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2010 figures: Oikocredit sharpens financial and social return in 2010
02-03-2011
Press release
Amersfoort, 2 March 2011 - In 2010, concerns have accompanied successes in the development finance sector. For Oikocredit - one of the world's largest private microfinance financiers - the year was one of solid social and financial performance and further innovations in the field of social performance management.
In its 35th year, Oikocredit's total assets grew 19% to € 640 million by year end. In addition, the development financing portfolio - the money in the field - increased 22% to € 481 million, up from € 394 million the previous year.
Oikocredit's network of partner cooperatives, microfinance institutions and small to medium enterprises served more than 20 million people, increasing access to fair financial services and markets for the poor.
Support for development finance from investors also strengthened during 2010, with capital inflow at just over € 64 million. Oikocredit's net result in 2010 amounted to € 16.1 million, of which € 8.7 million (2% of member capital) is proposed to be paid as dividend to its members. The remainder will be used for capacity building and additions to reserves.
Sharpening the focus
With the successes of 2010 came concerns in microfinance. The growing sector has attracted stakeholders with varying motivations. Reports of abusive collection practices in microfinance institutions (MFIs) and over-indebtedness of clients have highlighted the importance of selecting the right partners for Oikocredit.
Supporting and challenging those partners to improve social performance and due diligence continues to be at the forefront of Oikocredit's mission. At a local level, all regional offices have appointed social performance management specialists to assist project partners with social performance development and management.
Internally, Oikocredit has extended its expectations of project partners, advocating the Client Protection Principles to ensure end-clients are treated fairly. The Principles were integrated within new partner and new contract approval criteria and play a vital role in ensuring partners maintain their social mission.
This year, Oikocredit plans to further increase its portfolio by focusing on projects in African countries, and emphasise the role of agricultural enterprises in development. Oikocredit will work to remain a leader in the field of social performance management and continue to work for increased transparency in the sector, tailored products and the protection of end-clients.
Oikocredit is a cooperative financial institution that offers loans or investment capital to MFIs, cooperatives, fair trade organizations and small-to-medium sized enterprises (SMEs) in the developing world. Oikocredit offers a dual return to its investors: financial and social. In addition to earning modest financial returns, investors are secure in the knowledge that their money is being used to fight poverty, promote fair trade and respect our planet's natural resources.
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Facts & Figures at 31 December 2010
More information
Press contact Oikocredit International: Kawien Ziedses des Plantes, kziedsesdesplantes@oikocredit.org, +31 (0)6 272 549 04.
Press contact Oikocredit USA: Terry Provance, usa@oikocredit.org, +1 202 728 41 40
Press contact Oikocredit UK & Ireland: Patrick Hynes, uk@oikocredit.org, +44 (0)1995 602806
Newsletter
Oikocredit issues a newsletter twice a year. To subscribe to the Newsletter, please send an email to info@oikocredit.org
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