Monrovia – Cities Alliance, with funding from the European Union has launched a micro finance loan and grant scheme to help community-based enterprises (CBEs) improve solid waste collection and management services.
Small and medium enterprises (SMEs) as well as local non-government organizations (NGOs) are also expected to benefit from the loan and grant facility, worth more than US$1 million.
Cities Alliance is a global partnership that supports cities in delivering sustainable development and tackling urban poverty.
To manage its activities, the organization operates a multi-donor fund with the United Nations Office for Project Services (UNOPS).
It is being implemented under Cities Alliances’ solid waste project: “Delivering Climate Resilient Solid Waste Management Service in Greater Monrovia through Community-based Enterprises.”
The official launch took place on Friday at a local hotel in Monrovia and was attended by stakeholders from the public and private sectors including representatives from the CBEs and SMEs.
Solid waste management in Greater Monrovia has become an overwhelming task for city authorities who face severe constraints in executing one of their principal municipal responsibilities: to ensure the cities are clean.
But officials say the launch of the loan and grant facility is a significant milestone in addressing the situation, especially within the greater Monrovia area.
“The loan facility will provide CBEs and SMEs an opportunity to access capital to expand their businesses and improve their services through the purchase of waste collection equipment and tools,” said Andrew Senjovu, Monitoring and Evaluation Analyst of UNOPs Cities Alliance during the official launch of the call for proposal.
“It will propel them towards venturing in recycling and composting of both plastic and organic with flexible payment terms and low interest rates.”
The Program Manager of the European Union Delegation’s Rural Development and Climate Change program, Ms. Vera Kellen said providing loans and grants to CBEs is a cornerstone of the EU funded project and the money provided comes from European tax payers.
Ms. Kellen, speaking through a proxy expressed confident that the potential applicants will use the opportunities with the best intention. She pledged the EU commitment to working with all of its partners for a better future and safe planet.
Also speaking, the Deputy Minister for Urban Affairs at the Ministry of Internal Affairs, Madam Paulita Wie lauded Cities Alliance and the EU for the intervention and called on the CBEs, SMEs and local NGOs to make use of this opportunity by ensuring they meet up with all of the criteria set to access the loan and grants.
“Most times people get into a program and they don’t follow the process. I admonish you to work within the system. Register your businesses and pay your taxes to government and submit all of your documents so you can be qualified,” Madam Wie urged.
About the Loan
According to Cities Alliance, the loan facility will provide CBEs and SMEs an opportunity to access capital to expand their businesses and improve their services through the purchase of waste collection equipment and tools such as wheelbarrows, push carts, tricycles, pickup trucks, rakes and shovels, among others.
It will propel them towards venturing in recycling and composting of both plastic and organic materials with flexible payment terms and low interest rates.
Presenting the loan execution plan, UNOPS Cities Alliance’s Capacity Building Specialist, Ms. Yondeh Moore revealed that the organization has opened an account with Eco Bank Liberia Limited to host the proposed US$436,000 loan. To be awarded a loan, she said each CBE or SME will need to develop a feasible business plan, while average loan packages will range from a minimum of US$3,000 to a maximum of US$15,000 per CBEs.
Criteria for Grant
For the grant facility, Cities Alliance says it has a total value for investment of US$924,000 divided into two schemes- small grants for waste reuse pilot which covers non-organic waste or plastic in the tune of $462,000 and the small grants for waste reuse pilot that deals with organic waste to composting, also value at US$462,000.
The Solid Waste management Specialist of UNOPS Cities Alliance, Garmondyu Zogar, presenting the grants’ proposal plan, explained that businesses applying for the grant should fall within the geographic space of at least one of the 12 local authority areas of the Greater Monrovia area.
Funding, he adds can be requested for grants between US$25,000 and $50,000 with a clear demonstration on how the amount applied for is derived.
‘Milestone for Us’
Primary waste collection is the bedrock of the solid waste management system in the greater Monrovia area, hence, the importance of CBEs in assisting municipalities to fulfil their core mandates of keeping the cities and communities clean cannot be overemphasized.
The CBE model complements the solid waste management value chain system in Greater Monrovia. With recognition from city corporations, CBEs collect household door-to-door waste and dispose it directly in skip buckets managed and controlled by city corporations.
They entirely depend on user fees collected from households. Although CBEs face challenges such as low- client subscription levels, they have remained in business and continued to operate.
With the launch of the loan and grant facility, key players of the sector are optimistic that this will be a significant milestone in boosting their businesses.
“We appreciate this because there will be lot of players coming in to take on some of the responsibilities and to ensure effective waste management system,” said James K. Mulbah, the head of Green Cities, Liberia’s premiere recycling firm.