Albanian Gypsies in the Business
Like most Gypsies in Albania, Sofia and Gezim Neziri sold used clothing on the streets, they lived a marginalized existence of poverty, usually associated with their Jevgu/Roma communities, and struggled to feed their families with the money they made. Today, the couple is enjoying the fruits of a profitable business. They own two houses, a car, a cellular phone, a vineyard and many of the other luxuries that life in Albania can offer.
Employees of the Albanian Partners in Micro-credit (PSHM), a local institution funded by USAID/Albania, introduced Sofia and Gezim to the loan program five years ago. At that time, they bought large bags of bulk clothing from local wholesalers, sight unseen. They took a calculated risk each time they made their purchases because they were not allowed to see the quality. “We worked day and night and realized we could not make any money this way.”
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| Sofia and Gazeem proudly displaying material in their new store |
Sofia took out her first loan of $500 with three others so that they could increase their inventory and buy better quality used clothing. Within five months they paid the principal and flat interest rate of 20%, and later asked for another two loans paying each back on time. They continued to sell on the street until Gezim took out additional four individual loans ranging from $5,000 to $10,000. These loans have enabled them to buy directly from the manufacturers in Italy, Greece and Turkey, rent a store where they sell material by weight, have a storage building for the overflow, and pay three seamstresses for special orders.
“USAID/Albania’s micro-credit program is succeeding in reaching thousands of poor Albanians, and subsequently improving the livelihoods of many families,” says Alma Kospiri, USAID/Albania’s micro-enterprise development specialist. The program is increasing their access to financial, technical and management services needed for enterprise start-up and expansion, and providing credit to those whom are unable to borrow from the traditional banking system. Through USAID/Albania’s partner, Opportunity International, and its established Albanian institution, PSHM, more than 8,000 loans have been disbursed since June 1998, totaling almost 15 million dollars; of which 870 loans have gone to Gypsies totaling almost $400,000. There is a 98% on-time repayment rate. The loans have allowed dairy farmers, agriculturalists, welders, light construction and maintenance workers and many others to set up their own businesses, and act as driving forces to the economic growth in Albania.
Many of the Gypsies taking out loans with PSHM work in the city market. It hosts a plethora of activity where entire families are selling used shirts, jeans, bras, socks and whatever else that can, and has been worn. Rovena Nazifi stands out in the crowd with her large selection of colorful new clothing. She took out a loan of $1,500 for the first time last month. “I could never have got a loan from the banks. They do not trust that we will pay them back. They ask for a very high collateral and take too long to process the application.” With the PSHM loan, Ravena is now selling higher quality clothing in her large stall and increasing her inventory with her profits.
“I was not scared to take out a loan. I work hard and know that I can make more money and pay back what I borrowed,” says, Merita Bastriu, as she proudly stands next to her mother and father.
Over 220 Gypsy clients in Albania have benefited from the micro-credit program. They have been given the chance to borrow money from a reputable institution and to grow in their businesses. USAID/Albania has assisted them in their struggle to move out of poverty and subsistence living, to one of prosperity. “Without the loan from PSHM, I would still be in the streets,” says Gezim. “Now I have enough money to buy a department store, hire more people, and provide for my children until I am an old man.”
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