Project: Empowering Older People through Microfinance Project

PROJECT CONCEPT DOCUMENT

I. General Information
Project name: Empowering Older People through Microfinance Project Project number: 001
Requestor name: Mtukulo Date of request: May 23, 2014
Requestors information: Mtukulo, C/O Janet Z. Karim, New York


II. Business Justification:
The global demographic age wave has for the past few decades been changing wherein the
United Nations estimates that by 2050, almost 2 billion people will be 65 years of age and
older. At this rate, older people will outnumber those under the age of 15. And, it is also
estimated that by 2050, approximately 80% of older persons will be living in low income
countries like Malawi. Generally, these countries do not provide secure pensions for their
aging populations and extreme and grinding poverty is and will continue to be a reality for
so many of the elderly. Income insecurity for older persons and many older persons are
increasingly unable to lead a life in dignity and with adequate financial resources. Older
persons are often excluded from participating in microfinance initiatives merely because of
their age.

There are however numerous challenges for many older persons who live in poverty, in rural
areas, those who will provide the primary source of a livelihood for themselves and their
families, and who are insecure about their financial futures. One of these is the increasing
death rates of the 30-50 year old members of many African societies (mainly due to HIV and
AIDS), leaving communities with young people below the age of 15 and older persons (over
60, and of retirement age).

In Malawi, like many parts of the world, the elderly are, in essence, invisible. They are so
often considered, by families, by communities, and by governments, to have had their best
days behind them. While deterioration is inevitable, their assets, strengths and
abilities are almost always underestimated. This is largely due to the realities of changing
family structures, economic pressures and opportunities, and increasing longevity. It is for
this reason that Mtukulo would like to participate in improving the quality of life for older
persons. Mtukulo has decided to create a Microfinance Fund for Older Persons for the
following values:
There is the need for attention to the life cycle of all aspects of the microfinance
community, which is critical to developing culturally appropriate microfinance
products for older persons;
The issues and financial security of older persons must be an integral part of any
national and local economic development plan in order for it to be successful in
the long term;
Provision of small grants that would disburse loans would encourage the creation
of microfinance products for the elderly employing the active participation of
older persons in the planning and implementation processes; and
It is a crucial to include older persons as worthwhile customers of microfinance
and micro credit products.

III. Project Description
Project Objectives:
To jump start this initiative and encourage enthusiasm to the development of
financial instruments throughout the microfinance community as one option to
help alleviate poverty for older persons of this and future generations;
To encourage MFIs and NGOs to develop age-friendly livelihood activities
including revolving funds, in-kind support, cash transfers and low interest loans
with flexible repayment and savings mechanisms;
Project: Empowering Older People through Microfinance Project

To provide funds for an impact grant to qualified NGO(s) targeted to increase
awareness of the issues of the elderly in the microfinance community and to
establish an innovative and effective microfinance product(s)/loans for older
persons; and
To empower older persons to become entrepreneurs to benefit themselves, their
peers, their families as well as the larger community;

Project Outcomes
At the end of the project, the voices of older persons are heard. Their unique
situations are incorporated into the creation of new initiatives. As the disability
advocacy community has so forcefully said Nothing about us without us.
Older people claim their rights, challenge discrimination and overcome poverty, so
that they can lead dignified, secure, active and healthy lives; and
The acknowledgement that the microfinance community is an important component
of economic development strategies for the worlds elderly.
Empowered older persons positive impact in the upbringing of youths

IV. Project Costs $75,000.00
Fund ..$60,000.00
Cost share $5,000.00
Travel/Transportation: $7,000.00
Communication $3,000.00

V. Timeframe Y/N YES Date required: June 2014
Desired completion date January, 2015

Section Two To be completed by the review committee
VI. Planning Estimates: Project will start right before June 2014 and will end in January 2015.

VII. Business Areas Impacted: Blantyre, Zomba areas, Malawi.

Section Three To be completed by the review committee
VIII. Selection Committee Review
Date of review:
Comments:
Project reviewed/: APPROVED/DENIED
Project priority:

IX. Signatures of Review Committee