arcubus
Arcubus is the new City of London Social Investment Fund, raising £1 million to fund vital microfinance initiatives for poor communities in Mozambique and Tanzania.
In 2008, 29 per cent of people in sub-Saharan Africa were undernourished. In Mozambique, ranked 172 out of 182 countries in the UN Human Development Index, GNI per capita is just $330 and life expectancy is 42 years. In Tanzania, the figures are $440 and 56 years and in Kenya $770 and 54 years.
Many of the poorest people don't have access to basic financial services - savings, credit and insurance - leaving them vulnerable to shocks such as poor harvests, floods, illness or bereavement. In Mozambique, there are just 298 bank branches for a population of 21.6 million. In Niassa, the poorest province spread across an area the size of England, there are only five. Microfinance gives people the opportunity to invest in their own future and work their way out of poverty for good.
Arcubus has formed a unique partnership with three of the UK's most established and proven microfinance NGOs: Opportunity International (OI), The Microloan Foundation (MLF) and Five Talents UK (5T). In 2008, they made small loans totalling $3.3million to 19,000 borrowers – 97 per cent of whom repaid their debt in full and on time.
To help Arcubus achieve its target of £1 million, Citylife will be offering a Charitable Bond on its behalf, providing supporters with the opportunity to release funding for microfinance through investment as well as through direct donations.
The money raised will:
- build four new banks and four new microfinance offices in Niassa
- expand an existing, successful microfinance office in Iringa
- make 21,500 small loans to 9,000 people
- help create and support 20,000 jobs
- provide 17,000 savings accounts
- offer insurance for 3,500 lives and livelihoods
- enable City workers to share their skills with microfinance
clients in Kenya