In a year when microfinance has been scrutinized like never before, a new interpretation of the concept has experienced great success. Zafèn, an online microfinance initiative that defines interest not in financial terms, but in human terms has raised $350,000 in its inaugural year to fund business and social projects that generate sustainable economic development in Haiti.

More than 500 projects across Haiti received an interest-free loan or a donation from funders worldwide in the past year, enabling people living in poverty to help themselves with an infusion of capital for ventures that do not qualify for funding from banks.

Haitians living outside the country played a role in Zafèn’s conception and success. Katleen Felix, chair of the Haitian Hometown Associations Resource Group, said, “The Diaspora and friends of Haiti involved in Zafèn want to see real changes in rural Haiti. Zafèn is showcasing replicable and sustainable projects that have a positive impact.”

In all, 536 projects were funded in year-one; 177 projects received $227,712 in loans, 359 projects received $121,887 in donations. Zafèn accepts contributions between $25 and $10,000.  The largest loan in the past year was for $5,250 to purchase a plow, while the smallest loan requests were $75 to purchase vegetable seeds. The largest number of donations funded scholarships for schoolchildren, and donations as low as $25 funded the planting of coffee and fruit trees.

“The International Vincentian Family stimulated many online contributions by offering four matching programs last year that raised $105,000,” said the Rev. Robert Maloney, C.M., who chairs the  International Vincentian Family Board. “A new first-anniversary match begins April 1.  All loans and donations made through Zafèn from April 1-8, up to a total of $25,000, will be matched by the International Vincentian Family.”

“Most rewarding for Fonkoze has been discovering the quantity and rich diversity of the enterprises that exist in the rural areas of Haiti,” said Anne Hastings, director of Fonkoze, Haiti’s alternative bank for the organized poor. “One of the most important lessons has been that the enterprises are out there, and the investors, too, are available. Connecting them is up to us.”

Felix cited Kiskeya Aqua Ferme, Ile-a-Vache Development Corporation, Fondwa University and FATEM as “great examples of innovative Haitian projects with a Diaspora link.”

She said, “From those projects, we learned ways to approach sustainable development, agriculture, sustainable schools and environmentally friendly solutions.  These are not just cocktail-party conversation topics about how Haiti can change. They are powerful examples that anyone who really cares about Haiti can share with their networks.”

FATEM is a community organization whose vision is for the residents of Mirebalais, Haiti, and its surrounding communities to be gainfully employed, have access to education and technology and enjoy the benefits of a sustainable environment. It was among the first to qualify for donations on zafen.org and benefited from the generosity of early adopters to the site.

Jacky Poteau, president and executive director, said, “FATEM was able to provide much-needed tuition and school supplies to more than 1,000 children living in poverty from the rural areas of Mirebalais. Without this assistance, it would have been very difficult for many of these children’s parents to send them to school. Such support also made it possible for us to contribute to feeding over 3,000 children at our 14 partner schools on a daily basis during the academic year.”

Similarly, Father Maloney is proud of the project at Frederic Ozanam School in Port-au-Prince. “It prepares previously unschooled children who are living away from their parents, often in very difficult circumstances (they are called “Restaveks” in Haiti), to be mainstreamed into regular schools over a three-year period. Three of the graduates from last year’s group came out first in their class at the new school.”

So what lies ahead for Zafèn?

“Next year, we hope to have a larger number of projects online of varied types: small and medium enterprises, schools and reforestation,” according to Maloney.

About Zafèn

Zafèn, which means “It’s our business” in Haitian Creole, was developed to stimulate collaboration between Haiti-based business owners, the Haitian Diaspora and others interested in supporting the Haitian economy. It is unique in its criteria because businesses must demonstrate an anticipated impact on the broader community from the loan or donation by hiring more employees, operating more efficiently, becoming more environmentally friendly or other measures. Zafèn was founded by four organizations: the International Vincentian Family, an assembly of people worldwide affiliated with organizations who find inspiration in the legacies of St. Vincent de Paul and St. Louise de Marillac; DePaul University in Chicago, the largest Catholic university in America; Fonkoze, Haiti’s alternative bank for the organized poor serving more than 200,000 clients; and the Haitian Hometown Associations Resource Group, which enables the Haitian Diaspora to foster economic and social growth to alleviate poverty in their native communities.