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Three Courageous Haitian Women Save Micro-finance Bank Branch Office from Looting by Armed Rebels
Three women in the town of Hinche – Alcina Benoit, Ilierda Eugene, and Elotide Augustin – alerted the Fonkoze Branch Director of the rebels’ plans to attack once they entered the city. They then argued with the armed rebels, explaining that Fonkoze was their asset. They passed by the office both day and night to ensure that no damage was done to the branch. It was because of their hard work that the rebels didn’t burn and loot Fonkoze as they did so many other institutions in the community.
Last year, the Economist Intelligence Unit reported that in Haiti "the most revolutionary thing you could do is to strengthen an institution." In a country that lacks even basic institutions, Fonkoze is building a viable, nationwide, financial institution for Haiti that serves even the poorest clients located in the most remote regions.
Fonkoze’s 19 branches, spread throughout the country, are undamaged and have returned to normal functioning. It continues to provide critical financial services that include micro-credit loans averaging $100, money transfer services to help Haitians abroad send money home at rates way below those charged by its competitors, and currency exchange services that give the poor the same rate of exchange afforded the rich by other banks.
The crisis has shaken and in some cases broken already very fragile economic chains. In many places, because of blocked roads or insecurity, basic foodstuffs have not reached isolated rural areas. As a result, wholesalers have run out of their stock and Fonkoze’s clients have not been able to replenish their own merchandise. This meant that in some cases whole villages were left with no rice!
In order to target the root of the problem, which is NOT a scarcity of food, Fonkoze is making sure that wholesalers too have access to credit to restock their shops and begin supplying goods to the smallest market women in the villages. They are repairing existing economic chains, rather than further destroying them by giving away free food.
Currently, Fonkoze has over 25,000 loan clients, 96% of whom are women. It is the largest microfinance institution in Haiti. The vast majority of clients live in abject poverty in rural Haiti. Yet Fonkoze’s clients have deposited over $3.8 million in savings and have over $2.5 million in loans in their hands. They are also repaying. As of December 31, 2003, less than 1% of its loan portfolio was overdue more than 30 days.
For more information please contact Sharmi Sobhan at 212.822.9553 or by email at This e-mail address is being protected from spambots, you need JavaScript enabled to view it .