Micro-Financing

The development loan program initiated by the Virunga Alliance has supported economic growth and stability in the region surrounding Virunga National Park since its launch in 2017.  This initiative has since evolved into Grameen Virunga SA, a dedicated microfinance institution established in partnership with the globally renowned Grameen Trust. With over 35 years of experience in designing innovative financial solutions for the world’s poorest communities, Grameen Trust has been instrumental in shaping Grameen Virunga SA’s microcredit model. This expertise is now being applied in North Kivu, where more than 90% of the population lives in extreme poverty, to drive meaningful economic change.

Key Highlights

The program’s main goal is to provide accessible financial services to local entrepreneurs and households, empowering them to start small businesses, generate income and support their transition to renewable energy. This approach not only supports poverty alleviation but also reduces reliance on the Park’s resources, contributing to both economic development and conservation efforts.

Loan Lifecycle Management

Grameen Virunga manages the entire loan lifecycle, from prospecting and analysis to loan repayments and debt collection.

Electricity Based Repayment Mechanise

A standout feature of Grameen Virunga's services is its innovative green loan program, which ties repayments directly to electricity consumption. This unique model not only promotes financial inclusion in North Kivu but also encourages the adoption of renewable energy. By linking loan repayments to electricity usage, Grameen Virunga SA has introduced a groundbreaking and flexible system for managing microloans, particularly benefiting rural and underserved communities.

Grameen Virunga provides a variety of loans to meet community needs

    01
    Below $5,000
  • 01
    Below $5,000

     These loans target the poorest households, enabling them to transition to renewable energy through products like ecookers—a package combining an electric cooker and a small capital loan.

  • 02
    Between $5,000 - $15,000
  • 02
    Between $5,000 - $15,000

    These loans are designed for small entrepreneurs. Repayments are made via electricity consumption, providing flexibility to business owners.

  • 03
    Above $15,000
  • 03
    Above $15,000

     Larger credit lines are available for small and medium-sized enterprises (SMEs) needing short-term capital, addressing the high interest rates (20-30%) typically faced in North Kivu.

Photo credit:

I use my e-cooker daily; it's faster than cooking with charcoal, allowing me to free up time for other activities. I would encourage my friends and family to use e-cookers. They are more cost-effective, especially now, with inflation affecting everyone's lives in Goma.

Wivinne

Social And Economic Impact

Since 2017, Grameen Virunga and its precursor program have disbursed approximately $2.5 million in loans, benefiting over 1,424 entrepreneurs across North Kivu. The portfolio has grown by 170% year-on-year, with low default rates thanks to the electricity-based repayment system. Grameen Virunga aims to continue expanding, particularly in supporting households to transition to renewable energy. With 47,000 households connected to the grid, the goal is to reach 80% of these homes through financing green technologies.

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