Interest-Free Microfinance and Its Impact on the World Economy
In the tightly knit farming communities of Senegal, a man buys his first goat, not with a loan that burdens his future, but with one that strengthens it. In bustling markets throughout many low-income communities around the world, small vendors expand their businesses without fearing crippling interest rates. These stories, quietly unfolding every day, are part of a movement transforming not just lives, but entire economies.
Interest-free microfinance isn’t just an alternative to traditional lending — it’s a powerful force for equity and empowerment. Removing the barriers of high-interest debt gives underserved individuals a fair chance to build a better life for themselves and their communities. This model of finance, rooted in trust and shared responsibility, demonstrates that compassion and capital can coexist effectively.
At Friends of Senegal and Maison de la Gare, we’ve seen the ripple effect of these efforts, from increased school attendance to thriving local economies. Let’s explore how our interest-free microfinance program is shaping a more just global economy, one small loan at a time.
What Is Interest-Free Microfinance?
Interest-free microfinance provides small loans to individuals in underserved or low-income communities without charging interest. Instead of profiting from borrowers, these programs focus on empowerment, sustainability, and community support, helping people start businesses, build assets, and improve their lives without the burden of debt.
This is the mission of Friends of Senegal. In partnership with Maison de la Gare, a registered and fully vetted NGO in Senegal, they empower the most vulnerable members of Senegalese communities by providing business training and loans, fostering entrepreneurship and long-term financial independence.
Friends of Senegal provides the necessary funding and business support for this vital work, including facilitating the recruitment of volunteers, and MDG does the boots-on-the-ground work. Their microfinance initiative empowers vulnerable populations in Saint-Louis by offering small, interest-free loans. Participants complete workshops in basic math, accounting, marketing, and business planning before submitting their proposals for review by a dedicated committee. Approved borrowers receive loans backed by intensive mentoring and regular progress visits.
Since its launch in mid-2020, the program has awarded hundreds of zero-interest loans, enabling recipients to launch ventures ranging from poultry farming to small restaurants, thereby solidifying financial independence and fostering a community of mutually supportive entrepreneurs. The loan beneficiaries aren’t the only people who profit. The effects trickle throughout the community, as those who receive the money use it to purchase supplies, hire others to assist them in running their shops and restaurants, and encourage and coach new applicants within the remarkable microfinance program.
Maison de la Gare’s other significant work in Senegal includes providing assistance to talibé children in crisis, including education, healthcare, hygiene, sports programs, emotional support, and more.
How Does Interest-Free Microfinance Help Senegal Thrive?
Interest-free microfinance is more than a financial tool — it’s a catalyst for lasting change in Senegal. By removing the burden of interest, these small loans give people the freedom to pursue opportunities that would otherwise be out of reach. From seeding new businesses to uplifting entire families, this approach is helping communities across Senegal build a stronger, more self-reliant future. Here’s how.
Creating Entrepreneurs
The candidates in the Friends of Senegal microfinance program aren’t just looking for a handout. They’re driven by a deep desire to learn, grow, and contribute to their communities. These aspiring entrepreneurs approach the opportunity with energy and determination, eager to absorb business training and put their skills into action. What makes their success especially powerful is that it’s not just about money—it’s about dignity, responsibility, and purpose.
Borrowers take immense pride in repaying their loans on time, often viewing it as a badge of honor. As their businesses grow, many go on to hire neighbors, buy supplies locally, and mentor others, creating a ripple effect that strengthens the social and economic fabric of their villages. With every small enterprise launched, a new entrepreneur is born, and with them, a vision of a better future takes root.
Boosting Small Businesses
Interest-free microfinance doesn’t just help individuals, it lifts entire local economies. By equipping entrepreneurs with the tools and resources they need to succeed, microloans encourage business practices that are self-sustaining and rooted in community values.
Many borrowers source goods and services from nearby vendors, reinvesting their earnings back into the local market. As one small business grows, it sparks demand and opportunity for others, creating a network of thriving, interdependent enterprises that strengthen the community from within.
