- Title: LIBERIA: A small business in Liberia thrives off palm oil
- Date: 6th September 2010
- Summary: VARIOUS OF SUMBO HAVING A MEAL WITH HER FAMILY EXTERIOR OF THE HOUSE SUMBO IS BUILDING
- Embargoed: 21st September 2010 13:00
- Keywords:
- Location: Liberia
- Country: Liberia
- Topics: Industry
- Reuters ID: LVA4ECJEOTR1WP594K1M61Y6YKWK
- Story Text: After several years of civil war many Liberians are out of work and trying to makemeet. One businesswoman has made entrepreneurship her way out -- using a micro finance loan to make a name for herself in the palm oil industry.
Trokan Lewis is just about to harvest palm nuts at this farm in Monrovia, Liberia where he and about twenty others work, making palm oil.
The men run an informal business on this 700 acre plantation that belongs to the government and was started in the 1970s.
When civil war broke out here in 1989 the farm shut down. Other leading industries like rubber and timber were also affected.
"We have been in this project for a long time and things are fine. People come from Monrovia to buy oil from us. So customers come and buy directly from us. But before we used to transport the oil to them," said Lewis.
Today the land is unsupervised and people harvest palm nuts for free.
Palm oil has been produced in Africa for thousands of years and is rich in vitamins. To make some; the nuts are first boiled for 24 hours and then later pounded into a pulp.
When ready, the pulp is washed in water. At this stage palm butter is obtained and skimmed. It's then either used to make cosmetics and soaps or is further boiled to make palm oil for cooking.
The men say processing would be much more efficient if they had industrial machines.
Traders like Kebbeh Sumbo then buy the red oil here and later sell it to retailers. She's come today to make new orders. 5 litres go for about 14 US dollars.
"I have a supplier here called Samuel. He produces oil and sells to me between 15 to 20 jerrycans, and by me buying from him I know his life has improved. You can see there are many people on the farm producing oil because of microfinance," Sumbo said.
If not for micro-financing opportunities, business owners like Sumbo would never get loans as most banks here don't lend small amounts of money and generally view small businesses as risky investments.
In 1996 Sumbo got a 50 US dollar loan from a local programme called LEAP that's supported by the UN. She's since paid back the money she borrowed. Her business now employs 10 workers and makes 1900 US dollars in a good month.
"When LEAP gave me the first loan I was able to repay it. After that I got my second loan of 214 US dollars which I paid. Then I applied for my third loan, 643 US dollars, which I paid back. But my fourth loan improved my living standards," said Sumbo.
"If I had savings, I would like to start my own business, because I've been working for one employer for the last 15 years, and I've seen how the business is run and the profits I can make. I can then be able to employ others," said one of Sumbo's employee, Janet Sesay.
Kenyeh Barlay works for the United Nations development agency in Liberia.
"You have at least over 70 per cent of the population living in poverty, over 70 per cent of the population unemployed. The provision of microfinance loans to a percentage of the population at least increases self employment. And there is the ripple effect of goods and services being sold in the communities where microfinance activities operate," Barlay said.
As Liberia is still recovering from war the government is inviting investors to help grow its economy. The country recently signed a contract worth 800 million US dollars with a Malaysian company to help revive its palm oil sector.
At the city's red light retail market women sell palm oil brought in by wholesalers like Sumbo.
"I like selling palm oil because it doesn't get spoilt. You can keep it for along time," said Nettey Nynneh, a palm oil trader.
Sumbo doesn't live far from the market. She is a widow and takes care of 14 members of her family.
Because of the money she makes the family now eat twice instead of once a day and plan on moving into the house Sumbo has been building nearby.
As efforts to rebuild the country continue, Sumbo wants to do her bit to expand the palm oil business further.
She's now using the internet to target clients in the US and Europe.
With more orders Sumbo reckons that she'll be able to create more jobs while at the same time improve things for herself and the family. - Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: Footage contains identifiable children: users must ensure that they comply with local laws and regulations governing the publishing of this material.