Most of the smallholder farmers in the village of Cariamamo are women, mostly widows supporting their families by themselves. We visited with them and listened to their stories on 17 June 2009.

Women's microfinance group and agricultural association at Cariamamo

Farming in Huambo requires fertilizer, which must be purchased for cash. Rotary is providing a first round of fertilizer for 25 village associations, but after that, they're on their own.

The solution is microfinance, where small groups of villagers, typically all women, band together to guarantee small loans for each other.

Small loans are made to, and within, "solidarity groups" of about 20 women who meet regularly to make payments, receive training and, typically, guarantee each other's loans

The women in Cariamamo went through three weeks of training, to learn about borrowing money and other financial basics. Then, they each took out a loan of about $275, planted a commercial crop, and repaid the loans in four months, at an interest rate of 2% per month. Every single loan was repaid in full.

Donna Dominguez, president of Cooperative Agrocalenga Caála, the microfinance solidarity group in Calenga. She is using the money she has earned through potato farming financed by the group to send her children to school.

The source of the loans is a microfinance operation sponsored by the European Union, World Vision and a bank controlled by the Angolan government. This World Vision-led program has already established ten community banks serving a total of 500 women. Four more banks are in the formation stage, looking for financing. Two days later, in Calenga, we saw how the microfinance process actually works.

The members of the Calenga microfinance solidarity group, all women, meet regularly to make payments on their loans. The payments are made in cash, in front of everyone.

The women's group in Calenga began with a program very similar to our Rotary project. At first, loans consisted of bags of fertilizer, just as we're doing with 25 other village agricultural associations throughout Huambo province. As we found, though, there's more to building a sustainable commercial farming operation than seed and fertilizer. Basic tools are lacking, transportation is a constant challenge and expertise is needed to fight plant diseases.

Everyone in the solidarity group is guaranteeing everyone else's loan, so all the accounting and other group business is conducted in the open. If there's a problem, everyone knows about it immediately and can pitch in to help fix it.

Meeting those needs requires cash. Banking and other financial services in Huambo are rudimentary, and generally available only to the relatively small wealthy and middle classes. There are no banks in the small villages targeted by Rotary and World Vision.

The answer, in Huambo as in developing countries around the world, is microfinance. The approach World Vision used in Calenga was to recruit a group of women from the local agricultural association to form a microfinance solidarity group. This group has 24 members, which is typical, although solidarity groups can range from ten to forty members.

Fingerprints certify that payments have been made. Technically, microfinance is considered informal lending, but that doesn't mean business is conducted haphazardly. Books are kept and checked at least as rigorously as consumer banks do in developing countries. Tight and transparent accounting helps produce high repayment rates. It also adds to overhead, which is a major reason microfinance interest rates tend to be high.

In this case, a bank controlled by the Angolan government agreed to participate. The bank made small loans, typically a few hundred dollars, to members of the group and charged an interest rate of 2% per month, which is actually low by microfinance standards.

As is common with successful microfinance programs, the Calenga group has gone through several rounds of lending, each round generally higher than the last. At this point, the average loan taken out by a member is $720.

Initially, the government-owned bank put up $1.2 million in capital and World Vision backed the loans with a $120,000 guarantee fund. This financing package was enough to begin the program in 42 villages, representing 4,390 families.

As the Calenga group began borrowing and repaying loans, they built their own guarantee fund. Starting with a 10% contribution in the first round, the women built the fund and their contributions into to 20% of the outstanding loan amounts. Half of that money is set aside to cover bad loans, the other half is used to fund additional loans for non-agricultural purposes.

Members borrow money from the solidarity group's own funds, and use it to start small businesses, which in turn can pay for educating children or for basic necessities. When the group lends its own money, they charge 5% interest per month, which is more typical of microfinance operations. The overhead costs of managing and servicing small loans in rural communities are high.

Evarista Maria Tesou (standing, center), a member of the Calenga microfinance group, took out a micro loan that was financed from the savings of other women in the group. She used the money to start a small business making and selling clothes, paid it back in full, with interest, and continues to grow her business through ongoing micro loans. Jonathan White (left), World Vision Angola operations director, translates.

The risk is not as great as you might think, however. In the bank-funded program, loans are made to members of the agricultural association as well as the solidarity group. The association's membership includes both men and women, and the repayment rate is about 80%. But when the solidarity group lends its own money, it is only to other women, and the repayment rate has been 100% so far.

There are a couple of reasons for the difference. First, women, in Angola and elsewhere in the developing world, tend to be more responsible with money. They will spend it on supporting their households with very basic necessities and, as income grows, on education, health care and home improvements. Men typically spend cash on what are politely called consumables and, in Angola, on a second wife.

Women, most of whom are heads of households and mothers of several children, usually have flawless credit histories within their microfinance solidarity groups

Second, membership in the agricultural association is determined by a number of factors, including traditional social and leadership roles. On the other hand, the members of a microfinance solidarity group decide who can and can't be a member. Because they have to repay bad loans out of their own pockets, members are very particular about who they let in. Because it's a separate entity, affiliated with outside organizations such as World Vision, the members can sustain this high degree of control.

Microfinance is about more than just making small loans. The objective is to offer a full range of financial services to people who would otherwise not have access to the formal economy. Savings accounts, insurance and other consumer financial services are offered by microfinance institutions elsewhere in the world.

Paula Alves, an Angolan microfinance expert working for World Vision, explains the new passbook program, which will open the door to more and better financial services for the women who belong to the Calenga solidary group and several dozen other groups she has helped organize.

