Mt Kilimanjaro, TZ – Vicoba helps family get the most out of their efforts – 23 Sep 2016

The CPM family used a short-term loan to pay school fees in order to ensure they could get the best price when selling their cows. They estimate that the 50,000 TZS (US $25) loan they received from their Vicoba group will enable them to make between 300,000 TZS and 400,000 TZS (US $150-200) more than they would have made if they had to sell their cow under pressure in a short time span.

Each year in June and July families are under pressure to make school fee payments so their children can return to school after the mid-year break. In 2016 the CPM family found themselves with a number of valuable assets, but no cash. Families are often forced to sell off an asset to cover school fees. If the fees become long overdue, schools will send students home. This puts time pressure on the parents to sell something as soon as possible to make money. Parents may have to sell an asset for below its market value because they do not have time to wait for a better buyer. This is the situation the CPM family found themselves in.

Without the Vicoba loan, the CPM family would have had to sell one of their cows for far below market value. When they received a loan of 50,000 TZS from the Vicoba they were able to repay school fees and search for cow-buyers without pressure. Given the price they were being offered and the market value of the cow, the family estimates the loan will help them earn between 300,000 and 400,000 TZS more than they otherwise would have earned.

The family owns two male cows which they have raised from birth. They plan to sell both cows so they can repay their loan and buy a new milk cow which will give them a daily income.