SeaChange making a big difference in Haiti

Here is an update from Anne Hastings CEO of Fonkoze, the largest microfinance bank in Haiti on the success of a joint project with Seachange that has helped hundreds of Haitian families rebuild there shattered lives after the recent earthquake.

$54,000 was raised in different fundraising events in Ireland over the last few months to make this happened so big thank you to all who helped those who have no voice, the poorest of the poor.

'As you may be aware, over 90% of Leogane, which was closest to the epicenter, was destroyed. Totally destroyed. Driving through it today is like driving through a war zone totally bombed out. Every time I pass through, I still find the devastation shocking.'

'What we are doing for the women in Leogane who are members of Fonkoze is extraordinary, and they are so appreciative. First, we have given everyone a
cash grant of $128 so that they have a little something to ensure their shelter, typically in tents. Second, we cancelled the debt they had on the 12th of January, the day of the earthquake. We are meeting with each of them to understand their health - both psychological and physical - and to help them decide when they feel they will be ready to restart their business and perhaps take another loan.'

Here is how two women responded to the program:

Project Concept Note

ORGANIZATION NAME: Fondasyon Kole Zepol (Fonkoze)

LOCATION: Haiti

PROJECT DURATION: 3 months

The earthquake that occurred on 12 January 2010 in Haiti has led to the deaths of at least 220,000 persons, as yet unquantified personal injuries and colossal damage and destruction to both infrastructure and homes. Between 900,000 and 1,100,000 are homeless. According to the Shelter Cluster Strategic document, 200,000 of the people in need of shelter support are not currently in Portau Prince. 90 - 110,000 of them live with host families. The others are living in spontaneous settlements not too far from their destroyed houses.

Fonkoze is Haiti's alternative bank for the poor, working to promote democracy in Haiti through economic development. With its 41 branches it reaches 45,000 women borrowers and over 200,000 microsavers throughout the country. Although Fonkoze has been affected by the earthquake - 5 staff members lost their lives and 8 offices were destroyed - the organization's staff are doing all they can to provide services - including much needed remittance payments through 41 points of service throughout the country.

Staff members are also actively assessing the needs of the organizations's member clients. We estimate about 5,000 of them lost their houses, and/or their businesses. They need urgent help to find shelter, feed themselves and their children, and restart the small commerce activity that enabled them to make a living. Restoring the activities of this network of women traders is also very important for Haiti's economy as they are the backbone of the supply chain bringing food from the rural areas to the cities, and going back with essential imported goods to the most remote rural areas.

Before the earthquake hit, Fonkoze and its partner AIC (Alternative Insurance Company) were getting ready to implement an insurance product to protect clients from the impact of natural disasters. This initiative resulted from the experience both partners had responding to the needs of the 18,000 Fonkoze clients who had been affected by the series of hurricanes that hit Haiti in 2008. If this insurance product had been in place on the 12th of January 2010, Fonkoze clients would have been entitled to:

• forgiveness of the existing loan,
• 5,000 gourdes in cash to cover any immediate needs of the family,
• A new loan.

In the short term, this grant will enable 180 clients and their estimated 900 family members to cover their immediate needs for shelter and food, while restarting a small business. In the longer term, this grant will serve two purposes:

• It will contribute to restoring much needed supply chains in the Leogane area;
• It will also contribute to rollout of the AIC/Fonkoze catastrophic insurance product by:
• Providing Fonkoze with valuable information on the acceptability and operational model for the product;
• Sensitizing clients to the importance and usefulness of insurance.

The overall cost of the intervention is 79,405 USD. We request support for an amount of 52,775 USD. The money will be spent as follows: