Investment in profitable African enterprises that generate sustainable growth in poor and underserved areas does not take place in a vacuum. The process requires a catalyst, a CDFI like WilmaFund that combines appropriate finance with help that builds the autonomy of leaders and their communities. Community-based organizations that actively represent household interests must use their knowledge to identify economic opportunities and to support the leadership as well as the professional management needed for successful enterprise.
As indigenous leadership emerges in response to perceived economic opportunities, CDAs are strengthened to create, sponsor, and support (i.e., "host") Community Enterprise LLCs. This "hosting" function includes improving communications, gathering information, identifying other partners and stakeholders, contacting officials, obtaining permits, and taking other important steps toward creating viable business start-ups. Members of the CDA provide the backbone of the workforce for the enterprise cluster, while the elected officers of the CDA naturally tend to take a management role in the LLC.
CDAs realize specific economic and social benefits. CDA members benefit from the enterprises both through cash income and ownership claims. Stipends of $2,000 are paid annually by WilmaFund (backed by WILMA) to each CDA during the first five years after its certification, to help build its capacity to own, manage, and build resources. In addition, each CDA receives, during its first five years, a 1% "royalty" share of each hosted enterprise's audited gross annual sales. Under the bylaws of each CDA, CDA members (heads of household) in good standing hold membership cards that establish their rights and accounts. If after five years the CDA has met WILMA's requirements for "graduation," it may be granted 50% of the Membership Interest or ownership equity in its Community Enterprise LLC.
Concurrently, CDAs are encouraged to undertake projects for their communities that they manage and fund themselves, whether by revenue from their LLCs or by grants. Revolving capital funds that finance micro-lending to members are popular. Such funds capitalize household businesses as well as public-service activities in health, education, law, sports, and culture.