Governance > Success Stories

USAID-funded Microfinance Institution Improves Women's Lives and Livelihoods

" With VITAL Finance's assistance my business has grown. I've moved from just a rack of jewelry to a jewelry shop," says VITAL Finance recipient Rissikatou Otekpola.

Rissikatou Otekpola sold costume jewelry and wristwatches in Cotonou's large, open air central market. Théophilia Zinsou-Bode sold telephone scratch cards from a wooden booth on the side of the road. Starting with an initial loan of 300,000 francs (approximately $575) obtained through the USAID-funded VITAL Finance micro finance institution (MFI), both are now successful businesswomen traveling internationally to purchase stock for their businesses. Rissikatou used this and subsequent credits to expand her business incrementally. "You have to be patient if you want to work with VIATL Finance. The initial loan is small but when you show your abilities, they increase your capital," explained Rissikatou. "With VITAL Finance's assistance my business has grown. I've moved from just a rack of jewelry to a jewelry shop," she added. After expanding her card-selling business, Théophilia used a subsequent credit to move into selling clothes. As she became more successful, and suppliers more confident of her ability to repay, they began offering her goods on credit. The goal of VITAL-Finance, as with all micro-finance institutions in Benin, is to provide micro and small loans to individual borrowers for personal, entrepreneurial and established small business activities where few alternative credit options exist. The Government of Benin has declared microfinance as an essential factor in its poverty reduction strategy. In USAID/Benin, micro credit is linked to efforts to promote good governance. What makes VITAL the most outstanding performer among MFIs in Benin is the fact that it achieved financial self-sufficiency in only four years. This feat was accomplished due to two key factors. First was VITAL Finance's strong will to "professionalize" it operations and aggressively seek private commercial loan capital in order to reach financial autonomy quickly. Coupled with this drive was USAID's strong belief in transferring appropriate technologies and empowering local organizations.

Jewelry shop owner Rissikatou Otekpola in front of her wares.

Today VITAL Finance is a viable private, autonomous microfinance institution admired both locally and internationally as it strives to provide financial services that are adapted to vulnerable, low-income populations in urban and rural areas of Benin. Rissikatou and Théophilia are living testimonials that VITAL Finance is accomplishing its mission. With profits from her business, Rissikatou has built a house for her family while Theophelia beams that she is now financially independent and is paying school fees for her five nieces and nephews. "My advice to other women is to come and experience VITAL Finance" she adds.

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