How repaying loans with social service transforms communities
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0:01 - 0:03Most of you will know
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0:03 - 0:08about the challenges faced
by my beloved continent, Africa. -
0:09 - 0:11Too many people are poor.
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0:11 - 0:14Millions of girls
don't have access to school. -
0:14 - 0:18And there aren't enough jobs
for the rapidly growing population. -
0:19 - 0:21Every day,
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0:21 - 0:2533,000 new young people
join the search for employment. -
0:25 - 0:29That's 12 million
for three million formal jobs. -
0:29 - 0:31In sub-Saharan Africa,
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0:31 - 0:37less than one in four young people
are likely to get waged or salaried work. -
0:37 - 0:39The chances of making a secure living
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0:39 - 0:43are even slimmer
for poor and rural young women. -
0:44 - 0:46They cannot afford an education.
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0:46 - 0:51And they do not have the same access
to wages, loans or land -
0:51 - 0:52as men.
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0:52 - 0:55This leaves entire communities trapped
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0:55 - 0:59in a vicious cycle of poverty,
inequality and hopelessness. -
1:00 - 1:04But I'm not here
to narrate the doom and gloom, -
1:04 - 1:07because we also know
that a youthful population -
1:07 - 1:10presents an opportunity
to kick-start economic growth -
1:10 - 1:12and solve global challenges.
-
1:12 - 1:13And in fact,
-
1:14 - 1:19there is a growing movement in Africa,
of educated young women, -
1:19 - 1:23who are stepping up and using
the power of their network -
1:23 - 1:25and a tool we call social interest
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1:25 - 1:27to uplift communities.
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1:28 - 1:32I'm one of the leaders
of the organization behind this movement. -
1:33 - 1:36An organization that also
supported me through school. -
1:37 - 1:42And I have seen social interest
multiply the impact of our work. -
1:43 - 1:48Social interest is a way
to pay back interest on a loan -
1:48 - 1:51through service, rather than dollars.
-
1:51 - 1:53Sharing time and knowledge
through mentoring, -
1:53 - 1:55academic support,
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1:55 - 1:57business training to others in need.
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1:57 - 2:03This means the impact of a loan
is felt not by one, but by many. -
2:04 - 2:05Through this system,
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2:05 - 2:10we've been able to help
and send more and more girls to school, -
2:10 - 2:12support them while they are there,
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2:12 - 2:13help them start businesses
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2:13 - 2:16and ultimately,
lead in their communities -- -
2:16 - 2:20all while providing funding
for the next generation. -
2:21 - 2:23Social interest can be used
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2:23 - 2:28to supercharge any movement
where the benefits can be paid forward. -
2:28 - 2:30Let me give you an example.
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2:30 - 2:33This is Stumai from rural Tanzania.
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2:33 - 2:37She tragically lost her father
when she was just three years old. -
2:37 - 2:41Leaving a disabled mother
to single-handedly raise her -
2:41 - 2:43and her five siblings.
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2:43 - 2:44Once Stumai completed primary school,
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2:44 - 2:46she was about to drop out of school
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2:46 - 2:52and become one of the 92 percent
of girls in sub-Saharan Africa -
2:52 - 2:54that never finish high school.
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2:54 - 2:56Instead, she got lucky.
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2:56 - 2:59She got support from a nonprofit
that paid her fees -
2:59 - 3:01and kept her in school.
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3:01 - 3:03But upon graduating high school,
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3:03 - 3:06she faced a daunting challenge
of what's next. -
3:07 - 3:10She knew she had to start
her own business to survive. -
3:10 - 3:12And to help her mother,
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3:12 - 3:15who had tried so hard
to keep her in school -
3:15 - 3:17by selling her only assets,
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3:17 - 3:20a stack of corrugated iron sheets
she had been saving -
3:20 - 3:24in the hope of building
a better home for her children. -
3:24 - 3:28Stumai also knew she wouldn’t get a loan
from a traditional bank, -
3:28 - 3:31which generally considers
young, rural women like her, -
3:31 - 3:35without land or assets, unbankable.
-
3:35 - 3:37Through a special group
of lending partners, -
3:38 - 3:42she secured 350 dollars
to start a food shop, -
3:42 - 3:47selling vegetables, oil, rice,
tomatoes, onions and beans. -
3:47 - 3:50Fellow network members helped
to train her on basic business skills, -
3:50 - 3:52like creating a business plan,
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3:52 - 3:55working out profits, marketing,
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3:55 - 3:56keeping business records
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3:56 - 3:58and the value of savings.
