VisionFund International | News Feed

Five stars for transparency

2013-04-09T00:00:00

VisionFund Cambodia has received top ranking for its level of transparency for all data on MIX Market. After submitting all the documents required by MIX, our ranking improved from four diamonds to five diamonds. We are just one of three microfinance institutions (MFIs) in Cambodia that have five diamonds on MIX Market.

MIX is committed to microfinance transparency and uses a “diamonds” system to indicate an MFI’s level of transparency and supporting documentation for all data on MIX Market. A higher number of diamonds means a more transparent MFI and more reliable data.

The rules for the diamonds are as follows;

Level 1 – Profile is visible
Level 2 – Level 1 and some data on products and clients for the year
Level 3 – Levels 1 and 2 and some financial data for the year
Level 4 – Levels 1 – 3 and audited financial statements are published for the year
Level 5 – Levels 1 – 4 and rating or due diligence report is published for the year

View our profile on Mix Market.

MIX is the premier source for objective, qualified and relevant microfinance performance data and analysis. Committed to strengthening financial inclusion and the microfinance sector by promoting transparency, MIX provides performance information on microfinance institutions, funders, networks and service providers dedicated to serving the financial sector needs for low-income clients. MIX fulfils its mission through a variety of platforms.

www.mixmarket.org

]]>

Clean water by 2015

2013-03-22T00:00:00

This year, 2013, marks the International Year of Water Cooperation and 22 March is World Water Day. Despite water being fundamental to our existence, many people around the world still lack access to clean water. The enormity of the problem is underscored by its inclusion in the Millennium Development Goals (MDG) which challenges the global community to reduce by half the proportion of people without access to basic sanitation by 2015.

According to Professor Ben Braga, President of the World Water Council, 780 million people still live without safe drinking water and many more without proper sanitation. He went on to state that the next three years will be devoted to reinforcing the World Water Council’s commitment to universalise the access to safe drinking water and sanitation and to incorporate the idea of water as an engine for social and economic growth[1].

Similarly UN Water states that a coherent, coordinated approach is clearly required as water issues represent some of the most urgent development challenges of our time. It underscores the importance of managing freshwater sustainably so that there is enough for everyone to drink and be healthy, so that agricultural producers can provide plentiful harvests and industry can meet its requirements. It is not only a question of meeting our current needs, but with the challenges posed by climate change we will have to adapt and be prepared for increasing numbers and severity of water-related disasters.

Children are among the most vulnerable victims of water-related diseases. UN statistics indicate that globally, diarrhoea is the leading cause of illness and death, and 88 per cent of diarrhoeal deaths are due to a lack of access to sanitation facilities, together with inadequate availability of water for hygiene and unsafe drinking water.

Today 2.5 billion people, including almost one billion children, live without even basic sanitation. Every 20 seconds, a child dies as a result of poor sanitation causing 1.5 million preventable deaths each year[2].

It is in this context that VisionFund International has worked closely with its global humanitarian and relief charity partner World Vision through the provision of microfinance to support water projects and help embed them in the community. Microfinance can be an integral part of humanitarian development projects as evidenced by RIWASH a multi-partner project run by World Vision in Sri Lanka.

Sri Lanka ended its 26 years of civil conflict in 2009 and in 2010, the Rural Integrated Water Sanitation and Hygiene (RIWASH) Project was established by World Vision, together with its project partners, the Canadian Institute for Development Assistance (CIDA), and the Australian Government (AusAID), in conjunction with the Sri Lankan government. The project’s aim was to support the local Government to improve the water supply and sanitation sector by strengthening its capacity for effective delivery of water, sanitation, hygiene and solid waste management needs of communities in a sustainable way.

One of the main achievements of the project is providing water supply and sanitation facilities to over 23,000 persons, including 7,500 school children, spread over a number of estates, schools and rural villages in the Nuwara Eliya District, one of the most impoverished districts in the country.

Once the project was up and running, VisionFund was then brought in to provide loans to selected RIWASH beneficiaries. Microfinance services enable them to increase their income through starting enterprises that support the RIWASH project, for example in establishing boutiques selling spare parts for household water systems and promoting hygiene by selling associated items such as soap and shampoo. Over 400 families have received loans to start their own business enterprises and other income-generating activities.

Not only has the project successfully delivered fresh water to the communities involved and enabled some members to boost their income, but it has also proved a strong connector between diverse stakeholders as they recognised the other’s roles and rights and united towards a mutual goal that directly impacted their quality of life. RIWASH demonstrated that if the government, communities and other partners can work together, they can also work on other pressing issues in their communities and achieve positive sustainable outcomes for the challenges they face.

Steps taken towards achieving the Millennium Development Goals

The RIWASH project also contributed to a number of the Millennium Development Goals:

1. It helped to eradicate extreme poverty and hunger: the provision of the infrastructure enhanced the living standards of the communities and positively impacted their health which meant they saved time and resources that could be diverted into more productive pursuits.

2. It helped to promote gender equality and empower women: the availability of water facilities considerably lessens the burden on women leading them to take on more responsibilities outside their households. Opportunities for engagement in other areas were also created through the project.

3. It ensured environmental sustainability where the principles of sustainable development are embedded into the project through measures taken to protect watersheds, manage solid and liquid waste and promote practices that seek to reverse the loss of environmental resources.

4. Through the provision of better sanitation and cleaner drinking water, the project also contributed to reducing child mortality.

5. This project demonstrated a number of organisations from around the world coming together to implement sustainable water management solutions, underpinning the goal of global partnership for development.

[1] Interview in November 2012 with UN Water

[2] Source: Water Supply and Sanitation Collaborative Council (WSSCC)

]]>

Meet the final five

2013-03-21T00:00:00

The race is on for five filmmakers to make an inspiring film about microfinance and claim the title MicroFlicks Film of 2013. They were selected from over 125 filmmakers who entered the MicroFlicks film competition, which launched last November. MicroFlicks is being run by VisionFund and its global humanitarian and relief partner, World Vision. The aim of the competition is to produce films that show the social impact of microfinance and inspire millions to become involved.

The chosen five come from Australia, Kenya, New Zealand and the United States. Each person brings a unique set of expertise and a fresh view of how microfinance helps bring people out of poverty. Films will be made in Ecuador; Malawi; Mexico; Myanmar and Sri Lanka during April and May with final judging taking place in June 2013.

”A massive thank you to World Vision and VisionFund for this opportunity and for making us more aware of the needs that are in this hurting world.’ says Tara Askew, one of the five finalists. ‘I can’t wait to tell the untold stories of those in Mexico.”

”This is not just an exciting opportunity for filmmakers, it’s an exciting opportunity for the work of VisionFund,” says David Knights, VisionFund Global Director of Marketing & Fundraising. ”We want to bring microfinance into focus and help the public to understand its role in long-term sustainable economic development for individuals and communities. These filmmakers will do just that.”

A MicroFlicks blog site has been set up to follow the five filmmakers on their journey.

Chris, a finalist from the US said, “I am looking forward to competing against some truly great filmmakers from across the globe. I look forward to sharing more of my journey and adventures with the rest of you over the next few months!”

The films will be posted online and available for a public vote in July 2013. The winner will be announced in August and will receive a pro level editing suite.

To follow the five filmmakers, visit the MicroFlicks blog site.

For more information on the campaign, visit: http://www.microflicks.org/.

Watch a short video highlighting this compelling film competition:
http://vimeo.com/52577322

]]>

Clean water to thousands

2013-03-21T00:00:00

Clients at our MFI in Cambodia are taking advantage of a small loan to secure clean drinking water for their families.

Farmer Tol Kunthea Roeun is one Farmer who has invested in this scheme. Her husband Sarin is an electrician and Kunthea grows and sells corn, beans and eggplants, which is enough to support and raise her two sons, Phearum, aged 24 and Phana, aged 18.

But despite their successful business, drinking clean water daily was a hassle. Kunthea would have to walk 2 kilometeres to the nearest river, and back. She would also then boil the water four or five times a day, spending US$7 per month on firewood. Her new ceramic water purifier instantly provides clean drinking water by filtering out 99.99 percent of the bacteria. She saves money by no longer having to boil water.

The cost of a purifier is just US$23.50 and is available through a special loan provided by our MFI in Cambodia. The pot is filled to the top with dirty water and filtered through 3.5 liters per hour. This means, the pot can be filled twice a day, which provides 20 liters of drinking water.

Kunthea's investment has inspired others in her community. Her neighbour Sous Yon says, 'I have tried the water from the purifier and I enjoy the taste. I also see how much time and money Kunthea saves and I also want to save time and money.'

]]>

A salute to our female clients

2013-03-07T00:00:00

International Women’s Day this year is another reminder of women’s central role in society and the hardships that too many women face. The theme for this year is “A promise is a promise: Time for action to end violence against women.” The World Bank states that violence can be both a result and a cause of poverty and women and children are among those worse affected.

According to the United Nations, women bear a disproportionate burden of the world’s poverty as they are more likely to be poor and at risk of hunger due to discrimination they face in education, health care, employment and control of assets.

Some estimates suggest that women make up 70% of the World’s Poor and headlines even in developed countries indicate that many women face wage gaps compared with their male counterparts. Not only are they often paid less, but they can also be relegated to unsafe and low salaried work. In sub-Saharan Africa and South Asia, global economic developments have helped to exacerbate the approximately 8 out of 10 women workers considered to be in vulnerable employment.

However when these women are given a chance at engaging in economic development, it can have a hugely positive impact on helping families to climb out of poverty. Aid organisations the world over have marvelled at women’s fortitude and determination to strive for their families and build a better future.

VisionFund International, the microfinance partner of humanitarian charity World Vision, has seen exactly this. It’s no coincidence that the majority of its clients are women. It typically works in some of the poorest areas in the world including former war zones, areas struck by natural disaster and the rurally isolated.

One example that typifies women’s spirit is in Rwanda, a country ravaged by war, where VisionFund’s client Judith took in her nephew Moses, who was literally left on the street by his parents. Although she struggled financially, she was determined to give her nephew a better life. She came to VisionFund ten years ago, scarcely able to put food on the table and took out her first microfinance loan. With that loan she bought and sold fruit in her village.

Paying off the loan, she took out further loans to expand her market business which provided her with enough funds to not only feed and clothe her nephew, but to also send him to school and ensure a brighter future for him than she had had herself.

Women are so important to building a sustainable society, not just on the scale of Judith and Moses, but on a much larger scale. The UN recognizes that sustainable human development cannot be achieved without gender equality. It states that in order to achieve the Millennium Development Goals (MDGs) by 2015, we need to make tangible progress with regard to gender equality and women’s empowerment – not just to achieve the gender equality goal, but also in order to achieve the full range of millennium goals.

Time and again it has been noted that when women play a greater role in society and are integrated meaningfully into the workforce, society feels the benefits and the level of social well-being drastically increases. With the empowerment of women, outcomes for children in terms of their health and education are greatly improved and this has to go far in breaking the poverty cycle and creating more sustainable futures for all.

]]>

Supporting client protection

2013-02-25T00:00:00

VisionFund International shows its support for Smart Campaign certification

VisionFund International has actively supported the Smart Campaign and its work on client protection. We have included the Smart Campaign client protection principles in organisational policies and procedures, training materials, reporting and audit programs. All 36 VisionFund microfinance institutions (MFIs) have officially endorsed the Smart Campaign and have completed the client protection self-assessment, “Getting Started Questionnaire”.

We are a member of the Microfinance CEO Working Group, comprised of eight global organisations that actively support the Smart Campaign and its work on client protection within the industry.

We are pleased to continue to support the work of the Smart Campaign as they launch the Client Protection Certification Program. Certification will enable MFIs to further demonstrate that they take client protection seriously. The VisionFund network will continue to put the client protection principles into practice and to become ready for certification in due course.

We are also very pleased that one of our partner institutions in Bosnia and Herzegovina, EKI, was among the first institutions to become Client Protection Certified. We affirm the good work of the Smart Campaign in helping to reinforce the importance of keeping clients first in microfinance.

Learn about the Smart Campaign Certification Programme and the support of the Microfinance CEO Working Group.

