Update
To gather information that would enable us to develop a more relevant proposal for a credit-based habitat program, we have conducted a socio-economic survey (click here for the summary). The conclusions of the study have helped us to become acquainted with the life of the target group and their income. Moreover, we have gained insight into their expenses pattern and their needs and desires. We have also analysed their knowledge of credits and finance in general. The target group’s understanding of building techniques has also been researched, as well as their personal skills such as: leadership, ability to make the right decisions and to take responsibility for their choices.
The result of the socio-economic survey showed that the Guarayos’ families are not yet at the economical level of development needed to enter a micro financial product as currently their income is insufficient and unpredictable. Therefore, SHF is now analysing possibilities for the further development of its credit based habitat programme.
To require the whole socio-economic survey please click here.
Bolivia
Bolivia is a democratic country located in central South America, with a large number of different cultures; the primarily language is Spanish and further, there are at least 30 indigenous languages. Bolivia is one of the poorest and least developed countries in Latin America, despite being rich in natural resources. Almost two-thirds of the population lives in poverty and more than 50% live under minimum living conditions without access to drinkable water or sewerage system.
SHF started its work with the project Nayan Utaja in El Alto, Bolivia, constructing concrete domes for a group shoeshine boys. This experience and the research conducted in the cities La Paz and Santa Cruz, confirmed the need of credit based habitat. In 2009 and 2010 SHF developed a case study in the rural province Guarayos, 300 km north of Santa Cruz, consisting out of a pilot project and a profound social-economic survey. Based on this research a financial microcredit system for the credit based habitat can be developed, resulting in a healthier and autonomous financial future of the unprivileged people.
Project Nayan Utaja
The Nayan Utaja project (“My house” in the Aymara language) has been developed by Solid House Foundation in Bolivia for and with a group of 28 street youth from the city of La Paz. This group was united by the establishment of their own union “AlPrad”, a shoe polishers association of the El Prado street in La Paz. This group have learned to build their own houses in this small scale housing project.
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Credit-based habitat Programme
Based on the studies, experiences and lessons learned from the first projects, SHF developed the credit-based habitat programme “Your own house, build by yourself”. We believe that a sustainable development can only be achieved, if the families can develop themselves into independent individuals and create their own development opportunities, through knowledge, commitment and willingness.
The economical position of the families should reach a basic level to be able to enter a credit-based habitat programme. Once this is achieved, the families will receive trainings in topics as finance and building techniques. With these skills, they will be able to access a micro-mortgage system, developed according to their realistic situation. Additionally they will be able to build their own durable and healthy homes. This experience expands their job opportunities. In this way, SHF contributes to a more independent and self sufficient target group.
Main objective
The Credit-based habitat programme’s main objective is to improve life conditions by creating financial opportunities for the less fortunate families in Bolivia, in this way they are able to invest in their own improvement.
Specific objectives
- Together with local finance institutions, develop a micro mortgage system accessible to the target group families.
- With the help of local architects and specialized technicians, create improvement and maintenance options for the families, through trainings and courses in building techniques.
- Establish partnerships with private and public local institutions in order to strength the credit-based habitat programme.
Future vision
With the credit-based habitat programme, SHF wants to create the opportunity for families within the Bolivian communities to improve their personal living environment by giving them access to a realistic housing microfinance. With this programme SHF wants to support the people to become more autonomous and less dependent on external help. The aspect of micro financing will be a stepping stone towards mainstreaming such housing finances.
Project Guarayos
In the tropical lowlands of Bolivia, lies the province Guarayos, mostly populated by the indigenous Guarayo living in wooden or clay huts with palm leaf roofs. Some women generate income by collecting cusi palm-fruit, a local palm variety. To help collectors improve the production process and thus increase their income is Guaguazú S.A. implementing a cusi-processing factory. With the income generating activities as well as the capacity building and habitat programme of Solid House Foundation, the local community will be able to finance their houses through a micro mortgage.
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