Savings accounts are also a part of microfinance programs. Saving money is not generally part of the culture in Angola, but the women in the Cariamamo program have already saved about $50 each. In Calenga, these savings fund small business loans for now. Ultimately, the solidarity group hopes to grow its assets to the point that it can finance capital projects, such as building a potato seed warehouse. It is also introducing passbook accounts, where members pay about $2 for a passbook, then use it to manage their loans and savings accounts themselves, just as someone in California would do at a traditional consumer bank.

At this point, the microcredit groups started by World Vision are associated with what are generally called microfinance institutions, or MFIs. Instead, World Vision is, in effect, mediating between the solidarity groups and the government run bank, while the groups expand their activities on their own initiative. In the future, the program might be integrated into a more typical MFI, which would allow even more services, such as insurance and school finance schemes, to be offered.

The progress made by the women's groups in Cariamamo and Calenga is typical of successful microfinance programs across the developing world. The Grameen Bank, an MFI founded by Mohammed Yunnus in Bangladesh, pioneered many of these concepts, and won the Nobel Peace prize as a result.

The Rotary Foundation will back microfinance projects, and Rotarians from around the world have organized the Rotary Action Group for Microcredit. RAGM was well represented at the recent Rotary International convention in Birmingham, England. Microfinance was cited by many speakers as a key to future world prosperity. Most notably, Jane Goodall took time during her keynote address to the convention to emphasize the effectiveness of microfinance, giving it a place of prominence and importance alongside fighting climate change and living in harmony with the natural world as global priorities.
Comments

Four of the twenty-five smallholder associations receiving Rotary seed and fertilizer are located near the village of Cantao 4. When we visted on 18 June 2009, we saw one of these groups planting seed potatoes that are intended to produce even more seed. The process is called seed multiplication, and requires a higher degree of technical skill and resources than producing and selling potatoes for human consumption.

Women working the fields with infants tied to their backs are a very common sight in Angola

One plot had already been planted during the previous season, and was nearly ready for harvest. That plot belonged to the leader farmer for the village, who had gone through World Vision's training program. Using other seed and fertilizer, he had run tests, determined which seed variety and fertilizer application level was optimal, and demonstrated proper cultivation techniques to others in his group.

Gravity-driven irrigation is essential to dry season potato cultivation in Huambo. Only villages located near a year-round source of water -- usually groundwater from a natual spring -- can participate in the Rotary program.

Now, it was time for the rest of the group – 24 smallholders in all – to plant their crops. The ground on the first plot was already prepared, neatly furrowed by smallholders working mostly with sharpened bamboo sticks. There's no money yet for steel hoes or other basic farming implements.

All 24 smallholders work as a team at planting and harvest time. About half the group moves through the plot, applying fertilizer. In the dry season, when the fields are irrigated, fertilizer is applied once. But when they plant in the rainy season, additional applications are sometimes necessary.

The men of the association move through the first 10 meter by 10 meter plot, spreading Rotary fertilizer

Then the rest of the group lays the potato seeds and closes the furrows. Working together, it takes them about half an hour to finish the first plot. Then, they move on the second, and third, an so on until everyone's plot has been planted.

The women follow up, carefully placing the potato seed, and later closing the furrows

Each smallholder recieves 100 kilograms of potato seed and 50 kilograms of fertilzer from Rotary. That's one sack of fertilizer and about four milk crate-sized containers of seed. Logistics are daunting in Huambo, where only major highways are paved and few secondary roads are even properly graded or maintained. World Vision used SUVs – Toyota Land Cruisers, mostly – to bring in the seed and fertilizer. It's not the most efficient way to do it, but sometimes it's the only way available.

There are three limiting factors to development work generally, and to our ongoing joint project in Huambo in particular: transport, trained personnel and resources. The Rotary Club of Luanda (District 9350) and 34 clubs from Rotary District 5230 in California are providing some of the necessary resources. The European Union and World Vision are providing training and a core team of expert staff. Transportation to and from the villages is managed by the associations where they can and by World Vision staff where they can't.

The plots in this village are ten meters by ten meters, something like the size of a tennis court. In other villages, the typical smallholding might be twice as big. Size depends on soil fertility: the more fertile and productive the soil, the smaller the plots and the more people can make a living at farming in a given village. In Cantao 4, the soil is more fertile than usual, so more smallholder associations can be supported.

The first village association in Cantao 4 to receive seed and fertilizer from the Rotary Club of Luanda (D-9350) and clubs from District 5230 in California

For the next few months, each association member tends to his or, more commonly, her plot. Come harvest time, they'll work more as a team again, both for harvesting and marketing the produce. Although Rotary is providing the potato seed for free, the fertilizer is a loan. Half the yield from this first round of planting in Cantao 4 will be paid into a community seed bank. Each smallholder, on average, will produce enough seed to fund two more new farmers in the next planting season. The other half of the crop belongs to each smallholder individually, with most of it sold for cash, but some held back for their own use.

Rotary potato seed and fertilizer means cash crops for sustainable commercial farming

Smallholders who have generated some cash will be able to buy more fertilizer the next time around. Others will have to depend on microfinance projects backed by the Angolan government, the European Union and World Vision. The objective is to make commercial farming sustainable for the 75 village associations (25 in the first round, and 50 more in the second) that Rotary is backing.
Comments

You can't transform traditional village agriculture into sustainable commercial farming just by providing improved seed varieties and fertilizer. Training and testing have to come first.

Welcome!

Rotary is working with several major partners in Huambo. The overall project – which includes water infrastructure, health services, microfinance, education, and agricultural training and market development – is led by World Vision. They've organized a consortium of major donors and government agencies, including the European Union.

Florinda Carneiro (Rotary Club of Luanda, D-9350) and PDG Nina Clancy (RC Visalia County Center, D-5230) make a new friend at the EU/World Vision training center in Dango

World Vision and the EU are training the 25 village agricultural associations that are receiving Rotary seed and fertilizer. They've established a training center and they're working in the villages, helping leaders demonstrate farming techniques and running tests to determine the best potato varieties and fertilizer levels for local conditions.

