OCTOBER 2006 — The USAID/Guyana HIV/AIDS Reduction and Prevention (GHARP) Project is helping people living with HIV/AIDS (PLHA) become more productive and economically independent through small loans provided through a micro financing program.

Although micro financing can be complicated, it generally refers to the provision of financial services to people excluded from traditional financial systems because of their lower economic status. Besides loans, micro financing can also make other services available, including savings programs, insurance and money transfers.

PLHA who receive loans through the GHARP Project are unable to obtain them through traditional means, either because of their economic status or because they have HIV. The loans enable them to expand their small businesses and support their families. They range from about USD$375 to USD$1,750. 

The Institute of Private Enterprise Development (IPED), the Guyana Telephone and Telegraph Company (GT&T) and the Guyana Lotto Company partner with GHARP to make the loans possible. Each makes a unique contribution. IPED has extensive micro financing experience, having been established 20 years ago with support from USAID. Guyana Lotto Company supplies funds for use as collateral by PLHA. GT&T provides general financial support.

Although loans have been disbursed for some time, the partnership was officially launched Sept. 20 in Georgetown, Guyana. H.E. David Robinson, U.S. Ambassador to Guyana, hosted approximately 80 attendees from the private sector, diplomatic corps, government of Guyana and U.S. government at the event.

Even after a short time, the program is helping many entrepreneurs attain a better life. For instance, in July 2006 Samantha Brown (not her real name) was granted a loan to expand her and her husband's business producing and selling rolling pins, tin baking pans, graters and scrubbing boards. Before obtaining the loan the couple worked long hours but could not produce enough stock each week to meet demand. They used the loan to purchase materials and increase production. Now the couple employs several family members in the business.

 "This is truly the best thing that has happened to me since learning I had HIV," Samantha Brown says. "I am able to make ends meet and give my daughter who was born HIV-positive more nutritious food. Even my doctor told me he has never seen me so happy."

To date nearly US$8,500 has been disbursed in 22 loans to 18 people. Partners are committed to providing loans totaling as much as US$350,000 to at least 200 people by mid-2007.

IPED, GT&T and Guyana Lotto Company are among 22 private sector partners that have signed memoranda of cooperation with GHARP since December 2005. All partners agree to receive workplace training and develop a corporate HIV/AIDS policy. Private-sector partners also contribute to a variety of activities according to their abilities and interests, including home-based care, community outreach, prevention of mother-to-child HIV transmission and support for orphans and vulnerable children.

GHARP is a joint Guyana/U.S. project supported by the President's Emergency Plan for AIDS Relief through the U.S. Agency for International Development and managed by Family Health International.

Photo: Through GHARP, Samantha Brown obtained a small loan to expand her and her husband's business producing and selling tin products. (Andrea Rohlehr-McAdam)