Life Outside the Forest: The Journey of Petronie & the Batwa of Burundi

During 2015, Burundi witnessed boycotted presidential elections, violent protests, and an attempted military coup.After the announcement by Pierre Nkurunziza that he would run for a controversial third term, gunfire and grenade attacks by armed groups continued to occur frequently. 

Throughout this period, while embassies were withdrawing personnel and the tourism industry was plummeting, Five Talents USA stood with the local community. During 2015, we added 150 new savings groups, and reached over 25,000 members and 100,000 beneficiaries with a savings safety net.


Changing Times For A Nomadic Tribe

The Batwa are an ancient people who inhabited the forests around the great lakes of equatorial Africa. A semi-nomadic pygmy tribe, in many ways they are the guardians of the forests, known for their great skill in hunting and dancing. For over four thousand years they lived in trees and caves, gathering honey, leaves, and fruits of the forest and hunting with poison tipped arrows.
 


Over just the past fifty years, the Batwa have been evicted from the forests of Uganda, Rwanda, and Burundi. They've been displaced in mass in order to support the creation of national parks and the establishment of tea plantations and other farms. As an ethnic minority, life outside the forest has been hard. Batwa were discriminated against by other tribes and denied access to education and basic government services. During the Rwandan genocide, up to 30% of the Batwa were killed by the Interhamwe.

Batwa families lacked economic or agricultural skills and many succumbed to starvation or disease. Most became destitute. Many died. Others became beggars or hired themselves out as day laborers. In some areas, women began to sell traditional clay cooking pots to survive. As a result, pottery became a key symbol of modern Batwa identity.

Working with local church partners, Five Talents US has made an intentional effort to reach Batwa families and to help them integrate into the local church and community. Financial inclusion and peace-building are especially important for Five Talents US programs in Burundi.


Petronie's story

Petronie (pictured) is a mother of six children and a member of the Batwa in Burundi.

"Since I am from a marginalised ethnic group", she says, "I was isolated and discriminated in the community... My life was very bad because it was very difficult to be with other persons, either Hutu or Tutsi. We were obliged to remain only with Batwa."

Petronie says she was especially discriminated against because her family had "no means to wear clean clothes or buy sufficient food." Like many Batwa, they were forced to rely on begging. Alongside her husband, Petronie began to gather clay from a local marsh and make cooking pots. They hoped that the pottery business would provide a sufficient income to support their family. Petronie had few clients, however, and their income was never enough. Most people "no longer use traditional cooking pots made out of clay", she explains.

One day, Petronie received an unexpected invitation to join other low-income entrepreneurs from her community in a Five Talents US savings group. With some apprehension she accepted and began meeting on a weekly basis at a local church with women and men from other tribes who welcomed her. They shared their stories and learned business skills. Group members pooled their meager resources to create a savings and loan fund for business development. Today Petronie counts her savings group members as close friends.

The savings group became "an opportunity to welcome everyone in our families. We work together, save money and if one falls sick, we assist one another by providing food, working in her gardens and contribute to the medical bills... Today we know each other and we are united in Jesus name and we work together", Petronie says.

Before joining the program her main aim was to provide food and clothes for her children. Now Petronie has learned to save and plan for the future. With the help of small loans from her group, Petronie and her husband developed a business raising pigs and goats. They buy and sell livestock and use the profits to take their children to school and provide for their household needs. In the future, Petronie has plans to buy land and begin using modern farming techniques to increase production. She also intends to buy dairy cows and is saving to build a permanent home for her family.

Petronie says that members of the Batwa community were "very surprised" when she joined a group with Hutu and Tutsi. Now Petronie has become a respected leader in her community and has helped other Batwa join mixed savings groups.

"Since I joined the program, we do income generating activities together with other community members from different ethnic groups."

Petronie has grown spiritually and is often in the church. She enjoys her freedom and can now "live together peacefully with Bahutu and Batutsi. The [program] has helped me to become leader in the community. . .Yes, a great transformation took place in my life."


Escaping Poverty, War, and Disease

Kondok has experienced much suffering and hardship in her life.

