MTN Foundation spends N6M on rural telephone project

"Our findings have revealed that the income of the phone ladies have risen to $120 per month and that the productivity level in this community have increased due to easier access to telecommunications services," the foundation says in its publication. "we are also pleased with the fact that over 5,000 people in these communities now have access to telecommunications services."

Over the next 15 months, the foundation said it would partner more community based MFIs to empower 300 women in 90 communities in six states in all the geopolitical zones of the county. It expressed the hope that initiative would complement existing measures to alleviate poverty in the country.

GBF disburses N150m to 3,445 beneficiaries in 5 years

"From 1999 to 2004, GBF has mobilized resources in grants, donations and subscriptions from our partners to facilitate our operation among the rural and urban people in the country," he said.

"In the area of micro credit, we extended over N150 million in loans (including intermediation on investments) on behalf of private sector partners to empower over 70 community based organizations (CBOs). A total number of 3,445 beneficiaries covering 12 sates in the six geo-political zones of the country have benefited from our programme and services."

During this period, Ike said GBF established some professionally managed investment vehicles on behalf of its partners that sought to assist entrepreneurs in a particular locality or sector, in wealth creation and economic development. He listed some of the foundations success stories to include its micro credit interventions in the Niger Delta region, rural telephone project and the community business skills development programme that encourages skilled artisans to expand the volume of their businesses.

"We have also stayed at the forefronts in influencing policy formation by working with various government agencies involved in the institutionalization and recognition of micro finance institutions (MFIs) and rural financial intermediaries of small and medium scale enterprises (SMEs) as key players in the financial markets," he said.

The GBF chairman added that the organization has ongoing collaboration with the Nigerian Communications Commission (NCC), the Niger Delta Development Commission (NDDC) and more recently the Central Bank of Nigeria (CBN) towards formulating policy guidelines for the institutionalization and regulation of MFIs in the country.

Ike also said the recent approval of the board for GBF to operate the first micro finance bank in Nigeria, would create more access to funds for Nigerians small-scale business operators. GBF is partnering the Umuchinemere Community Bank and the Catholic Institute for Development, Justice and peace (CIDJAP), two grassroots organization based in the eastern part of the country in the initiative, which is referred to as the Africa Fund on Sustainability (AFOS).

He commended the management and staff of GBF under the leadership of Mrs. Ndidi Edozien, who is the executive director, for their contribution towards the growth of the foundation, expressing gratitude to the various stakeholders in the project.

Micro finance bank takes off in Nigeria soon

Establishment of such a financial institution would enable many micro enterprise that have been unable to benefit form the Nigerian conventional commercial banking system, to access loans to expand their existing businesses. It will also provide facility for start-up entrepreneurs.

A statement for the Growing Businesses Foundation (GBF), which made this known in Lagos state week, said this was in response by the current efforts made by the Central Bank of Nigeria (CBN) to come up with an acceptable guideline for regulation of micro finance institutions (MFIs) in this country.

The statement, which was signed by Mr. Odinaka Okeke, Programme Coordinator, GBF, said the non-governmental organization based in Lagos, is spearheading the project, in collaboration with the Catholic Institute for Development, Justice and Peace (CIDJAP) and Umuchinemere Community Bank, which are both based in the eastern part of the country. According to the statement, the proposed bank, which is to be known as Africa Funds on Sustainability (AFOS) Micro Finance Bank, was part of GBF's mission to adopt micro finance as the most effective strategy for poverty alleviation in the country

"The AFOS project is to be co-financed by interested partners seeking mass indigenous development of Nigeria and its people," the statement read in parts.

It said the three key partners attended a training programme on micro finance in Uganda recently, to learn more about the project, adding that the participants that were partly sponsored by the Belgium based Incofin bank are expected to replicate the training in Nigeria. The statement said the training focused on the experience gathered by the Uganda Micro finance Union's (UMU) 22 branches

GBF Holds AGM July 1

GBF, an organization lead by socially responsible companies and individuals that promote the development of micro-enterprises as a tool for poverty alleviation, disbursed N1.5million to the Glok Tailors Association, Egbeda Akuwonjo in Lagos sate, last year, in collaboration with the Nigerian intercontinental Bank (Citibank international), a member of the foundation. More than 50 members of the National cane Weavers Association of Nigeria in Maryland, Lagos have also benefited from the GBF/Citibank scheme.

