Post on 15-Jan-2016
RURAL COMMUNITY DEVELOPMENT AT JABAL AL HOSS
Mahmoud AsaadUNDP-SYRIA
Workshop on Microcredit-Financing and Poverty Alleviation in OIC Member StatesIstanbul, 9-10 July 2007
1. Jabal Al Hoss is in the south east of Aleppo.
2. 250.000 person
live in the area, most of them are under the poverty line.
3. It is 157 000 hectare.
4. There are 156 village and farm.
Why Jabal Al Hoss?Drought,
Annual average rate of rainfall 150 - 250 mm .
Shortage of drinkable and irrigation water.
Volcanic rocks cover %23 of the total area, and can't be reformed.
%55 of the lands need reform.
Water:
bought and kept in semi covered tankers which endanger it to pollution.
Residence:
%46.3 of population live in a single mud domes.
This dome is a multi purpose house.
People work in:
Agriculture: rainfed crops.Barley, Cumin, Wheat, Lentil
%40,2 of the villagers are landless.
Livestock keeping: sheep, goats and cows.
Migration:%40 of the population migrate
for (2-3months).%3.5 migrate for more than 6
months.
Population growth rate %3.4 %51 of them under 15. %51 of them under 15.
Illiteracy rate at the age of Illiteracy rate at the age of 13and above %58 and it is 13and above %58 and it is higher among women.higher among women. Household average size is Household average size is 9 person.9 person.
Dependency ratio 4.5% person
Population Demographic Indicators
Access to Credit
• Moneylenders from informal credit markets charge very high interest rates( 75 %(.
• 15 % can access money from formal credit markets.
• 85 % can not access money from formal credit markets : religious, complex procedures, no physical collateral.
Rural Community Development project (RCDP ) in Jabal Al-Hoss
is a joint project of the Ministry of Agriculture and UNDP.
It was approved in 1998.
Implementation started in 2000 .
The first Sanduq was established on September,
2000.
Project objective
Establishment of a sustainable network of self-reliant local microfinance institutions (sanadiq) to finance employment-generating small and micro enterprises.
Low-income people, the underemployed and the unemployed - men, women and youth.Shareholders in the village funds at Jabal Al Hoss.
Target group
Project period
Phase one: 1999 - 2002Phase Two: 2003-2007
1-UNDP offers $1,4 million.
2 -Japanese government $1.5 million.
3- Syrian government: contributes with sp.40 million and provide locations, operational costs, maintenance, and required governmental staff.
Financial Resources: 1999 - 2007
It is a self-reliant local financial institutions, concerned in funding micro investments through easy ,fast and flexible Islamic lending methods in addition to offering training, technical and social care services.
What's Villages Sanadiq?
VF. Establishment Mechanism
Establishment application
from LC
Establishment application
from LC
3-6 Months Experimental
period
3-6 Months Experimental
period
Elect 3 members for the VD
Committee 1 at least women
Elect 3 members for the VD
Committee 1 at least women
100 Members) shareholders(
Value of share 20 US$
100 Members) shareholders(
Value of share 20 US$
Injection Fund from UNDP
Injection Fund from UNDP
V.Fs Financial Resources
Membersshares
Membersshares
(UNDP)(UNDP)Retainedearning
Retainedearning
VFCapital
VFCapital
VDF.s number
9
2022
32
0
10
20
30
40
2000200120022006
VD
F.s
No
.,
Characteristics of the Village Fund Model
)1(Meet loans needs of the local community.
)2(Consider prevailed traditions and norms.
)3(Easy and flexible procedures to be applied through the local community.
)4(Financing based on the concept of Murabaha with net profits shared among members.
)5 (Good governance through committees with sound election and voting procedures.
)6 (Project management team responsible for creating awareness of microfinance practices, training of committee members.
)7 (Financial management of the funds based on standardized by-laws and statutes for each of the village funds resulting in “fair” credit decisions and low transaction costs.
)8 (Financially viable operations with repayment rates closeto 95%.
)9(Equal access to both men and women as owners and users.
)10(Central Fund:Sanadiq apex fund forliquidity exchange and refinancing.
)11(Support from UNDP in the form of matching grant equal to minimum share capital of village fund.
)12 (Support from Ministry of Agriculture and UNDP in the form of in-kind donations.
)13 (Offering loans as Al Qard Al Hassan for disabled.
Financial products
Shares:
Share value SL.1000 (20 US$) , as a shareholder can own maximally 50 share.
Any member can withdraw his share capital after at least 1 year of the date of his participation.
All the inhabitants of the village can buy shares regardless of their age.
Shareholders
عددالمساهمين
1025
34554691
60007360
0
2000
4000
6000
8000
20002001200220032006
العام
ن
ميساه
لمدا
عد
Total Shares Value
14777500 13389000
12717500
10652610
6557110
1901000
4635000
2000 2001 2002 2003 2004 2005 2006
0
2
4
6
8
10
12
14
16
1 2 3 4 5 6 7
Mil
lio
ns
Financial products Loans:
1 .Loans type: according to repayment way:*Seasonal loans repaid as a lump sum at the end of
the period, Monthly profit margin 1.25.%
*Loans repaid by quarterly installments each 3 months, Monthly profit margin 1.%
*Loans repaid by monthly installments, Monthly profit margin 0.75%
Loan term:*It is specified according to the cash flow of the economic
activity but it shouldn't exceed a 1year.*Average loan term : 10 months.
Loan size:*No more than US$ 1000 in the first loan cycle as it is
increase gradually through building the client credit worthiness.
*The maximum loan size is US $ 3000 .*Average loan size : US $ 800
Loan collateral:Two reputable grantors from the village.Signing promising vouchers.
Total Outstanding Portfolio
1.79
20.40
31.94
63.8372.59
78.29
91.85
0.00
10.00
20.00
30.00
40.00
50.0060.00
70.00
80.00
90.00
100.00
1 2 3 4 5 6 7
Mill
ions
2000 2001 2002 20042003 2005 2006
Total Value of disbursed loans: US $ 8.560 Million (11200 Loan)
%Loan Purpose
%45 farming
%2 industrial %3 Service
%10 trade
% 40 livestock
Financial products
Dividends:
Year 2001 2002 2003 2004 2005 2006
Dividend % of share value (US $ 20)
22% 29% 22% 21% 22% 20%
Non Financial services Training
/97/ training courses were conducted and beneficiaries' number (men and women) was 1688 .
literacy courses.
Non Financial services
Nursing courses
Non Financial services
Hand crafts
Sewing
Tailoring
Non Financial services
livestock andhoney bee keeping
Non Financial services
Food industry
Electronic devices maintenance
Electrical equipment repair
Hair dresser and barbers
Non Financial servicesMarketing:
For the
traditional
women products
through fairs and
economic activities.
Village Funds Challenges Legal frame work ( sanadiq legalization) Link sanadiq with banks (for sufficient fund) Independence self management through a
sanadiq board from the local community. Access sustainability levels. Wide spread nationally and regionally. Establish specialized links and unions in
production and market income generating activities.
1-President of Syria issued in Feb 2007 the legislative Decree no. 15 which provides for permitting the Credit and Monetary Council to license the establishment of a social banking and financial institutions.
2-These institutions aim to offering small and Micro finance in addition to banking and financial services
for certain section of peoples.
3-These institutions may be established by Syrian, Arab or foreign boards.
4- Minimum capital of this institutions is 5 Million US$