]]>

Housewives in business

2013-02-25T00:00:00

'Thank you for your belief in me. Your investment has provided education for my kids and children in the community. They are able to hope for a better life,’ Nongkran, Chiang Mai, Thailand.

Nongkran is one of over 40 women in a sewing group who go home each month with a wage big enough to feed, clothe and house their children, and send them children to school. Eight years ago, this group of housewives and mothers landed a major opportunity to produce Naraya brand cotton bags. These Thai bags are now exported to 14 countries and sold to many other brand name companies. The success of the business has impacted the whole community and their children have opportunities that their mothers were once denied.

Nongkran has been there from the beginning. When she was 28 years old, she set up the small sewing group with the support of World Vision and its microfinance partner, VisionFund. Nongkran had worked as a casual labourer in a sewing factory and she used her knowledge and skills to train unemployed housewives. World Vision supported the first seven members of the group by providing four sewing machines. They introduced the women to VisionFund’s microfinance institution in Thailand and the women were able to invest money to grow their business.

Since that time, Nongkran’s group has grown from seven to 40 members. She oversees the work of the group and ensures it is of an export standard for the Naraya brand. A few of the women have gone on to set up sewing groups in their own villages, or to trial other small business ideas to supplement their income.

Coming from a poor background, Nongkram left school after Grade 8 to find work and help her family. She was determined that her children were given the opportunities she was denied. Nongkran’s oldest daughter, Ying, is a third year student at Chiangmai Rajabhat University, studying tourism management. Meanwhile, her sister Yam, 15 years old, is studying in Grade 9.

‘If we hadn’t obtained the loan from VisionFund, the situation would be very difficult. If we had to pay high interest rates, the group would not be sustainable today,’ says Nongkran.

]]>

A decade of impact

2013-02-15T00:00:00

VisionFund honours its clients in its tenth anniversary year

VisionFund has disbursed 6.6 Million loans (2003 - 2012)
The value of these loans amounts to US$3.5 Billion
The average annual repayment stands at 97% (from 2003 - 2011)

LONDON – 15 February, 2013 – VisionFund, the microfinance not-for-profit partner of global humanitarian charity World Vision, today announced its celebration of ten years supporting children, families and communities to nurture sustainable livelihoods in developing countries through provision of its microfinance services. The organisation will be honouring its clients throughout the year with a series of profiles celebrating their achievements.

The first of such profiles is Genevieve’s story. In 2003, VisionFund provided a loan to Davina, wife and mother of six children in a remote northern island of the Philippines. Davina’s family had fallen into financial difficulties as her husband was forced to take a job for less money due to ill health. This resulted in her eldest daughter, Genevieve, having to discontinue her education as her parents could not afford to send her to the secondary school on the Philippines mainland.

With a loan from VisionFund of US$70, Davina started her own business trading Sea Cucumbers for export to China. Over the last ten years Davina has grown her business and can now afford to send all of her children to school. Today, Genevieve has graduated and is teaching at a primary school while studying for her masters to qualify her to teach secondary level. She regularly sends money home to help pay for her brothers’ and sisters’ education and she is proud of being a good role model for her younger siblings.

Lending Vision Since 2003

VisionFund was founded in 2003 as a ‘global capital fund’ to manage a supply of lending capital that could be moved from country to country in support of World Vision’s humanitarian efforts.

The mission was later expanded and today, VisionFund manages a network of microfinance institutions in 36 developing countries around the world including Africa, Asia, Latin America and the Caribbean, and the Middle East and Eastern Europe. VisionFund maintains its close relationship with World Vision and works to economically develop poor communities facing the debilitating effects of political unrest, wars, climate change, natural disasters and long-term poverty.

Scott Brown, CEO, VisionFund said, “We believe it’s our unique partnership with World Vision which makes VisionFund’s work highly effective. I have seen first-hand the results of our integrated approach, where microfinance is one of many poverty interventions that creates lasting change for families and the wider community. Working with communities to build economic activities in a gradual and sustainable manner over a period of many years enables them to adjust and develop, resulting in longer lasting change.”

“While I am proud of our achievements and sincerely humbled by those of our clients, there is still much work for us to do. We have set ourselves tough targets to impact the lives of over 3.5 million children annually from the world’s poorest regions by 2015,” continued Mr Brown.

During 2013, VisionFund will mark its anniversary with a number of initiatives showing how over a period of time, microfinance can bring real and enduring change to people’s lives and communities. The VisionFund anniversary campaign may be followed on its special edition anniversary website http://www.visionfund.org/ten and visitors are invited to engage through Twitter, Facebook and Pinterest.

Evolution of the microfinance sector

As a leading global microfinance organisation, VisionFund plays a key role in helping the microfinance sector to continue to strive towards adopting best practice. VisionFund is a member of the Microfinance CEO Working Group which calls for their industry peers to take action and strive for better ways to provide financial services to the poor. VisionFund also endorses and participates in a number of industry initiatives:

The Smart Campaign - supports institutions as they ensure that they treat clients fairly and respectfully and avoid the harm that improper use of financial products can sometimes cause;
MicroFinance Transparency - focuses on moving microfinance to full pricing transparency;
The Social Performance Task Force - develops universal standards for social performance management; and
Progress out of Poverty Index (PPI) – measures poverty levels to ensure that VisionFund’s MFIs lend to the right target groups.

]]>

Advocating Client Protection

2013-02-12T00:00:00

VisionFund International has joined its partners in the Microfinance CEO Working Group to announce its support for the Smart Campaign Client Protection Certification Program – a groundbreaking new effort that seeks to publicly ensure that microfinance institutions keep clients at the centre of their work.

In its joint statement, the Microfinance CEO Working Group identifies the program as a “clear step” towards a fully responsible microfinance sector.

Find out more about client protection, and its significance to VisionFund, here.

]]>

Loan portfolio reaches US$400 million

2012-12-29T00:00:00

VisionFund, the microfinance not-for-profit partner of global humanitarian charity World Vision, today announced that its outstanding microfinance loan portfolio has exceeded US$400 million.

VisionFund provides loans, savings facilities and insurance to small businesses in developing countries. Operating in 36 countries around the world, VisionFund’s borrowers total over 800,000, 68% of which are female. The average loan size is just US$606.

Borrowers pay back the loan over an agreed period and the funds are reinvested by VisionFund’s microfinance institutes to support other borrowers.

One of the loans that reached the US$400 million milestone was provided to Hy Balin[1] in Cambodia who borrowed US$350 in order to purchase agricultural products such as seeds, fertilizer and pesticides. She owns a small farm where she grows seasonal crops and supports five of her family members. The loan helped Ms Hy to purchase the necessary farming supplies in time to plant her crops for the season. In Cambodia’s subtropical climate, timing is crucial to ensure that the crops generate a good yield and provide an income for her family, giving them a better standard of living and an education for the children.

Dianne Lowther, Communications Director, VisionFund International said, “Around forty-three percent of people in developing countries live on less than US$2 a day[2]. This combination of unpredictability and low income means that the poor have to be incredibly ingenious in managing their money in order to survive. Providing access to financial services is one of the most effective ways to help the poor cope with poverty and move from survival to planning for the future.

“VisionFund’s microfinance activities are focused on helping improve the lives of poor children in developing countries. We have seen how our loans and microfinance activities assist their caregivers to create sustainable incomes that support the family’s wellbeing,” continued Ms Lowther.

[1] Her name has been changed to protect her identity

[2] Source: World Bank 2012

]]>

All I want for Christmas...

2012-12-28T00:00:00

Sherwin Tajanlangit is 16 years old and lives in a coastal community of Bohol, Philippines. He had one wish this Christmas and that was to have a new pair of shoes.

'I have only one pair of shoes and they’re already old. Sadly, we do not have enough money to buy a new pair because I have 3 brothers and sisters who also go to school every day'.

To make a living, sherwin’s father, Antonieto Tajanlangit owns a fishing business. The main source of income comes from operating a fishing boat to catch and sell assorted fish to the market. Sherwin’s father works hard to pay for his children's education. He took out a loan from our microfinance institution in the Philippines in 2000 to help improve his business. He successfully paid back his loan and has since taken out others. Most recently, Sherwin has applied for US$ 300 to purchase more fishing equipment. He plans to make improvements to his home with the additional money he earns.

This Christmas, Sherwin received a surprise gift from our microfinance institution.

'I would like to thank VisionFund and World Vision for my shoes. Now, I can walk comfortably to school or wherever I go. God Bless and more power!'

See what Sherwin and other children got for Christmas.

]]>

VisionFund wins prize for good practice

2012-12-03T00:00:00

Our microfinance instution in Kosovo has been awarded a 50,000 euro prize for its innovative product ‘Livestock Loan’. This pilot project, which started in May 2010, ensures that low-income rural entrepreneurs have access to loans for productive and healthy animals. It consists of a tripartite agreement for the purchase of livestock between the supplier, the borrower and the MFI.

The ‘Giordano Dell’Amore Microfinance Good Practices Europe Award’ is open annually to European Microfinance Institutions that serve people excluded from traditional financial and social services.

Watch the video about ‘livestock loan’.

]]>

Seamstress to CEO

2012-12-02T00:00:00

Nia and her five children live by the sea in Cilincing, North Jakarta in Indonesia. Every morning, they are greeted by the golden sunrise. This may sound like paradise but life is hard for Nia and her family. Earning just enough to meet their basic needs, the family also lives with the constant threat of flooding.

Nia is a self-employed seamstress and her husband, Warma, is a fisherman. Just three years ago money was tight for the family. Some weeks, Warma would make enough, some weeks he wouldn’t. With just one sewing machine, Nia could only take limited orders.

Nia’s oldest child, Ayu, is 16 years old. With the help of her World Vision sponsor, she was able to go to school. But her siblings weren’t so lucky. Even with both parents working, the family still didn’t have the money to pay for their education.

But things began to change when Nia took a loan from VisionFund Indonesia. She used the money to buy two more sewing machines and employed a neighbour, who later started her own sewing shop too. Business became so good that Warma quit fishing to help his wife.

Now the CEO of a thriving sewing business, Nia is a changed woman. She is filled with confidence and is always looking for ways to grow her business– even expanding into new areas.

After taking a business training class run by World Vision, Nia decided to set up a second business. World Vision provided her with a fishball making machine and with another US$400 from VisionFund, she plans to open her own fishball noodle stall soon.

The best thing about her new life? “All my children are now in school, where they should be,” says Nia, with a big smile.

]]>

VisionFund seeks filmmakers

2012-11-15T00:00:00

MicroFlicks, a new global film challenge, is calling for filmmakers around the world to enter a competition and win a once-in-a-lifetime experience. MicroFlicks will send five outstanding filmmakers on an expense-paid trip to five unique and exciting locations in Africa, Asia, and Latin America. The aim of the contest is to produce films that illuminate microfinance and inspire millions.

MicroFlicks is hosted by World Vision, a global humanitarian and relief organisation, and its microfinance subsidiary, VisionFund. All five finalists will compete head-to-head in a global online competition that will crown one film the "Microfinance Film of 2013" in June 2013. ‘This is not just an exciting opportunity for filmmakers, it’s an exciting opportunity for the work of VisionFund,’ says David Knights, Global Director of Marketing & Fundraising for VisionFund International. ‘We want to bring microfinance into focus and get the public to understand its role in bringing people out of poverty for good. These filmmakers will do just that.’

To compete for exposure, awards and prizes, VisionFund encourages all filmmakers to visit www.MicroFlicks.org and send in an example of their best work by 31 December 31, 2012. There is no cost to apply, and all filmmakers from around the world are encouraged to enter. If you are a passionate filmmaker, and are interested in being sent to an exciting location to create a film that could impact millions and change your life, apply today.

For more information and to apply online, visit: www.MicroFlicks.org.

Watch a short video highlighting this compelling film competition:
http://vimeo.com/52577322

Notes to Editors

About MicroFlicks

The MicroFlicks Global Film Challenge is sponsored by VisionFund and World Vision. This contest is seeking five talented filmmakers, and sending them on an all expense paid trip to exciting and unique locations all over the world. Once they're there, these filmmakers will be tasked to create compelling films showcasing microfinance. When these films are completed, they will be posted online and promoted world wide in the global film challenge.

