The project

SPBD Samoa offers a unique blend of microcredit and business support, particularly through its group loan programs. Operating on the remote island of Samoa in the South Pacific, SPBD Samoa caters to the basic needs of local entrepreneurs, many of whom are women in rural communities. Their Field Officers manage loan collections in person, due to limited digital banking services, and facilitate weekly meetings that foster the sense of community and collaboration between the entrepreneurs. These meetings are central to the group loan model, providing a platform for entrepreneurs to receive guidance, share experiences, and support each other in their business endeavors.

This method of group lending and support plays a pivotal role in strengthening community economies. By focusing on micro and SME loans, primarily for female entrepreneurs, SPBD Samoa aids them in starting or growing their businesses, with about 70% of their efforts directed towards the rural areas of Upolu and Savaii islands.

What social return could your investment make?

Micro, Small and Medium-sized Enterprises (MSMEs) are critical for economic growth, particularly in countries like Samoa, where 25% of families live below the poverty line of US$2 per day. 

Microentrepreneurs and SMEs are often the backbone of local economies, generating employment and fostering innovation. However, their potential remains largely unused due to limited access to funding and business guidance. For women entrepreneurs, the challenges are compounded by gender-related obstacles such as social bias, lack of collateral due to property rights issues, and limited access to financial education. 

This is where SPBD Samoa steps in. The financial institution aims to specifically fund and support 155 female-led Micro-entrepreneurs and SMEs through a well-structured loan program. Loans are repayable in 52 weekly instalments, and borrowers also benefit from weekly guidance sessions with SPBD’s field officers, who help refine business strategies and troubleshoot issues in real-time. Your investment in SPBD Samoa is an investment in sustainable community development.

 

What financial return could your investment generate? 

• Annual interest rate of 5,75%
• The maturity of the loan is 24 months
• There will be a repayment of your investment in equal instalments every six months, including the interest
• With an investment of 1.000 euros, your expected repayment would be 1.072 euros

The story of SPBD Samoa

In a region like the South Pacific, where most of the seven million inhabitants live in rural villages and face limited access to traditional banking, the need for financial inclusion is acute. American social entrepreneur Gregory Casagrande founded the South Pacific Business Development (SPBD) in Samoa in 2000 to address this gap. The initiative has since expanded to Fiji, Tonga, Vanuatu, and the Solomon Islands, focusing on poverty alleviation through women-led micro-enterprises. 

You can invest in the Samoa and Tonga entities via Lendahand. These entities operate independently.

In Samoa specifically, SPBD has made significant progress. Since its establishment, the organization has disbursed 117,000 loans totaling USD $100 million and achieved financial stability by 2007. SPBD Samoa offers a diverse range of loan types, from microenterprise loans, SME loans to higher education loans, all aimed at empowering women and promoting economic growth.

SPBD Samoa in numbers

• SPBD Microfinance Network  consists of 5 individual legal entities, of which SPBD Samoa is one
• Founded in 2000 
• 29 employees
• Disbursed 117,000 loans for a total of USD$100 million since its establishment