Grace A. is a mother of four children and has been an active member of Life in Africa for the last four years. Five years ago she was faced with the problem of earning enough money to support herself and her children. As with many women in her situation, she turned to something she knew to try and earn money. She happened to know how to make good peanut butter and so she started her small business. Her main goal was to be self reliant and to serve her customers well while earning an income to support her children.
In the beginning she used the age old method of grinding the nuts using a mortar and pestle. This method worked but it was a very slow process and she found she was not able to make the peanut butter fast enough to earn adequate money. To remedy this, she carefully planned and saved to purchase a processing machine. This enabled her to process enough to meet the de-mands of her customers and her business grew.
But her good business sense tells her that she can do more. She now has the capability of pro-ducing large quantities but still must produce smaller batches because she has no way of storing it until it is sold. This will require the purchase of a refrigerator which will allow her to always have a supply on hand and will also enable her to increase her number of customers. To accomplish this she is seeking a loan in the amount of 800,000us. This amount will purchase a refrigerator, additional packing materials needed and the necessary capital to expand her production.
Below is her budget:
800,000/= LOAN BUDGET
PACKING MATERIALS 200,000=
ADDITIONAL CAPITAL 200,000=
Based on her current income, Grace will be able to repay the loan in 6 months. She has desig-nated 1/4 of the interest she pays on this loan to support educational opportunities for Life in Af-rica member children.