Growing up on the border of Unity State in South Sudan she witnessed frequent cattle raids and attacks on her local village. Amidst poverty and harsh conditions, Kondok became the third wife to a polygamous elder. She lost her first four children due to lack of medical treatment.

"I just lost them because whenever they became sick, I could not have any money to take them to towns where the hospitals are for treatment", she said wiping tears from her eyes.

In 2012, Kondok fled her home with her only surviving daughter, escaping an attack that killed many of her neighbors. Leaving everything behind, Kondok and her daughter ran for their lives and eventually came to a settlement camp in Kuajok, the capital of Warrap State. Like other internally displaced persons they were given plastic sheets, blankets, and a small food ration.

It was there that she met an extension worker named Ajak Simon who encouraged her and other women to form a small fellowship and savings group. The Dong Baai Wei Savings group began in March 2013.

Contributing to the group savings was a great challenge as Kondok could barely make $1 a day to buy local bread for her and her little daughter. However with a lot of encouragement, Kondek became convinced that she could save 50 cents a week. She also began to fetch fire wood to sell in town and was able to save 650 South Sudanese pounds ($36 USD) by the end of Oct. 2014.The officer then advised her and other members of the group to register with the newly opened South Sudan Community Bank.

After three months, Kondok applied for her first loan in the amount of 500 South Sudanese pound ($30) and was trained with her other group members on choosing a good business. Kondok decided to farm and sell vegetables. She rented a small garden and planted various types of vegetable seeds that were donated to her group. After three months Kondok's first vegetables reached Kuajok market. She happily sold them to people in the town and neighboring villages, using new business skills she learned in her savings group.

"My vegetables are always the first to be sold and finished as I have to clean them well and I am a good friend to most of the ladies coming to town here to buy vegetables everyday".

When asked whether joining the South Sudan Community Bank program has helped transform her life, Kondok said.

"I am now very happy. I am able to feed my family from my business, which I started through this program. I feed myself and my little daughter, Arek. I pay for my house rent from my business; I pay for school fees for my daughter, I always borrow money from our community bank to do my business and from my profit I buy clothes for myself and my daughter. Last month she was sick with malaria and I took her to hospital. I would not have managed to take her to hospital, maybe I could have lost her like the other four of my children that I lost before if I had not joined this program."

Kondok continues to watch her daughter grow and is working to build a brighter future for their family.  As her business expands, Kondok intends to buy a piece of land in Kuajok town in the near future.

Help more women escape poverty, war, and disease in counties like South Sudan. Learn how you can make a gift to Five Talents today.

President Kenyatta mets with Peterson Karanja, Director of FT Kenya

President Uhuru Kenyatta met with Peterson Karanja, Director of Five Talents Kenya yesterday to discuss our agenda of empowerment. Exciting to see the new SACCO getting the recognition it deserves!

A sincere, heartfelt thanks to our supporters who have donated to the Kenyan programme over the past decade, and to our partners in Kenya for their dedication to the work.

Gift Aid Laws & Dividends

A tax hike is about to hit some people who give to charity, following new rules for dividends starting this April. 

From 6 April 2016 individuals with predominantly dividend income who make Gift Aid donations could be unintentionally penalised through the scrapping of the dividend tax credit.

Gift aid relief is available to those who pay enough tax to cover the basic rate on a grossed up donation (e.g. £20 UK tax for a cash donation of £80). Donations are treated as being made net of tax (the taxpayer effectively withholds the 20%), but to retain that relief donors must have paid an equivalent amount in tax or they will be liable to HM Revenue & Customs for the shortfall.

Which means that whilst an individual currently in receipt of mainly dividends and who makes Gift Aid donations has their basic rate tax taken care of, from April no such tax will have been paid and the tax office could pursue them for the arrears.
 

Gift Aid tax trap

This looming tax trap has gone largely unnoticed up to now, but with the new dividends tax regime approaching and the government publishing more details, concerns are being raised that donors with little income other than dividends will lose out.
 

Those most affected

The new dividend regime from April comes with a £5,000 Dividend Tax Allowance, so dividend income up to this limit will be tax free. Also from April an individual will have a personal allowance worth £11,000.

