Zafèn, a Haitian nonprofit that uses crowd-funding to raise money for “small growing businesses (SGBs)”[1] as well as social and community initiatives, has recently entered into a partnership with Kiva, a US-based nonprofit crowd-funding organization that raises money for microfinance institutions (MFIs) with the aim of alleviating poverty. With this partnership, Zafèn became the first partner of Kiva in Haiti. Kiva has worked with 269 MFIs in 77 countries.
Through this arrangement, opportunities for individuals to lend as little as USD 25 to Haitian SGBs that were previously advertised only on Zafen.org will also be published on Kiva.org. Individuals lending through Zafèn and Kiva do not earn interest. Opportunities to donate to social initiatives, including clean water, education and environment projects supporting Haitian communities, will remain advertised on Zafen.org only.
Cynthia McMurry, Kiva’s regional director for Latin America and the Caribbean, said that “Zafèn is a truly innovative program serving an underserved and challenging market niche”[1]. She added that “we believe that through Kiva’s ability to crowdfund affordable loans and the Zafèn team’s expertise in serving the needs of SGBs, we will be able to impact the SGB sector in Haiti in a meaningful way by helping these businesses grow, create jobs and develop their communities”[1].
As of 2010, in its first year of operation, Zafèn raised USD 350,000 to fund SGBs and social projects in Haiti. The amount raised by 2014 totaled approximately USD 2 million for approximately 500 business loans and donation projects. From 2005 through mid-2014, Kiva has raised funds for loans totaling USD 587 million.
By Alíz Crowley, Research Associate
About Zafèn
Zafèn, meaning “It’s our business” in Haitian Creole, is a nonprofit crowd-funding source located in Haiti that facilitates financial access for local “small growing businesses (SGBs)” as well as social and community initiatives, including clean water, education and environment projects. Zafèn also offers training and business development assistance. Individuals may donate or loan sums as little as USD 25 to Zafèn-supported social projects or businesses. Those who lend money via Zafèn do not earn interest. The organization was founded in 2010 by International Vincentian Family, an assembly of people that are affiliated with organizations that support the teachings of Saint Vincent de Paul and Saint Louise de Marillac; DePaul University, a Catholic university in Chicago, USA; Fonkoze, a financial organization that serves poor people in Haiti; and the Haitian Hometown Associations Resource Group, a group that promotes social and economic development in Haitian communities. As of 2010, in its first year of operation, Zafèn raised USD 350,000 to fund SGBs and social projects in Haiti. The amount raised by 2014 totaled approximately USD 2 million for approximately 500 business loans and donation projects.
About Kiva
Kiva is a US-based, nonprofit online portal that was established in San Francisco in 2005. It allows individuals to make loans to microfinance institutions (MFIs) to backfill loans that the MFIs have made to low-income borrowers. In 2012, Kiva launched a pilot platform, Kiva Zip, enabling users to lend directly to microentrepreneurs in Kenya and the United States. From 2005 through mid-2014, Kiva has raised funds for loans totaling USD 587 million that have been disbursed by 269 MFIs and similar organizations in 77 countries.
Sources and Additional Resources
[1] Zafèn News, Zafèn and Kiva Join Forces to Increase Loans to Haitian Entrepreneurs
[2] Zafèn, About Us
MicroCapital, April 2, 2014, Buksh Foundation, Kiva Announce Partnership to Support Microentrepreneurs in Pakistan
MicroCapital, January 4, 2014, Google.org Donates $3m to Launch Kiva Labs to Crowdsource Funds for Education, Clean Energy, Agriculture
MicroCapital, April 13, 2011, Zafen of Haiti Raises $350k for Microfinance, Scholarships During Inaugural Year
MicroCapital Universe Profile: Zafèn
MicroCapital Universe Profile: Kiva
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
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