After all of the popular vote is in, a panel of esteemed judges will review and decide on the final "Microfinance Film of 2013." All five finalists will receive awards and prizes, with the grand prizewinner receiving a pro level film-editing suite.

Contact Brad Stave, Marketing Manager
VisionFund International

Brad_Stave@wvi.org

+1(253)486-2452

]]>

Spotlight on client protection

2012-11-07T00:00:00

VisionFund Cambodia has been spotlighted by the Smart campaign for its range of creative client protection initiatives. The Smart campaign is a global effort to embed client protection practices into the institutional culture and operations of the microfinance industry. Hundreds of microfinance organisations and networks have endorsed the campaign, including VisionFund microfinance institutions.

To endorse the campaign, microfinance institutions must carry out a self-assessment of its policies and practices, and identify areas for active promotion of core client protection principles among staff. Each week, the campaign highlights one of its endorsers by showcasing its client protection initiatives. Click to read about how VisionFund Cambodia’s is committed to client protection.

About VisionFund International

VisionFund improves the lives of children in the developing world by offering small loans and other financial services to families living in poverty. Our work empowers our clients to grow successful businesses which enable children to grow up with improved health and education.

VisionFund is part of World Vision, a Christian relief, development and advocacy organisation. Applying the principles of our Christian ministry, we provide the foundations for local economies to flourish in healthy and safe communities.

www.visionfund.org
Twitter @visionfund

Contact: Dianne_Lowther@wvi.org
T: +44 07757 269 269

About the Smart Campaign

The Smart Campaign embodies a set of core principles for the treatment of microfinance clients - the minimum standards that clients should expect to receive when doing business with a microfinance institution. The principles at the heart of Smart Microfinance are:
- Appropriate product design and delivery
- Prevention of over-indebtedness
- Transparency
- Responsible pricing
- Fair and respectful treatment of clients
- Privacy of client data
- Mechanisms for complaint resolution

http://smartcampaign.org

]]>

Turning vision into reality

2012-11-06T00:00:00

It all began over 15 years ago. What is now a profitable agricultural community of farmers in Bolivia was once an arid land with a disconnected neighborhood. Our MFI in Bolivia alongside World Vision Bolivia played a significant role in supporting this change. But key to making things happen was strong leadership.

Sarcabamba is a rural town within Cochabamba, 150 miles South East of La Paz. In the mid-1990s, most of the land was unusable and the community was divided. Juan Zanugua, a local farmer, remembers ‘we used to live at the far corner of the river. Others lived up the hill. It was difficult in these places to plant crops’.

In 1994, Juan and some local farmers established the Association of Agricultural Producers of the 1st May from Sarcobamaba. Their goal was to ‘reclaim the land’ by making it more arable.

Juan and his neighbours undertook leadership training and learned how to manage themselves and get themselves heard. This gave them the skills to lobby the local government, and eventually, the group acquired the permission and some funds to build a dyke on the river. Using the dyke, they were able to divert the flow of the river and irrigate the land.

It took six years, but by the year 2000, there were 60 hectares of arable land in Sarcobamba, which was divided equally by the 1st May Association. But by now, only half the battle had been won.

Each farmer still lacked the capital to buy seeds and tools for planting. World Vision put Juan in contact with VisionFund’s microfinance institution in Bolivia. They agreed to loan each farmer US$ 70 to buy the tools they needed to farm. And to this day, at least 50 percent of the original association remains customers of VisionFund.

Group members enjoy improved incomes and most loan requests are now up to around US$ 3,000. All their children are in school, and many have gone onto college and to university in nearby towns.

The Sarcobamba community and MFI staff praise Juan and his role in making things happen. ‘Juan’s leadership skills really helped Sarcobamba and made it possible for the community to develop.’ Says Fildo Itamari, loan officer at our MFI in Bolivia.

]]>

Snack food keeps sons in school

2012-10-16T00:00:00

At 11 years old, Lisiharan already has a head start in life. Along with his brother, Thivaharan, who is five, Lisiharan goes to a local primary school where he loves learning new things.

Many other children of Lisiharan’s age who live near him don’t have an education because their parents can’t afford to send them to school.

With support from World Vision and VisionFund, Lisiharan’s mother, Wasanthamala, has been able to invest in her children’s education.

World Vision sponsors her children and runs the school they go to. They’ve provided Wasanthamala with business training which helped her to start selling Kottakelengu, a tropical plant which is eaten as a snack in Sri Lanka.

Wasanthamala is also a VisionFund client. She used two loans of US$250 to expand her Kottakelengu business. The money allowed her to lease a larger area of land to grow the plants that provide her family’s income.

It means Lisiharan can stay in school and doesn’t have to find ways of helping his family financially – like many children in Sri Lanka have to.

‘Lisiharan is very bright and I believe that he can grow up to be a successful man someday,’ she says.

Wasanthamala is also saving a little for the future. She wants to renovate her house and one day, buy her own piece of land.

‘The best thing about these improvements is that I am able to give my sons the best education possible,’ says Wasanthamala as she smiles at her boys.

]]>

Microfinance Leaders Launch Global Appeal

2012-10-16T00:00:00

Washington, D.C./Paris, September 20, 2012 – Microfinance leaders today unveiled the “Global Appeal for Responsible Microfinance,” a landmark document urging all microfinance stakeholders to take concerted action to ensure a strong and principled microfinance industry. The Appeal was announced at the Convergences 2015 World Forum in Paris.

In recent years, the microfinance industry has made significant strides in advancing responsible practices that protect and appropriately serve clients. However, the Global Appeal calls for a more united, deliberate effort to be taken by stakeholders at all levels, including microfinance professionals, investors, and policymakers, to ensure the continued success of the industry.

The Global Appeal asks signatories to outline their plans for improving their own practices, making measurable, time-bound commitments on how they will contribute to a responsible sector. Signatories are called to announce their plans by the end of December 2013.

Endorsers of the Appeal also express their support for a basic set of principles and guidelines – specifically that:

·      Microfinance Institutions (MFIs) serve clients in a responsible manner;
·      MFIs advance the Social Performance Task Force Universal Standards for Social Performance Management;
·      MFIs operate with appropriate governance and financial responsibility;
·      Regulators and policy makers support a sound microfinance sector;
·      Investors in microfinance uphold the Principles for Investors in Inclusive Finance;
·      Researchers assist the microfinance industry to learn; and
·      Donors, international financial institutions and foundations support the industry and push boundaries.

The publication of the Appeal represents a unique collaboration between two organizations that have sought to improve practices of the microfinance industry, Convergences 2015 and the Microfinance CEO Working Group.

Convergences 2015, a network of organizations committed to achieving the Millennium Development Goals, released an earlier version of the document known as “The Paris Appeal for Responsible Microfinance,” in spring 2011. This appeal outlined the need for fundamental principles in microfinance and received extensive support, with endorsements from 1,500 individuals and 500 organizations. In the subsequent 18 months, much work has been done to ensure responsible and client-focused practices; the Global Appeal recognizes these achievements but seeks to tangibly motivate further action.

The Microfinance CEO Working Group expressed a similar perspective when it called for higher standards in its “Road Map for the Microfinance Industry,” published in January 2012. The Working Group, comprising the leaders of Accion, FINCA International, Freedom from Hunger, Grameen Foundation USA, Opportunity International, Pro Mujer, VisionFund International (World Vision’s microfinance arm), and Women’s World Banking, seeks to support the positive evolution of the microfinance industry at large.

About Convergences 2015
Launched in 2008, Convergences 2015 is the first platform for thought in Europe that aims at building new convergences between public, private, and solidarity-based actors to promote the Millennium Development Goals and to alleviate poverty and privation in developed and developing countries. As a backbone network, Convergences 2015 now brings more than 200 organizations together to reflect on the challenges of cross-sector partnerships, international cooperation, microfinance, social entrepreneurship and sustainable development. For more information, visit www.convergences2015.org.

About the Microfinance CEO Working Group
The Microfinance CEO Working Group is a collaborative effort by the CEOs of eight leading microfinance organizations: Accion, FINCA International, Freedom from Hunger, Grameen Foundation USA, Opportunity International, Pro Mujer, VisionFund International and Women’s World Banking. The Working Group seeks to support the microfinance industry in bringing a broad range of financial and related services to those who have traditionally been excluded. The Center for Financial Inclusion at Accion serves as the secretariat for the Working Group.

* * *

Media contacts:

Michael Knaute
CEO, OXUS Group and Executive Director, Convergences 2015
michael.knaute@oxusnetwork.org
+33 (1) 42 65 78 84
www.convergences2015.org

Meghan Greene
Manager, Microfinance CEO Working Group
Center for Financial Inclusion at Accion
Tel: +1 202-393-5113
mgreene@accion.org
www.centerforfinancialinclusion.org

]]>

The gift of education

2012-09-19T00:00:00

When asked about his hopes for the future, 15 year old Theara’s first thoughts are of his mother; ‘My mother works so hard and I want to make her proud’.

Theara’s mother, Bean Mao, has always been hard working. Even before her son was born, she ran two businesses; selling handmade Kymer noodles and running a small grocery store in front of her thatched house. However, Mao was forced to raise her son alone when her husband died of Malaria, shortly after Theara was born. After that, even with her two businesses, she struggled to pay for the basic needs for her son.

After her husband died, Bean Mao borrowed US $250 from VisionFund Cambodia to purchase a plot of rice farm. She also bought some livestock and some more groceries for her shop.

Mao’s business grew rapidly, ‘I previously earned only US $1.50 per day from peddling the Khymer noodle and selling my groceries. Now, my daily income has shot up to US $7.50’. This is means that Mao’s income has grown five times since she took out the loan.

With her profits, Mao has been able to renovate her house and cover its roof with zinc.

‘We have sufficient clothes and food. We even have money to buy pork or beef’, she adds. ‘Moreover, we no longer need to find plastic tents to cover the roof when it rains.’

Mao’s biggest hope is to earn more money to send Theara to university. ‘I want my son to study at the university. I have nothing else to pass on to him. I only want him to be educated,’ says Mao, who has always been an inspiration to Theara.

And it looks like Theara and his mother will both get their wish. When asked how he plans to make his mother proud, Theara says ‘I’m going to become a teacher’.

]]>

Flexibility for flood victims

2012-08-20T00:00:00

Our microfinance institution in the Philippines has agreed to flexible loan terms for its borrowers affected by the floods in Manila. This will give borrowers an additional two months to repay their loans. Working with World Vision, which has set up relief operations in the worst affected areas, we are developing a necessary response to help the people impacted by the recent disaster.

Cavite province, which lies 30km south of the capital Manila, is the area that has been most affected by the constant rainfall. In certain areas of Cavite, the flood water has risen to waist height, making roads impassable. Businesses were closed and classes were suspended for a week.

Romeo Initorio is a VisionFund client living in Cavite. His roof was blown away when typhoon Huikui hit the capital and surrounding areas at the end of July. Speaking about his situation, Romeo told us ‘I was about to sleep and it was raining when I heard a screechy noise. When I got up to check what was happening, I ran into the kitchen and saw that the roof had already gone and the sea water had reached the floor.’

Romeo and his wife responded quickly by turning their bedroom into a temporary kitchen. He is thankful that he didn’t have to leave his house.

However, another of our clients did have to leave her home when the floods came. Olimpia Victoria also lives in Cavite province. Her and her family took shelter for three days at her sister-in-law’s house. Olimpia is one of the hundreds of residents who are trying to restore their homes. The community has come together to clean up the area after the mud and debris of wood piled up in the streets.

As of today, there are no reported deaths of any of our clients in the area. But the area has been badly affected and our clients’ businesses are at risk. The lack of local resources prevents our clients from earning the money they need to support their families. We are supporting our clients by extending the loan period so they can defer repayment until the situation is more stable.

VisionFund in the Philippines has a loan portfolio of over USD$80,000 in the Calvite province. We support over 700 families and 3,000 children living in the area.

Alongside loans, VisionFund provides micro-insurance for families to protect themselves in case of an accident or death, including that caused by a natural disaster. This helps to ease the burden of debt for borrowers, should the worst happen.

Get an update about the floods.