Rev. (Prof.) Obiora Ike, the current chairman of GBF took over form Apostle Hayford Alile, a formal director general Nigerian Stock Exchange (NSE). GBF, which started credit activities in 2000, has so far established presence in 13 states of the federation where more than 60 Community based Organizations (CBO) have benefited from its credit scheme. Some of the benefiting states include Lagos, Ogun, Oyo, Kwara, Kogi, Edo, Delta, Enugu, Abia, Eboyi, Rivers, and Akwa Ibom. The foundation has disbursed more than N150 million in those states in the last years.

NGOs and Profit Ventures

But CHH is renovating much more than houses; it's also updating its business model. In June, CHH launched its own for-profit venture called Team Builds, where corporate teams pay $ 7500 for an all-day team-building session with an organisation development consultant while they work together to ... [?]

Chris Penttila says Team Builds generated $ 100,000 in revenue during its first full year of operation in 2005 - a not-too-shabby addition to CHH's $ 1.4 million annual operating budget. The profit from Team Builds, he says, will be used to finance the renovation of even more homes. He quotes Mike Mitchell, CHH's executive director as saying "There's not a service like it, it's a real entrepreneurial response to an unpredictable financial environment." Penttila argues that today's nonprofits are looking to profit ventures as a way to diversify their revenue streams in tight financial times.

He also cites views from the academia. For Cynthia W. Massarsky, deputy director of Yale School of Management the Goldman Sachs partnership on Nonprofit ventures, one of his subjects, "nonprofits are looking to be more efficient in the way they do things… by taking a few lessons by the business world, perhaps they have learn how to operate a little or more efficient." [?]

For Penttila, the ideal of monoprofit starting for-profit entities isn't new; it's been around since the 1980s. He cites Liz Livington Howard, assistant director of the Center for Nonprofit Management at North Western University's Kellogg School of Management in Evanston, Illinois, saying that what is new is the level of sophistication today's nonprofits are reaching with their new ideas.

He adds that the movement has acquired the tag "social entrepreneur" within the last 20 major business schools, including Duke, Howard Stanford and University of California, Berkley now offer programme dedicated to social entrepreneur, and group such as Net Impact are connecting people interested in it." [?]

Growing Businesses Foundation (GBF) no doubt, will agree fully with the idea here for it is already into it. One can recall its various funding of GSM telephone centers in Benin and other places as well as cane chair manufactures in Lagos.

GBF has robust investors as partners. This is how it should be. The tradition of hooking on to donors perpetually like a myriad of nonprofit organizations do in Nigeria must as matter of urgency be jettisoned. Non-profit and for-profit ventures can be run simultaneously. Penttila made a strong case for this.

GBF Accesses NGN 40M Grant

In 2001, GBF with the active support of its member's organizations initiated successful pilot project in some southern states.

During the year, GBF disbursed credit of the about NGN18.1 Million to 770 entrepreneurs in Lagos, Kwara, Ogun, and Edo. Other states include, Enugu, Abia and Rivers This year, GBF's focus will be in the Niger Delta region with the active support of Mobil in Akwa Ibom state.

Last year, the Foundation also embarked on a needs assessment tour of Kokodiagbene an island community in the Delta state. GBF seek to obtain first hand Knowledge of need of the people of select communities in the region with a view to empowering community members through capacity building and micro credit in later phase of the Niger Delta Project scheme. To facilitate its activities in the Niger Delta, a regional office will be opened in early March in Eket. Already, capacity building workshops have been scheduled for end of March for the first 720 entrepreneurs in Akwa Ibom state. Key focus areas are bookkeeping, accounting skills, business ethics and customs relation with a view to financing and nurturing viable SME's in the region. Growing Businesses Foundation, a not-for-profit organization was established in October 1999 to enhance collaboration amongst businesses, non-profit organizations and governments, to promote the healthy economic development of communities and channel resources towards project with sustainable wealth generating potential. GBF also proposes to bridge the gap between the formal in the informal sector. The foundation is driven by a vision to promote sustainable economic development led by socially responsible businesses and individuals. Members of GBF include united bank for Africa Plc, Union Bank of Nigeria Plc, Mobil producing Nigeria Unlimited, Chevron Nigeria limited, Aiico Insurance Plc, Gulf Bank Nigeria Plc, Udoma and Belo-Osagie, PricewaterHouseCoopers, and Express Discount House Limited.

