood, agricultural residue and animal dung for their energy needs. Lendwithcare is supporting MACDI to increase the scale and outreach of its green microfinance programme to ensure more rural households in Vietnam are able to install household biogas plants and have access to clean, sustainable and affordable energy.




You can invest in a green loan today by simply visiting the Lendwithcare website www.lendwithcare.org

By Dr Ajaz Ahmed Khan, Lendwithcare Microfinance Advisor

More from Lendwithcare in the Philippines | The impact of Typhoon Haiyan

Day 12 and Tracey retells the stories of the Lendwithcare entrepreneurs she has met whilst in the Philippines ...

I had to accept that we were not going to get to Leyte or any of the other worst affected islands due to the bad weather. There has been an area of low pressure over the Philippines for the last couple of weeks which has been causing constant rain and high winds and severe flooding in some areas. 

CARE/Peter Caton

Instead we decided to travel four hours north of Cebu city to meet with one of Lendwithcare’s partners, a Co-operative called FCCT. FCCT have many branches, including two in the north of Cebu which was affected by typhoon Yolanda, as it is known here (if you say typhoon Haiyan people look at you blankly). 

Tracey's original route

First I met with the staff of FCCT who explained all the services they offer to their members, including loans. You can tell from their motto “only having savings breaks the bonds of poverty” that they strongly believe in encouraging their members to save. In fact, they even have a “kiddies savings plan” where children, from the moment they start school to when they finish year six, can save a third of any allowance they get from their parents. When these mini-savers graduate junior school they can withdraw their savings to spend on a graduation dress or new shoes. The interest rate they receive is 5% - I could only dream of finding a savings account that pays that much to my own son in a children’s account in the UK. FFCT also offer a good rate of savings to adults which they pay from the interest they charge on loans. 

Loan repayments are collected by staff every week – they go and visit the borrower to avoid them having to interrupt their business to travel to the office to make their loan repayments. Any profit FCCT makes is returned to their members at the end of the year. As well as savings and loans, FCCT offer mobile money transfer services. 

By the time I finished hearing about FCCT’s services it was the end of a very long day. We had dinner with the FCCT staff and they told me how terrifying it was to be in the middle of such a “super typhoon”. Luckily typhoon Yolanda hit during the day which meant that a lot of people had time to get to an evacuation centre (which in practice are schools or churches). They all said it was the most terrifying experience of their lives and most of the staff had experienced around 70% damage to their own homes. They told me this in a very matter of fact way. Apparently the Philippines experiences an average of 20 typhoons a year so they hadn’t realised quite how bad this one was going to be. After a night in a simple guest house, we breakfasted on the tastiest fried eggs on toast I have ever had – I wish I knew how the chef, who was a member of FCCT, had made them so delicious. We then left the FCCT office to meet some of their members who had been affected by the typhoon. 

First I met Melbina Tuico who has four children. She runs a food stall and as a side line rents DVDs to provide an additional source of income for her family. Both her business and home were completely destroyed during the typhoon. But she needs to feed her family and send kids to school so Melbina immediately moved her business next door to an area outside her sister in law’s house, which is manageable in the short-term. She said that business has been OK since the typhoon since people still come to eat. She provides breakfast lunch and dinner, her customers are neighbours but also people from other villages since she prepares such delicious BBQ food. 

When I asked her about the future she replied “only god knows my future”. She is hoping and praying that someone will help her rebuild her house and restaurant area again. Shelter is her main problem as they are now all sharing her sister in law’s house. The children keep asking when they can go back to their own home. Melbina and her family received some relief goods from humanitarian organisations working in Cebu but she has not been able to get any construction materials. She said she can’t focus on her business properly while she is worrying about whether her house will be rebuilt. I wished her good luck, not knowing quite what could be done for her in the short term. CARE and other relief agencies, who have specialised expertise in emergency shelter relief, are rightly focusing on the most vulnerable who don’t have anywhere else to go. 

However it is very likely that FCCT will offer her what they call a “rehabilitation loan”, which will be on a deferred repayment basis and at a very low interest rate. I asked them to send me details as soon as possible so that we can put it on the lendwithcare as I know our lenders will want to help. 

Stay tuned for more stories from the Philippines here and on our Facebook and Twitter pages.

Make a loan to an entrepreneur trying to build a stable future for themselves and their families today by visiting lendwithcare.org 

Best wishes for 2014 and a massive “Thank you” for your support to lendwithcare

2013 was a busy and at times a challenging year for lendwithcare. It was also a hugely successful one thanks to your continuing support. 

2013 Highlights

• Our lender community almost doubled and we reached the 15,000 lender mark just before the close of the year
• We made 60,000 loans, lending just over £2m to poor entrepreneurs across the world
• We started working in Pakistan, Zambia and Malawi
• We funded our first social enterprise loans in an effort to reduce air pollution in Metro Manila

Lendwithcare was also covered extensively in the media, including pieces in the Guardian, The Independent, The Evening Standard, The Times and the Daily Express. Click here to see them. 

However, as the situation in the Philippines reminds us, our work is by no means done. It is more important than ever to help individuals and communities rebuild their lives, especially after natural calamities such as Typhoon Haiyan.

Just before the Christmas Holidays we received news that 38 lendwithcare entrepreneurs have been adversely affected by the typhoon and so, their repayments have been paused until an appropriate rehabilitation plan has been developed.  Tracey Horner, Head of Lendwithcare, will be travelling to the Philippines in a few days to meet with our partner there and with the entrepreneurs who have been affected to help devise the plan to help them.  We will keep you informed.  

In 2014 we expect, with your ongoing support, to help more and more micro entrepreneurs to improve their lives and those of their families. 

We did it! £3m of lendwithcare loans to entrepreneurs in developing countries!

The past year has seen phenomenal growth at lendwithcare.org. At that stage we were celebrating £1m of loans made. In March this year we commemorated the doubling of that monumental amount! And I am thrilled to tell you that last week, on 30^thAugust 2013, we smashed through that and our 3 millionth pound was lent by Sharon from Suffolk to Mrs Essowouna Simbama from Togo! Thus far, lendwithcare lenders have:

•        Made over 80,000 loans
•         To fully fund over 5,000 entrepreneurs
•         From seven different developing countries

Supporting more and more entrepreneurs to improve their lives and create a better future for them and for their families.

Astounding, isn’t it?  This achievement is the work of our fantastic lenders – congratulations and thank you for your support!

By Teresa Hall, Lendwithcare Volunteer

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