]]>

Making plans for the future

2012-08-01T00:00:00

Tom has discovered a way to feed his family all year round. Unlike other farmers in his village in Uganda, he doesn’t rely on the rain to bring a good harvest. Nor does he compete with other farmers who sell their crops in season. Tom plants his seeds throughout the year with the confidence that they will grow.

But it wasn’t always like this. Tom left school before finishing his secondary exams. He was motivated by a tomato farmer who he had met and decided that this was how he would feed his family. Tom began modestly by growing food to eat at home and growing tomatoes to sell.

It was when he was introduced to VisionFund in Uganda that Tom began to grow his business. The microfinance institution not only lent Tom some money to buy more land, they also taught him how to save money.

Tom’s first loan was for UD$714. He used it to buy more land to grow his tomatoes. At the same time, Tom opened a bank account and began depositing his earnings whilst paying back the loan. A year later, Tom acquired another loan, but this time, he had a strategic plan.

‘I discovered that when I plant at the same time with other farmers, I harvest at the same time, therefore sell my crops cheaply because of the high supply and low market demand’, Tom says.

Tom bought a water pump with the new loan, which he uses to irrigate his crops throughout the year.

‘While people are harvesting, I am sowing. I sell my harvest during a period of scarcity and get more money for them,’ he adds.

Tom is considered a strategic farmer and is admired by his local community. He continues to borrow money from VisionFund and since his humble beginnings, Tom now has over five acres of land. Besides growing tomatoes, he now grows watermelons, cabbages, maize, matooke (green bananas) and cassava.

Tom’s latest addition is coffee which he says, ‘will bring in a lot of money in my old age. When I retire from active farming, I will not have enough energy to dig big pieces of land but can work easily on the coffee plantation.’

Tom’s family have also reaped the benefits of his forward thinking. Besides becoming a model farmer, he has built a permanent house for his wife Sylvia, and three children; Mark (12), Mariam (10) and Meded (6). He is able to pay his children’s school fees and buy the books and materials they need to study. Tom pays medical bills when they fall sick and can afford to buy them new clothes once in a while. Plus, the whole family eats fresh nutritious food that he grows.

]]>

Expanding our global centre

2012-08-01T00:00:00

VisionFund, the microfinance partner of global relief organisation World Vision, is going through a distinctive period of employee growth in the first year of its new strategy.

VisionFund has set itself the target to improve the lives of 3.5 million children each year by 2015. To achieve its goal, the organisation is recruiting business and finance leaders to provide its network of microfinance institutions with the skills needed to become sustainable.

‘We’ve adopted a more hands-on role within our global MFI network which has led to more growth. It’s an exciting time of change and the opportunity to make a real positive difference to the communities we serve,’ said Katherine Galliano, People and Culture Global Director.

New staff will be mostly based in Asia and Africa where VisionFund plans to advance its operations over the next three years. Senior and mid-level positions are available for CEOs, regional directors, business development managers, project managers and regional audit managers. Each role has been created to provide better support to the network of microfinance institutions.

‘If you’ve reached a stage in your financial career where you want to use your valuable experience to make a real difference to those who want to build lives out of poverty; VisionFund can offer you rewarding opportunities’, said Katherine Galliano.

VisionFund’ssuccess in the past nine years means it has a significant part to play in the microfinance industry to see the poor run their own businesses and grow sustainable incomes.New leaders will ensure VisionFund and its global network of microfinance institutions set the industry standards in areas of social impact, transparency reporting and client protection.

Current jobs can be found on its dedicated jobs website; www.visionfundjobs.org.

VisionFund employs 5,000 people in over 35 countries. Its global centre is responsible for the overall operations of its network of microfinance institutions in Africa, Asia, Latin America and the Middle East and Eastern Europe.

Its total portfolio is over £360 million and it currently helps more than 688,000 small businesses, creating or sustaining over 1.5 million jobs in 36 countries.

To learn about our wider focus read our three-year strategy.

]]>

One loan impacts community

2012-07-05T00:00:00

Daw Win and her family were once in debt following three years of floods that destroyed farmland in the Thayet Cho Gon village of Myanmar. In 2007 Daw Win received a $200 loan from VisionFund and today she runs a successful grocery business. What’s more, Daw Win’s three boys can now follow in her footsteps of attending university.

Daw Win’s microfinance story is a little different. A university graduate, Daw Win once had a successful career in a fishery company. When Daw Win married, she went to live with her husband’s family in the delta and helped on their 30-acre rice paddy. After a series of devastating floods, Daw Win returned to the fish factory to pay off her family’s debt. She returned to the delta two years later but faced the same problems again.

When Daw Win and her family took out a small loan with VisionFund, they received home budgeting and saving guidance. They were also given agricultural training to help increase yield from their rice crops. Through the programme, Daw Win learned how to communicate with business partners and has since advocated for farmers from other villages.

Daw Win is passionate about spreading her success across her community. Through her grocery business and betel leaf garden, Daw Win has enough money to send her boys and two other children in the community to school. She teaches at the local high school and helps her neighbours with basic maths. But Dar Win’s legacy won’t stop there. ‘I am also dreaming of a hostel for children who live far away from high school.’

Our new three year strategy aims to positively impact the lives of 3.5 million children annually by 2015. Over 70% of our clients are female. Research has found that women are more likely to invest income back into the family, with education and well-being of children being a top priority.

]]>

VisionFund celebrates International Children's Day

2012-06-01T00:00:00

To celebrate International Children's Day, we're showcasing how we work with families to improve the lives of children around the world.

Orgibold, 6 years old, from Mongolia enjoys playing on his computer.

When Orgibold’s mother took out a small loan from our MFI in Mongolia, she used the money to invest in a small shop. She now works close to her home and spends more time with her children. With the profit from her business, Orgibold’s mother has saved enough money to buy a car and other household appliances. Orgibold has since discovered his computer skills and uses them avidly.

VisionFund Mongolia currently lends to 6,000 people living in rural and urban areas.

Amarys, 11 years old, from El Salvador says ‘I want to study to be a farmer like my dad’.

When Mario and Carolina, a farming couple in El Salvador, took out a small loan, they used it to grow papaya. Mario also received agricultural training alongside the loan and the couple now run a successful farm. With additional family income, Mario and Carolina can begin to save money to invest in Amarys’ education. And Amarys has already chosen to follow in his father’s footsteps, ‘I want to be like my dad, a farmer who is always willing to work. He is a good role model for me.’

Across Latin America and the Caribbean, our average loan size is US$699. With around 120,000 borrowers, we have the potential to reach 275,000 children.

Elton, 8 years old, from Albania is top of his class.

Elton likes playing with the pigs on his dad’s farm. He also likes going to school. In fact he and his brother are both the top of their class. But it’s easier for Elton to concentrate on his school work now that his parents have enough money to buy the right food to keep their boys healthy. After Elton’s father, Bashkim, took out a loan from our MFI in Albania, he was able to till his land and make a profit on his crops. ‘We earn real money. We buy, we sell and it’s a real market’. But Bashkim also thinks of how the additional income has affected his children, ‘My children dress better. They eat better. They smile more. They are happier’.

Over the next three years VisionFund’s goal is to impact the life of 3.5 million children each and every year.

]]>

Improving the lives of 3.5 million children each year

2012-05-21T00:00:00

Improving the lives of 3.5 million children per year from the world’s poorest regions is at the heart of a new three-year strategy published by microfinance not-for-profit organisation, VisionFund International.

Working in partnership with World Vision, the global Christian relief, development and advocacy organisation, VisionFund will continue to work globally with a new 'big push' strategy which focuses more intently on Africa and Asia.

Scott Brown, CEO, explains, “This is where the need is greatest and where we can have the greatest impact in improving the lives of children trapped in poverty. VisionFund is well on the way to annually impacting 3.5 million children by 2015 and creating one of the world’s leading microfinance networks, leveraging the development work of World Vision.

Its new focus will not only benefit children, but the families and communities where they live. VisionFund has produced a new film to support its goals;'Meet the CEO'which features Jacqueline, a borrower from Rwanda who has set up a dress making business. Jacqueline’s successful business has provided an income for her family, ensuring her children's education, health and wellbeing. It has also provided employment opportunities for her local community.

Adopting a more hands-on role VisionFund will provide its network of microfinance institutes (MFIs) with practical help to enable them to grow and become more self-sufficient, properly resourced and sustainable throughout Africa and Asia among other developing regions. This means taking a lead in industry standards in areas such as social impact and transparency reporting which is part of VisionFund’s ‘big push’ strategy. It will do this through ensuring that its MFIs operate to the same high standards across the regions and achieve a higher level of efficiency.

With a loan portfolio of over $360 million, VisionFund currently helps more than 688,000 small businesses, creating or sustaining over 1.5 million jobs in 36 countries worldwide.

In addition to his role as CEO of VisionFund International, Scott Brown is also a founding member of the Microfinance CEO Working Group. The group is made up of leading microfinance partners who share a passion to see the poor run their own businesses and grow better incomes. The members call for their valued peers in the microfinance industry to take action and strive for better ways to provide financial services to the poor.

“Our success and experience in the past nine years means we have a significant part to play in the microfinance industry to see the poor run their own businesses and grow sustainable incomes. I am confident that our new strategy lays the foundation for VisionFund to make an even bigger difference to people’s lives in the years to come,” concluded Mr Brown.

]]>

PROMOTING WOMEN THROUGH MICROFINANCE

2012-05-04T00:00:00

VisionFund, KPMG and microfinance organisation Women World’s Banking are working together to develop the skills of senior women within the microfinance industry.

The programme develops leadership skills of women working in microfinance institutions through coursework, mentoring and an annual training event. The training encourages women to take these skills back to their local communities and support women in business.

This includes women like Carren. Her children now attend school and are learning from their mother who is an inspiration and excellent role model.

Carren is married with two children. When her sister died, Carren was left with four other children in her care. With a large family to feed, Carren found the small loan to be a platform on which to build her second-hand clothing business.

Since becoming a client of VisionFund’s MFI in Kenya in 2001, Carren now owns:

Four self- contained rental houses, a car hire business and a clothing boutique.
Carren says‘My business has grown with no difficulty in paying back the loans. I have used the loans to expand and grow my business from retail to wholesale; stocking over 200 bales of clothes at one go. It is unbelievable that just $125 USD, taken back in 2001, has empowered me enough to diversify my investments in real estate, car hire services and a boutique selling new clothes.’

Through her hard work and confidence Carren now has:

· Seven people who help run the four business ventures.

· Up to 30 people supported by income generated from her businesses.

· Dedicated employees knowing that they are helping their families’ futures by supporting Carren’s businesses.

VisionFund has over 700,000 clients, of which 68% are women. Many studies have found that women are more likely to generate incomes from small loans, to support their families by securing healthcare, food, clothing, education and housing.

]]>

VISIONFUND SCOOPS PLATINUM, GOLD AND SILVER

2012-03-26T00:00:00

VisionFund affiliated MFIs have also struck Platinum, Gold and Silver in the MIX awards for their dedicated performance in providing financial and social performance transparency.

These great achievements reflect VisionFund’s commitment to provide meaningful measures of transparency and protection for vulnerable clients, who want to live fulfilling lives out of poverty.

VisionFund affiliated MFIs, Platinum Award Winners:

Azercredit (Azerbaijan)
EKI (Bosnia and Herzegovina )
VisionFund Cambodia
FODEMI (Ecuador)
CEVI (Philippines)

VisionFund affiliated MFIs, Gold Award Winners:

VisionFund Lanka (Sri Lanka)

VisionFund affiliated MFIs, Silver Award Winner:

Kosinvest (Kosovo)

VisionFund International is a founding member of the Microfinance CEO Working Group, whose members are drawn from CEOs of leading global microfinance organisations.

All members are committed to creating robust standards in the microfinance industry and ensuring clients are treated fairly.

About MIX Awards
Each year, MFIs from around the world are ranked and reviewed by the Microfinance Information Exchange (MIX), a leading business information provider dedicated to strengthening the microfinance sector.

