Grant to Freedom from Hunger (FFH) for a poverty-lending program for the poorest economically active women in Ghana, especially those with young children (CASAW project). The grant expands FFH”s existing Credit for Education program in Ghana to four new regions. Under CASAW, women interested in receiving loans will come together to form credit associations of 25-30 members. After receiving training in credit association management and mutually guaranteeing each other”s loans, these associations will receive funds from the program through the financial institutions listed below and onlend them to their members for income-generating activities such as buying and selling grains and tubers; processing and selling palm oil, coconut oil, and other products; and preparing and selling food at roadside restaurants. In addition, borrowers will participate in nonformal educational sessions on topics critical to improving household health and nutrition, including family planning, microenterprise development, and credit association management. Since the credit associations are linked with existing financial institutions and charge market interest rates, their financial services are expected to become sustainable within 3-4 years. USAID funds will be channeled to the credit associations through two rural banks — Nandom and one to be named later — and two urban institutions — Citi Savings and Loan (CS&L), and Women”s World Banking/Ghana (WWB/G). CS&L will receive loan funds from the African Project Development Fund; other partners will receive loans from FFH and use the loan interest to cover program costs. FFH will manage the program and provide TA and training to the participating financial intermediaries. The program is expected to reach 34,500 beneficiaries by 1999, each receiving loans ranging from $20 to $300.
