Community Eco-Credit pilot - incentive for local marine management and opportunity for livelihoods improvement

Community Eco-Credit pilot – incentive for local marine management and opportunity for livelihoods improvement

In partnership with Mwambao-MCCC and GreenFi we began working on a Community Eco-Credit scheme we named “MKUBA“.

2.5 years since inception, a review of the model has revealed interesting first results and shed light on areas requiring attention. Many aspects are already truly encouraging. A grant to the community has allowed for nearly 370 community-managed loans for 213 individual beneficiaries in 5 groups with over 50% of women, for a total loan value of over USD 27,000. The original grant capital of USD 4,000 has grown to USD 5,000 via an Islamic finance approach. Repayments are near 100%.

Loans can be used for household improvements or income generation compatible with community marine resources plan. Each loan comes with a self-determined environmental commitment and as a result, legal fishing gears have been adhered to, 20,000 mangrove propagules have been planted and patrols and security of closed areas have significantly increased. In 2021 the MKUBA is now being implemented in 3 more communities in Zanzibar.