Catching Fish in Uganda and the Secret to Saving the World

Contributed by Alana Elsner

The Glass Hammer has published several pieces in the past on how women in finance can get involved in charitable enterprises that put their skills to work helping women in need. In this article, a new contributor to The Glass Hammer highlights her experience with socially responsible investing.

Ever wondered what happens to your money when you invest in a “green” fund? In addition to posting strong returns, the goal of socially responsible investing is to make a difference in the world. But how can you see the tangible results of your investment? This question snuck up on me one cold January night. With the holiday season passed and my New Year’s resolutions already broken, I decided now was the time to take an active role in making the world a better place. This is the story of my journey down the rabbit hole of microfinance. This is the story of how I help catch fish in Uganda.

I asked myself, how was I to start saving the world? My typical ten hour work day, plus occasional weekends, left me with little time to spare. Then one evening I caught a news report about Kiva.org, a website linking poor borrowers with U.S. lenders. In the era of billionaire philanthropy, my $25 realized its full potential as I became a Kiva lender. With a few swift clicks of my mouse, I teamed up with Sara from San Francisco, Bobbi from Atlanta, and 44 other lenders to raise funds for Gertrude, a 44 year old mother of nine. From the moment I went to the website, Gertrude’s picture and story fascinated me. As a fishmonger, Gertrude’s fish stock and profits help support her family. But now she is ready to become one of the few female entrepreneurs in Uganda. Gertrude plans to use my $25 to multiply her fish stocks. Once her profits increase, she hopes to open up a clothing business. I was surprised, but I also admired this woman, continents away, who had not one but two business plans. After seeing Gertrude and hearing her story, how could I not help?

But to be honest, what initially drew me to Kiva was not the entrepreneurs it helps, but the entrepreneur who started it- Jessica Jackley Flannery. As a Stanford MBA student, she wanted to use finance to make the world better. Two years after graduation, Jessica’s vision became one of the most renowned microfinance websites, even featured in Bill Clinton’s newest book, “Giving.”. And it should be no surprise that Kiva helps entrepreneurial women. Nearly 3/4 of the borrowers featured on the website are female. These are women trying to make a difference in their home and community. Take for example, Nasiba from Tajikistan. She turns a profit and feeds her family by selling dry fruits, but her entire community benefits from the vitamins in her dried foods- vitamins essential to the development and nutrition of children in winter months. Reading stories of Kiva entrepreneurs like Nasiba made me a believer in the Oprah effect: Help the woman, help the community.

Yet Gertrude and Nasiba’s stories are just two of many in microfinance. Emerging as the newest trend in philanthropy, microfinance links poor borrowers, who are often women, from developing nations to individual lenders. The core idea is that what seems like little money, say $5, can make a difference in the world by loaning it to aspiring businesses. This brought me back to an idea I always pondered- what if I was not fortunate enough to be an educated woman in New York City? Who would help me build a future? After finding Kiva, I knew microfinance was my answer. With over 7,000 new Kiva lenders each week, the average entrepreneur gets their business funded within four hours of posting.

The more I researched Kiva and microfinance, the more I learned that these organizations are among the only ways for women to create their own opportunities in patriarchal societies in developing countries. As the old saying goes, “You can give a man a fish and feed him for one day, or you can teach him to fish and feed him for life.” Instead of giving out donations, microfinancing offers loans. Many of these women are struggling to become self-sufficient and benefit from the financial responsibility that microfinance offers. In my case, Gertrude repays her loan monthly. What is unique about Kiva is that after twelve months, when my money is paid back, I then have the choice to take my money out or reinvest it in another entrepreneur’s future. Although this investment is not tax deductible, the miniscule .006% default rate among female entrepreneurs featured on Kiva.org means that my investment is a safer bet than any U.S. stock today.

Indeed, just as the website claims, I have found that “I get a higher return on $25 helping someone build a future than the interest my checking account pays.” So when you have three minutes to spare, look at Kiva.org. Build a future for another strong woman. Allow her to thrive, not just survive. For we must remember the glass ceiling is not unique to Wall Street, but indicative of the struggles of women in a broader world.