Helping People Build a Better Life
What might seem like a modest amount to some—perhaps the cost of a nice dinner and a couple of glasses of wine—can be absolutely life-changing for participants in the Friends of Senegal and Maison de la Gare microfinance program. With these small, interest-free loans, many borrowers are able to triple their income, transforming not only their businesses but their entire lives.
This extra income opens doors that were previously out of reach, allowing them to extend their children’s schooling (including sending them to college), improve home conditions, afford necessary medical care, and gain access to essential medicines.
Perhaps the most touching change is that families can now afford something as simple, but vital, as pencils and paper so their children can attend school. Although the government is supposed to provide these supplies, that often doesn’t happen, and without them, kids are stuck at home. These loans are more than financial support; they are a foundation for hope, progress, and lasting change.
Empowering Women
Although studies consistently show that women are more likely to repay microfinance loans and invest their earnings back into their families and communities, they still face significant barriers to accessing financial resources. Friends of Senegal is working to change that in this corner of the world.
The organization has made a firm commitment to gender equity by ensuring that 50% of its interest-free microloans go to women, a policy that is actively enforced within the program. As the program begins issuing more group loans — many of which are made to existing women’s groups — the ratio of loans going to women is quickly increasing, aligning with national trends showing that 68% to 74% of microloans in Senegal are given to women.
By intentionally creating space for women entrepreneurs to thrive, Friends of Senegal is helping to close the gender gap and amplify the powerful role women play in driving economic and social progress.
During recent visits to women’s groups in Senegal, volunteers and staff at Friends of Senegal saw firsthand a quiet but powerful form of self-empowerment granted by these loans: women saying, “I’m tired of waiting on my husband to do something — I’ll do it myself.”
Without confrontation or disruption, they are simply taking action, and it’s remarkable. Our microloans are playing a vital role in this process. While it has involved education and dialogue, even the men at MDG and FOS seem to understand that our mission is to support people who want to help themselves, regardless of gender. On average, women demonstrate more ambition than men, though, of course, there are many highly motivated men as well.
Case Studies About How Interest-Free Microfinance Has Made a Difference in Senegal
Bassine Ba
Meet Bassine Ba, a resilient mother of four from the Ndiolofène neighborhood in Saint-Louis, Senegal. Her story is one of unwavering determination in the face of adversity, and how a small opportunity can transform lives.
When Bassine suddenly lost her husband, her world changed overnight. She found herself alone, carrying the full weight of responsibility for her four children. Every day brought the same pressing questions: How would she feed her family? How could she keep the lights on and water running? How would she ensure her children could stay in school?
But Bassine refused to let circumstances defeat her. Instead, she looked around her community with an entrepreneur’s eye. She noticed that local families had to travel far to buy basic necessities — rice, oil, sugar, and other daily essentials. Where others saw hardship, Bassine saw opportunity. With her modest savings, she took a bold step: opening a small shop in her neighborhood.
That’s when Friends of Senegal and Maison de la Gare stepped in, providing Bassine with the support she needed to expand her business. With their help, she was able to stock more essential products and grow her customer base. What began as a tiny shop soon blossomed into a thriving local business.
The impact has been transformative. Today, Bassine beams with pride as she talks about her son’s recent completion of his Baccalaureate – an education she funded through her business earnings. She’s even renovated her salon to create a more welcoming space for her customers. But true to her entrepreneurial spirit, Bassine isn’t content to stop here.
“My customers often ask for cold drinks to combat the heat,” she says, her eyes bright with determination. “I want to get a freezer to meet their needs.” But her vision extends far beyond just adding cold beverages. Bassine dreams of transforming her small shop into a full-fledged supermarket – a one-stop destination where her neighbors can find everything they need.
“This dream,” she says, “I carry it with me every day, and I’ll do everything I can to make it come true.”
Bassine’s story exemplifies the incredible potential waiting to be unleashed across Senegal. The country brims with talented, motivated individuals who simply need an opportunity to thrive. With just a few dollars a month, you can help write the next chapter in stories like Bassine’s. Your donation to Friends of Senegal isn’t just charity – it’s an investment in dreams, determination, and the power of human potential.
Join us in transforming lives. Help us empower more entrepreneurs like Bassine Ba to build better futures for their families and communities.
Donate to Friends of Senegal today and help turn more dreams into reality.
