In Uganda, 1.2 billion shilling (€ 0.5 mil-

lion) was lent to the Uganda Finance

Trust Ltd. as follow up to the investment

made in 2005 of 1 billion shilling (€ 0.4

million) through which Oikocredit holds

a 24% share in this microfinance com-

pany. Uganda Finance Trust serves over

90,000 savers and 15,000 borrowers,

70% of which are women.

In Kenya, the Githunguri

Dairy Farmers Co-operative Society,

with about 12,000 registered members

and a milk intake of 75,000 litres per day,

received a € 650,000 loan to double its

processing and packaging capacity.

West Africa, expansion despite

uncertainty

Cote d'Ivoire has to cope with serious

political instability. After five years of se-

Successful projects, better quality

vere crises, poverty and insecurity have

increased dramatically, and it is difficult

Africa

to fund any loan applications. Thanks

to Terrafina Microfinance and to Oiko-

credit country representatives in Mali

and Senegal, eight projects were ap-

Africa needs good news; of the thirty-one poorest countries in the world, all

proved for a total of € 4.2 million (five in

except Haiti and Yemen are sub-Saharan African countries. Some of them

Mali, two in Senegal and one in Benin).

are facing food scarcity and famine. Yet despite such tragedies, many peo-

ple are finding their way out of poverty, basic infrastructure is getting better

Benin has had a democratic govern-

and more children are going to school. The quality of project proposals is

ment and stable economic growth for

improving and projects are having better results. In 2006, loan repayments

seventeen years. Nevertheless, it is one

reached a record € 10 million on a total portfolio of € 38 million. Africa's

of the poorest countries in Africa and

share of the total portfolio increased to 19% (2005: 18%).

there is a huge need for development

loans. That is why Benin was added to

the list of focus countries in 2006.

East Africa, local currency

tivities. Approvals in East Africa are al-

Over the last years Ghana has achieved

leads the way

most exclusively in local currencies, as

the largest portfolio in Africa: € 9 million.

Experience has shown direct funding of

In May 2006, the Tanzanian Minister of

project partners are unable and unwil-

Finance officially launched the Tanzania

ling to carry the foreign exchange risk.

small and medium enterprises to be very

Even so, approvals reached € 10 million

risky and funds for target groups are

country office in Dar-es-Salaam. And in

therefore wholesaled through banks.

December 2006 Oikocredit celebrated

in 2006 and the total portfolio grew by

the 12th anniversary of its Nairobi office

70% to € 13 million. Loan repayment

Beginning of 2007 a market study will be

improved with only 6% of projects being

finalized and possibilities to expand into

in Kenya. These two events were mile-

neighbouring Sierra Leone are being

stones in the growing recognition for

late in payments (2005: 8%).

Oikocredit's development funding ac-

investigated.

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