Capacity building: going beyond finance for success
03-10-2011
Challenges faced by organizations are often more than financial. Skill shortages, knowledge gaps or missing certifications can be obstacles to achieve financial and social goals. Organizations must also manage external risks including economic slowdowns or natural disasters.
“Capacity building goes beyond providing financial services,” says Oikocredit manager of Capacity Building Jacques Sam. “It aims to respond to issues that negatively affect the performance of cooperatives, small businesses or microfinance institutions we work with and most importantly, it supports the end clients.”
Since 2007, Oikocredit has facilitated 299 assistance projects above € 5,000, and each regional office now has a dedicated staff member that identifies and monitors capacity building projects in the area. Local experts deliver the specialized services, which can range from remedying sub-standard information management systems to developing new products or providing practical training in health or business operations.
“Oikocredit’s core business is finance, but offering capacity building programmes means our partners can operate more efficiently and effectively in their markets, which is a great result for all parties,” said Oikocredit director of Social Performance and Financial Analysis Ben Simmes.
Oikocredit capacity building projects are often collaborations between Oikocredit and other funders including Church of Sweden, ICCO or the Dutch government. This year has signalled a major boost in Oikocredit’s capacity building prospects. In July, Oikocredit and ICCO signed a € 15 million contract of cooperation to support more capacity building and social performance management over the next five years. In addition, Oikocredit committed € 400,000 of its profit to its capacity building fund with the view to financing an additional 20 to 25 projects in the coming 12 months. The support is available to all Oikocredit partners in the financial, production or service areas.
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