Empowering Za Sung: Microfinance in Action

In the heart of Myanmar, a small recycling business run by Za Sung is more than just a way to make ends meet. It's a story of a mum's grit, the power of a small loan, and how it can change lives. Za Sung's journey shows what's possible when determined people get the chance they need, and how whole communities can be lifted up, one small business at a time.

Za Sung has been operating a recycling business for many years. This has involved literally digging up plastic and glass bottles or buying them from local restaurants, cleaning them, and taking them to the recycling substation in exchange for cash. It has also involved cycling up to 70km per day carrying up to 100kg of rubbish on her bike! Hard work, but she has always been proud of her job.

Our partner charity, ADC Microfinance, empowers people to lift themselves out of poverty for good by providing micro-loans to poor business entrepreneurs in northwest Myanmar. Most of these people are women, and they do everything – from manufacturing to farming to making herbal medicines, weaving, tea-making, and bookselling. They are usually ‘unbanked’ and don’t have access to legitimate financial services or institutions due to barriers such as upfront costs, minimum deposit requirements, and fees. Sometimes there just aren’t physical bank branches in their area.

Women like Za Sung have the skills and the determination to create a successful business. They just need access to capital. Evidence also suggests that women are more likely to use micro-loans to benefit their families and communities. As well as being a savvy businesswoman, Za Sung is a solo mum and puts all of her income into her three daughters’ schooling and university. She stated, “If this organisation believes in me and can lend me money as long as I need, I have decided to work as long as I can”.

Za Sung left an abusive marriage when her daughters were young and at one point she had to sell her own clothes in order to buy food for her family. She shared with us that with her new increased income, her dream is for her children to have the education that she never had.

With funds from a micro-loan, Za Sung was able to escape the oppressive credit terms from those she sold recycling to. She was also able to store more items for longer, to wait for more favourable rates. This might not seem like much, but every little bit of income counts for a solo mother living below the poverty line, determined to provide a better life for her children.

ADC works with Zozam Microfinance in Myanmar. Its micro loans are distributed by Zozam‘s local staff after meeting applicants and helping them develop business plans. There is also a requirement for all clients to put aside a small amount for insurance and savings. Clients form groups of 4-5 people and put money aside together, which builds trust and a sense of community.

The resourcefulness and determination of these micro entrepreneurs is a real inspiration. And the best part is that when loans are repaid, the funds are available to be lent out again and again. Over time, whole communities are transformed through access to affordable financial services.

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Words and images supplied by ADC Microfinance