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3:58 - 4:00And the business took off.
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4:00 - 4:04She repaid the original loan
within eight months, -
4:04 - 4:06and then borrowed 2,000 dollars
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4:06 - 4:10to start a motorcycle taxi
and courier business. -
4:11 - 4:14Stumai now owns two motorcycles
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4:14 - 4:17and employs two people.
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4:17 - 4:20And she has been able
to purchase land and build a house, -
4:20 - 4:22and the business continues to grow
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4:22 - 4:25from strength to strength.
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4:25 - 4:30Stumai repaid her interest
in social interest. -
4:30 - 4:32She paid social interest
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4:32 - 4:36by providing mentoring
to girls in a local high school. -
4:36 - 4:40She volunteered weekly as a learner guide,
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4:40 - 4:43delivering a life skills
and well-being curriculum -
4:43 - 4:47that helps children gain
the confidence to ask questions, -
4:47 - 4:49care for and support each other,
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4:49 - 4:51learn about health and nutrition,
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4:51 - 4:54set goals and learn how to achieve them.
-
4:54 - 5:00Stumai says her greatest reward
is witnessing the girls she mentors -
5:00 - 5:03start to believe in themselves
and succeeding. -
5:04 - 5:07These days, Stumai also trains
other learner guides. -
5:07 - 5:11That's multiplying the number of girls
making it through school -
5:11 - 5:14and into secure livelihoods like she did.
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5:15 - 5:18Through her business profits,
she has been able to support her siblings, -
5:18 - 5:22three nieces and nephews
and other children in her community -
5:22 - 5:23to go to school.
-
5:23 - 5:26She also regularly supports
other network members. -
5:26 - 5:27For example,
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5:28 - 5:31a young woman studying for a diploma
in community development. -
5:32 - 5:34In the past two years,
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5:34 - 5:37Stumai helped her with money for bus fare,
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5:37 - 5:39for sanitary pads, for soap
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5:39 - 5:41and encouraged her to keep going.
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5:43 - 5:49Stumai spends 370 dollars a year
supporting the education of others. -
5:50 - 5:56That's 17 percent of her gross earnings
from her motorcycle business. -
5:57 - 6:00This is the power of social interest.
-
6:01 - 6:06Stumai's example shows
that if you help one girl, -
6:06 - 6:07not only to go to school,
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6:07 - 6:10but graduate and start a business,
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6:10 - 6:13she can in turn make a giant difference
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6:13 - 6:16in the lives of others and her community.
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6:16 - 6:20Had Stumai paid back interest
on her loan in dollars, -
6:20 - 6:24her success might have been felt by her
and her immediate family, -
6:24 - 6:28but because she paid interest
as social interest, -
6:28 - 6:31the impact was felt by her mentees,
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6:31 - 6:33her nieces, nephews, her employees
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6:33 - 6:36and so many others around her.
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6:36 - 6:39Stumai is just one example of many.
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6:40 - 6:45Today, we have 7,000
learner guides like Stumai, -
6:45 - 6:47working across Malawi,
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6:47 - 6:51Tanzania, Ghana, Zambia and Zimbabwe.
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6:51 - 6:52And collectively,
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6:52 - 6:55they've helped children
do better in school. -
6:56 - 7:00The girls we work with
are nearly three times less likely -
7:00 - 7:02to drop out of school,
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7:02 - 7:05because learner guides make home visits
when girls fail to attend school -
7:05 - 7:07to help them back on track.
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7:07 - 7:11They also work with communities
and district governments -
7:11 - 7:14to address the challenges children face,
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7:14 - 7:18including preventing
or annulling child marriages, -
7:18 - 7:21connecting children facing hunger
or hardship at home -
7:21 - 7:22with local support,
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7:22 - 7:24or running study groups
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7:24 - 7:27so that children who might be
lagging behind in their studies -
7:27 - 7:29can get supporters and catch up.
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7:30 - 7:35They act as trusted sisters,
friends and guardians. -
7:35 - 7:40So far, nearly 6,300 network members
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7:40 - 7:43have borrowed close
to three million dollars, -
7:43 - 7:50with a repayment rate of those loans
at consistently above 95 percent. -
7:51 - 7:53And our 140,000 members,
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7:54 - 7:58they have invested their own resources
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7:58 - 8:00to support and send
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8:00 - 8:05over 937,000 children
to primary and secondary school. -
8:06 - 8:08Every young woman we work with
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8:08 - 8:11supports, on average,
another three children -
8:11 - 8:14outside of her immediate family
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8:14 - 8:15to go to school.
