Measuring outreach in Ecuador & Peru

Since 2008, Oikocredit’s regional office for South America Northern Region has encouraged the use of the PPI among its 70 partners in Ecuador and Peru. To date, 17 partners have piloted the assessment tool. Some partners integrate it into their operations while others occasionally use the PPI to reaffirm or adjust their targeting strategies.

Measuring the impact Oikocredit partners have on poor households is an important factor in achieving goals of financial inclusion, empowerment and poverty reduction. The Progress out of Poverty Index (PPI) is one of the most essential tools Oikocredit implements to monitor these objectives.

The report 'Progress out of Poverty: measuring outreach in Ecuador & Peru' gives an insight into Oikocredit’s work with the PPI in Peru and Ecuador, countries where almost 35% of the population live below the poverty line. The latest PPI results from a number of microfinance institutions in these countries provide a transparent look into the operations of Oikocredit’s project partners and their social performance goals.

The PPI is a ten-question survey tool developed by Grameen Foundation that enables microfinance institutions to accurately select clients that are poor, and if used over time, it can show whether borrowers progress out of poverty. Oikocredit joined forces with Grameen Foundation in 2007 to promote the Progress Out of Poverty Index.