HOW IT WORKS

Training, Loans & Ongoing Support 

How it Works

We operate in rural areas, with particularly high unemployment and scarce job opportunities, where we identify women that have a dream to bring lasting change to their livelihoods and a business idea to achieve it.

Our Selection Process

See what makes our training and process so successful.

1. Level of Need

Potential clients are evaluated against criteria, including the level of poverty in the home.

2. Solidarity Groups

Groups are formed of six women, each with her own business idea.

3. Business Planning

Only potential businesses that are viable, sustainable, and self-directed are approved.

4. Loan Affordability

Revenue must cover affordable payments while still bringing income into the home.

5. Group Training

Groups receive 10 hours of basic business training over four days.

6. Savings Account

A group savings account is opened at a local bank.

Strategies for Impact

Social impact can only be achieved by pairing training and support with microlending, which enables people to create and build their businesses as well as their future.

How to create a business plan and market products/services
How to buy wisely, plan cash flow, and maximise profit
How to complete an application form
How to open a savings account
Personal & business budgeting
Self esteem & awareness
Communication skills
Working in a team & running effective meetings
Hygiene & health in the home

Specialised Loan Conditions

Pro-poor lending practices

No collateral is required, but each group guarantees the payments of all members. Loans are repayable in monthly installments and structured to stress both credit discipline and collective borrower responsibility. We endeavour to assist the poor and strive to keep charges below the allowed maximums while still covering costs.

Support after disbursement

Our staff provides practical coaching and training at regular site visits and monthly centre meetings. Renewal loans are given in escalating amounts depending on the repayment discipline and growing value of each business.

Branches not buildings

Our employees live and work in the villages that they serve. Centre meetings are held in homes, churches, courtyards, and other public spaces, and they are led with the assistance of the women entrepreneurs.

Centrally processed loans

Branch managers in the field make loan recommendations but all applications and payments are processed at the head office in White River. We use a cashless system for loan disbursement and repayment via group bank accounts.

Create opportunity

Donations to Phakamani Foundation are tax-deductible in South Africa, Canada and the United States through our funding partners in those countries.

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