Microcredit – Tomato farming
Tomato farming, especially around the southwest- and northwest regions of Cameroon, is a lucrative business due to the good climate and soils around mount Cameroon. Many farmers would like to engage in tomato farming, but lack the finances to do so. They cannot afford to acquire the right knowledge, to rent pieces of land or to buy the necessary seeds and seedlings, tools, fertilizers and other chemicals. Because of this, most farmers operate on a subsistence level and can barely feed themselves and their families. A microcredit of about 1300000 CFA (2000 EUR) would enable them to receive a short training on commercial farming, rent a sizeable piece of land, buy quality seeds and seedlings and fertilizers. After planting, harvesting can be done after approximately 3 months and the yield will be about 4000000 CFA (6000 EUR).
It is also a big problem that a lot of chemicals are used in Cameroon, infecting groundwater. In the training the farmers will receive special attention will be paid to these issues and focus will be laid on sustainable farming.
Microcredit – Tailoring
Tailoring, otherwise called seamstress, employs about 40% of youths (mostly girls) that lack a form of education. The training to become a seamstress takes about 3 months. To earn a living, the trainee should buy his own working tools like a sewing machine and fabrics. However, for most of these people this is infeasible due to lack of finances to do the training of buy the equipment. Due to these problems, there are many people that have the skills but still cannot earn a living, because they cannot start a business of their own. If they can receive a microcredit of about 990000 CFA (1500 EUR). With this, they can conveniently start a tailoring shop, make a living and engage other people for training. They can earn about 15000 CFA (23 EUR) a day, allowing them to pay back the microcredit in a period of at most 6 months.
Microcredit – Commercial Motor Bikes
Due to the high unemployment rate in Cameroon, the job opportunities for graduates from universities and higher institutions are extremely few. This is also the case for people without any form of education or training. Because of that, commercial cycling could be a way out for them to earn a living. Unfortunately, most of these people cannot afford to buy a bike or the necessary equipment. A bike can be bought for approximately 300000 CFA (450 EUR) and brings in about 6600 CFA (10 euros a day). Thus, a microcredit for a bike can be paid back within at most 6 months. Then, the beneficiary can earn a living and take care of his family.
Microcredit – Case study Hairdressing
Lucia is a 26-years old Cameroonian, born in the southwest region of Cameroon. She did not finish high school because of financial reasons, so she chose to take a vocational training on hairdressing. She is a hairdresser, but does not have a saloon of her own. This means that, on occasion, she has to go from house to house to see her customers. With going from house to house she earns about 1000 CFA (1.5 EUR) a day. Even in a developing country like Cameroon, this is not enough to cover daily expenses, not even mentioning, for example, proper health care.
Even though it is obvious that Lucia is yet to acquire the right administrative skills to run her own saloon, she has shown a great interest in entrepreneurship and has developed a good plan for a start. If YPA gives her a short training on accounting procedures for small business management and a microcredit of 990000 CFA (1500 EUR), she will be able to open her own saloon and earn at least 200000 CFA (300 EUR) a month.