Embassy of Japan's Minister for Economic Affairs Akio Isomata (seated 3 rd from the left) led the launching ceremony of the Project for the Provision of Micro-Credit Capital for Augmentation of Income and Poverty Alleviation in South Cotabato on February 1, 2011 in Koronadal City. The event was witnessed be South Cotabato Provincial Governor Arthur Y. Pingoy, Jr (seated 4 th from the left), Former Governor and Chairperson of South Cotabato Foundation Inc.(SCFI) Board of Trustees Ismael D. Sueno (seated 5 th from left), Banga Municipal Mayor Henry L. Ladot (seated 6 th from left), and staff and beneficiaries of SCFI.
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Minister for Economic Affairs Akio Isomata of the Embassy of Japan attend ed the launching ceremony of “The Project for the Provision of Micro-Credit Capital for Augmentation of Income and Poverty Alleviation in South Cotabato” on February 1, 2011 at the South Cotabato Gym and Cultural Center in Koronadal City. South Cotabato Governor Arthur Y. Pingoy, Jr., Banga Municipal Mayor Henry L. Ladot and Ms. Belen Fecundo, South Cotabato Foundation Inc. (SCFI) Executive Director also attend ed the event. The project, 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 address the problem, SCFI has been actively involved in micro-credit projects in South Cotabato since 1999. A m icro-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. Not only does the project does not only involve credit at an affordable interest rate of 3.33% per month, but it also encourages borrowers to save on a weekly basis for build ing self-reliance and generat ing additional capital to scale up their enterprise s . 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 exist 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 Polomolok 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.
In his speech, Minister Isomata stated that this project clearly embodied Japanese ODA's pillars, which are economic growth, poverty reduction and the peace and stability in Mindanao . He also emphasized that even small organizations could offer opportunities for people who need additional sources of living. Japan believes that this project will not only strengthen friendship between the peoples of Japan and the Philippines but also contribute to fostering a strategic partnership between the two countries towards the future.
Japan , as the top donor of the official development assistance for the Philippines , launched G GP in the Philippines in 1989 for the purpose of reducing poverty and helping various communities engaged in grassroots activities. As of March 20 10 , 434 grassroots projects funded by GGP – ranging from roughly 1 to 4 million pesos – have been implemented by NGO s , local government units and other non-profit organizations. The total grant for these projects so far amounts to US$ 18,982,775 . Japan believes that this project will not only strengthen friendship between the peoples of Japan and the Philippines but also contribute to fostering a strategic partnership between the two countries towards the future . -end-
Japanese Version
Speech of Minister Akio Isomata