At Quinze, in the Bailundo municipality on 18 June 2009, we saw the testing program in action. The village association there had set up a series of test plots they are using to decide which, if any, of Rotary's offered potato seed varieties they want to plant, and to see how those varieties respond when different levels of fertilizer are added to their soil.

Test plot for the Romano variety in Quinze shows expected low yield with no fertilizer (right), lush production with maximum fertilizer use (center), and nearly identical results with minimal fertilizer application, leading to an interesting debate

In the first round of testing, the village association planted the Romano variety in three patches: zero, maximum and minimum fertilizer application. With no fertilizer the result was small and uneven plants. However, there appeared to be little difference between yields in the minimum and maximum fertilizers patches.

Eliseu Calito is the lead farmer in Quinze. He went through an earlier training course and is now in charge of running the seed and fertilizer tests. He and his village association have already concluded that they want to use the improved varieties, but the question of how much fertilizer to use is still under investigation.

Eliseu Calito (left), lead farmer in Quinze, and John Yale (right), World Vision country director for Angola, debate field test results

World Vision staff were hoping that Sr. Calito would conclude that minimum fertilizer application was optimal, but he isn't prepared to support that finding yet. Pointing out that the minimum patch was down slope from the maximum patch, he said they haven't ruled out the possibility that fertilizer was washed from one to the other when the field was irrigated.

A second round of testing, using the Fontane variety, is already scheduled. They'll change the layout of the test patches to try to eliminate irrigation effects as a factor. Then they'll decide how much fertilizer they'll actually need to apply.

Kristin Pires (RC Tulare Sunrise, D-5230) with some of the children at Quinze

The "Best Practices" training is done at an EU/World Vision in Dango, which is near the city of Huambo, at the center of Huambo province. About 250 local farmers, nearly all women, were attending when we visited.

Avelina Cihiiula, spokeswoman for the class, describes the training

They are going through the first phase of the course, which is about seed production and storage. Eventually, a second phase will be offered, which will focus on animal husbandry.

A critical factor in producing potato seed is keeping it in a proper storage facility, the training includes proper construction and operational techniques

As part of the training, they've constructed a warehouse, where potatoes intended for seed are kept in diffuse light so buds will develop properly. Potatoes intended for human consumption are kept in the dark. Initially, families will share a central warehouse, but as production grows, each family will build its own.

A budding potato seed, ready to plant

The area around the training facility tells a lot about recent history and current events in Huambo. A former Cuban military base is nearby. Cuba sent troops to Angola during the Cold War to support the MPLA, which was the Marxist group which eventually prevailed after 27 years of fighting.

Former UNITA headquarters in Huambo, which was destroyed by MIGs. The UNITA flag still flies over the building. After finally surrendering in 2002, UNITA became a political party in Angola.

Huambo was ground zero for that conflict. UNITA, which was the group initially backed by the U.S. and later supported by South African troops had its headquarters in Huambo. The city changed hands more than once during the conflict, and still bears the scars of light arms fire and heavier weapons, such as artillery and tanks.

Nowadays, it's the Chinese who have established the heaviest presence. They've built an agricultural school near the EU/World Vision training facility, and are frequently seen working on major construction projects, such as the rail line that will eventually link Huambo to the coast.

Saying goodbye

Comments

The Rotary Club of Luanda (District 9350) and the clubs of District 5230 in California are literally providing seed money for more than 4,000 families in Huambo. They can now begin to produce potatoes on a commercial basis, and lift themselves and their villages out of extreme poverty. The objective is to create a self-sustaining agricultural economy by offering training, technical assistance, access to markets and two essential and basic inputs: seed and fertilizer.

Potatoes are grown and sold in Huambo, but production and quality levels are low. A primary reason is that the local variety of potatoes -- Boa Nova -- works well enough for subsistence farming, but is ill-suited for commercial production. Endemic plant disease has decimated local stocks as well. As a result, most of the harvest is too small for market. In field trials, with no added fertilizer, the local Boa Nova variety yielded only 400 kilograms of marketable potatoes per hectare, compared to 1,890 kilograms per hectare for the improved Romano variety.


Locally grown Romano potato seed from the Chilela warehouse

Another reason for low yields is the lack of fertilizer. We were told many times that fertilizer is gold in Angola. The field trial results tell why: with fertilizer, local variety production increased to 3,190 kg of marketable potatoes per hectare, while the marketable yield of the improved variety jumped to an amazing 9,360 kg per hectare.

Planting the local variety of potato without fertilizer produces poor results

Rotary is providing Romano seed and that of a second improved variety, Fontane. Both varieties have been tested in Huambo, and are open source. In other words, the varieties are not owned by any particular company, and can be re-grown and multiplied freely.

World Vision has selected 25 local agricultural associations to receive it. To qualify, association land had to be suitable for gravity-fed irrigation, members had to complete training in planting, growing and storage techniques, and storage facilities had to be available or built.

A total of 1,350 smallholder farmers were selected from these 25 communities. Each are now receiving 100 kg of the improved seed and 50 kg of fertilizer on average, with harvests expected to begin in October. The seed is provided free, but the fertilizer is technically a loan. Come harvest time, these smallholders will repay the loan by giving half of their crop to their association's seed bank. Of the remaining half, they'll keep some for their own use and sell the rest, generating money that can be used to support their families and buy more fertilizer.

