What is Eco-Pesa

The Eco-Pesa (Ecological Money) programme has created a community business voucher to benefit the environment and economy of Kongowea, a [slum] district of Mombasa. The voucher acts as a currency that can be exchanged for local goods and services and redeemed for Kenyan Shillings. As Eco-Pesa can only be spent in registered businesses within Kongowea, its use creates a direct incentive for residents to take an active role in their community while also helping the local economy and environment.

To see a detailed report on this project, you can download Will's report at the  International Journal of Community Currency Research's website.

Click Here to Read the Article.
 

How Does it Work?

Participating businesses are registered as Eco-Businesses and receive training and incentives in introducing greener business practices, while youth groups and other community members are encouraged to start new environmentally-friendly businesses in the area in return for payment in Eco-Pesa vouchers. As the initiative develops, Eco-Pesa can be given as micro-loans to stimulate small enterprise.
 
We have seen Eco-Pesa as a powerful and holistic model of community development and believe it is also an appealing alternative for donors. So many donations come into impoverished communities in Kenya but there is very little to show for it. Most donor money leaves the communities it was targeting almost immediately. With Eco-Pesa we have a chance to make sure that funds stay in the community and help build the economy in an environmentally conscious way.
 

Economics

•    The vouchers provide more purchasing power due to their discounted use and their avaliability in the community.
•    The system helps in utilizing spare capacity by reducing unemployment and increasing trade.
•    It provides sustainable local development due to the vouchers having to circulate locally.
•    It provides access to low interest loans and training. 

Check out this recent video that explains how it all works.

Successes

Since the launch of our program we have registered 75 businesses from the three communities. Through several meetings, a workshop, training and an outreach with the businessmen and youth groups in the community, awareness and use of the vouchers has increased and improved immensely. Information has spread to the community on the use of the vouchers and the relevance of the project, not only to the economy of this area but to the environment and capacity building of the youth to the area. The goods and services of registered businesses and youth groups include: child care, water sales, waste collection, school tuition, sugar, flour, eggs, baskets, water, transportation on bicycle or motor bike, fruit and vegetables, charcoal, oil, clothes washing and more.
 
At this point there are roughly 400 transactions with the Eco-Pesa vouchers being made in the community daily. Much of which would not have taken place were it not for the introduction of the voucher. Essentially the vouchers are facilitating an increase in trades because the community was completely lacking in the national currency.

With a large population in this tightly knit slum, the launch of the unique project was received with great anxiety with the residents hardly able to wait for its commencement. We have seen community member expressing pride in their community because of the vouchers. We have established an Eco-Pesa kiosk in the community where we give information regarding the program as well as registered members and buy and sell Eco-Pesa. This kiosk has generated a lot of interest and has helped us in having a local presence.

Environment

Eco-Businesses recieve capacity-building and environmental training to lessen their environmental impact. They are also insentivized to start and promote enviornmental businesses such as:
    •    Recycling car tires into shoes
    •    Briquette making
    •    Composting
    •    Recycling
    •    Trash removal
    •    Tree planting
 
Now that people in the community are paying with Eco-Pesa for trash collection we have already seen a doubling of residents willing to pay youth for waste collection. This doubling so far has created more jobs for youth in the community and begun to make an impact on the waste problem. We also intend to give loans to youth groups seeking to start environmentally conscious businesses, such as turning car tires into sandals.