Fautoumata Wane
Fatoumata Wane, a 57-year-old Senegalese woman, was born and raised in Guet N’Dar, one of Senegal’s largest fishing districts. “Selling fish,” she says, “has always been hard work, but now it’s even harder because huge European and Asian fishing boats take our fish. We don’t catch as many anymore, and they’re much smaller than they used to be.”
Seven days a week, Fatoumata contends with a limited fish supply, the suffocating heat and humidity, constant haggling over prices, and the heavy baskets she carries — challenges that demand both physical and mental endurance. Yet with pride and a hint of humor, she declares, “I got some good fish today, and that’s going to make my customers very happy.” Then she adds with a chuckle, “And that makes me happy.”
“Thanks to the help of Friends of Senegal (FOS) and Maison de la Gare (MDG), I can now buy more fish, and I have a good cooler in which to store them. My customers know that I always have the freshest fish, and they will pay a good price for them. The microfinance loan has helped me a lot. It’s a real ray of sunshine in my life.”
She says, “I want my children to have a good education, good health, and a better future. I don’t want them to experience the difficulties I did.”
Dreaming of what’s next, Fatoumata adds, “One day, I want to have my own truck so I can take my fish to neighboring villages.”
When she’s ready to pursue that dream, FOS and MDG will be there to support her.
Fatoumata’s story reflects that of thousands of Senegalese women who, despite immense challenges, persevere every day for the sake of their families and communities. Your donation or participation in our microfinance program will help us reach more people like her. Together, we can change lives.
How You Can Help Families Move From Poverty to Power With Interest-Free Microfinance
The impact of interest-free microfinance is clear—but it’s only possible with the support of people who believe in dignity-driven change. Whether through donations or hands-on involvement, your contribution can help families break the cycle of poverty and build lasting independence. Here’s how you can be part of that transformation.
Donating
Friends of Senegal and Maison de la Gare are entirely powered by the generosity of donors — people like you who believe in creating real, lasting change. Because Friends of Senegal is 100% locally run and volunteer-managed, every dollar you give makes a difference as it goes directly toward supporting interest-free microloans, business training, and vital community programs.
No matter the amount, your donation becomes part of a powerful chain reaction that can help someone start a business, send their child to school, or access better healthcare. By donating, you’re not just giving money, you’re becoming a change agent in the lives of Senegalese families striving for independence and dignity.
Volunteering
Volunteers are the lifeblood of Friends of Senegal and Maison de la Gare. To help with MDG’s microfinance program, you should have some business experience and an intermediate proficiency in French. Most participants visit Senegal to contribute their time and skills for at least two weeks up to three months, depending on how long they wish to stay.
To apply, simply complete the online registration form, indicate your project area and duration, and submit the required deposit. Upon acceptance, you’ll join a dedicated team working collaboratively to uplift local individuals, families, and children, bringing your vital skills, enthusiasm, and heart to the journey.
Volunteers live with local host families, lodge in a hotel, or stay in nearby inns called “auberges.” Program fees cover lodging with a host family, meals, transportation from Dakar, and a contribution to the mission. If a volunteer chooses to stay in a hotel or an auberge instead of with a host family, they will receive a credit equal to the amount typically paid to host families, which is already included in the program fee.
Below are the fees for volunteering or interning with us. These quoted fees cover accommodations with a host family, meals, transportation to and from the airport, and a contribution to the volunteer program.
| Fees for Host Family Accommodation | 2 Weeks | First Month | Each Additional Month | Example for Three-Month Stay |
| Euros € | 690 € | 940 € | 580 € | 2,100 € |
| $US | $760 | $1030 | $630 | $2,290 |
| U.K. £ | 590 £ | 810 £ | 500 £ | 1,810 £ |
If you would rather stay in an auberge, request information from us about those fees.
The fee per person for the first month or less is reduced by 135 € / $150 / £115 for two volunteers who register and travel together. Upon acceptance of your application, a 15% deposit is required, with the balance due one month before your arrival. Please contact us for more information or if you have any questions about our program.
If you prefer to stay in an auberge rather than with a host family, please request information about those fees.
VOLUNTEER WITH US!
PLEASE COMPLETE THIS FORM