770 Small enterprises receive N18.1 million

According to her, the organization has also produced micro insurance policies to a total of about 8,500 loan beneficiaries. The micro credit organizations, which have benefited from GBF loans include Lift Above Poverty organization (Lapo) Benin, self Reliance Economic (Advancement Programme (SEAP) llorin, Ecumenical commission for women's Empowerment community and Environmental Development (Ecofwe) Ohafia, small and Medium Scale Entrepreneur Promotion and Training Association (Septa) Enugu.

Other are Poverty Alternative in Africa (POVINAA) Enugu, St. Joseph Multi-purpose Cooperative society, Benin, Accord for community Development, Port Harcourt and Grassroots Women Empowerment Development Education (Gwede) Enugu and small Project Fund (SPE) Enugu.

Agwu said the repayment and recovery rates of the micro credit extended to small and medium scale enterprises since inception have remained at 100 percent.

The organizations, which provide access to credit, also seek to increase capacity of small and micro industries for wealth generation and credit worthiness.

GBF also praises awareness of corporate social responsibility within the private sector to see it as a vehicle through which corporate organization could achieve their version of social responsibility and show concern for their host communities.

The corporate member of GBF include Chevron Nigeria Limited, Union bank Plc, Mobil Producing Unlimited, PricewaterHouseCoopers, Unlimited Bank for Africa Plc, Express discount House Limited, Udo udoma, Belo Osagie and Gulf Bank Nigeria.

Meanwhile GBF is organizing a three-day workshop grassroots policy advocacy for economic democratic development in Enugu this week.

The workshop is organized by Nigeria association of shall scale Industrialists, Center for International private Enterprise, Washington, Catholic Institute for Development Justice and peace and Growing Businesses Foundation (GBF).

The speaker at the workshop include Mr. Nash Harrison, managing partner, price water house coopers, professor Manfred spicier from German, Mr. Herbert Gyres, German Chambers of commerce and Industry, Dr Kinder Yokels, Resident Representative Undo, Mr. Retime Onekama, Capital Alliance, Prof. Biota Ike Kidnap, Mrs. Midi Annuli Dozen, GBF, Mr. Godwin Nwabunka, UNICEF and Prof. Ojo, University of Ife.

GBF boss calls for industry supportive policy framework

Three elements, she said, should play a dominant role in this regard. These are that government should ensure free market without undermining local industries facilitating and promoting the role of the private sector without undermining self-help initiatives, especially for the poor and pursuing imperative of micro-economic stability instead of inducing higher inflation.

She took her cue from Asia and Latin America, where most countries have taken to creating policy regimes that have spurred industry growth.

She said policy regains should also include a formidable banking law that make lending to industrialists viable. She made a case for compulsory saving for group loan programmers, to her; this often underscores the saving first strategy in order to build up finances discipline among clients. This can also serve as a stepping-stone for financial supplementing loans for joint group projects. Saving cold even be used to facilitate purchase of shares, thus ensuring part ownership of a company, in the event where it is impossible to own one alone, she said.

Foundation assists SMEs in Abia  (by Paul Ikwu)

The agreement was reached at a conference held recently in Abia State formalize the accord. By virtue of the agreement and in the line with the mission of the firm, direct market links would now be between medium scale and micro-businesses and the private sector.

Products from the home include a range of earthenware and stoneware pieces made from locally sourced red clay. Also, glazes are made from word ash and palm kernel husks. The pottery is distinguished by its simplicity, attention to details, meticulous finishing and potters' signature. The profits from sales are used to run the center.

The Amando Itumbauzo was established in 1980 by Roseline Colwill with assistance from the Methodist Church.

GBF plans to empower 720 micro-entrepreneurs In Akwa Ibom

Last week, the GBF launched its regional office in Eket, Akwa Ibom State. Honorable Nduese Essien, member of the federal House of Representatives for Eket/Onnao/Esit federal constituency said the coming of GBF to the state would mark a new dawn for the youth and unemployed people in that part of the Niger Delta. He said the success of the GBF in Eket would significantly reduce the pressure on the oil sector and ease the tension and restiveness in the community.

