Microfinance in Rural Africa

by Liz Bello-Mathews

Although many people proclaim a commitment to community service, few find themselves navigating the underdeveloped villages of Central Africa . But after managing a small health center in Bongo, Frederic Ruaz explains that he became infatuated with the region.

“I become an Africa lover,” he says. “convinced that business could help development and that development could help business.”
As an avid enthusiast of international development, Ruaz jumped at the chance to embark on a micro-finance internship with Freedom from Hunger in West Africa ’s Burkina Faso .

“This was an opportunity to get a new and concrete experience there,” he says. “My role in the development of microfinance health loans was crucial.”

But his tasks were not without barriers. Burkina Faso is one of the poorest countries in the world, where 50% of the population in the country’s capital, Ouagadougou , live on less than $1USD.

“We were challenged by immense poverty, illiteracy, distance, and lack of communication,” he says. “How do you explain the principle of loan and interest, and how do you identify the beneficiaries to people who don’t understand the concepts. Plus, I did not have a financial background and I worried about my ability to manage financial projects.”

Ruaz’s unique MBA abilities quickly became an asset to the organization; skills he developed during term courses.

“I did not expect that my former class work would be so useful,” he says. “I analyzed financial terms and conditions related to the health loan products, and my management and strategic skills coupled with previous work experience helped me to cope with ambiguity,” he says. “My work consisted not only in the implementing and adjusting of the microfinance projects, but also in creating the basic guidelines and sound practices that Freedom from Hunger will disseminate broadly in the African Microfinance Institution. In some way, I took an active part in defining a practice of health loan microfinance in Africa .”

Ruaz was surprised to find that marketing skills were useful in Africa .
“Distribution channels are a key issue to promote and sell financial services in this isolated region, where 85% of the population does not know how to read and most don’t speak the official language, French,” he says. “Most don’t have access to a telephone, the Internet, television or even a radio, so you have to think outside the box to reach them.”

He reiterates that the value of an MBA student in such an organization is easy to spot.
“An MBA thinks globally and is able to use very different skills and combine them to make the most efficient work. It is not about being good only in accounting, finance, marketing or strategy; but also about being able to leverage all of these skills to improve the life situation of many.”

Ruaz highly recommend this internship to a future MBA.
“Facing human challenges in emerging countries helps you learn more about yourself than you expected from an internship.”

 
 
 


Sang with Cheese

<< More Featured Stories