Success Stories
One Step Ahead
Photo: NovoBanco/Angola
USAID supports credit for micro and small enterprise with innovative individual lending methodology with minimal bureaucracy.
In 2004 USAID and Chevron helped establish a private bank, NovoBanco, to increase access to credit for micro-, small- and medium-sized enterprises. Mr. Junior was one of the first beneficiaries of NovoBanco loans. He is a carpenter and employs five workers. He produces everything, from church benches and chairs, to windows to door frames.
"I was very happy to receive US $1,500 as a loan from Novo-Banco, which I used to buy wood so that I can increase my production. If I have wood in stock, I can produce furniture to be shown and sold to customers. If I don't have any wood in stock I have to wait until a client comes to order furniture and pay me an advance. The loan of NovoBanco helped me to stay one step ahead and to increase my sales."
In November 2004 Mr. Junior received a $1,500 loan which was completely repaid in 7 months. In July 2005 he re-ceived a second loan of US $3,000 to buy a machine to prepare the wood, and which will help him expand his business even further.
Mr. Junior is one of the 934 people who have benefited from NovoBanco in its two year of operations. In helping to establish the new bank, the USAID-Chevron partnership has opened new windows of opportunity that contributed to Angola's steady pro-gress toward broad based growth and prosperity.
