Posted on October 18, 2008

American Red Cross, Grameen Foundation Launch Initiative in Aceh, Indonesia

The American Red Cross and the Grameen Foundation have announced the expansion of a partnership working to provide microfinance services in the Indonesian province of Aceh, which was devastated by the 2004 Boxing Day tsunami.

The partnership's new initiative will enable YAMIDA, a Grameen Foundation microfinance partner, to open three branch offices in the Jaya district, one of the poorest areas in Aceh. The tsunami's impact on the region's infrastructure and basic services has made it difficult to introduce extensive microfinance initiatives until now.

"Our microfinance program will use loans and additional safety nets such as saving plans to help generate livelihoods and incomes for women — an essential component of sustainable recovery in tsunami-affected communities," said Gerald Anderson, senior director of the Tsunami Recovery Program for the American Red Cross. "The expansion of this partnership will help increase income for women to provide housing, nutrition, health care, and education for their families."