Access to Credit Allows One Woman to Turn Her Life Around
On a cold and rainy day we drove into Meenetkech village. The streets were empty and smoke curled from chimneys. When we arrived at our destination a middle-aged woman in traditional Kyrgyz dress appeared and greeted us. Her handshake was unusually firm for a woman. This was Cholpon Abdymomunova, the woman we had come to see. She was a frequent client of the Bai Tushum Financial Foundation, and my colleague and I were visiting in order to tour her farm.
As Cholpon led us around, she beamed with pride. She was forthcoming about her business and openly shared information about its operation and financial management. It was clear that she ran a successful enterprise. After we concluded our official business, Cholpon invited us to stay for a cup of tea, and since this is a time-honored tradition in Kyrgyzstan, we agreed. As we sat down, Cholpon began to tell us her story.
As a young woman, Cholpon was full of hope and optimism. She fell in love and married a wonderful man. Together they dreamed of a big family and several years later they were happily living their dream with seven children. However, in one day Cholpon’s life would change unexpectedly and forever. Her husband died of a heart attack, and she was left to provide for the whole family on her wages from the Tokmak Meat Plant.
Since gaining independence from the Soviet Union in 1991, the economic situation in Kyrgyzstan was bleak and as time passed it became more and more difficult for Cholpon to take care of her family on her salary from the meat plant. But things would continue to get worse before they got better, and in 1996 Tokmak Meat Plant declared bankruptcy and closed. Cholpon was out of work.
Desperate times call for drastic measures, and so Cholpon packed up her family and moved them to a village in the country where she hoped they could lead a simpler life. Planning to live off the land as much as possible, Cholpon purchased a farm. Her first three years in Meenetkech were the most difficult of her life. There was no work in the village, so she earned money by purchasing goods at the wholesale bazaar and reselling them at a leased retail shop. Many people in the village were engaged in similar work, making competition among retailers steep. As a result, Cholpon’s meager earnings—approximately $150 per year—were not sufficient to keep her farm running or to pay for her children’s school-related expenses, however she toiled on.
Finally Cholpon heard about an opportunity that sounded promising. A friend had recently obtained a loan from Chui Farm Credit Association—a predecessor to ACDI/VOCA's Bai Tushum Financial Foundation branch in Chui—which had offered affordable interest rates and wonderful customer service. Cholpon immediately met with a credit manager, registered her farm as an enterprise and applied for a loan. She was approved and with her first loan of $780 she bought and reared young bulls, which were then sold at the market. With the profit earned from her first loan cycle Cholpon purchased three milk cows and began to dream again. She laid out plans to develop a dairy farm, and four loans later Cholpon’s dream has come to life. She has a herd of 10 milk cows, 10 young bulls and 5 calfs. Selling milk, cream, sour cream, butter and bulls for slaughter, Cholpon earns five times her previous wages as a retailer in the village. With her next loan, Cholpon plans to purchase more milk cows and bulls in order to keep up with the soaring demand for milk and meat products. She also plans to diversify her products by adding hard cheese and skim milk to her line in the next few years.
After many years of hardship, Cholpon was given the opportunity to change her life for the better, and she seized it. Bai Tushum Financial Foundation has given many entrepreneurs like Cholpon the financial resources and backing that allows them to launch their dreams. For Cholpon, her dairy farm has given her back her dignity since she now earns enough income to adequately provide for herself and her children, but the farm has also been a boon to others in the village. The farm supplies Meenetkech with high-quality dairy and meat products while also providing gainful employment to six villagers.
Written by: Aliya NiyaZalieva, ACDI/VOCA-Kyrgyzstan