Fertilizer is good as gold, and more needful, in Angola

World Vision purchased the seed and fertilizer locally, through the "Club of Potato Seed Multiplies of Ekunha." These are farmers who were trained in an earlier program in potato seed multiplication techniques. They receive certified seed from Europe, multiply it on a commercial scale on their local farms, and store it in purpose-built warehouses. The Ekunha club was the winning bidder for a seed and fertilizer contract that World Vision advertised competitively in the Huambo area. The club sourced the fertilizer from an Angolan manufacturer on a wholesale basis, and re-sold it to World Vision.

On Wednesday, 17 June 2009, we visited the fertilizer warehouse in Caala, and one of the club's seed storage facilities in Chilela. The fertilizer is neatly stacked in a separate, locked area. It is controlled, distributed and tracked using inventory control procedures required by the European Union and the U.S. government for their aid programs.

Rosalino Neto (RC Luanda, D-9350) reviews fertilizer inventory control with Horacio Sicola, warehouse owner and member of the seed multipliers "club" which was contracted to provide the fertilizer and seed for Rotary's Million Dollar Dream

Rotary purchased 61 metric tons of fertilizer for $87,027. Half was paid up front, and the other half was paid when World Vision accepted delivery at the warehouse. About five tons have already been distributed to smallholders in two project villages. We did not do an item by item hand count, but with the fertilizer stored in 50 kg bags, and the bags stacked, on average, seven high, thirteen across and thirteen deep, the inventory checks out in rough terms.

PDG Nina Clancy and Steve Koobatian (RC Visalia County Center, D-5230), and Steve Blum (RC Monterey Pacific, D-5230) check the fertilizer in the warehouse at Caala

We then moved on to the seed storage facility in Chilela. It is located in the nearby hills, where the climate is a little cooler and better suited to maturing and storing potato seed. It's also a good distance away from any potato farms, to prevent contamination of the seed by mold, disease or other pests. To get there, we had to drive several kilometers over extremely rough roads, crossing a couple of log bridges in the process.

The road to the potato seed storage facility in the hills of Chilela

The seed multiplier club is providing Rotary with 124.4 tons of seed for $155,500. That seed is stored in a total of 4 warehouses, which also contain seed grown for other customers. The warehouse we visited had what appeared to be more than 70 tons of seed all together, of which 47.5 tons are earmarked for Rotary. Unlike the fertilizer, World Vision doesn't accept delivery of the seed until it is actually drawn for distribution to a village association. Half of the money was paid up front to the seed multiplier club, the other half will be paid on completion of the contract.

The leadership of the seed multipliers club tell us how they store potato seed, and show us their stock

The books don't quite balance. World Vision has accounted for the $242,527 spent on seed and fertilizer. The balance of the $250,000 (about $7,500) was apparently eaten up in money transfer costs. The biggest cost was for bank transfer fees. Banks in Angola charge a 1% fee to put money into a dollar account and another 1% to take it out again, which likely accounts for most, if not all, of the difference. The final accounting will detail those charges.

When the next planting season comes around in March 2010, 2,700 more smallholders in these village associations will be selected, and provided with seed for free from their local seed bank. However, they will have to purchase their own fertilizer. At this point, the details of how that's supposed to happen haven't been worked out. The fertilizer that Rotary has purchased will all be used in the current round of planting. One possibility is to access cash loans through a microcredit program that World Vision already runs in several communities.

In total, our Million Dollar Dream project will give 4,050 families a chance to start a self-sustaining commercial farming operation, and begin to lift themselves out of extreme poverty. More than 22,000 people in 25 villages in Huambo province will benefit directly, with tens of thousands more benefiting as their money is spent in a growing local economy.
Comments

The key to making our Million Dollar Dream sustainable is to develop consistent, high value markets for the crops produced by the 25 village associations in the Rotary project.

A flow chart showing the overall plan for developing sustainable commercial agriculture in Huambo (click to enlarge)

The Gates Foundation, ACDI VOCA (another US-based NGO) and World Vision are working in Huambo and in major markets such as Luanda and Benguela to do just that.

The five person leadership council of a village association in Cangala was made up of four men and one woman, all senior members of the village smallholder's association, and included the traditional "king" of the region. High on their list of concerns: access to markets for their produce.

According to World Vision, potatoes sold "gateside" -- at or near a smallholder's patch of land in Huambo province -- might be worth $175 per metric tonne. But transported a few hundred kilometers to Luanda or Benguela on the Atlantic coast, that same tonne will net $500, maybe more.

Smallholders selling potatoes "gateside" at the Chinguar market. No way of grading, weighing or even displaying the produce. These smallholders are selling an improved variety of potato, similar to those in the Rotary program. The follow-on project, led by the Gates Foundation, World Vision and others, provides training in marketing techniques as well as working on improving access to coastal markets.

With good seed and adequate fertilizer (which costs about $375), the typical smallholder might expect to grow 2.5 tonnes of potatoes for market. The math looks like this:

Sold in Huambo: (2.5 tonnes x $175/tonne) - $375 expense = $62.50, x 2 crops/year = $125
Sold in Benguela: (2.5 tonnes x $500/tonne) - $375 expense = $875, x 2 crops/year = $1,750


That's a better than 10 times increase in annual income. On the one hand, it's not knowing if you and your family will survive the year (no exaggeration: life expectancy in Angola is 38 years and 1 in 4 children die before age 5). On the other, it's buying a zinc roof for your house, sending your kids to school, and being able to buy some nutritious food and medicine.

President Manuel Correia (Rotary Club of Luanda, D-9350) discusses Rotary project plans and village association needs with the leadership council in Cangala. President Manuel is from Huambo originally and speaks Umbundu, the local language, fluently.

On Thursday, 18 June 2009, we visited the Chinguar market in Huambo province. It's a vibrant market, with a variety of goods and agricultural produce on offer. But it's still doing business the old way, and the range of goods is relatively small and completely unpredictable.


