So This Is Ihemi

Our second stop yesterday was Ihemi, which lies along the road we took to Kitasengwa.  Ihemi was the first Iringa Hope SACCOS that was started using our constitution, training materials, etc.  This SACCOS has really done well for its members and the community.  Last year we had a study done on the many effects of the SACCOS on this parish.  The results were truly amazing!  We will email you a copy of the results if you send your request to tomsandy1@frontiernet.net with the heading “study.”

Today we are meeting in one of the village community buildings.  In the past we have often met in the church but it was suggested that some of the non-Christian members would rather meet elsewhere.  When we arrived we saw many people we know from other visits.  The village chairman was also here to greet us and attend the meeting. 

One thing we discussed today was the new AMCOS (Farmer’s co-ops) that we are starting.  The members of the Ihemi SACCOS are not sure they want to start one of these.  They are doing so well with their SACCOS that they are not sure they need an AMCOS.  Ihemi lies directly on the tar mac at a truck stop.  They have not had trouble selling their crops to passing trucks and getting seed and fertilizer is not a problem.  The group here is split.  About half of them feel they really need an AMCOS and half are not sure.  We quickly see that those who are saying they need one are those who live in one of the outlying villages while those who do not see the need live near the tar mac.  They will need to decide this on their own and let us know how they want to proceed.

This SACCOS is fairly large (over 110 families – or over 700 people), but has stayed relatively constant in size for many years.  They always have a waiting list to join but only seem to admit enough new members to replace those who die or move.  When we commented on this the chairman told us, “When we started this SACCOS we all agreed that we would not grow the membership until we had enough capital to support the needs of 90% of the members.  We have grown our capital a lot, but we still are not there.”  Ihemi was started with a gift of $15,000.  They have now grown their capital to $25,000.  In addition, Iringa Hope loans them $20,000 – making a total of $45,000.  Still, with an average farmer looking to borrow $400-$500 and 114 members, they are only at about 75%. 

We talked a little about any problems they might be having.  Last year for the first time there were 5 late loans.  These loans have now been repaid, but still this was a first for them.  Why were they late?  Maize prices fell from the normal 60,000 TZS per bag ($30) to about 23,000 TZS ($12).  At the same time it was dry here and their harvest also fell.  People still made a profit, but some held out selling their crops until the prices rose.  Most of those who did this still found ways to pay their loans on time, but 5 did not.  The officers and loan committee went to these members and worked out an agreement for them to pay.  They all paid a fine and interest.

This group is very aggressive in collecting loans.  They post everyone’s loan status on their board and check that people are using their loans as they say they will.  The members of this SACCOS have created 237 jobs in their community.  They have built many houses, donated heavily to their church and made many improvements here.

Sandy interviewed two members after the meeting.  The first was Daud Mwilongo, 59 and married with 5 children.  Daud has been a member here since it started and has taken out many loans.  Last year he borrowed $250 to plant potatoes on some land.  With the very dry weather much of this crop was lost.  He only managed to save $300 worth of potatoes.  Considering the interest he paid and the cash he invested (about $75 or so) he estimates he lost $100 on this loan.  In the 8 years he has taken out loans he has had 2 years he made very little, last year he lost some, but during 5 years he made a profit.  So how much has he made in the good years?  He smiles and tells us he has made A LOT.  Daud is an excellent example of how to use a SACCOS.  The chairman tells me that he saves money when he does well and, like last year, uses his savings when he does not.  Over the years he has made enough to send all of his children to school, build a house, and now he has bought a motorcycle. 

The second interview was with Medelina Makeo, 52 and widowed with 5 children who lives in the nearby town of Tanengozi.  She too has been a member since the SACCOS began.  Medelina’s fields are in better soil than Daud’s.  Although she has had poor results some years, she has never lost money on her maize. (The chairman told us that while potatoes may make a lot some years and not much the next, maize is a steadier crop to raise in Ihemi.).  Last year she borrowed $500 to plant maize on her 8 acres.  Sandy asks her how she got this much land?  She told us that she inherited four acres, and earned enough to buy the other four.  To farm her land she hires four people part time.  She also owns oxen and hires a small tractor for plowing. 

Medelina is a very successful farmer.  She proudly told us that an agricultural agent who visited her farm told her that “for a woman she had done very well.”  Sandy told her that some of our most successful SACCOS members are women and that she hadn’t done so well “for a woman” – she had done so very well “as a farmer.”

We enjoyed reminiscing about our first visit when we came to Ihemi with a group from our church, Christiania.  At that time Tanengozi was a preaching point of Ihemi and Medelina was one of their church leaders.  It’s always fun to meet people that we met long ago; a pleasant reminder of “relationship” that our partnership with the Iringa Diocese strives to achieve. 

At Ihemi we met in this community building.  We normally meet in the church, but they felt that the non Christian members of the SACCOS (about 15%) would feel more comfortable here.

About 40% of the members were at the meeting.  Pretty good for a field day in growing season.  We saw many, many old friends.

The Ihemi pastor Luci Fweni is a member of this SACCOS.  She is a great fan of Iringa Hope.

Peter and Sandy talked with two members after the meeting.

Daud Mwilongo is 59 and married with 5 children.  Daud has been a member here since it started and has taken out many loans.

Medelina Makeo is 52 and widowed with 5 children who lives in the nearby town of Tanengozi.  She too has been a member since the SACCOS began.  

You may recall that Tom always carries candy to give to the children.  Earlier in the week it seemed that he was losing this job to Itiweni.  Today Itiweni is not with us, but it still seems like Tom has lost his job since mama brought candy today!