Review of the Freedom from Hunger Foundation Applied Nutrition Credit Program, Sierra Leone

Loans were given to 53 rice farmers in 1984, 66 rice farmers and 33 groundnut farmers in 1985, to 84 and 54 farmers respectively in 1986, and to 116 and 57 respectively in 1987. All loans are in-kind; other inputs (fertilizer, transportation, and TA) are provided free of charge. Individuals and families who participate are identified at growth monitoring sessions (periodic weighing of children aged 0-5 is an integral part of the program), and selected by Village Development Committee's (VDC's). The average loan in 1987 was equivalent to about US$34; payback has averaged 95%-98%. Currently, 91% of those receiving loans for rice are men (an improvement from the first year when only one rice loan was given to a woman). All recipients of groundnut loans are women. Traditionally, groundnuts are grown by women, and rice farming on a large scale is done by men. As is shown in some detail in this report, women undertake a variety of income-generating activities on their own. The goal of increasing annual farm income by US$80 per year has been met, but due to exchange rate variations this achievement is more illusory than real. It is more important that improved seed varieties and improved agricultural techniques have been introduced to smaller villages, and that rice and groundnut production in the villages have increased. There is little doubt that extra production in these communities can be absorbed -- 72% of farmers purchase rice at least 5 months a year due to inadequate storage facilities and a pattern of selling rice for cash (and using large amounts of grain for secret society feasting). The demand for rice outside the village is also considerable; Sierra Leone produces only 60% of the rice it consumes each year and imports the remaining 40%. This report includes a plan for an economically self-sufficient credit program, which would be administered by VDC's (whose participation till now has been limited to suggesting candidates for participation). Appended are excerpts from interviews with VDC's as well as information on other loan funds in the area. (Author abstract, modified)