Unmanaged production and no market price information give buyers the upper hand. When several sellers show up with the same, perishable produce, they either have to take what little they're offered, or go home with nothing at all.

The Chinguar market is due to be completely transformed next year. It's located next to a rail line that's scheduled to be rebuilt and active by 2010. And a refrigerated warehouse has just been completed. With modern storage and transporation technology, local produce can be transported to the coast, and on to Luanda, where four million people are eating food imported from other countries.

Even potatoes quickly degrade under tropical storage conditions. This warehouse, built by an Argentine company and owned privately, will keep perishable crops fresh for transport to distant markets. Refigerated rail cars and even trucks are expected to complete the distribution chain.

Rotary is providing seed and fertilizer which will allow smallholders to grow high quality crops on a consistent, scheduled basis. Others, such as the Gates Foundation and World Vision, are building better access to markets and providing the training smallholders need to maximize the value of that access. Every piece is absolutely essential to making our Million Dollar Dream sustainable. Rotary is literally providing seed money. Combined with market access and expertise provided by our partners in the project, we have more of the pieces needed to turn a one-time contribution into a growing, self-supporting local economy.


Comments

So many stories to tell, pictures to show and experiences to share. We spent spent 48 hours in Huambo, spread over three days. We saw the seed and fertilizer project that the Rotary Club of Luanda in District 9350 and 34 clubs from District 5230 in California made possible.

We arrived in Huambo province just before noon on Wednesday, 17 June 2009, after a quick flight from Luanda. Huambo is the second largest city in Angola, located in the central highlands at about 1,800 meters (5,500 feet) of elevation.

We arrive in Huambo. Left to Right: PDG Nina Clancy (RC Visalia County Center, D-5230), WorldVision Rotary liason Kim Lorenz (RC Seattle), Dustin Koobatian, Florinda Carneiro (RC Luanda, D-9350), and Kristin Pires (RC Tulare Sunrise, D-5230).

Our delegation was comprised of six Rotarians from the Rotary Club of Luanda, District 9350 (including John Yale, World Vision's country director in Angola), four Rotarians from three clubs in District 5230 in California, and several World Vision staff members. Kim Lorenz, a member of the Rotary Club of Seattle, is on World Vision's staff and serves full time as their liaison with Rotary.

Our first stop was a meeting with Ex.ª Senhora Lotii Nolika, the vice governor of Huambo province. Her first question was "why only certain communities?" President Manuel explained that potatoes -- the chosen crop for our project -- need water, which means that only villages where gravity-fed irrigation is possible can take part in our current project.

President Manuel Correia and President Elect Manuel de Sousa (RC Luanda, D-9350) brief Ex.ª Senhora Lotii Nolika, vice governor of Huambo Province, on our project.

The vice governor was also concerned about logistics, saying that transportation to Luanda, the primary market for the crop, is difficult. She wanted to know what we're doing about that problem. He explained that others are working on transporation solutions, and we are focused on improving production by improving the quality of the seed. Better seed means higher and more consistent yields, and more predictability in getting a crop to market. Making the crop more predictable also helps ease the transporation problem, because associations and cooperatives can make arrangements well in advance of need.

Right now, the only way to move the produce the 600 kilometers (about 400 miles) to Luanda is by truck. The road is constantly being worked on -- Portuguese and Brazilian companies have made considerable improvements -- but it is still a difficult drive. The real answer should come next year, when railroad service is scheduled to resume between Huambo and the coast.

Dinner back at the hotel. In the foreground are Jonathan White, operations director for World Vision Angola, and Steve Koobatian (RC Visalia County Center, D-5230)

Our next stop was a quick check in at our hotel, and then we went into the field. Those pictures and stories – the real purpose of our trip – will be posted soon.

President Manuel, PDG Nina and President Elect Manuel departing Huambo

We were in Huambo about half a day on Wednesday (17 June 2009) and Friday (19 June 2009), and a full day on Thursday (18 June 2009), going from early morning to well after dark each nights.

Nina, Steve Koobatian and Dustin flew back to Luanda on Friday. They were joined by Florinda Carneiro, PN Arlete de Sousa, PE Manuel de Sousa and John Yale from the Rotary Club of Luanda. President Manuel Correia stayed on in Huambo. He is originally from there and does business there regularly.

Rosalino Neto from the Luanda club, Kristin Pires from RC Tulare Sunrise and Steve Blum, RC Monterey Pacific chose to drive back to Luanda. The trip took about nine hours and went through some spectacular scenery.

The 600 kilometers between Huambo and Luanda has amazing views

The Kwanza River serves Luanda with hydroelectric power, and provides a source of water for drinking, washing, transportation and waste disposal, a common situation in the developing world and the reason Rotary focuses so intently on water projects


John Yale (RC Luanda, D-9350), World Vision country director for Angola, Nina Clancy and Steve Koobatian at the World Vision office in Luanda


Steve K, Kristin and PDG Nina at the Luanda airport, heading home on Saturday, 20 June 2009
Comments

Notes from our first meeting with John Yale, Angola country director for WorldVision...

Map of Angola, with Huambo Province circled

The objective of the program is to develop the economy in Huambo by building self-sustaining enterprises. Right now, those enterprises are small farms, referred to as smallholdings, which support one family on a handful of acres.

Huambo Province

The Rotary Club of Luanda (D-9350) and District 5230 are providing, literally, seed money for the project. The $250,000 we raised is going towards seed and fertilizer, which will be distributed as part of a comprehensive development program. That program includes organizing smallholders into associations, providing agricultural expertise, developing a market for produce and arranging access to credit.

