SOLIDARITY IN DIGNITY GROWTH LENDING (SIDGROW)
This will aim at building asset-base for the members, first to secure wealth ownership, and secondly enabling them to accumulate collateral for lending as opposed to having guarantors. The asset will be co- owned by the Sacco and the borrower and full ownership will be transferred once the member clears the loan. A truly solidarity venture, Unity will work in ‘unity’ and flexibility with the borrower to avoid indignity of losing savings in case of inability to meet their obligations.
Lending will be calculated as a multiplier of one’s deposits.
The product targets members involved in disruptive and “risky” enterprises in agro-processing, e-mobility (electric motorcycles, tricycles), solar micro-grids, micro-irrigation (solar-powered boreholes), Urban waste management, sustainable housing, among others, that need to be empowered to own them. This is a resilience and inclusive financing model that will give members an opportunity to access factors of production to scale-up acreage and enterprise development.
Resilient agribusiness financing (RAF)
Resilient warehouse receipt financing (RWRF): Tailor-made for commodity producers supported through various initiatives, this will serve as an alternative collateral mechanism that will enable producers to access credit backed by the warehouse receipt based on their deliveries. Producers will no longer bother about immediate needs requiring urgent finances, and will not be forced to take expensive loans which ends up draining their hard-earned returns. Targeted commodities include, sorghum, sunflower, grapes, Khat and any other agricultural commodity where producers will have made contractual agreements with the buyer(s). Also targeted will be dairy farming, cattle fattening activities for meat/ beef production, bee keeping, chicken rearing, aquaculture, among others.