So a person can earn up to £16,000 in 2016/17 and pay no tax at all. Any Gift Aid donations made by such a person will therefore land them with a tax bill. Pensioners with just a state pension and a small amount of dividend income will be particularly affected.

Conversely, an individual receiving large amounts in dividends but with minimal other income and who makes sizeable Gift Aid donations, could find his tax bill increasing substantially to cover the tax withheld on the donations.
 


A person receives £500,000 in dividends and makes Gift Aid donations of £320,000 net (tax withheld is 20/80 (£80,000) = gross donation of £400,000). His tax bill in 2015/16 will be just over £28,000.

But with the same figures for 2016/17, his tax bill would be less than the tax withheld on the Gift Aid donation, which is not allowed, so his tax liability will rise to the £80,000 withheld – an effective increase in his tax liability year-on-year of 185 per cent!


Action required

To avoid an unwanted tax bill, donors caught by the change will need to ensure they withdraw any Gift Aid declarations they have made. Some may not wish the charity to lose out on its valuable tax relief from the government and could choose to make up the shortfall themselves.


These changes will not affect the vast majority of our donors, but if they do please contact us so that we can amend your Gift Aid status on our database.

March 2016: The Launch of Five Talents Kenya

This month saw the launch of Five Talents Kenya, an umbrella organisation that will allow for continued growth of savings and financial inclusion programs in Kenya and demonstrates a commitment to local leadership and sustainable development.

I was really impressed by the birth of FT Kenya and the presence of many local witnesses who were able to give warmth to our international partners.To all of you who have made us who we are and who continue to reach out to other needy groups in our three continents in the spirit of the Great Commission we say thank you very much.

                                                 -
Ret. Bishop Gideon Githaiga of Thika Diocese

The new organisation will allow for greater streamlining, oversight, and growth. Five Talents Kenya will also facilitate development of strategic partnerships with a wider group of international NGOs. 
 

Q&A With Development Consultant Margaret Sentamu

Q&A With Development Consultant Margaret Sentamu

Forty years ago, not many people will have heard of enterprise or sustainable development.  The poor in the developing world would have instinctively looked to their governments and through them to foreign donors to help fund their needs.  But today, people are looking to be given a hand up and not a hand out to help them become self-supporting and self-sustaining. 

Q&A With Tom Sanderson, Five Talents UK's First CEO

In the latest post in our ongoing Q&A series, we talk to Tom Sanderson. Many of our supporters will be familiar with Tom and the work he did kick starting Five Talents UK, so we wanted to touch base with him to talk about the successes and setbacks of those early years, and to find out about his current post with the BBC. 


Recent photo of Tom reunited with Peterson Karanja, one of our key partners in Kenya.


Recent photo of Tom reunited with Peterson Karanja, one of our key partners in Kenya.

After over ten years as part of the UK government, you upped sticks and moved to Uganda to work for the Church Mission Society, can you tell us about that transition?
Several years earlier I had felt a strong “call” from God to serve Him overseas. My wife and I were beginning to put down roots in London, with three young children, a big mortgage and good careers. But, we sensed it was “now or never” if we were to obey that call. So we made enquiries with a number of mission agencies, offering my services as an economist. Most of them didn’t know how on earth an economist could be useful! But Church Mission Society did – the Anglican agency – saying that a newly appointed bishop in SW Uganda was very developmentally minded, and would think he had “died and gone to heaven” if I was to help him manage all the different projects. So I went to visit for a week to check it out, and 6 months later we all packed our bags and went.  

You spend over half a decade working in Uganda, how do you look back on these years?
They were times of immense learning: a kind of full immersion experience in international development and cross-cultural mission. Every day brought new surprises – good and bad – and we learn to be resilient and flexible and keep our faith and sense of humour! Our children coped amazingly, attending the local school and making friends with all our Ugandan neighbours.