The requirements to be awarded the various levels of the Social Performance Reporting awards are as follows:

Silver Award:

Complete the social performance questionnaire found in the MIX Online Profile Editor
Submit proper documentation to MIX proving the existence of reported social performance policies
Report poverty measurement data to MIX

Gold Award
In addition to completing the requirements of the Silver Award, MFIs must:

Have a social rating from 2008 or later
Show social change related to their mission
Show high levels of client retention based on their respective market

Platinum Award
In addition to completing the requirements of the Silver and Gold Awards, MFIs must fill out an additional survey assessing new indicators.

www.mixmarket.org

]]>

Does microfinance end poverty?

2012-03-23T00:00:00

VisionFund, as a member of the Microfinance CEO Working Group has responded to the recent Washington Post article by David Roodman on microfinance as an intervention to end poverty.

We consider this an interesting article and one that inadvertently re-enforces the benefits of the inclusive intervention approach taken by VisionFund and our partnering organisation World Vision; to carry out development programmes in health, water, sanitation, education and small financial services which is a part of economic development.

Read the full response here:

‘MICROFINANCE DOESN’T END POVERTY DESPITE ALL THE HYPE’, CEO MICROFINANCE WORKING GROUP RESPONDS.

]]>

Azerbaijani MFI, Azercredit Gains New Stakeholders

2012-01-25T00:00:00

By Dianne Lowther, VisionFund International, Director of Communications

Incofin IM’s Rural Impulse Fund II and Triple Jump’s ASN-Novib Microkredietfonds take an equity stake in Azercredit. This Azerbaijani MFI with strong rural focus was founded and solely owned by World Vision /VisionFund. Incofin IM and Triple Jump will be actively involved in the institution’s future development by taking up a seat in Azercredit’s board of directors.

The investment in Azercredit by international investors not only shows its excellent relationship with the international community, but also illustrates the soundness of its operations. The three shareholders of Azercredit will support the growth plans of the institution and guide it in improving its financial and social performance, without losing sight of its main target group of rural clients.

Founded in 1996, Azercredit (http://azercredit.az/) is one of the leading MFI’s of Azerbaijan. It serves more than 43,000 clients, many of who live in remote rural areas that are being targeted by few other financial institutions. In addition, more than half of the USD 38 million portfolio goes to agricultural activities. With an average loan size of USD 860, Azercredit is serving a niche of low- income entrepreneurs. Both the strong rural portfolio and the small average loan size underline the deep outreach of the institution. The Azercredit branch network consists of 21 offices that cover the economically most active regions of the country, and is planned to expand towards more rural areas.

The product offering of Azercredit comprises a variety of group and individual products as well as loans adapted to the agribusiness. The existing products and services are well-designed and accessible and subject to regular revision in view of the clients’ needs. Thanks to this customer orientation, Azercredit built strong client relationships and can count on high customer fidelity. The MFI’s strong procedures and internal controls result in an excellent portfolio.

Azercredit is a non-bank credit organization (NBCO). The Central Bank of Azerbaijan acts as regulator and supervisor in the non-bank sector. As such it sets the standards with regard to transparency, client relations and confidentiality. Its Central Credit Registry Service centralizes all information on outstanding loans and requires NBCO’s to report. Hence over-indebtedness in the country is being reduced while minimizing the potential risk for investors.

VisionFund International has recently announced a new strategy to focus its future work increasingly on Africa, Asia and Latin America, so as to achieve an even greater impact on the lives of children trapped in poverty. As part of this strategy, its MFIs in Eastern Europe will begin to take on a more independent existence from VisionFund and the investment in Azercredit by Incofin IM and Triple Jump fits with this approach. Nonetheless, VisionFund remains a significant investor in Azercredit and will continue to support its future development as a highly successful MFI in both financial and social performance.

]]>

Road Map for the Microfinance Industry

2012-01-18T00:00:00

By Meghan Greene, manager of the Microfinance CEO Working Group

We are a founding member of the Microfinance CEO Working Group.

We play a significant part in the microfinance industry with other microfinance partners who share a passion to see the poor run their own businesses and grow better incomes.

The Microfinance CEO Working Group members call for their valued peers in the microfinance industry to take action and strive for better ways to provide financial services to the poor.

Read more about our commitment to raise industry standards and lay the groundwork for a more responsible, client-focused industry by viewing this PDF.

The Working Group welcomes your comments and feedback. Please contact Meghan Greene, manager of the Microfinance CEO Working Group, at mgreene@accion.org.

]]>

World Vision UK launches microfinance fundraising site

2011-07-12T00:00:00

People with solid business ideas in the developing world have a new opportunity to build sustainable livelihoods and break the cycle of poverty, thanks to an exciting new initiative from World Vision UK (WVUK).

WVUK has launched a new fundraising website called “Microloans,” which gives UK donors the chance to support an individual in a poorer community with their small business.

Supporters fund a small loan to help the recipient get started or expand a business, for example, by buying seeds to grow crops, carpentry tools, or stock for their small shop. Once the individual repays their loan, the donation is reinvested to help another person start a business.

Microloans was launched in the UK as a result of very positive customer research. Prospective donors were enthusiastic at the prospect of helping people in the developing world to help themselves. It was viewed as a proactive method of helping the entrepreneurial poor to work their way out of poverty. WVUK has supported the launch of Microloans with a significant online marketing campaign comprising of online advertising, search engine advertising and placement, and outbound email campaigns.

“Microloans provide a great way for people living in poverty to help themselves and build a better life,” said Mathew Neville, Director of Public Engagement at World Vision UK. “Successful small businesses have the potential to transform not only the lives of individuals and their families, but also the communities in which they live.”

Supporters can connect one-on-one with the individual of their choice — each with a sound business idea, but no access to credit to qualify for a traditional loan. Then through regular updates from the entrepreneur, WVUK supporters can share in their success as the entrepreneur builds their business.

Mother-of-six Chheang Leang, a farmer from Cambodia, was struggling to support her family on 30 cents a day before a series of small loans helped her to realise her dream of an education for her children.

Microloans helped Chheang to start an ice-cream and fruit juice business and buy livestock.

“My family and I are happier,” she says. “We have enough food and enough to send my children to school.”

Visit Microloans online, and fund an entrepreneur by visiting: http://microloans.worldvision.org.uk

]]>

Baked Goods Bring New Fortune for Struggling Mom

2011-05-20T00:00:00

By Heidi Isaza, Communicator in the Dominican Republic and Brad Stave, Marketing at VisionFund International

Altagracia of the Dominican Republic would travel to the factory everyday, and earn only $40 per week. Her low wages made it difficult to provide childcare, and Altagracia would be forced to leave her son with relatives.

Barely making ends meet and with her son often sick, Altagracia knew something had to change. Change began when her son was enrolled in World Vision’s sponsorship program, and Altagracia was invited to participate in a job-skills training class.

Altagracia learned the practical skill of baking, and how to become a successful business woman. She learned how to run her own business, what price to charge, and how to turn a profit. Altagracia shared, “World Vision opened my eyes.”

A year later, Altagracia was running a successful business. Now making twice of her former wage, she is able to run her business out of her home and take care of her son.

Altagracia hopes to expand her business, and offer various catering services. This will be done as she accesses additional small loans through FIME, the World Vision microfinance subsidiary in the Dominican Republic.

Lives are changed when the entrepreneurial poor start small businesses and impact their own lives. People like Altagracia are very thankful for the help provided by World Vision, as she shares, “without them, I wouldn’t be where I am today.”

Over 2,500 loans are disbursed by FIME each year to entrepreneurs like Altagracia. With a portfolio totalling $1.75 million, these small loans are impacting lives as borrowers are able to care for themselves and their children.

]]>

PPI Index Certification Awarded to MFI

2011-04-21T00:00:00

By Refilwe Mokoena

VisionFund is proud to announce CEVI's (Community Economic Ventures, Inc) certification in its use of the Progress out of Poverty Index (PPI). As the second MFI in Asia to receive this validation from the Grameen Foundation, this outstanding achievement is a reflection of CEVI's commitment to and leadership in social performance.

The PPI, is a statistically accurate poverty measurement tool that was developed with the goal of giving microfinance institutions (MFIs) and other organisations interested in poverty alleviation a simple and reliable way of understanding whether they are reaching their target populations and if these populations are moving out of poverty over time.

Developed by Mark Schreiner in partnership with the Grameen Foundation, the PPI is constructed based on a national household survey, typically a country’s income and expenditure survey. The ten question scorecard is created by selecting the indicators most telling of a household’s poverty level from the national survey. MFIs can then use the total score to calculate the proportion of their clients that lie below an international and national poverty line. These reports highlight whether an MFI is reaching its target clients and whether the clients’ poverty status improves over time. The tool can also allow MFIs to better adapt products and services to clients’ needs.

VisionFund, the microfinance subsidiary of World Vision, believes the PPI will form one of the cornerstones of their overall approach to Social Performance Management (SPM). The PPI will not only enable MFIs to intentionally target poor and very poor clients, but will provide useful information leading management’s decisions to develop a positive impact on children.

Thus far, 13 VisionFund affiliated MFIs are working towards or have begun piloting or rolling out the PPI. VisionFund has developed basic implementation guidelines to assist MFIs and will work closely in acquiring certification. Wherever possible, VisionFund aims to partner with Grameen Foundation and other organisations like Plan International and Catholic Relief Services to support MFIs in this process.

As more MFIs have begun using the PPI, Grameen Foundation recognised the need to standardise the implementation process and validate the results produced. To this end, PPI ‘Standards of Use’ and a certification process was developed to ensure that organisations abide by criteria and that poverty results are reliable. Three levels of standards - basic, advanced, and tracking over time - have been created. In order to be certified, all organisations must meet the basic standards and only those tracking movement out of poverty must abide by the other two. Once an organisation requests to be certified, Grameen Foundation along with an additional qualified volunteer conduct an onsite certification followed by a review of the organisation's results. If the relevant standards are met, the organisation receives certification.

Throughout the implementation process CEVI has built staff buy-in, improved training, and developed information systems. Additionally, CEVI has encouraged field staff to balance working towards both financial and social performance.

Results showed that in March 2011, the proportion of entering clients below the national poverty line was 36%. To increase this number, CEVI plans to automate data consolidation and analysis so reports are simpler to produce. This in turn will help the MFI track the changes of individual clients and segment reports appropriately. CEVI plans to strengthen systems of monitoring, and validation of the PPI both at the branch level and in the MIS. Ultimately, the goal is to design products better suited to the poor and include client targeting and outreach within the staff incentive scheme.

VisionFund is enthusiastic about the initial implementation of the PPI in CEVI’s operations. Equally the organisation is encouraged to see more MFIs implement the PPI and in turn, gain a better understanding on how to target and respond to the needs facing the entrepreneurial poor.

VisionFund, the microfinance subsidiary of World Vision, serves roughly 650,000 borrowers in 40 countries.

]]>

VisionFund Cambodia Launches New Website

2011-03-29T00:00:00

By Khuon Sophorth, VisionFund Cambodia

VisionFund Cambodia is pleased to announce a newly launched website with changes and enhancements in graphic design and features. The goal of the new site is to provide a more convenient space for users to seek relevant information.

The updates and enhancements include adding slide shows and rearranging different sections and graphic layouts in order to further promote VisionFund Cambodia’s identity and branding as a socially minded MFI within VisionFund International’s microfinance network.

Two additional sections were created to provide media materials and economic news referencing the Cambodian market. The media centre is complete with news, photos, client success stories, and videos clips relevant to the organization.

Finally, a blog was developed to offer economic news and articles from various sources. These articles typically relate to Cambodia’s economic, banking, and microfinance industry.

Please take a moment and view VisionFund Cambodia’s newly updated website by visiting:http://www.visionfund.com.kh.

]]>

Bankers with Vision – A Force for Good

2011-03-07T00:00:00

By Richard Hartung, Bankers with Vision Volunteer

For VisionFund affiliated MFIs in Asia, Bankers with Vision (BwV) might seem too good to be true. Bankers with decades of experience in the region are offering to act as trainers, coaches and consultants – all for free. And these aren’t just run-of-the-mill bankers. Credit experts, finance professionals, HR directors, marketing veterans, IT gurus and more have all signed up to help out.

