Grameen Foundation : Resource Center : Print Newsletter : Spring 2005 : GFUSA-Jameel Group Collaborate
GFUSA-Jameel Group Initiative Brings New Microcredit Opportunities to Hundreds
Pioneering program intends to reach 2,000 clients by year's end
In just its first few months, a pioneering new microfinance program in Saudi Arabia already has empowered hundreds of poor Saudi women to improve their lives through microfinance strategy — the use of tiny loans to help them start small businesses.
Known as the Program for Productive Families (PFP), the initiative was launched last June by the Abdul Latif Jameel (ALJ) Company, LTD, a leading private company in Saudi Arabia. Grameen Foundation USA (GFUSA) is involved through its partnership in the Grameen-Abdul Latif Jameel Initiative, which seeks to bring the benefits of microfinance to the Arab region.
PFP’s effort, headed by General Manager Jamil al Wahidi, had benefited 545 women by year’s end without a single loan default. The program has set as its goal reaching 2,000 women entrepreneur clients by the end of this year, which is the UN International Year of Microcredit.
The ALJ Community Services Program is led by Senior General Manager Ibrahim Badawood and works closely with PFP. The impact of both is beginning to help break down entrenched barriers and stereotypes by addressing economic hardship through the use of microfinance.
The program is part of the Jameel Group’s commitment to create 6,300 community service program jobs during 2005 to celebrate its partnership with the Toyota Motor
Company. PFP is expected to contribute nearly one-fourth of these new jobs. Company President & CEO Mohammed Jameel, who presided over the first microloan disbursement with his son Fady, declared: “I believe that business has a socially responsible role to play in helping to develop Saudi and other countries in the region. We want to alleviate poverty by starting microfinance programs, which also support entrepreneurship.”
During the implementation phase, it was predicted that there might be problems recruiting female loan officers. Instead, 800 Saudi women applied for the six positions. One of the new officers selected, Maha Al Harbi, already has been promoted to branch manager. She, along with another new branch manager, Saadiah Al Wafi, joined PFP directors al Wahidi and Badawood in December at the second annual conference of SANABEL, the Arab microfinance network that has emerged as a key partner of the Grameen-Abdul Latif Jameel Initiative.
“We were very proud when we organized our first group,” Maha told GFUSA Board Chair Susan Davis and Program Officer Heather Henyon. “We were confident that the women would repay their first loans, because we knew that our work was about more than just giving loans. Since our first loan, we’ve had 100% repayment.”
The conference drew microfinance professionals from institutions that are benefiting from the Grameen-Jameel Initiative, such as Al-Tadamun and RADE of Egypt, and Fondep of Morocco. The gathering included presentation of SANABEL’s Regional Microentrepreneur Awards to 11
recipients, 8 of them women. The recipients were honored at the opening ceremony by Egypt’s First Lady, Suzanne Mubarak. The Grameen-Abdul Latif Jameel Initiative sponsored the awards program.
Grameen Bank founder Professor Muhammad Yunus met with the PFP team in October at the Middle East/Africa Region Microcredit Summit (MEARMS) in Amman, Jordan. After hearing about the program’s experiences with the first 250 borrowers, he commented: “PFP clearly demonstrates that in every country, Grameen-style microfinance can have a positive impact on the lives of women. I salute the team that has made this effort a success, and I think it is extremely important that such a respected business as the Abdul Latif Jameel Group has assumed the responsibility for making this work. It will further enhance the credibility of microfinance in the Arab World, and beyond.”
The Grameen-Abdul Latif Jameel Initiative continues to work with leading microfinance institutions (MFIs) and its funding partners, including the Mosaic Foundation and BQ Investments. Efforts focus on expanding capacity-building work with MFIs and the entire microfinance sector; providing badly-needed capital for expansion; and helping to jump-start the microfinance sector in other Arab countries.
For more about GFUSA’s work in the Arab World and its partnership with the Jameel Group, please contact Heather Henyon, GFUSA Program Officer, (202) 628-3560, ext. 130, or hhenyon@gfusa.org
Grameen Foundation : Resource Center : Print Newsletter : Spring 2005 : GFUSA-Jameel Group Collaborate
Grameen Foundation uses microfinance and innovative technology to fight global poverty and bring opportunities to the world's poorest people. With tiny loans and financial services, we help the poor, mostly women, start businesses and escape poverty. Our global network of 55 microfinance institution (MFI) partners including our Growth Guarantee partners has touched more than 34 million people in 24 countries. In addition, we introduced and now sustain technology initiatives (Mifos and Village Phone) in Cameroon, Kenya, Rwanda, and Uganda, bringing our total country outreach to 28.
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