IGP

Overview

• In less than two years of existence, over R60,000 will be distributed to start local business in one of the poorest communities in Cape Town.
• 30 Jobs have been created (from the amount of 2010 loans distributed).
• Families have been better able to provide themselves and people from Khayelitsha have been empowered to fight poverty themselves.

History

2008

 In 2008 two small loans were given to the youth in Khayelitsha to allow them to start their own businesses.  One young man named Simphiwe bought a digital camera and started his business named Ta Simpra’s Photography.  Making money from doing school ID photos and photographing events, he was able to successsfully pay back his loan.  Today, Simphiwe is still running his business in partnership with another Khayelitsha photographer.  The IGP has connected them to a project called Freeway Football where they are being sponsored by Nikon, mentored by a professional photographer, and connected to photography events to boost their business. 

From Simphiwe's success, a donor saw potential and money was given to help the creation of a formal business loan project. This was the birth of The Income Generation Project

2009

Much research was done based off the Grameen Bank Model in Bangladesh, Small Enterprise Foundation in Limpopo, South Africa and other models to formulate The Income Generation Project.  This is an overview of what happened in 2009.

• There were 12 business loans given in 2009. The businesses started were pool table hire, hand bags, winter jackets and clothing, fruit and veg shop, spaza shops (general stores), photography, chickens, frozen meat, and beauty products
• One local man from Khayelitsha was hired to be the loan officer for the year.
• A relevant curriculum was developed during the year on how to run a business in Khayelitsha which is being used in 2010.
• There is a growing sense of unity, community, and trust amongst the staff and the borrowers which is also giving them more ownership of the project and more credibility in the community.
• One of our success stories is of Doreas Menziwa (Mam’Lady) – She started a fruit and veg shop on the corner of her street.  She now is selling chips, sweets, chicken feet, popsicles, etc.  She was working full time so her daughter had been managing the store.  In her work she had been earning a small salary to feed and clothe kids and grandkids (6 people in a 2 bedroom house).  Now that she has started the business she has been able to stop asking neighbors to borrow money for bus tickets for her and her children.  She has been able to consistently provide food and electricity for the house.  And best of all she is turning 50 this year and has retired from her domestic work that she’s done her whole life in order to take over Mam’Lady’s Fruit and Veg full time.  She is excited about being her own boss for the first time in her life.  

2010

The IGP has continued into 2010 and is in the process of distributing loans for this year. 

• 4 staff, including 3 local employees are running the project
• Ryan DeCook – Project Manager
• Jason Stevens – Branch Manager
• Mpumelelo Malunga – Loan Manager
• Nomava Damoyi – Loan Manager
• 2 Loan Managers have been trained with a curriculum that The IGP developed
• There are 20 applicants in process of applying for group loans.  Between 14-20 loans will be distributed for 2010. 
• These entrepreneurs apply in groups and will help to care for and support their fellow group members.
• A Holistic training approach will be used to impact the physical, social, and spiritual areas of people’s lives.
• The goal of the Income Generation Project (“IGP”) is to provide holistic development to entrepreneurs in Khayelitsha and to improve their standard of living by December 2010.
• A committee of business people is being formed to help formalize the project and add accountability

The Future

• The IGP has big dreams and a big vision to impact Khayelitsha and the City of Cape Town through building the economy. 
• The townships are places overflowing with potential, creativity, but a lack of jobs.  The IGP intends meet that need and give the people of these communities the opportunity to transform themselves, their family lives, and their communities.
• The IGP vision is to see thousands of businesses created throughout Cape Town
• The IGP vision is “To empower economically disadvantaged people by providing education and creating employment by distributing loans for the creation or expansion of small businesses.  To develop healthy mindsets in dealing with business management and finances.  To have social and spiritual impact, and to raise the economic conditions of those involved to a level where their basic needs are provided for in a sustainable manner.”
• The God-given vision of the IGP can be found in Deut. 15:4-12

What’s Needed

• Funding for the next few years to help get the project to a sustainable level
• Business and Financial Mentorship