Farming and selling coffee has been 54-year-old Godfrey's source of livelihood for eight years in Kayunga. A father of four, he decided to engage in this business because coffee is Uganda's premier cash crop which sells well, especially if one is selling it to the many coffee cooperative unions all over the country. Coffee was Uganda's number one foreign exchange export earner in the early 80's. Though times have changed for the worse because of the fluctuations in coffee prices on the international markets, many Ugandans are not about to dispense with this business any time soon. Many people in their late 50s speak with nostalgia about the good old days coming back, when they were able to give their children a good education with earnings from their coffee sales.
There has been recent improvement with better coffee prices from the re-emerging coffee unions to coffee farmers who have good-grade coffee. As a result, many coffee farmers, Godfrey included, can now bask in the glow of improved sales profits. Godfrey took over this business from his late father. Weekly, he makes sales profits totaling Ugandan shillings 60,000. He says he is going to use this Kiva loan to purchase young coffee plants to grow. He envisages being able to make more profits when the plants mature and produce better high-grade, robust Arabica coffee to sell.
This is a Group Loan
In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.
Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.