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Oikocredit presents Social Performance Report 2010
16-06-2011
Access to credit empowers 28 million borrowers
Tanzania, 16 June 2011 – The social results of microfinance should be as fundamental to the sector’s growth as financial results. Today, Oikocredit releases its Social Performance Report at the Annual General Meeting in Tanzania. This report shows positive change in the lives of borrowers, particularly women in rural areas, in line with Oikocredit’s vision to responsibly reach more people with fair finance.
Last year saw Oikocredit reach more than 28 million people through its microfinance partners, with over 1.2 million individuals directly benefiting from Oikocredit funding. An impressive 86% of those who accessed financial services through Oikocredit partners are women. The small and medium-sized enterprises that receive Oikocredit funding provide 61,000 people with permanent jobs.
“Our financial services are tightly bound with our social objectives.To achieve social goals, it is essential that we measure who we reach and how financial support translates into their lives,” said Oikocredit director Social Performance & Financial Analysis Ben Simmes. “Initial results from client surveys in Peru, Ecuador and the Philippines facilitated by Oikocredit measured positive change in the lives of borrowers over a number of years. We are rolling out similar studies in other countries.”
Oikocredit’s total development financing portfolio amounted to € 481 million with € 388 invested in microfinance and € 93 million in social enterprises. Oikocredit partners include over 230 cooperatives and almost 50 fair trade organizations.
Supporting smaller, start-up microfinance institutions (MFIs) that have potential to reach the poor – particularly those in rural areas – is an important Oikocredit strategy that widens access to finance. Results from 2010 show 90% of new loans in 2010 were issued to so called second and third segment MFIs, emerging MFIs with small to medium portfolios.
Oikocredit carefully selects its partners based on their mission, outreach and operations. The environmental, social and governance (ESG) scorecard that Oikocredit developed to identify our partners’ governance structure and their social and environmental commitment enables a very detailed and careful selection of our partners. All new loan contracts to microfinance partners include adherence to the Client Protection Principles which ensures they provide transparent prices for services and responsible finance. Externally, international microfinance rating agency M-CRIL highly commended Oikocredit on its social orientation, next to its sound financial performance.
This year, over 90% of Oikocredit microfinance partners reported social data, signaling the increased priority of reporting on social performance. Oikocredit is proud to be at the forefront of social performance management and will carry on its social mission of the past 35 years with dedication and tenacity focusing on the difference fair finance makes in the lives of the poor.
Visit www.oikocredit.org/socialperformance to read the full Social Performance Report 2010 and for more information on social performance and Oikocredit.
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Newsletter
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Ezine
Oikocredit issues a quarterly electronic magazine. To view the Ezine, go to www.oikocredit.org/ezine and click on the link to subscribe, or send an email to info@oikocredit.org.
Annual Report
For information on the Annual Report (annual Social Review and Financial Statements), click here.
Events
Africa - Middle East Regional Microcredit Summit
Date: 7th to 10th April 2010
Venue: Kenyatta International Conference Centre, Nairobi Kenya
Role of Oikocredit - Sponsorship of the event in form of cash; Ging Ledesma Social Performance Manager in Social Performance Plennary session on Day 2
Participants from Oikocredit: Tor, Ging, Judy, Carol, Deus, Edith, Peter, RM Francophone West Africa, RM English speaking West Africa, CM Ghana
Side events: Oikocredit Exhibition stand