Why? As BwV says in its vision statement, our volunteers want to “maximise the ability of MFIs to provide sustainable ongoing support for their borrowers.” More simply, we want to use our skills to enable staff to help borrowers all around Asia.

The concept of BWV started nearly two years ago, when a few bankers attending a VisionFund presentation in Singapore suggested what might have seemed like a radical idea. Along with contributing “treasure,” they wondered, how about offering time and talent to support VisionFund around Asia. Fortunately, board member Jon Hartley was receptive and started the ball rolling within VisionFund.

About twenty of us showed up for the first meeting in October 2009, knowing little more than that we wanted to help. Jon and other VisionFund staff explained more about what VisionFund was and led a discussion about possible next steps.

Veteran credit risk expert Richard McCrohan was instrumental in moving VisionFund forward, both tirelessly fund-raising to support microfinance in Cambodia and pulling in colleagues and friends to help the organisation. World Vision Singapore hired Lyn Loo in those early days, too, to support both World Vision and VisionFund. I helped with putting activities and support together however I could.

At first, our activities were fairly simple. We started organizing quarterly gatherings of the volunteers, including social event where volunteers could mingle and sessions where VisionFund staff coming through Singapore could explain the workings of VisionFund. Iain MacKenzie talked about how capital-raising initiatives work, for example, and Tim Hooper discussed VisionFund’s tremendous growth in Mongolia.

Several of us also started the volunteering ball rolling by coaching staff in the MFIs. VisionFund had never done anything like this before and it was probably a test case to see if it worked, with the hope that MFIs might benefit. McCrohan coached one executive in Cambodia, and I coached an executive in Myanmar. Fortunately it went well, and the momentum grew. Soon afterwards, our first trainers spent time teaching MFI staff in Sri Lanka and Mongolia.

One of the biggest struggles initially was simply getting the word out about something entirely new from VisionFund. Country directors had never had a pool of volunteers available and didn’t think about accessing those skills. Gradually, though, as Lyn and others met with senior MFI staff around the region, and as success stories began to trickle out, requests began to come in. We’ve gradually built up to the point where we have dozens of requests for support, and we’re working hard to meet them.

Fast forward to today, and BwV is a vastly more well-connected and active organization. A Steering Committee of four, along with staffer Lyn Loo, meets every 4-6 weeks to plan activities, improve communications and link volunteers to tasks better. BwV hosts gatherings monthly, with everything from volunteers telling stories about their time in the field or webinars with VisionFund subject experts discussing their area of expertise to country directors talking about their work or sessions to create more effective volunteering support. BwV has grown, and we now have over 400 supporters signed up.

Has BwV made a difference? We hope so, and feedback from the field has been good. Our HR trainers helped staff develop learning plans and programmes to increase retention, and IT experts with years of experience on systems implementation are providing advice on new software. We have everything from product development to financial compliance support scheduled for the months ahead.

The dual focus in our mission statement, to “create a community of highly skilled professionals with best-in-class management skills who will act as a resource to support VisionFund entities around the globe and who will become advocates for microfinance through VisionFund,” is intentional. On the one hand, VisionFund staff in the field have access to top-level coaching or training skills from experienced bankers. On the other, the volunteers are becoming a community that makes a difference and they’re developing camaraderie. Together, BWV in Singapore is creating a new model that truly seeks to be a win-win-win for borrowers, VisionFund staff, and the volunteers themselves.

]]>

Stephen Lockley Joins as CFO

2011-02-14T00:00:00

By Brad Stave, VisionFund International - Marketing

Stephen Lockley joined VisionFund as the Chief Financial Officer in October of 2010. In this role, he has overall responsibility for finance, funding, and risk management across the VisionFund network.

Reflecting on his first few months, Stephen says "It’s very exciting to be getting involved in the incredible work everyone in VisionFund does to deliver benefits to many of the world’s most deserving people".

Stephen came to VisionFund from a background of over 20 years in banking. Stephen shares, "I have been fortunate enough to have had a number of varied experiences. I trained as a UK chartered accountant, have advised clients on all aspects of corporate finance, been group finance director of a stock-market quoted banking group, and built up and run two different banking businesses."

Stephen is thrilled to put this experience to work in an organisation which exists to benefit the world’s less fortunate and is not run just to serve the commercial interests of its shareholders.

Stephen also brings to VisionFund the skills and insights he has gained from non-executive directorships at an investment fund and an insurance company, as well as his role as a trustee of Mission Aviation Fellowship, a Christian charity operating relief flights with its own fleet of 120 light aircraft across the developing world. Through this latter role, Stephen has developed a real concern for the difficulties facing many in the world’s poorer nations.

Looking to the future, Stephen sees a significant opportunity for VisionFund to expand its footprint of services to the underbanked, adding new products as well as additional geographies.

Stephen closes in sharing, "Being an integral part of World Vision places VisionFund in a unique position to work with other World Vision programmes to maximise the social impact of our microfinance services. There is massive scope for us to carry on doing good in many parts of the world, and that is something that I find rewarding and exciting."

]]>

Board Member Honoured as Australian of the Y

2011-01-27T00:00:00

By Brad Stave, VisionFund International - Marketing

Each year Australians crowd around their television sets waiting to see who has been named the “Australian of the Year.” Coinciding with Australia Day (January 26), Australia’s pre-eminent award is bestowed on an Australian that has made a considerable impact.

In years past this award has gone to public servants, famous celebrities, talented musicians, gifted athletes, and cure discovering scientists. This year is no different, as World Vision and VisionFund’s own Simon McKeon recently received this outstanding honour from Australian Prime Minister Julia Gillard for his unwavering commitment and efforts to use his life to make an impact through various philanthropic efforts.

Living in Victoria, Simon is an accomplished yachtsman and has more than 25 years of investment banking experience with Macquarie Group. He also serves a number of government and philanthropic organisations, including as President of the Australian Government's Takeovers Panel and Chairman of MS Research Australia and Business for Millennium Development.

Simon plans to spend his year encouraging and inspiring as many Australians as possible to engage in their own philanthropic efforts. Simon shared, “I think the real character of Australia is found in people who are trying to make the world a better place. Everyone has something to offer, everyone has a gift they can bring.”

Having served on the World Vision Australia board from 1994-2005, Simon joined the original board of VisionFund International when it was created by World Vision as its microfinance subsidiary. Mandated to administer and lead 40 microfinance institutions in every region where World Vision works, VisionFund has grown to provide over 750,000 loans each year totalling more than $340 million dollars.

Simon reflects on his initial impressions of microfinance at World Vision, “It was in the early 90s in Thailand. I remember visiting a project, and learning that they had just begun using donated funds to launch lending initiatives amongst women. It was the first time that I was aware of the concept of microfinance, and it took me three nanoseconds to know that it was a great idea. I just knew that microfinance was going to work.”

VisionFund’s President and CEO, Scott Brown praised Mr McKeon’s contribution, “At VisionFund we are all thrilled that Simon McKeon has been awarded the high honour of ‘Australian of the Year.’ He is indeed a worthy winner, and I am thankful for Simon’s service to VisionFund as a board member. It is with the leadership, dedication, and passion from people like Simon, that VisionFund will be able to realise its ambitious goals to impact millions of additional poor entrepreneurs over the next five years.”

Simon is enthusiastic about the future at VisionFund, “My dream for VisionFund is that it will be the best possible testament of God's vision for microfinance that it can be. I envision an institution that provides millions of loans to poor entrepreneurs who want to break the cycle of poverty for themselves and their children.”

A full article highlighting Simon McKeon and his recent honour of being named “Australian of the year” can be found online by visiting: http://www.theaustralian.com.au/national-affairs/top-honour-to-simon-mckeon-for-helping-the-desperate-find-hope/story-fn59niix-1225994546427

]]>

Armenian CEO Boosts MFI Client Base

2011-01-18T00:00:00

By Brad Stave, VisionFund International - Marketing

About 60 thousand children have been impacted through micro lending at SEF International UCO LLC since its setup in 1997. A subsidiary of VisionFund, this Armenian microfinance institution (MFI) extends small loans to businesses and farmers. Through a variety of loan products the MFI helps improve living conditions for families throughout Armenia. SEF has provided more than 11,000 loans exceeding USD 9.3 million, and has expanded its customer base by 80% in 2010.

This success seemed unreachable, when SEF was struggling to cope with local currency volatility and deteriorating loan portfolio performance accompanied by a shrinking customer base in early 2009. To worsen the situation, the MFI was not fully prepared to deal with such issues in terms of human capacity, business processes, and strategic management.

In 2007 World Vision and VisionFund leadership recognised the changing nature of challenges SEF faced, and the growing need for new management. Thus, leadership began a search for a new CEO to build a stronger institution and push the company to the next level of growth.

Garegin Gevorgyan, Ph.D., was headhunted and hired from the finance industry in late 2008. Almost immediately after his arrival, the Armenian economy experienced a dramatic one-day devaluation of local currency of roughly 25% on March 3, 2009.

Two weeks later, SEF had a negative foreign exchange gap, which is a relationship between foreign currency assets and foreign currency liabilities expressed as percentage of equity capital, of 130%.

Luckily for SEF, VisionFund leadership quickly responded to the emergency situation and sent a team of VisionFund finance professionals to assist in reviewing the situation. Further, VisionFund invested more equity capital to signal its full support for SEF. As a result, SEF improved its foreign exchange gap ratio, and currently is sufficiently funded for planned growth.

As burning issues were dealt with, the management team focused on improving loan portfolio quality, expanding product offerings, and servicing more locations. Further, SEF actively participated in several programmes, becoming a Kiva partner, enrolling in the World Vision Micro project, and participating in a WVUS major donor fundraising campaign. In 2010 SEF was granted a BBB social rating and a BBB- financial rating. “We aim to serve customers in all areas where World Vision implements area development programmes in Armenia, and plan for long-term sustainable growth through better products” states Mr. Gevorgyan.

]]>

Reflections on the Filipino Community Bank Model

2011-01-06T00:00:00

By Brad Stave, VisionFund International, Marketing

I recently spent a week with colleagues at the World Vision and VisionFund affiliated microfinance institution (MFI), Community Economic Ventures, Inc (CEVI), in the Philippines. Today, our Filipino MFI has grown to serve more than 32,000 borrowers each year with a loan portfolio that totals well over $4,000,000

Upon our arrival, we were met by what CEVI calls a “cluster group” of micro borrowers. This group of borrowers meets on a weekly basis during a formal time that includes bible study, prayer, financial instruction, and a time to get current and pay back their weekly loan instalment.

The building this group was meeting in had been built by World Vision and was intended to be used by the community. Sitting no more than ten yards from the ocean, it was easy to understand that small fishing initiatives were the primary business activities supported through micro loans in this area.

At most MFIs, cluster groups include 20-30 members who cross guarantee each other’s loans. This is done because members don’t have existing capital or collateral to guarantee outstanding loans. Simply put, borrowers guarantee to the MFI that each member of the group will repay, and if they do not, other members will be personally held responsible for the outstanding debt.

It’s a brilliant system. Consumer banking in the industrialised world is made possible through attaching either collateral or a credit score to an individual. However, the majority of the world’s population does not have either adequate collateral or a credit rating to secure a loan.

Towards the end of the meeting we attended, a young lady named Jovita stood up and introduced herself to the group. In this small community the introduction was done as a formality, as Jovita was already familiar with everyone in attendance at the meeting, and conversely, everyone attending knew perfectly well who Jovita was.

Jovita was known throughout her community as an upstanding woman, who had a strong work ethic and the tenacity to succeed. To increase profits of her family’s fishing business she was requesting to be added to the cluster group, and receive a loan from CEVI. Even as she made her case, cluster group members had already decided in their own minds whether she would be invited to join or not.

Half way through Jovita’s appeal, a micro borrower in the audience spoke up and declared, “I will cosign for Jovita!” This led to an avalanche of group endorsement, and Jovita was invited to join the small circle of micro entrepreneurs and secure a loan through CEVI.

In our modern day world of financial equations, computers, and economists who determine the economic future of us all, it was refreshing to see in the Philippines that economic decisions were made not based on an economic analysis alone, but on someone’s reputation within a community cultivated through years of integrity and hard work.