Apostle Hayford Alile, chairman of GBF said the foundation's focus in Eket and neighboring communities of Ibeno, Onna and Esit-Eket, will be to promote micro entrepreneurs who are creditworthy, empower the poor and established international best practices and standards, taking cultural values into account. He said the GBF has on several occasion undertaking situation analyses to generate programmers and policies that will benefit the people and promote collaboration among development partners, so long as that will enhance access to credit by micro-entrepreneurs.

To support its operations in the Niger Delta, Mobil Producing Nigeria Unlimited has provided GBF with NGN40 million. This enabled GBF provide access to credit to micro-enterprises in the area as well as build capacity of the entrepreneurs. Mr. J E Akenova of Mobil said the oil firm is supporting GBF because it believes in the ability of the foundation to deliver micro-credit. Mrs. Ndidi Edozien, executive director of GBF thanked Mobil for its continued support to the organization. Mobil is a member of the GBF board of trustees which include order major organizations like the United Bank for Africa Plc, Union bank of Nigeria Plc Chevron Nigeria Limited, Aiico Insurance Plc, Gulf Bank Nigeria Plc, Udo Udoma and Belo- osagie, Pricewaterhouse Coopers and Express Discount House Limited.

GBF was founded in 1999 as anon- profit, non-governmental organization with aim to enhance collaboration among businesses, communities, and governments; to promote economic development and channel resources to generate wealth. It targets to eradicate poverty and enhance access to credit by small-scale entrepreneurs. It as operated successfully in eight southern states of Lagos, Kwara, Ogun, Edo, Delta, Akwa Ibom, Enugu and Abia… in 2001, GBF, with the active support of its members-organizations initiated successful pilot projects in some stouten states. It also disbursed of about N18.1 million to 770 entrepreneurs.

NGO Spends NGN 5Million on capacity Building

It was established with the support of blue-chip companies and individuals like Aiico Insurance, Chevron. Gulf Bank, Mobil producing unlimited, PricewaterHouseCoopers, Udo Udoma and Bello Osagie, Union Bank, United Bank For Africa, Express discount House Limited and individuals like Apostle Hayford Alile, also chairman of its board of trusties, Aihaji M.D. Yusuf and Mrs. Ndidi Edozien, the executive director. Speaking during GBF's yearly meeting, in Lagos, Mrs. Edozien said, 'we want to build long-term bridges between the formal and informal sectors of the economy and institutionalize these relationship.

For Femi Babalola, the management officer, the lack of accurate data on the informal sector as always prevented banks from extending credit facilities to the organization. He said country to the general belief; micro finance institutions have been keeping records of their financial activities.

The foundation successfully negotiated and formalized the terms of a NGN 90 million non- collateralized credit facility with UBA for small and medium entrepreneurs across the country. About NGN 50 million be disbursed to institutions and about 10,000 people this year as a result of newly established cost effective framework for the extension of non collateralized facilities in rural communities GBE encourages the establishment of unions of micro-finance institution to cater for the need of rural people to make credit facilities available to them.

The foundation also intermediates commercial credit from the financial sector (MFIs). It also encourages banks to give risk - free credit facilities at government treasury bills (TBs) rates. The audited account of the Growing Businesses Foundation shows that NGN 50.546 million was received as income through grants, subscriptions, donation to organizations and individuals, bank interest and exchange gains, of this amount, NGN 15.885 million was expended leaving a credit balance of NGN 34.661 million. GBF's total assets currently stand at NGN 40 million while net cash generated from operations was put at NGN 5 Million. The NGO, in collaboration with its auditor, price waters house Coopers. Has started examination on micro-finance institution with a view to setting financial standard in small and medium-scale enterprises (SME) industry to enhance their credibility, and facilitate rating from to enable integration into the formal financial sector. About 3,800 small-scale entrepreneurs are to benefit from GBF commercial credit from UBA worth N6 million after setting up an institutional framework. For their evaluation. This will also be used to establish the credit worthiness of these institutions. Also, 4,000 loan recipients are also being insured by AIICO through micro insurance policies in southwest Nigeria. The policy (life insurance) covers the loans in the event of default or death of the beneficiary to the tone of NGN 10, 000. This, said Babalola, means that if a recipient who collects NGN 5, 000 loans dies, and the insurer repays the loan and then repays the balance to the deceased family.

