Former financial executive Clive Hughes will explain why sub-prime loans could be one of the best financial innovations devised at the MicroLoan Foundation Australia (MLFA) Awareness Day on Thursday 30th April in Martin Place, Sydney.
At the Awareness Day (11.30am-2.30pm at the Amphitheatre in Martin Place) Clive, former CEO of a Sydney property company, will explain the brilliant concept of micro loans, which are made to the poorest of the poor who have no income, no assets and no job, (so called “NINJA” loans) and how 99% of all MicroLoan Foundation loans are repaid in full with interest.
MLFA provides small loans (otherwise known as microloans), basic business training and continuing guidance to groups of women in Malawi. They launched in August last year and are supported by world patron, Sir Bob Geldof, and Australian patron, Simon Tedeschi.
These loans are made to entrepreneurial, but poor, women who have the ability and motivation to make modest amounts of money so as to improve their lives. They use their small profits to put an extra meal on their families’ table, school their children or even build their first house.
At the Awareness Day Clive will introduce MLFA, and take you on a journey to one of the poorest yet most beautiful and friendliest countries in the world – Malawi. He will describe what MLFA has done there and what it will be doing in the future. Finally he will point out that, far from being a high risk category, poor borrowers are some of the most reliable clients a financial institution can have.
“MLFA has a “different approach to charity”, indeed it is the charity that doesn’t give, it merely lends a tool to the poor that the rich take for granted.
If you believe that a poor illiterate black woman in Malawi could be just as capable and motivated in her local business world, as a rich, highly qualified, white man in his western business world, you will understand why micro loans work.
Mind you given how clever the “professionals” in Wall Street have been over the last few years it might be unfair to women in Africa to make such a comparison!”