Driving Local Entrepreneurship: How Wonderbag and SM GUILGAL SA Empower Small Businesses

Enabling Impact in the Democratic Republic of Congo.
Voices of Change - SMG SA – Ms Mamie

Société de Microfinance Guilgal (SMG SA) is a microfinance institution operating in the Democratic Republic of Congo. Established in 2020, following the transformation of COOPEC GUILGAL created in 2012, SMG SA currently has nine branches across six provinces. The institution aims to provide financial services to individuals and small businesses that lack access to traditional banking services.

Empowering Women Entrepreneurs through Microfinance: Ms. Mamie's Journey with SM GUILGAL SA

Ms. Mamie, a spice seller at the UPN Market in Kinshasa, has been an active customer of SM GUILGAL SA since 2020. With over ten years of experience in her trade, Ms. Mamie sought financial support to expand her business. Due to limited material guarantees and low equity (approximately USD 300), she started with a group loan of USD 150. After two successful six-month group loan cycles, she applied for an individual loan of USD 500, which enabled her to expand her business operations further.

As Ms. Mamie continued to successfully repay her loans and simultaneously build her savings, she identified an opportunity to diversify her business by purchasing a mini-restaurant near her existing stall. She utilized her savings to buy the business, which allowed her to oversee both operations more effectively.

Over time, Ms. Mamie’s capital base has grown significantly. She has accessed increasingly larger loans—USD 800, USD 1000, and most recently USD 2000 (January 2024). This access to progressive financing has allowed her to scale her business sustainably.

Innovation in Business & smart investing in sustainable cooking

One challenge Ms. Mamie faced in her restaurant business was high charcoal consumption, as she needed to keep meals hot for extended periods, from 7 am to 8 pm, to meet customer demand. After attending a product demonstration session organized by SM GUILGAL SA, she decided to purchase five Wonderbags—innovative, non-electric slow cookers that also serve for heat preservation. She acquired these through an additional loan of USD 100, repayable in two monthly installments with daily deposits of approximately USD 2.

The use of Wonderbags has brought significant benefits to her operations. She reports that while she previously spent around USD 5 per day on charcoal, the Wonderbags have reduced her daily expenditure to about USD 3. This cost reduction not only increases her daily profit by USD 2 but also ensures her customers have access to hot meals throughout the day. This energy-efficient solution has allowed her to run a more sustainable business.

Real Benefits and Customer Feedback

Reflecting on her experience with SM GUILGAL SA and the Wonderbag, Ms. Mamie stated: "I was really surprised when I saw how the Wonderbag works. After the demonstration at your branch, I decided to try it, and it has been fantastic. I am able to save on charcoal costs, which improves my profits, and my customers are more satisfied knowing they can always get hot meals. I am very grateful to SM GUILGAL for this support."

Aligning with SDGs: Promoting Economic Growth, Clean Energy, and Poverty Reduction

The experience of Ms. Mamie with SM GUILGAL SA aligns with several Sustainable Development Goals (SDGs). Her journey as a female entrepreneur promotes SDG 5: Gender Equality by empowering women. It reflects SDG 8: Decent Work and Economic Growth by promoting inclusive and sustainable economic growth through access to financial services. The adoption of Wonderbags supports SDG 7: Affordable and Clean Energy by reducing energy costs and promoting sustainable cooking practices. Finally, Ms. Mamie’s improved economic stability and livelihood contribute to SDG 1: No Poverty by providing her household of five with a more reliable income in a challenging economic context.

SM GUILGAL SA’s role in facilitating these outcomes demonstrates the positive impact of targeted financial services and innovative solutions on local entrepreneurship and community development.