Among the first clients to receive a loan in Banda Aceh is Zakaria, a brick maker who was fortunate enough to be away from home visiting relatives with his wife and children when the tsunami struck Aceh on the Boxing Day 2004. Though his life was spared, Zakaria’s home and family brick-making business, which was based at the Kajhu-dusun Lam Seunong resort, was destroyed. The family sought temporary shelter in a nearby refugee camp.
Before the disaster, Zakaria provided employment to ten other workers. Afterwards, he had nothing. Financial data and business records had been swept away by the tsunami, along with 10,000 square metres of workspace, and because the land had always belonged to Zakaria’s family, there is no official certified ownership of the brick-making business.
To help entrepreneurs such as Zakaria with both employment and housing, Opportunity International has formed a partnership with not-for-profit housing organisation. This organisation will order 10,000 bricks per day, using businesses such as Zakaria’s to meet its requirements.
Opportunity International, through its local partner, will assist Zakaria with an initial loan of Rupiah (Rp.) 30,000,000 (AUD$4,126) for the restoration of his brick-making business. The loan period will be 21 months, with a three-month grace period. The interest amount charged will be a flat 1% fee per month, with instalments paid back on a monthly basis.
It is estimated that Zakaria’s brick-making enterprise will produce up to 40,000 bricks per month. The average production cost per brick is Rp. 186 (AUD$0.025), while the selling price is Rp. 400 (AUD$0.055) per unit. Based on these figures, the monthly net income for the business would be approximately Rp. 8,556,800 (AUD$1,171). In order to reach this monthly target of 40,000 bricks, Zakaria’s brick business will need to employ 25 people, 15 more than before the tsunami disaster.
Opportunity International is committed to harnessing the potential of many more highly motivated entrepreneurs like Zakaria. Creating jobs in the devastated region improves the quality of life of individual clients, whole families and the communities in which they live, and brings hope that people will one day be able to get their lives back to normal.
DSBN is pleased to be involved with Opportunity International as a donor sponsor. Each month, the $120 DSBN donation supports one new small business impacting up to 15 people each month. An inspirational and worthy cause!