Market access makes the program work, access to credit keeps it self-sustaining. We're providing one piece of a larger project. Another partner in the effort is the Gates Foundation, which is working on developing a market for agricultural produce from Huambo. The capital, Luanda, is eight to twelve hours by truck from Huambo, and there's evidently no reliable source of real-time information about prices and demand for any given commodity there. Most food is imported, the internal agricultural market is very poorly developed.

Supermarkets and restaurants in Luanda are being targeted right now as potential customers for Huambo's produce. In order to make that happen, the smallholders and their associations have to be able to promise a reliable, steady supply. They can't just show up with 12 truckloads of produce at the usual harvest time. They have to be able to supply one truckload a month for an entire year. Or even smaller lots weekly or better. That's one piece of the puzzle to solve.

Another is transportation. There is a rail line that runs from Huambo to the Atlantic coast, and from there up to Luanda. Some traffic is apparently moving on it, but it needs work and, according to Yale, the Angolan government is working on upgrades.

If Huambo smallholders can just get their produce to the coast, and sell it there, they could well succeed in building a sustainable business. Yale said that a smallholder might be able to sell produce at, say, $175 per tonne directly off the farm -- "gateside", as he puts it -- but that same tonne would fetch $500 on the coast.

A typical smallholder might be able to produce 2.5 tonnes in a single harvest. That's worth about $400 gateside, but $1,250 on the coast.

That's a huge difference, a three-old increase in income. And the numbers themselves are critical. In order to produce that 2.5 tonnes, the smallholder needs to start with about $375 worth of seed and fertilizer. $400 of revenue leaves just $25 to support a family until the next harvest, $1,250 puts $850 on the family's table.

Having that money available also allows the family to invest in their home, maybe put on a zinc roof or build a cookstove. Quality of life goes up.

Credit is piece that makes it self-sustaining. If a smallholder can borrow $375 for seed and fertilier, then he or she is assured of being able to plant again. The major government-controlled bank in Angola is beginning to loan seed money directly to smallholders in Humabo, through our joint project. The bank makes the loan, WorldVision guarantees the loan and provides training and other assistance to smallholders and their associations, so that the loans can and will be paid as promised.

Part of that involves developing individual business plans for each smallholder.

Yale also talked about how the Green Revolution, the biotech miracle of the second half of the 20th Century, never happened in Africa. Through better technology, the Green Revolution is credited with vastly increasing agricultural production in both the developed and developing worlds. Countries that were once on the brink of mass starvation are now self-supporting in terms of food, or have even become food exporters. Not so in Africa, according to Yale.

He said that WorldVision has had a lot of success around the world with agricultural technology programs. They've been very successful in boosting production. The market access and agricultural credit side is a work in progress, but it's work that's now being done in partnership with Rotary, the Gates Foundation and others, such as the Angolan Government, Chevron (Angola is a major oil producer), and the U.S. government's AID program.

The Gates Foundation is also focusing particularly on improving agricultural technology adoption, in Angola as well as elsewhere in Africa. Another, larger agricultural technology program is being run in Angola by the Rockefeller foundation. Both are trying to tackle the problem from both the supply and demand side, by developing markets and business acumen along with increasing production.

Yale believes the project in Huambo should be a success. While Angola was a Portuguese colony and before it was wracked by nearly 30 years of civil war, Huambo was a major agicultural producing region. During the war, Huambo was Ground Zero for the fighting, and was devastated. But the history and the natural resources are still there. Critically, Huambo has ample water for irrigation.

Africa in general is a relatively dry continent, with very little in the way of developed, or even developable, water resources. Because of its location in the highlands on the edge of the Congo basin, Huambo is wetter, with plenty of accessible ground water. That ground water is now being tapped to provide reliable, year round irrigation for crops.

We have lots more to see and learn. Yale said we'll be going to the villages where the Rotary seed and fertilizer will be distributed. We'll be learning exactly how our contribution will be put to use in this comprehensive development program, and we'll see the distribution chain from beginning to end. We'll also see some villages and local agricultural associations that are further along in the process.

Several members of the Rotary Club of Luanda will be going to Huambo with us on Wednesday. The president of the club is already there, having made the overland drive today. Tuesday, we'll see some of Luanda and the Worldvision operation here, and tonight we go to the RC Luanda meeting.
Comments

Kristin Pires (Rotary Club of Tulare Sunrise) and I are leaving today, flying out of SFO this evening. We'll be meeting Nina and Steve in Luanda next week. Here's our trip plan...

Objectives:

In Huambo
1. See co-op(s) that will distribute and manage Rotary seed and fertilizer
2. Verify Rotary branding and public awareness re Huambo project
3. Verify seed and fertilizer distribution chain
4. See warehouse with seed and fertilizer earmarked for Rotary
5. Establish ongoing communication and reporting process
6. Future needs assessment for second half of project
7. See a smallholding that will be receiving Rotary seed and fertilizer
8. See co-op that has been in operation for a longer time

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Itinerary for Steve Blum & Kristin Pires

Flights

Tuesday 9 June 2009
United Airlines 930
Depart: 7:17pm San Francisco, CA San Francisco International (SFO)
Arrive: 1:35pm (Wednesday 10 June 2009) London, United Kingdom London Heathrow (LHR)

Wednesday 10 June 2009
Virgin Atlantic 8221, operated by South African Airways -- SA 221.
Depart: 9:00pm London, United Kingdom London Heathrow (LHR)
Arrive: 10:10am (Thursday 11 June 2009) Cape Town, South Africa Cape Town International (CPT)

Monday, 15 June 2009
South African Airways 302
Depart CPT at 06:00
Arrive JNB at 08:00

Monday, 15 June 2009
South African Airways 54
Depart JNB at 09:45
Arrive LAD at 12:25

Saturday, 20 June 2009
South African Airways 55
Depart LAD at 14:10
Arrive JNB at 18:25

