Japanese Ambassador Makoto Katsura congratulates Ms. Belen Fecundo of South Cotabato Foundation, Incorporated (SCFI) after signing the grant contract for “The Project for the Provision of Micro-Credit Capital for Augmentation of Income and Poverty Alleviation in South Cotabato” on November 25, 2010 at the Embassy of Japan. The ceremony was witnessed by the representatives from SCFI and the Embassy of Japan. |
Japanese Ambassador Makoto Katsura and Executive Director Belen S. Fecundo of South Cotabato Foundation, Inc . (SCFI), signed the grant contract for “The Project for the Provision of Micro-Credit Capital for Augmentation of Income and Poverty Alleviation in South Cotabato” on November 25, 2010 at the Embassy of Japan. The p roject, amounting to US$ 183,947 (approximately 8.5 million pesos), is funded through the Grant Assistance for Grassroots Human Security Projects (GGP).
South Cotabato Province where SCFI has its base has been affected by the continuing conflicts for decades, and the residents have had hard time in gaining sustainable livelihood. It is difficult for people whose income is not stable to get loans of private banks. Therefore, they do not have enough opportunities to launch small businesses and increase their regular income.
To be faced with the problem, SCFI has been actively involved in micro-credit projects in South Cotabato since 1999. Micro-credit project is an alternative lending system for the rural and urban poor to ensure easy access to credit for their small scale businesses such as sari-sari store management , piggery, dressmaking, balut production, rice trading and furniture making. The project does not only involve credit at an affordable interest rate of 3.33% per month, but also encourages borrowers to save on a weekly basis for build ing self-reliance and generat ing additional capital to scale up their enterprises. To date, SCFI has served more than 6,000 active clients with a 95% repayment rate. However, the existing projects cover only a small portion of the total community, and there exists more people who need the financial support to augment their businesses and improve their income.
Under this circumstance, SCFI sought the assistance of the Embassy of Japan to increase its capital for micro-credit project s and to reach more beneficiaries. The additional capital will benefit around 930 micro-entrepreneurs in the areas of Koronadal City and the Municipalities of Banga, Tantangan and Pomolok in South Cotabato. Aside from the additional capital, the grant also cover s the procurement of a vehicle that will be used to access far - flung areas. The vehicle is helpful for SCFI to frequently visit its clients and monitor projects.
Japan, as the top donor of the official development assistance, launched GGP in the Philippines in 1989 for the purpose of reducing poverty and helping various communities engaged in grassroots activities. As of March 2010, 434 grassroots projects funded by GGP – ranging from roughly 1 to 4 million pesos – have been implemented by NGOs, local government units and other non-profit organizations. The total grant for these projects so far amounts to US$ 18,982,775. It is expected that this project will further contribute to fostering the strategic partnership between the two countries towards the future.
Japanese Version
