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Sustainable Impact Mobile Microfinance (SIMM)

Challenges Entered: 

The SIMM project can be envisioned as ‘An ‘Ebay' for Africa' powered by mobile phone technology. In proper context it integrates three objectives: First it will connect African micro-entrepreneur/businesses to African buyers/consumers worldwide through a SIMM Marketplace which has a virtual face similar to Ebay, but which would be accessed mainly by phone. This will significantly enhance market accessibility, competitive marketing, bargaining and economic growth. Female  microfinance entrepreneurs can access the SIMM marketplace via SMS/MMS/phone  to list or delist their products, or ask for info: current market prices and expert advice. The Entrepreneur will receive an SMS once their product is sold, with info on pick-up and delivery. Buyers can access the SIMM marketplace for available products, pricing, location and instant purchasing, bidding or bargaining. In the long term, they can also request delivery. Secondly, SIMM will connect micro-entrepreneurs to potential lenders/investors through the SIMM marketplace. Lenders   worldwide, and especially from the African Diaspora, can connect to their sending communities watch a micro-entrepreneur MMS video and lend money to a female entrepreneur of their choice through the SIMM Marketplace. This will significantly enhance microfinance. Third, SIMM will inform: provide latest market info, prices and expert business tips to micro-entrepreneurs and subscribed businesses, consumers, as well as provide local development news to the African Diaspora (lenders) from their sending communities through the SIMM Marketplace. The latter service will enhance sustainable engagement with African Diaspora groups and goodwill non-Africans interested in a specific African country, and enhance their potential participation in sustainable development in Africa. Meanwhile info and tips would help reduce price dispersion and waste and increase an entrepreneur profits and consumer welfare. SIMM will initially focus on Cameroon with Microfinance support by the Diaspora and goodwill non-Africans mainly from the United States during the first year. The SIMM model would then be gradually extended to other African countries.  In line with USAID's priorities in Africa, SIMM will significantly enhance sustainable economic growth in Africa, and facilitate the realization of two UN Millennium development goals: End poverty and empower women.

Project Details
Project Assessment
Financial support: 
No
Sustainability Model: 
Microfinance Entrepreneurs will pay  little but sufficient interest on their loan to help with  administrative costs.  Other entrepreneurs not  microfinanced will pay a small subscription fee. As project grows fees and interests will  grow smaller, but more people will use the Marketplace. Additional funding will be used to set-up the project - hire additional personell, organize mini-workshops bringing together stake-holders, publicize the project and expand its reach both in Cameroon and the Diaspora.  ARA is also building a microfinance portfolio to request for more support   from funding agencies as the transformative impact of the model becomes more and more evident
Expertise needed: 
Policy/Program Expertise: How to promote sustainable economic growth in Africa. How to empower women. Microfinance and how to expand the reach of the poor in Africa to resources.
Management Expertise: <p>How to manage the SIMM marketplace.</p>
Technical Expertise: How to set up the SIMM Market Place
Project goals: 
The HAHA microfinance project started by ralling support from friends   and chruches in the African Diaspora and goodwill non-Africans in 2007.   In 2008, Youtube granted ARA a non-profit broadcast channel to expand reach to potential lenders and the Microfinance project went online. In October the first microfinance workshop was held in Cameroon were the problem of accessibility to markets was highlighted. SIMM will provide the solution to this problem and expand and sustain the reach and impact of the Microfinance project. Cameroon Telecom (Camtel) has expressed interest to allow women send free SMS if they subscribe to their network.
Identified Obstacles: 
One obstacle is publicity and awareness. Funding will help with this. Another obstacle is mobile phone network problems. This will be addressed by enlisting Village Phone Operators (VPOs)  to serve as satellite hubs for the SIM Market place. VPOs will be microfinance entrepreneurs themselves. This will enable access to other entrepreneurs who do not have mobile phones, and they will also provide info and news to and from the SIMM Marketplace. A VPO kit will include an antenna to extend network coverage, a battery to ensure power.

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