 

Your position in the Church Mission Society focused on impact evaluation and monitoring, did this inform your later work?
My work involved visiting all the church’s development “projects” – the full range from widows’ schemes, to tree nurseries, a carpentry business; a transport business; orphan care; projects rearing goats, pigs; dairy cows and chickens; a pineapple project; bee-keeping; water schemes etc. Many of them had started enthusiastically with a church gift (hand-out) and the expectation of community involvement and sustainability. However, on closer inspection, many of them fizzled and failed. Except, it seemed, for the fairly consistent success of the microfinance programme where individual entrepreneurs had borrowed money and were building their enterprises slowly but surely based on personal conviction and hard-work. As an economist this outcome intrigued me, and rhymed with my understanding of the profit-motive, aligned incentives and market systems.

 

Five Talents UK was founded a number of years after the US branch, what were the events that lead up to the establishment of the London office?
After spending 5 years in Uganda it was time for our family to return to the UK and I needed a job! I considered various avenues. I had got to know the Five Talents USA team fairly well over the years on their visits to Uganda and they invited me to consider launching the UK office. It seemed an ideal fit building on my first-hand experience of the programmes. We went to see the Archbishop of Canterbury, Rowan Williams at the time, and he gave the green light and helped us appoint the first UK Trustees.

 

How were those early years? What were the great setbacks and successes?
I remember working from home, from a small desk in my bedroom, gradually building contacts and spreading the word. It was fairly crazy, saying yes to every opportunity to speak in churches or at events. Going to meet people in their shiny offices wearing my best suit and talking about alleviating poverty through microfinance. We had a launch event with George Carey at the Commonwealth Club in London, when I spoke about the fact that “wealth” is certainly not “common” in most of the world, and yet we can make a difference through this practical approach pioneered by Five Talents. We were “off” – and beginning to grow and get established.

 

Following your term with Five Talents you went on to chair the UK Microfinance Club. There is a natural degree of competition between small charities working in similar areas, but this group focuses on networking, can you talk a little about the lessons that can be learnt from each other and the importance of cooperation?
The Microfinance Club is a great place to meet people interested and involved in the sector, and keep up to date with latest developments. It’s clear that each organisation has its unique approach and set of values. I think we can learn a lot from each other and gain collective strength by cooperating in public fora, debating the “good, the bad and the ugly” and refining our models.

 

We should point out that the Microfinance Club has recently changed its name to the Financial Inclusion Forum, is this a result of the stigma attached to the industry?
No not at all. The word “microfinance” is often closely associated with “microcredit” and some people fail to realise that it actually includes micro-savings; insurance and money transfers too. In addition, the microfinance sector has been a springboard for improving financial literacy, and is increasingly linked to formal banks, mobile money services and other technological improvements. We also recognised the growing peer-to-peer saving and lending approaches that were being developed in the UK and internationally, and the big push to see more digital transactions rather than cash as a means to improve security and transparency. We decided to change our name to reflect this growing breadth and maturity of the sector.

 

You have spent many years of your life working in the microfinance sphere, and you obviously believe in the effects it can have despite the challenges. Given that many organisations like Five Talents have moved away from a traditional microfinance model, do you think that modern microfinance is misconceived by the general public and by the development community?
I think it is great that Five Talents’ approach has developed and improved over the years, responding to clients’ needs and industry best practices. I still think the development “community” underplay the importance of micro-enterprises in household livelihoods. I think if you were to stand in the shoes of a so-called “poor person”, you would quickly realise how vital such small enterprises are  - to provide income and resilience to face the myriad of “shocks” that poor people face. Supporting and strengthening such initiatives is, I believe, a really strategic long term investment.

 

There are parallels to be drawn between Five Talents’ strategy, and the BBC Media Action’s emphasis on empowerment through education and relationships with partner organisations. Can you discuss this method of development a little further?
In my present role at BBC Media Action I recognize the considerable barriers that people face in changing their behaviour – be that in adopting new farming methods, new crops, new businesses etc. It is said that poor people face the biggest risks and the biggest costs in addressing those risks. My role is to use media (radio, TV and online) to help people reduce those risks by enabling them to ask questions, get information, learn from their peers and build their confidence. Five Talents’ approach to group-based mutuality and learning fits very well – bringing the best out of people, helping them to “be the change” and of course, unlocking their talents.  