Now that Jovita has been accepted into this cluster group, and will soon receive a small loan from CEVI, it will only be a matter of time before she can expand her family’s fishing business and provide a better future for herself and her family.

Through fostering the development of small businesses, families are able to use their profits to buy nutritious food, access healthcare, and ensure their children receive a quality education. Additional family income improves not only the life of the borrower, but their children’s future and the local community are also positively impacted.

]]>

Australian Actor Hugh Jackman Launches New Economic Dev

2010-12-20T00:00:00

By Brad Stave, VisionFund International, Marketing and Communications

World Vision Australia recently launched a new fundraising programme for economic development projects, which provides poor communities with business skills training and opportunities to help them improve their incomes and build a better future.

The idea for the programme, Social and Economic Empowerment (SEE) Solutions, was conceived after World Vision Australia CEO Tim Costello and World Vision ambassador Hugh Jackman visited a micro loans and business training project in Cambodia from the affiliated World Vision microfinance institution VisionFund Cambodia.
“SEE Solutions funds projects that provide communities with a hand up, not a hand out. It’s about empowering people with the right knowledge, skills and resources to build a future for themselves,” Rev Costello said.

“Each SEE Solutions-funded project is tailoured to the community’s needs and may establish a range of initiatives such as education and skills training, agricultural development and access to finance, technology, and markets.”

The launch of the new programme coincides with the premiere of a documentary, Seeds of Hope, which aired in Australia on Sunday, September 19th. World Vision Australia and VisionFund International, the microfinance subsidiary of World Vision, plan to make this short documentary available across the partnership. To view a short trailer for this documentary visit:http://www.youtube.com/watch?v=0JpwV8_PH1M.

The documentary follows Hugh Jackman’s voyage to Ethiopia with World Vision Australia where he meets a young Ethiopian coffee farmer, Dukale, and works with him for a day on his farm.

“The documentary follows my journey to learn more about poverty and how it can be overcome through economic development. It’s also about the life of a man called Dukale, whose story is truly one of the most inspiring stories I’ve ever come across,” Mr Jackman said.

“With the help of World Vision, Dukale and his community have learnt more efficient ways to organically grow coffee, and have received financial management and market skills training to help them gain a higher price for their produce.

“Dukale’s farm is doing so well that he now employs other people from his community, so not only is he lifting himself out of poverty, he’s providing families around him with the opportunity to change their futures too.”

SEE Solutions currently funds nine projects - benefiting more than 200,000 people - across Asia, Africa and, South America.

SEE Solutions supporters can access a website where they can watch videos featuring the community members benefiting from the project and view progress reports that detail each community’s achievements and challenges.

“SEE Solutions is a great way for Australians to help the world’s poorest people,” Rev Costello said.

“Most Australians would remember a time when someone offered them a hand up to help them through a rough patch. This is exactly what SEE Solutions is offering to poor people: a chance to get ahead and work their way out of poverty.”

]]>

Weaving Relationships with the German Chancellor

2010-12-14T00:00:00

By Kevin Jenkins, President & CEO, World Vision International

I was pleased to be able to present the German Chancellor, Angela Merkel, with the gift of a silk scarf that came with a heart-warming story from a World Vision project in Cambodia.

The occasion was a reception held for us by Mrs Merkel during our annual European Forum at the end of November.

The European leaders and Board chairs were invited to meet Mrs Merkel. We were immediately able to talk about World Vision’s development and microfinance work thanks to the scarf, made for us by a Cambodian lady, Ouch Sophanna.

Mrs Sophana, 30, pictured below, is part of a collective of women who have been given loans through the VisionFund microfinance subsidiary, VisionFund Cambodia. The descendant of a long line of silk weavers, she, her cattle-breeding husband Sem, two sons and a dependant mother, were all living hand to mouth.

She received her first US$100 loan three years ago, repaid it, and received another for $1,000. She repaid that, and received a third, for $3,800, enabling her to buy land for rice growing.

Now Mrs Sophana’s decrepit house has been repaired, the family have some assets and a regular income, and perhaps best of all, they have been able to employ 15 more people.

“I plan for my two boys to complete university education,” she told World Vision staff when we bought the silk from her to give to Mrs Merkel.

“My wish is for my eldest son to become a medical doctor and the younger one to be an NGO or company employee.”

As her two sons are only aged ten and three, it might seem rather early to be planning their careers. The eldest is in the sponsorship programme, however, and that – coupled with the security of a thriving business - has encouraged the family to make big plans.

“With the continued support of World Vision and VisionFund, I hope to fulfil my dream for my family one day,” said Mrs Sophana.

Christoph Waffenschmidt, World Vision Germany’s Chief Executive Officer, asked Mrs Merkel to help the world maintain momentum in reducing the toll of preventable deaths among children under five, and explained World Vision’s work through its Child Health Now campaign.

The Chancellor said her concern for the health of children and mothers is heart-felt.

“Without healthy children and mothers, no country has a future,” she said, promising to look for opportunities to champion the weakest of the world’s community.

]]>

VisionFund Mongolia Strengthened under Hooper's Leaders

2010-12-06T00:00:00

By Brad Stave, VisionFund International, Marketing and Communications

With over 50 years experience in the financial industry, VisionFund Mongolia’s (VFC) CEO, Tim Hooper, brought his extensive history in Asian banking and financial development to the VisionFund affiliated microfinance institution in 2006.

With past work experience in the Philippines, China, and Australia, Mr. Hooper found himself in Mongolia in the early 90s. Following the collapse of communist rule, Mr. Hooper joined a delegation to provide financial insights and leadership to a country that was left with a large power vacuum and lack of financial expertise.

Although the initial findings showed that the financial state of Mongolia would require decades of consistent external financial support and access to low interest lending, this time in Mongolia set the stage for Mr. Hooper’s eventual return over 15 years later.

“At the time, I didn’t know that my initial experiences in Mongolia, right after the fall of communism, would be used to benefit a microfinance institution in the future. It’s encouraging to see how much Mongolia has improved over the past 15 years, but there is still a lot of development needed in the financial sector, which will impact everyday Mongolians,” shared Mr. Hooper.

Having been founded a year before Mr. Hooper’s arrival, VFM began operations in 2005 with four staff and a license to operate from the Mongolian Central Bank. Under Mr. Hooper’s leadership, over the next three years VFM expanded to serve additional borrowers through opening three branch offices. These branches were successful, so VFM opened three additional, albeit smaller, branches in other areas of the country. Throughout the entire expansion process, VFM committed to develop branches that would remain focused on serving clients in existing World Vision area development programmes.

In 2008, and in the wake of the global financial crisis, Mr. Hooper decided to slow the expansion of additional branches, and focus on the existing quality of programming, services, and portfolio. These exhaustive efforts resulted in portfolio at risk falling to 2.1% at the end of fiscal year 2010. In addition, Mr. Hooper led an effort to improve internal controls while utilising information technology, which led to a repayment rate increasing to nearly 100% by the end of the same fiscal year.

VFM is now transitioning ownership from World Vision Mongolia to VisionFund International (VFI), and is modifying its lending strategy to better meet the needs of ADP clients, while partnering with organisations such as Habitat for Humanity, to provide low cost housing options.

In 2010, VFM’s outstanding portfolio was in excess of $3 million, serving over 4,300 active borrowers with an average loan size of $931. Under Mr. Hooper’s leadership, VFM hopes to achieve commercial banking status in 2011, which will lead to expanded services in more ADP areas.

The leadership and determination of Mr. Hooper to provide best in class financial services to those living in poverty in Mongolia has made an immediate impact on thousands of families in Mongolia. With VFM, Mr. Hooper is ushering in a new era of economic possibilities for countless Mongolians.

]]>

Christian Witness Initiative Builds Staff Capacity

2010-11-24T00:00:00

By Kristin Ebanks

The Christian Witness Initiative (CWI) is strengthening staff capacity to effectively and appropriately integrate Christian witness into VisionFund International, Children in Ministry (CIM) and Humanitarian and Emergency Affairs (HEA). This three-year initiative (until December 2011) is helping World Vision to reinforce its Christian foundations, identity and witness (Strategic Mandate 1).

Six countries that represent World Vision’s diverse contexts are piloting the CWI initiative: Albania, Cambodia, Mali, Nicaragua, the Philippines, and Uganda. Each country has conducted baseline assessments of staff capacity to engage in appropriate Christian witness, and implemented contextually appropriate programmes in the three programme areas.

In the key programme area of VisionFund, the CWI aims to enhance microfinance institution (MFI) staff capacity for appropriate Christian witness, help clients implement biblical approaches to business, and improve effective partnership with local churches.

To achieve those goals, VisionFund has developed guiding principles as foundational to its identity, created definitions of Christian MFIs and appropriate Christian witness, and built an online library of Christian witness resources that is available to approximately 5,000 MFI staff. Staff orientation modules and devotionals will be rolled out to all 41 MFIs beginning next year.

Nate Brown, Integration Officer for CWI and VisionFund, said, “I am excited that VisionFund affiliated MFIs now have specific guidance on how they can witness appropriately in their context. For example, one MFI director said he used to wonder whether or not it was appropriate to pray with clients, and now he knows that he can talk about what he believes about Jesus while on the job, when appropriate.”

]]>

CEVI and AzerCredit Receive Gold Social Performance Rep

2010-10-19T00:00:00

By Brad Stave, VisionFund International, Marketing and Communications

Each year, Microfinance Institutions (MFIs) from around the world are ranked and reviewed by the Microfinance Information Exchange (MIX), a leading business information provider dedicated to strengthening the microfinance sector by providing financial and social performance transparency.

In 2010 MIX recognised MFIs located all over the world for their excellence in reporting social performance through the Social Performance Reporting Award. Social performance refers to the commitment to serve the poor and marginalised with products and services that meet their needs and develop their lives and the lives of their families.

The Social Performance Reporting Award was developed and launched by CGAP (Consultative Group to Assist the Poor), the Social Performance Task Force (SPTF), the Michael & Susan Dell Foundation, the Ford Foundation, and with microfinance information provided by MIX in 2009.

With hundreds of submissions, VisionFund is proud to announce that affiliated microfinance institutions, AzerCredit of Azerbaijan and Community Economic Ventures, Inc. (CEVI) were recognised by MIX for their integrity and transparency in reporting, measuring, and data collection of social performance. Social performance reporting allows MFIs to better target the poor and design appropriate products and services.

A gold award for social performance reporting is given by MIX when an MFI completes the social performance reporting report, provides data on poverty measurement, and has a social rating that includes auditing of the poverty tool used by the MFI.

Jonar Dorado, CEO of CEVI, shared, “I am pleased that CEVI has received the Gold Award for social performance reporting from MIX. We are thankful for the valuable support and guidance through this process. All glory is given to God; for all that He has done through us.”

In 2009, CEVI disbursed over $7.8 million in loans to more than 21,000 borrowers. CEVI’s microfinance efforts impacted over 75,000 children and created or sustained nearly 39,000 jobs.

Ljiljana Spasojevic, CEO of AzerCredit, shared, “I am exceptionally proud of the efforts of AzerCredit in our ability to provide succinct, accurate, and transparent social performance reporting. I am pleased that AzerCredit has been internationally recognised for our commitment in best in class reporting. Excellent social performance reporting will allow AzerCredit to improve and develop our impact in the field amongst the borrowers we serve. In the end, it is our clients who will benefit the most.”

In 2009, AzerCredit disbursed over $33 million in loans to more than 33,000 borrowers. AzerCredit’s microfinance efforts impacted over 40,000 children and created or sustained more than 38,000 jobs.

Scott Brown, President & CEO of VisionFund expressed his congratulations to all the management and staff of AzerCredit and CEVI in their first-ever gold award received, and said, “AzerCredit and CEVI have now set the standard which all MFIs will now strive to achieve.” In 2009, seven VisionFund affiliated MFIs received MIX’s silver award for social performance reporting.

]]>

World Vision Micro Starts Blogging

2010-09-22T00:00:00

By Brad Stave, VisionFund International, Marketing and Communications

By its very nature, World Vision Micro, the microfinance donation portal developed through a partnership of World Vision International, VisionFund, and World Vision US, is a social networking tool.

