Arcubus
About us
Arcubus is a new charity seeking to raise £1m to fund microfinance institutions in Mozambique, Tanzania and Kenya, helping thousands of the world's poorest people work their way out of poverty sustainably.
'Arcubus' means 'arch' in Latin, a symbol of strength through partnership and a reference to St Mary-le-Bow ('Sancta Maria de Arcubus') in the City of London, where we were originally founded to harness the skills and resources of the square mile in support of the world's poorest communities.
Microfinance is the provision of basic financial services (savings, credit, insurance and business training) to poor communities not served by mainstream banks, usually because they are considered too poor and too remote. Microfinance overcomes the barriers to entry faced by mainstream banks – and average repayment rates of 97% indicate that this is not a subprime market! Without access to finance, poor people are trapped in poverty, lacking the means to take the first step towards self-sufficiency and vulnerable to shocks such as poor harvests, floods, illness or bereavement. Microfinance gives people the opportunity to invest in their own future, growing their small businesses, increasing their income and enabling them to send their children to school and provide enough food for the household. It's a proven development tool bringing short-term and long-term benefits for individuals, families, communities and the whole country. You can find out more about microfinance by visiting our website, www.arcubus.org.uk, or by emailing info@arcubus.org.uk.
Projects and Partners
Arcubus has formed a unique partnership with four dedicated UK microfinance institutions who will, with your support, deliver a complementary portfolio of microfinance programmes in Mozambique, Tanzania and Kenya. Together, our partners will be building 4 new bank branches and 4 new microfinance institutions in Niassa (northern Mozambique), doubling the size of an existing microfinance institution in Iringa (southern Tanzania), and arranging short-term placements for UK volunteers to share their skills with microentrepreneurs in Kenya.
Our microfinance partners will be working together for the first time, sharing experiences and good practices and avoiding duplication or reinventing the wheel. We think this is a first for the NGO sector; a new model of collaboration and efficiency. Follow the links on the left to find out more about our partners and their work. You can also watch a short film to bring it to life here: http://www.arcubus.org.uk/#/video/4540267655
What will we do with the funds we raise through your investments?
With the help of your investments, we hope to achieve the following outcomes by 2014:
* 21,500 loans to 9,000 people
* 11,000 jobs created or sustained
* 17,500 savings accounts opened
* 3,500 lives & livelihoods insured
* 4 new bank branches and 4 new microfinance offices in Niassa, Mozambique
* An expanded & sustainable microfinance institution in Iringa, Tanzania
* 100s of UK volunteers sharing skills with microentrepreneurs
* Direct impact on food security, health, household income and living standards
Why is your investment for Arcubus so important right now?
The UN recently estimated that up to 90 million more people suffered extreme poverty in 2009 than would have been the case had the global economic crisis not happened (Ref 1). 29% of people in Sub-Saharan Africa were under-nourished in 2008; an increase on 2006 figures (Ref1). In Mozambique, ranked 168 out of 177 countries in the UN Human Development Index, life expectancy is just 44 years. In Tanzania, life expectancy is 50 years, and in Kenya it is 51 years (Ref 2). 1 in 8 people aged 15-49 are HIV positive in Mozambique and 1 in 200 mothers die in childbirth (Ref 3). You can see that meeting the Millennium Development Goals by 2015 needs much more investment - now. Arcubus is a response to that need.
A survey conducted by one of our partners, the MicroLoan Foundation, showed that after going through a microfinance programme, 92% of clients spend more on health, 67% invest in education and 78% are no longer short of food. These are real social returns on your investment.
Our microfinance partners are all non-profit making; they exist to benefit their vulnerable clients, not to make profits for shareholders. That said, one of the strengths of microfinance is that it is market-based; a model of trade not aid. Poor people borrow money to invest in their businesses, and they pay it back in full with interest. With the help of training and mentoring offered by our microfinance partners, microfinance means people are able to support themselves and their families sustainably, without becoming dependent on charity. The interest they pay on microloans covers the overheads of the microfinance institution, so that their repaid capital can be lent to other clients over and over again. If you invest in support of Arcubus, your capital is repayable in full after 5 years, but the money which Allia donates to Arcubus through your investment is lent and re-lent over and over again. It's an investment that keeps on giving opportunities to vulnerable people in Africa, even after you've had your capital back!
Our target
Our fundraising target through the Allia bond is £1m. Won't you join us to invest in life?
Ref 1. The UN Millennium Development Goals Report 2009.
Ref 2. UN statistics from www.mdgmonitor.org
Ref 3: UN MDG Monitor at http://www.mdgmonitor.org/country_popup.cfm?c=MOZ
Release up to 14%
Release up to 14% for your cause in this round.