On this 10th anniversary, I am proud to have played a part in Five Talents’ journey and the tens of thousands of people that have taken part in improving their own lives, families and neighbourhoods. Here’s to the next ten years of Talents!

Tim Fundell's Rat Race For Five Talents

On 12-13 September I shall be undertaking one of the toughest physical challenges of my life: The Rat Race Coast to Coast Challenge in Scotland. This is a quite ridiculous challenge in which I will be one of over 1000 maniacs as I run, cycle and kayak over 105 miles through the very beautiful yet mountainous landscapes of Scotland - almost certainly in gale force winds and blizzards! I recently spoke to an extremely fit serviceman who regularly enters events for nutcases and he said that of all events this is one that he would never attempt again. I wish I had known that before I entered!

I have decided to dedicate this challenge to a very good friend of mine, Richard Garnett. Some of you will know Richard but for those who don’t he was professional actor for 15 years – TV, film, and theatre (including the West End, Broadway, and lead roles for the Royal Shakespeare Co.) and since 1995 has been a consultant in communication skills, working with some of the largest global organisations and some of the biggest cheeses in the corporate world - including me! He is a genius at what he does and an inspiration to all who work with him. He is also one of the kindest and most decent people I know. One of life’s genuine stand-out great guys.

In January of this year, Richard was tragically diagnosed with Mesothelioma. Mesothelioma is a rare form of cancer that develops from cells of the mesothelium, the protective lining that covers many of the internal organs of the body. It is most commonly attributed to asbestos inhalation. The prognosis for malignant mesothelioma remains disappointing and cures are extremely rare. At present he is coping remarkably well following a major operation to remove the tumor in his lung and we all hope that this will sustain a certain quality of life for as long as possible. Like the rest of his many friends and family members, I am sure, it is difficult to know how to adequately show our love and support.

I would therefore like to dedicate this challenge to him and his charity of choice which at present is Five Talents. Five Talents gives small loans and training to the poorest of the world's poor so that they can successfully start and grow their own business. I encourage you to explore this site to see for yourself the excellent work that they do.

This is a wonderful cause in honour of an amazing man. Please give generously through this link.

- Tim Fundell

My visit to the “Three Wise Women”

“Thank you, please keep supporting this work…” Angelina

These are not my words but those of Angelina, Halima and Christina in Iringa, Tanzania.  On 25th November, 2014, I was stood with them some 6,771 miles away from where I am now sitting in my home office typing this note to you.  They are saying these words to YOU, our faithful supporters.  Thanks to YOU, they have been able to develop their talents, reach for their dreams and encourage their children with better education and a clear understanding of what enterprise looks like.

My humbling trip to Kenya

I've just returned from an incredible five days spent with some of Five Talents' partners in Kenya, and wanted to share my feelings and thoughts. I came into the trip a novice in the world of microfinance, and have departed with a sense of optimism about the Five Talents model that is being delivered with significant success across the country. Even more so, I came away with a huge amount of admiration for the people involved - the Anglican Church leaders who are supporting and promoting the programme; the passionate, dedicated and talented staff who are coordinating everything through development trusts in three separate areas; and also the individuals and groups who are embracing the opportunities the programme is giving them.

My week visiting inspirational women in Tanzania

I’m just back from Iringa, Tanzania, travelling with a small team of volunteers and trustees from Five Talents, to find out more about the work of the Mama Bahati Foundation (MBF). FT is the main donor of MBF whose footprint is huge. MBF gives loans to over 5,000 very poor and marginalised women in isolated rural areas as well as small towns.

Read Telkisia's inspiring story from Tanzania

A team of Five Talents' trustees and supporters has just returned from an inspirational week visiting our partner in Tanzania, the Mama Bahati Foundation (MBF). Last Tuesday, they travelled to the village of Kaning'ombe, well over an hour from Iringa where MBF's office is based. MBF began a Centre in Kaning'ombe when it realised that some of the villagers had been walking 20km to join the nearest other MBF microfinance centre. That 20km walk reflects the demand we encountered everywhere for MBF's services, as well as the incredible hard work and spirit of our members who are so determined to access MBF's small loans, savings and business training so that they can secure a better future for their children.