Microlenders in Timor-Leste are bridging the gap between commercial banks and the poor with microfinance services that help people learn how to build and run their own small businesses to support themselves and their families. One of the organizations working in Timor-Leste to develop the microfinance industry is Christian Children's Fund (CCF), which works with 10 microcredit affiliates in 8 of the country's 13 districts, reaching out to 17,500 beneficiary families.

Through its microcredit partners, CCF has recently loaned a total of $13,000 to eight women's groups in Berecoli, Baucau district. This loan cycle follows the success of the previous loan cycle: from their profits in the first two months, members of the groups deposited $1,438 in savings in addition to repaying their loans. Members manage most of the loan administration themselves, including the deposits, and CCF staff only comes to check in every two weeks. Most loans go to help clients open or expand small businesses--buying and selling basic food and household items, clothing, tais (hand-woven traditional cloth), livestock, vegetable, betel nut, and fuel.

CCF is a leading member of the Microfinance Working Group (MFWG), a network of NGOs and microfinance institutions coordinating work on microenterprise development in Timor-Leste and establishing a range of policies and procedures for the industry. MFWG is seen as a model organization for improving the microfinance sector in developing countries around the world.

Miranda de Sousa, one of the members of the Moris Foun ("new life") group in Berecoli, explained how the microcredit project has helped her to reduce the pressure of daily life by increasing her income. She made enough profit from her most recent loan to cover expenses such as school fees for her children. During the next loan cycle, Ms. de Sousa intends to sell clothes, baked foods, and fuel.

USAID has supported CCF’s microcredit projects in Timor-Leste with two grants totalling $187,200 to provide seed money for loans and cover operational costs. The grants help the organization provide loan services to poor women, a vulnerable sector of Timor-Leste's population, and expand economic activity and increase incomes in rural communities.

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