Saturday 20 June 2009
Virgin Atlantic 602
Depart: 8:40pm Johannesburg, South Africa Johannesburg O.R. Tambo International Airport (JNB)
Arrive: 6:50am (Sunday 21 June 2009) London, United Kingdom London Heathrow (LHR)

Thursday 25 June 2009
United Airlines 93
Depart: 2:10pm London, United Kingdom London Heathrow (LHR)
Arrive: 5:11pm San Francisco, CA San Francisco International (SFO)

Hotels

Cape Town:
The Village Lodge Portfolio
Tel: +27 (0)21 421 1106
Web: www.thevillagelodge.com
49 Napier Street
De Waterkant
Cape Town
South Africa 8001

Luanda:
Hotel Alvalade
Avenida Comandante Gika
Luanda
Phone: +244-222-327470
Fax: +244-222-327480

Huambo:
Hotel Roma Ritz
Avenida da Republica
Huambo
Phone: 244-241-223816/7/8
Fax: 244-241-223820
Comments

The first half of the project has a total budget of $1 million, which is why we call it our Million Dollar Dream.

It started with small contributions from Rotary Clubs in District 5230, and a $2,500 contribution from the Rotary Club of Luanda during Rotary Year 2007-2008. Week by week, the contributions came in from dozens of clubs throughout Monterey, Fresno, Tulare and Kings Counties in California. In total, District 5230 clubs contributed $97,500 to the first half of the project, providing a cool $100,000 in out of pocket money from clubs and individual Rotarians to get things started.

Then the Rotary Foundation's matching grant process began. First, District 5230 contributed $50,000 in foundation funds that were raised in the district some time ago. Then, the Rotary Foundation matched funds again, providing another $100,000, to bring the total Rotary contribution to $250,000.

WorldVision then provided an equal amount -- $250,000 -- primarily comprised of in-kind services and staff expenses in Huambo. Finally, the Angolan government matched both Rotary's and WorldVision's contributions, and added $500,000 to the project, to bring the total to $1 million.

In reaching our Million Dollar Dream, every dollar contributed out of pocket by Rotarians in Angola and California was matched ten times over in cash and in-kind contributions.

We're not stopping there. It worked so well the first time, we're going to do it again. Rotarians in District 5230 have already contributed $12,000 out of pocket to the second half of the project. We're on our way to a 2 Million Dollar Dream.

Thank you!
Comments

We're contributing a major piece of a bigger project. The overall goal of the project is to provide comprehensive development assistance to Huambo province, in Angola. This province was devastated by thirty years of civil war.

The overall project is managed by WorldVision. Through the Rotary Foundation, the Rotary Club of Luanda and District 5230 are providing $250,000 to purchase seed and fertilizer. The overall plan below was prepared by WorldVision and tells the whole story. Our current piece (we're hoping to do more!) forms the core of Phase 2, improving crop yields.

ANGOLA WATER MANAGEMENT- PLUS

Project Activities during the first year of the project

During the first year of the project the AWM+ will conduct the following major activities:

  • hire project staff;
  • conduct a baseline survey;
  • initiate project activities as described below;
  • conduct a launch training workshop;
  • purchase of a vehicle and computer;
  • achieve the targets stated in Table 1.

Table 1: Summary of Program Impact Indicators

1) To improve water hygiene and sanitation practices that are effective in reducing water borne diseases.

Community activists will collaborate with the Ministry of Health and local communities to train, support and supervise health post staff, community leaders, community selected health workers and committee members to adapt, promote, guide and support household behaviors for preventative and basic health care, including issues relating to water and sanitation. Volunteers will be trained and supported in making regular home visits for high-risk households.

The WATSAN committees will work closely with project activists in educating communities on sanitation and hygiene. Behavioral change communication sessions on hand washing, environmental sanitation, personal hygiene, and latrine construction will be organized and carried out on a regular basis, conscious of the fact that it takes time for practices to change. Training will be linked to other essential themes such as diarrhea, and sound weaning practices to create an integrated approach to health care.

2) Increase crop yields through the adoption of improved production technologies and gravity fed irrigation schemes.

Improved Gravity Fed Irrigation Management

A major investment made by the program will address the capacity building needs of the farmers with respect to social organization, production and marketing and water-scheme management aspects. It is fundamental that from the very beginning, the project adopts a flexible attitude and avoids the temptation of defining a priori the ultimate responsibilities’ thresholds of each respective party as these will find the best and ideal shape only when all the capacity building investments have been completed.

The use of gravity fed irrigation offers the possibility of responding to the market demand for a continuous and regular supply of potatoes and onions for the major market in Luanda. Currently a furrow system of irrigation is in use. The advantages are low initial cost, avoidance of contact of water with plant foliage thereby reducing foliar diseases, few permanent structures, uniform water application and high water application efficiency with good design, operation and control equipment such as siphon tubes and gates available at low cost. The limitations are moderately high labor requirements, engineering design essential for high efficiencies, water inefficiency during transport and erosion hazard from rainfall on steep slopes.

The following aspects of the current irrigation systems will be taken into account for improvement of current practices:

  • Planting on the contour and using the correct slope (up to 5% with row crops) to minimize soil erosion and the transport of pathogens;
  • Improvement to the storage and transport of water for irrigation purposes;
  • Rehabilitation of existing irrigation schemes;
  • Community management of water systems to take into account the needs for human consumption, animal consumption and washing purposes.


Seeds of improved crop varieties

The project will work to promote a sustainable supply of seed of improved crop varieties through three basic areas of activity:

Multiplication of seed of potatoes by commercial seed producers;
Multiplication of basic seed of improved crop varieties through Community Seed Banks;
Access to commercial suppliers of seeds of improved crop varieties.