Some beneficiaries of GBF activities include the 10,000 members strong life above poverty Organization (LAPO) based in Benin City. The organization recently acquired a community bank, which it renamed "Iyobolapo" community Bank, Ecumenical organization for Women Empowerment (ECOFWE), poverty in Africa (POVINDA), CIDJAP (Catholic Institute for Development, Justice and Peace), all based in Enugu.

All members of the small project Fund, an organization under CIDJAP, would receive between NGN 50, 000 and NGN 20, 000 each very soon for it service, foundation puts a premium of two percent on loans facilitated for the MFIs to provide a measure of leverage. Apostle Hayford Alile, immediate past director- general of the Nigeria stock Exchange (NSE), said the establishment of micro-finance banks might be the panacea to poverty alleviation in the country.

Alile said GBF will work towards the "the possibility of such bank, if it is to make a lasting impact."

Small scale firms forms pressure group  (by Frederick Mordi)

The new association, which is expected to act as a pressure group of the small scales, has the following as its foundation members: Nigeria Association of women Entrepreneurs (NAWES), and Nation Association of Nigeria Traders (NANTS). Others are: Growing Businesses Foundation (GBF), all farmers Association of Nigerian (AFAN) and Business and professional Women (BPW).

The body, which is actively supported by fried rich Neumann Foundation (FNF), has the following objectives: Lobby for the cause of small and medium size enterprises in the country. Promote collaboration and establish channels of communication with all ties of government. Civil society organizations and the private sector. Promote business education for small and medium scale entrepreneurship. Assist in the accreditation and certification of SMEs to facilitate access to financial capital, nationally and internationally.

Facilitate acquisition and introduction of modern technology in small and medium scale businesses. As short-term goals, Cessna's foundation members would seek to find a framework for a decentralized implementation of SME funding schemes and to review the small and medium industries Equity Investment. Scheme (SMIEIS) in order to provide adequate funding for operators of the sector. Some of the nominated trustees the associations include: Dr. Albert Akinyemi (NASSI), Mr. Ken Ukhaoha (NANTS), Mrs. Ndidi Nnoli Edozien (GBF), Mrs. Tinade Oni Ihama (BPW), Dr. Joseph Sanusi (CBN) and chief (Mrs.) Stella Obasanjo.

A book Handbook on Basic Business Skills was also launched at the event and it is designed to provide a guideline for local training workshops for entrepreneurs.

GBF Takes Development across Nation

Last quarter's USAID-sponsored, GBF organized consultation and international conference towards promoting universal access and building community-owned rural telecommunications business center, has yielded encouraging result. As a direct result of GBF- NCC (Nigeria communications Commission) collaboration to promote rural telecommunication as catalyst for development in the rural communities, community member in (Ohafia Rural Telecomm) as a Limit liability company and are eager to receive a license from the NCC to become operational.

Small and Medium scale business initiatives will be built around cyber-canters, which will provide access to external markets for business.

GBF will be intermediating many more loans during the year. To facilitate effective project monitoring, in the south -south, south- east, and Niger Delta, GBF' s area office at the catholic Institute for Development, Justice peace and Caritas (CIDJAP) Headquarters, Enugu state will be formally opened and staffed in the third quarter, 2001.

As part of the activities of the quarter, GBF disbursed loans of NGN 3,000,000, NGN 500,000 and NGN 50,000 to Lift Above Poverty Organization (LAPO), Ecumenical commission For Women Empowerment (ECOFWE) and Poverty in Africa Alternative (POVINAA) respectively. Through these loan disbursements, GBF hopes to support both innovative ideals and the institutional development of communities and peoples. GBF funding represents more than a means of accomplishing business goals, to encompass an investment in the future of the Nigeria people and the informal financial intermediaries that a serve them. Our small-scale lending and micro-insurance policies extended to the informal sector have been developed in partnership with the United Bank for Africa Plc and AIICO insurance Plc. We regard the business linkages we have helped create between the formal and informal sectors as stating point for leveraging broader commitments to enhance the common good of the rural communities.