Access to Finance

Capital Leasing

Clusters of 11-persons with one as the group head, Meeting once every week and at which meeting information sharing is exchanged from both the Foundation and the beneficiaries for regular monitoring. It may be most cost-effective to organize the group of 11 from same Ward as the project progresses but the 1st Cluster of 11 should be diverse so as to use that to train leaders in each Ward.

The maximum we shall start with in facility advances shall be N30,000.00 per head and all Members of the Cluster MUST guarantee each other to be sure they know each other, they trust each other and will work as a team in harmony with growth as their future plan. Upon one year cycle of successful relationship the facility is scaled up to N40,000.00 per head and by the 2nd year of another successful relationship it is scaled up to N50,000.00 per head interest free only subject to Service charge (to part fund the cost of management) and Insurance to secure and support the Capital asset. This program is already running with 6-Clusters made up of 66-participants to date.

• We will also attempt to constitute a Product-Specific Cluster of 11 that will process, as a group, a food product that the Foundation will buy off the Cluster at an agreed price and store until the season when the demand for such a product is high or when the price is good for the Foundation to recover its investment in that. A good example is processing Groundnut Oil to support the needs of the Christmas Season.

• We will also explore training some of them, under the same “Cluster” plan, in producing Animal Feeds using the large quantity of Groundnut shells and Cakes and such other by-products in manually compounding, Bagging and scaling for distribution to the Market.

• Shea Butter extraction processing shall also be explored with time when the right consumer market is identified.

Beneficiaries Clusters by Batch & Products.

Capital Asset Leasing (Refrigerator, Freezer, Wheelbarrows, etc)

• The Foundation notes that costs of Refrigerators/Freezers of recent have gone very high as such may not present a very good business case unless a more detailed study is undertaken of its viability, however;

• Wheelbarrows leasing on Daily Facility program can be explored on pilot basis under Secured Lending Program designed by the Foundation to assist those youths who hire such equipment for goods movements within markets from beginning of the day to the closure of the market by evening to get them self-employed or even be in position to generate their own capital to own one or more.

Animal Rearing

(Home backyard) Group/Cluster-based facility, in any of the following formats;

• Cows (for Dairy development), Sheep, Goats (2-female + 1-Male), etc.,

We will study how this can be started on pilot basis to drive both interest and explore success.

• Within house poultry, another test project under review and study for the best model given its potential high risks associated with such projects from previous experiences by others (not MBFSED).

Clusters for responsible boys

Research by the MBFSED of facilities advanced the Male categories by other successful such projects (Grameen Bank of Bangladesh as a very good example) revealed that the default rates are extremely high, nearing 77% – 90% as such extending such support facilities to the Male class may be wasteful. However, the MBFSED designed same type of “Cluster” Plan for the male groups to test that as another window of extending support to identified very serious such groups fully secured by personal Guarantees and collaterals as identified below;

• ‘Yan Taula (Wheelbarrows water vendors) that move about Water in 20-Litre jerry cans as a Cluster to also benefit from the Capital Leasing program but under Secured Lending and not exceeding N30,000.00/head to enable them to construct the vehicles and purchase the containers enough to support the Cluster members rotate use in turns.

Value Chain Development Products

Groundnut Oil processing (Mangyada), Sheanut Butter processing (Mankade) & other Value Chain development products in a Cluster of 11 persons (As designed and stated earlier). The market for the Sheanut Butter would first need be identified first to guarantee the feasibility of the project.

Zobo Processing

Zobo (or best known as “Soborodo” in Hausa) Processing into packaged drinks value chain.

Daily facility Program

Under Secured Lending Model.

Under this Program that is designed by the MBFSED to enable individuals receive between N5,000.00 daily to higher amounts (for persons who, for example, purchase Bread from bakery to sell and return the amounts advanced by evening) to those who need to scale up their capacity to support Mini-Restaurants meet the daily food requirement of a particular zone that may require about N15,000.00 daily, MUST have to deposit a collateral equal in value to 2-3 times what is being advanced and it must be an asset that belongs to that person and can be converted into cash easily upon establishment of default or abscondment.

Such a person must sign to an undertaking that the asset he/she is tendering truly belongs to her/him and that he/she authorized (Set Off) that should such a situation occur MBFSED is allowed to auction to recover the facility including all charges and deliver and excess to the beneficiary of the facility.

Types of collaterals to be tendered as Security:

Motorcycle, TV Set, Jewelry, Bicycle, Mobile phone, Market shop Documents, etc as the Foundation may deem suitable or appropriate or both.

Community Bakery

To develop Community Bakery (For about 10-100-Members);

• This shall require a more rigorous analysis in terms of feasibility, team leadership and guarantees to be advanced to enable the project to be supported.

Other Products and Services.

The Foundation shall open itself up to new ideas advanced by proponents of any BDS support or as may emerge from practitioners of the type of Business the MBFSED is into as situations dictate from time to time in the global business space to help uplift the living conditions of our rural and ignorant poor who possess so much zeal and hidden skills unknown to them but for the kind of the BDS support the MBFSED and other similar organizations keep rolling out.

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