Credit Union blueprint helping developing countries

Tens of thousands of communities in developing countries are using the experience of Irish credit unions to lift themselves out of poverty, it was revealed today.

And members here are donating more than €1m a year to give these poverty-stricken families in Eastern Europe and Africa a head start.

Villages in Albania, Poland, Russia, The Gambia, Sri Lanka, the Caribbean and Ethiopia are all being helped.

Through the Irish League of Credit Union’s (ILCU) international development foundation, set up in 1980, money, support and training to get the community based banks up and running.

Tommy Weir, ILCU foundation chairperson, said he was privileged to help.

“It’s a privilege for the Irish credit union movement to be able to make such a big difference to the lives of so many struggling people in developing countries,” he said.

The ILCU detailed how donations have helped two communities. Albanian seamstress File Uruci struggled to make ends meet after the death of her husband 25 years ago and the closure of the local co-operative.

But after attending a promotional meeting for local women at the Teuta Credit Union the 55-year-old mother-of-one started to save small amounts regularly and later applied for a loan to buy a new sewing machine and material.

Since then she has set up a workshop and through word of mouth she was earning enough money to repay the loan, continue saving and support her family.

The foundation is also empowering women in fishing villages in The Gambia. They now occupy six positions on the credit union board of directors in Tanji including chairperson, vice-chairperson and treasurer.

The area is one of the busiest coastal fisheries communities in the country but women were often the poorest people and men found it hard to secure finance.

Mulump Faye, credit union chairperson, explained how important the system is for the local community.

“It is the norm for local communities to expect the Government to provide everything: boats, fishing gear, but in Tanji we don’t need government’s help, we have our credit union,” she said.

On top of the major projects, the foundation also funds smaller projects for one year only including building classroom blocks for a primary school in Nigeria; funding a Mercy mission to provide heart surgery to children in Sri Lanka; education and training projects in South Africa; establishing a bee-keeping co-operative in Kenya and providing food in Malawi.