The crop focus is on high value non-perishable cash crops that can support the high cost of transport to distant markets and include the following:

  • Irish Potatoes (export quality);
  • Phaseolus Beans (manteiga type);
  • Onions, Garlic and Carrots.

Field Demonstrations of Improved Crop Technology

WVA, in close collaboration with the Ministry of Agriculture in the central highlands, will promote improved technology packages for crop production and sustainable soil fertility improvement practices. WVA will partner with MINADER to further organize and stimulate production among beneficiary farmers by transmitting a series of basic, technical messages, which farmers can use to significantly increase yields on their farms. Disseminating objective technical messages will require an active group of qualified agronomists and extension agents who know how to communicate with farmers and are equipped to do so. The use of economically sound technical recommendations with MINADER will also serve to develop the market for input supply.

Soil Fertility Management

The soils of the central highlands are inherently deficient in nitrogen and phosphate and in many areas have been grossly depleted of essential plant nutrients by years of cropping with no addition of nutrients. As a result the response to fertilizer is often high. Even though fertilizer use is widely understood by farmers, a large project of participative evaluation and demonstration is needed to ensure suitable use and rapid widespread adoption. The project will stimulate the private sector to support a massive upswing in the use of fertilizer and improved crop varieties in the central highlands of Angola. Widespread, intensive fertilizer use is essential to the high yielding agriculture needed to bring prosperity to the Planalto and to the economy of Angola. It is not possible to expect increased (or even stable) yields in many areas without replacing the nutrients that are removed with each crop. Adoption of new high yielding crop varieties will further increase the crop yield and hence the extraction of nutrients.

Once smallholder farmers are on the scale of commercial production, linkages will be facilitated with suppliers of agricultural inputs. The use of economically sound technical recommendations will serve to develop the market for input supply. Credit through bank micro finance with the Bank of Savings and Credit will allow Farmers Associations to access essential imported inputs such as fertilizer, animal traction equipment and vegetable seeds supplied at the most competitive prices. The priority need for credit by smallholder producers is primarily for fertilizer, and also for seeds, animal traction implements, packing materials and crop protection chemicals.

3) Enhance the ability of farmer organizations to manage water systems, business relationships, access rural credit and achieve economies of scale in input and output markets

Capacity Building of Farmer Organizations

The essential element in any strategy for agricultural development revolves around the capacity building of farmers associations and their members (with gender sensitivity) to increase their development capabilities. There has been a serious disruption of human capacity to promote agricultural development activities. The development of social capital will create synergies with private sector initiatives for input supply, rural credit and improved access to markets.

Access to Credit

The Bank of Savings and Credit BPC has opened a line of credit that requires World Vision and MINADER to provide technical assistance and business services to smallholder farmers so that they can qualify for rural credit. World Vision, as a provider of business development services will provide training to clients eligible for credit from the partner Bank of Saving and Credit at the level of the association. Group training topics will include loan approval criteria, and the concept and practice of solidarity.

Linkages will be facilitated with suppliers of agricultural inputs and the use of economically sound technical recommendations will serve to develop the market for input supply. Credit in kind through bank micro finance with Bank of Savings and Credit will allow Farmers Associations to access essential imported inputs such as fertilizer, animal traction equipment and vegetable seeds supplied at the most competitive prices.

Small rural enterprises that are organized into Farmers Associations that have started the process for the legal registration will be eligible for loans. Loans will be made in US$ or Kwanzas indexed to the US$ with an interest rate of 1% per month. The priority need for credit by smallholder producers is primarily for fertilizer, and also for seeds, farming implements and packing materials.

Business Development Services

World Vision, as a provider of non-financial, business development services will provide training to clients at the level of the association and to the Apex Trading Unit. Group training topics will include loan approval criteria, and the concept and practice of solidarity. The following major steps can be identified in the credit cycle:

  • Diagnosis of Association capabilities, opportunities and needs to strengthen capability;
  • Structuring, election of a credit/administrative committee and definition of statutes;
  • Identification of high value market and structuring of the crop production chain;
  • Development of a generic business plan for Farmers Associations in each microregion;
  • Identification of individual needs for finance by a credit committee of the Farmers Association;
  • WV identify lowest cost source of required inputs and negotiate bulk supply;
  • WV and MINADER provide technical assistance for the production process and post harvest processing;
  • Institutional viability through Federations and an Apex Trading Unit;
  • Training in community organization, planning of production for identified markets, processing and packaging, business management, trading and accounting.

Access to Markets

A major factor contributing to the success of WVI-Angola’s project for economic development is to ensure that the enterprises are viable by linking Farmers Associations to pre-identified, high value output markets. Many farmers cannot identify profitable markets for produce. They are subject to low prices given by itinerant traders and are involved in inefficient individual trading at commune and municipality level markets. Smallholder farmers lack the economy of scale needed to reach more lucrative provincial level markets and lack the business skills necessary to evaluate and trade in these markets.

The project will assist the farmers associations with access to information and the knowledge of how to best use information to make business decisions, after providing business training to the groups. WVI-Angola staff will monitor agriculture commodity prices at major markets and adapt mechanisms to share market price information with farmer groups. Farmer groups will be linked to services for identification of markets, product processing and quality control, and other buyer requirements in distant markets. The following activities will improve the margin on the trading of agricultural produce in food markets and substitute imports:

  • Crop production scheduling, seasonality and estimation of production potential;
  • Identification of informal/formal markets and pre-sales negotiation;
  • Cost analysis and economics of the supply chain;
  • Monitoring of prices, publication of market information and transport costs;
  • Post harvest technology and handling, packing, quality improvement and assurance mechanisms and selection/grading;
  • Bulk transport to distant markets;
  • Sales management and credit repayment at the moment of sale.
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