ADA supports access to basic services for entrepreneurs in Guatemala

© José Manuel del Busto

During a mission to Guatemala in November 2021, the ADA team visited FAPE (Fundación de Asistencia para la Pequeña Empresa), Mayaversatil and FFDL (Fundación Fondo de Desarrollo Local de Guatemala), three MFIs that have received support for the development of products enabling access to water and sanitation and green energy as part of the Reinforcing the social added value of microfinance programme implemented by ADA and REDCAMIF between 2018 and 2021. 

FAPE and Mayaversatil developed a WASH (Water Sanitation and Health) loan to finance the connection of homes to the city's water network, and also to finance rainwater collection systems, construction and/or improvement of sanitary facilities (toilets, showers, etc.), drainage systems, roofs, floors or organic waste treatment (biodigesters). 

FFDL offers a Green Energy loan for solar panels and water heaters to reduce electricity bills. 

ADA took the opportunity to meet the clients of these three MFIs who benefited from these loans. Here is their feedback.

Client feedback on the WASH and Green Energy loans

Maria Josefina Choy, a FAPE (Chimaltenango) client, who benefited from a WASH loan to improve her sanitary facilities 
Maria lives on top of a hill only accessible on foot. She makes and sells tortillas. “I took out a loan of 5,000 QTZ (650 USD) disbursed in December 2020 with a 12-month term which I repaid every fortnight. I used it to install a drainage system, a shower, a toilet, and the roof and floor of my home. This is the first water and sanitation loan I have received. I would like to take out a second loan to buy doors and windows”. 

Juana Emila Sajché Pérez, a FAPE (Chimaltenango) client, who benefited from a WASH loan 
Her family, and that of her brother and mother, used to live in the same house sharing just one bathroom. When they decided to divide the house so everyone had their own space, they all lost access to water and sanitation. Juana would wash clothes in the river. Thanks to the 5,000 QTZ (650 USD) loan she took out, she was able to connect to the city's water network, which delivers water two hours a week. When it arrives, Juana fills the tanks she was able to buy with the loan. Were she to buy water in containers from the store, it would cost her twice as much. 
Kimberly, her sister-in-law who lives next door, also took out a loan of 5,000 QTZ (650 USD) to hook up to the municipality's central water system and build a shower and a toilet with a roof and a floor. 

Rosa Marina Cotzojay Pirir, a FAPE (Chimaltenango) client, benefited from a WASH loan 
Rosa is 25 years old; she has a daughter and lives with her mother, her husband, brothers and sisters and her nephews. She owns a sewing workshop. She took out a loan of 5,000 QTZ (650 USD) to connect to the municipal water network and install a laundry sink. This is the third loan she has received: the first in 2019 was for the installation of electricity, the second in 2020 for the installation of a sanitation and drainage system. 

Maria Elena Lopez Zapeta, a Mayaversatil (Totonicapán) client, benefited from a WASH loan 
Maria took out two loans of 10,000 QTZ (1,300 USD) each. The first was used to finance a rainwater harvesting system because even when the municipal water does arrive, it is not enough. The second loan was for the purchase of a biodigester (emptied once a year) and the construction of a toilet and a shower. 

Toilets before and after

Hector Abram Luxpu, a Mayaversatil (Totonicapán) client, benefited from a WASH loan 
Hector lives with his wife, four children and a brother. He is a farmer and sells prepared meals. He took out a loan of 3,000 QTZ (390 USD) to finance his activity. He would like to take another loan to change his toilets and the roof of his house. 

Doña Cristina Lux Castro de Ixcotoyac, a Mayaversatil (Totonicapán) client, benefited from a WASH loan 
Cristina and her husband took out a loan of 700 QTZ (90 USD) with a 12-month term. With the loan, they built a toilet and bought a laundry sink, because Cristina used to wash her clothes on the stone under the sink. “I would like to take out another loan to lay a concrete floor.” 

Antonio Maximiliano Ttzul, a Mayaversatil (Totonicapán) client, benefited from a WASH loan 
Antonio is in the business of delivering parcels to the USA, and he owns a restaurant. He took out a loan of 5,000 QTZ (650 USD) with a 12-month term he used to build a bathroom with a shower and a toilet connected to a biodigester. “Before, I had a toilet with a septic tank. I would like to take out another loan to make second bathroom, because we are two families living in the house and we receive clients.” 

Eliseo Carrillo Perez, an FFDL client, received a Green Energy loan 
Eliseo lives with his two sons, his daughter-in-law and his two grandchildren. He took out a 610 USD loan in March 2021 to buy a solar water heater, which he will finish repaying in January 2022. Thanks to this water heater, there is enough water to take 5 showers a day and his electricity bill has been reduced by half. He is very happy as he now has more hot water, at a lower price. He is also satisfied with the supplier. Recently, his solar water heater got clogged with waste but the supplier fixed it within a day. 

Manuel Pablo Martin, an FFDL client, received a Green Energy loan 
Manuel is a new FFDL customer. He took out a 1,128 USD loan with an 18-month term in May 2020 to purchase a solar water heater. He had no trouble repaying his loan. Thanks to his water heater, he saves 200 QTZ (26 USD) per month on electricity and is very satisfied with his hot water supply.