Introduction
In the tropical lowlands of Bolivia, 300 km northwest of the city Santa Cruz, lies the province Guarayos. This area is mostly populated by the indigenous Guarayo people. Most of them speak their local language instead of Spanish. Many are illiterate and have a simple lifestyle. Some women generate income by collecting cusi palm-fruit, a local palm variety, the nuts of which are used to produce a valuable oil for use in cosmetics.
To improve the potential of this cusi palm-fruit, the Bolivian company Guaguazú S.A. was established. Guaguazú is building a cusi-processing factory, to help cusi palm-fruit collectors improve the production process and thus increase their income. Guaguazú asked SHF to work with the same target group to improve their livelihoods; in this way Guaguazú improves their financial situation and SHF their habitat.
Background
In 2007, given the SHF mission and habitat approach, Oikocredit proposed SHF to further assess the Guaguazú programme as to the options for credit-based habitat schemes. With the income generating activities Guaguazú is developing, 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 microcredit mortgage.
Objectives
- Habitat: Improve the habitat (physical living environment) conditions of Guarayos cusi fruit collectors.
- Microcredit for housing: Create the opportunity for the cusi fruit collector to have access to a micro credit mortgage with low-interest payment
- CATCH – strategic framework: Support the Guarayos people to achieve new skills showing ownership, entrepreneurship and accepting responsibilities.
Activities
- Get to know the families better through a socio-economic survey of the Guarayos community.
- Develop a locally accepted micro-mortgage system together with local and international financial institutions.
- Test the proposed micro-mortgage system in a second housing pilot.
- Develop capacity training adjusted to the local way of thinking, needed to implement the credit- based habitat programme.
- Work together with other organisations in the region to strengthen the programme, thereby giving the local people better opportunities to improve their livelihood.
- Develop an implementation plan together with partners and the target group to get a locally-imbedded, integrated, credit-based habitat programme.
Achievements
- Completion of the first pilot in December 2009: 4 different buildings, using different architectural designs, local building materials and techniques, build by different local building contractors.
- Exploratory meetings have taken place with potential and interested financial partners to develop the micro-mortgage system for the credit-based habitat programme.
- The socio-economic survey (click here for the summary) and a demographic data collection of the Guarayo community have been taken place. This study provided knowledge of the socio-economic and habitat situation of the cusi collecting families. To require the whole socio-economic survey please click here.
- Contracted a Bolivian programme coordinator from February 2009, to support our international team.
- Contracted a Bolivian economist during the period of the socio-economic survey.
Future Vision
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.
SHF would like to acknowledge and thank the Ministry of Foreign Affairs of the Netherlands and Oikocredit for their financial support to this program.