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8:15 - 8:18All without additional money from us.
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8:19 - 8:22We are building a powerful force.
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8:22 - 8:25Gaining ever greater momentum
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8:25 - 8:28as we open the door
for more and more girls -
8:28 - 8:30to go to school,
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8:30 - 8:34succeed, lead and in turn,
support thousands more. -
8:34 - 8:36This system,
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8:36 - 8:39supporting those once excluded
to transform their lives -
8:39 - 8:41and then step up for others,
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8:41 - 8:44can work for more than girls' education.
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8:45 - 8:48Of course, you need to get
your money back if you lend it. -
8:49 - 8:52But instead of demanding
interest in dollars, -
8:52 - 8:55can you consider using
social interest instead? -
8:56 - 8:58For example,
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8:58 - 9:00could young people
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9:00 - 9:03pass on the skills they learned
in training colleges? -
9:04 - 9:05Like Michelle,
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9:05 - 9:08who teaches brickmaking
in rural Zimbabwe. -
9:08 - 9:09Or Louisa,
-
9:09 - 9:12who is training others
on climate-smart agriculture -
9:12 - 9:14in Malawi.
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9:14 - 9:15Or Fatima in Ghana,
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9:15 - 9:18who is training women
to help deliver babies -
9:18 - 9:20where expectant mothers
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9:20 - 9:23might not be able to make it
to the local hospital on time. -
9:24 - 9:26When I was growing up,
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9:26 - 9:29an elder in my village in rural Zimbabwe
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9:29 - 9:32once described the challenges I faced
in going to school. -
9:33 - 9:34She said,
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9:36 - 9:39"Those who harvest many pumpkins
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9:39 - 9:42often do not have the clay pots
to cook them in." -
9:43 - 9:44(Laughter)
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9:44 - 9:47What she meant was that,
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9:47 - 9:53although I got the best possible
results in my exams -
9:53 - 9:56when I finished elementary school,
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9:56 - 9:58my talent was of no value
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9:58 - 10:03if my family could not afford
to pay for me to continue my education. -
10:03 - 10:05Well, with this system,
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10:06 - 10:08we are not just providing pots,
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10:08 - 10:11or making a single meal
out of the pumpkins. -
10:11 - 10:13After all,
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10:13 - 10:16there are hundreds
of seeds in a single pumpkin. -
10:16 - 10:18We are saving the seeds,
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10:18 - 10:19planting them
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10:19 - 10:21and nurturing every one of them.
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10:22 - 10:24And the result?
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10:24 - 10:29A virtuous cycle of prosperity,
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10:29 - 10:31equality and hope,
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10:31 - 10:33led by young women.
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10:33 - 10:34Because together,
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10:34 - 10:37we are shaking up the world.
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10:37 - 10:39Pamoja tunaweza --
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10:39 - 10:42that's Swahili for my network motto:
"Together we can!" -
10:42 - 10:44Thank you.
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10:44 - 10:50(Applause)
- Title:
- How repaying loans with social service transforms communities
- Speaker:
- Angie Murimirwa
- Description:
-
What if you could repay loans through volunteering and mentorship instead of money? Activist Angie Murimirwa shares how a game-changing economic tool known as "social interest" is reinvigorating sub-Saharan communities once trapped in cycles of poverty. Join her as she explains how this approach to lending is creating opportunities for thousands of African women and girls -- and shows why this model can be replicated anywhere with lasting effects.
- Video Language:
- English
- Team:
- closed TED
- Project:
- TEDTalks
- Duration:
- 11:03
Erin Gregory edited English subtitles for How repaying loans with social service transforms communities | ||
Erin Gregory edited English subtitles for How repaying loans with social service transforms communities | ||
Erin Gregory approved English subtitles for How repaying loans with social service transforms communities | ||
Erin Gregory edited English subtitles for How repaying loans with social service transforms communities | ||
Krystian Aparta accepted English subtitles for How repaying loans with social service transforms communities | ||
Krystian Aparta edited English subtitles for How repaying loans with social service transforms communities | ||
Krystian Aparta edited English subtitles for How repaying loans with social service transforms communities | ||
Ivana Korom edited English subtitles for How repaying loans with social service transforms communities |