In an effort to develop interest and engagement through social networks and web 2.0 technologies, World Vision Micro has developed a blogging site that uses a catalogue of authors to provide various microfinance related articles.

Authors include World Vision US’ Karen Larsen, Allison Rosser, Ashley Granda, and Bwalya Melu; VisionFund’s Brad Stave and Nick Ackerman; and Lisa Pacini, a freelance writer. For full bios please visit: http://www.worldvisionmicro.org/blog/bios/

Recently, Joan Monosco, a Filipino entrepreneur, was featured in a post authored by World Vision US’ Allison Rosser. Here is her post:

Why hello there! Thanks for checking out our site!

I’d like to introduce you to my new favorite entrepreneur, Joan. Yes it’s true, I said it: I have favorites. And you will too (I hope!), once you finish reading this post…

Joan lives in the Philippines and runs a small convenience store, known locally as a “sari-sari” store. But this isn’t just any ordinary convenience store. While Joan sells tasty treats in one half of the store, she operates a karaoke machine in the other. Can you believe it?! This woman’s business idea is a one-stop-shop-and-bop! Genius.

Clearly Joan saw that there was a need in her community that wasn’t being met–specifically, the need to sing bad, but oh so good, 80′s music. She then decided to capitalise on this unmet need by providing her community a karaoke machine and charging people a small fee to use it. Now if that’s not entrepreneurship, then I don’t know what is…

Now I confess that I’m battling a strong desire to go karaoke right now, but before I’m off, I’d like for you to consider: Who is YOUR favorite entrepreneur?

Two videos, including an overview of World Vision Micro, and a video sharing how world Vision micro works can be found at http://www.worldvisionmicro.org, or viewed/downloaded directly from VisionFund's video resource centre at: http://www.visionfundinternational.org/videos

To read more blog postings, please visit: http://www.worldvisionmicro.org/blog/

]]>

Ugandan Microfinance Institution Transformed

2010-08-23T00:00:00

By Brad Stave, VisionFund International, Manager of Marketing and Communications

Today, over 23,000 children are impacted each year through micro lending at the VisionFund and World affiliated Ugandan microfinance institution (MFI), MED-NET. Through small loans, borrowers are able to send their children to school, provide access to healthcare, and ensure they are supported and cared for. Additionally, MED-NET provided nearly 14,000 loans totalling roughly $3,500,000 in 2009, and is currently experiencing over 26 per cent growth in portfolio.

These recent social impact and financial successes at MED-NET come in response to a time when the MFI nearly collapsed and faced possible closure, just years prior.

In 2006, an extensive audit of MED-NET found significant inconsistencies in reporting, delinquency levels, and liquidity. The audit discovered discrepancies between the actual and reported financial position of the MFI, showing unaccounted for losses and a lower overall financial portfolio.

The faltering state of the MFI was attributed to a few key reasons. These included a combination of poor overall management and financial management, a lack of an effective management information system, a poor strategy of borrowing to pay for losses, poor delinquency management, and a lack of transparency and proper reporting at the management level of the MFI.

VisionFund and World Vision leadership were faced with the decision to either close, sell, or rebuild the MFI. After careful consideration, and a thorough review of the current state of the MFI in relation to the mission of World Vision Uganda, the leadership decided to respond by addressing the faltering MFI and make an active effort to turn it around.

Repairing and rebuilding an MFI from a fractured state is not a simple task. In fact, many leaders were involved in the process to identify key changes that needed to be made.

Some change initiatives included replacing MFI leadership with professional and experienced staff, updating and communicating new policy, developing clear and consistent reporting mechanisms, instituting new key functions, providing a proper loan tracking system and finance solution, and addressing service concerns from micro borrowers while providing a better end-to-end experience.

Reviewing and responding to key failings at MED-NET with best in class leadership and services is something that the current MED-NET CEO, Harriet Mulyanti, is proud of. Mrs. Mulyanti stated, “The need for microfinance services in a country like Uganda is great. For many borrowers, a MED-NET micro loan is their only chance to develop or expand their business. I’m very pleased and thankful that VisionFund and World Vision decided to rebuild MED-NET from the ground up. It is now a financial institution that is known throughout Uganda as one that provides excellent microfinance services with integrity.”

VisionFund’s President and CEO, Scott Brown, shared, “Everyone throughout the World Vision and VisionFund partnership is thrilled that MED-NET has become an increasingly successful and valuable member of the microfinance network. Recently MED-NET was awarded substantial donor funding, I believe this stands in testament to the MFI’s accomplished turn around and our future expectations of success.”

]]>

G20 Leaders Announce Principles for Innovative Financia

2010-07-09T00:00:00

By Brad Stave, VisionFund International, Manager of Marketing and Communications

From June 25 -27, 2010, a collection of leaders from the world’s most powerful countries gathered in Ontario, Canada for the G8/G20 meetings.

Development, economic stability, and poverty alleviation were at the core of the agenda, as the group announced sweeping initiatives and a commitment of billions of dollars to combat poverty and improve the lives of those living in developing nations.

Specifically, the G20 leaders announced the development of a set of “Principles for Innovative Financial Inclusion.” These principles have a goal to help develop policy and create a regulatory environment that will enable innovative financial inclusion. In addition, the policies encourage the development of microfinance services (including micro lending, micro savings, and micro insurance) that will directly benefit the entrepreneurial poor in the areas where VisionFund and its affiliated microfinance institutions (MFIs) serve.

VisionFund, and its network of 41 MFIs located in every region where World Vision works, welcomes the development of these principles, as they already actively implement many of these principles.

Amongst these principles, VisionFund affiliated MFIs are currently 1) promoting the delivery of market-based and sustainable financial access and services (credit, savings, insurance, etc.), 2) promoting technological and institutional innovation as a means to expand financial system access and usage, 3) ensuring client protection, 4) empowering clients through developing financial literacy, and 4) encouraging partnerships.

Scott Brown, President & CEO of VisionFund welcomed these new principles of the G20, and said, “The G20’s efforts to develop, highlight, and globally encourage these principles for innovative financial inclusion encourages organisations like VisionFund. For years, VisionFund affiliated MFIs have been committed to increased financial inclusion in the countries where they serve. The G20 cannot stop here, as we now look with anticipation, as these principles are globally recognized, developed, and implemented.”

Leaders at the G20 Leaders Summit in Seoul, Korea in November 2010 will work to implement these principles, and seek partners to champion the development of these standards.

To read the set of “Principles for Innovative Financial Inclusion,” in its entirety, click on the following link: http://g20.gc.ca/toronto-summit/summit-documents/principles-for-innovative-financial-inclusion/

]]>

AzerCredit Receives First and Only Global Gold

2010-06-12T00:00:00

By Brad Stave, VisionFund International, Manager of Marketing and Communications

In June of 2010, MIX recognised 13 MFIs located in Eastern Europe and Central Asia for their excellence in reporting social performance through the Social Performance Reporting Award. Social performance refers to the commitment to serve the poor and marginalised with products and services that meet their needs and develop their lives and the lives of their families.

With over 200 submissions, VisionFund’s affiliated MFI, AzerCredit of Azerbaijan, was the sole MFI to receive the gold award for social performance reporting. Dedicated to developing innovative social performance programmes, AzerCredit was recognized by MIX for their integrity and transparency in reporting, measuring, and data collection of social performance. Social performance reporting allows AzerCredit to better target the poor and design appropriate products and services.

Ljiljana Spasojevic, CEO of AzerCredit, shared, “I am pleased that AzerCredit has been internationally recognised for our commitment to provide succinct, accurate, and transparent social performance reporting. Excellent social performance reporting will allow AzerCredit to improve and develop our impact in the field amongst the borrowers we serve. The gold award for social performance reporting will motivate AzerCredit to continue providing excellent reporting while improving our actual social performance at the MFI level. In the end, it is our clients who will benefit the most.”

Scott Brown, President & CEO of VisionFund expressed his congratulations to all the management and staff of AzerCredit in the first-ever gold award received, and said, “AzerCredit has now set the standard which all MFIs will now strive to achieve”. In 2009, seven VisionFund affiliated MFIs received MIX’s silver award for social performance reporting.

VisionFund, the microfinance subsidiary of World Vision, serves nearly 650,000 borrowers in 41 countries.

]]>

International Women’s Day 2010: VisionFund Highlights

2010-02-25T00:00:00

By Maria Cristina Gandarillas, External Communications Officer at World Vision Ecuador and Brad Stave, VisionFund International, Marketing and Communications

March 8th is International Women’s Day, a day set aside to advocate for the rights of women around the world.

Along with other organizations around the globe, VisionFund, the microfinance subsidiary of World Vision, is highlighting its efforts of responding to the needs of women through microfinance services including small loans.

Even though women make up half of the world's population, they are under represented economically in the marketplace. In fact, women perform the majority of the world's work, but only own 1% of the world's assets.

Amongst VisionFund’s micro borrowers, over 68% of all loan clients are women. These women are able to use small loans to improve or start up new businesses. In addition, studies show that women spend the majority of their profits on their families and children, including improving healthcare, nutrition and education.

Mrs. Cuascota of Ecuador is one of over 426,000 women currently being served by VisionFund’s network of 42 microfinance institutions located in every region where World Vision works.

Her son, Darwin, was faced with the realisation that he would not be able to continue his education because his family could not afford his school fees.

After weighing various options over several days, Darwin approached his mother with an idea that could help his family generate the extra income they needed.

With a small loan totalling no more than $440, Mrs. Cuascota purchased a pregnant calf. The loan provided by the local World Vision affiliated microfinance institution, Fodemi, assured her the capital she needed to start her small side business.

Now, with Darwin lending a hand, Mrs. Cuascota is able to supplement her income with an additional $43 per month. All of the profits from this small side business are used to pay for Darwin’s school fees.

The family’s new business has also provided Darwin with direction for his future. Darwin plans to attend University and become a dairy farmer. Darwin’s mother is making his dream a reality, all through the power of one small loan.

Darwin shares, “I want to study and become a dairy farmer. When I’m an adult, I want to buy cows, a truck and a large piece of land.”

Small loans provide women entrepreneurs in the developing world with the resources they need to improve their own lives. Women like Mrs. Cuascota in Ecuador are able to provide for their families through businesses supported by VisionFund affiliated microfinance institutions.

To view additional stories and videos highlighting women entrepreneurs in each region where VisionFund works, visit: http://www.visionfundinternational.org/women and learn how small loans are changing the lives of women, children, families and communities through the empowering capacity of small loans. Click here to download a quick fact sheet on “women and microfinance” at VisionFund.

]]>

World Vision launches new savings opportunities for Eth

2010-01-13T00:00:00

World Vision launches new savings opportunities for Ethiopia’s rural poor
Contact: Rachel Wolff, 1.253.394.2214

Aid group plans to reach 250,000 new savers via mobile banking units, agents with PDAsJanuary 13, 2010, Seattle—Through a new $3 million grant from the Bill & Melinda Gates Foundation, World Vision plans to provide more than 250,000 rural farmers and hardworking poor in Ethiopia a chance to open their first savings accounts. The three-year program will help meet what the humanitarian group says is a pent-up demand among Ethiopia’s poor to bank small savings of cash to cushion their families from financial setbacks.

“We’re reminded in this recession how vulnerable American families can be without a savings cushion,” said Richard Stearns, World Vision’s U.S. president. “Imagine a couple in rural Ethiopia who has a bad harvest or learns their child is sick. For them, even small savings can make the difference for surviving that lean year or responding to that family emergency.”

The Access to Rural Savings in Ethiopia project will begin by piloting savings accounts to between 22,000 and 54,000 people in the first year, in 10 locations where World Vision’s affiliate microfinance institution, WISDOM, has an active branch. Savings officers, using personal digital assistants (PDAs) and traveling by motorbike, will be able to record client transactions and print receipts in communities surrounding the branch office.

As the project expands, mobile banking units carrying laptop computers, PDAs, a teller and a savings officer will visit small towns and villages on market days to expand the amount of transactions that can be done within a 50 mile radius of branch offices. Eventually, four different savings products will be offered in 30 branch locations, including a child savings account for thousands of children who live in the agency’s development project areas.

“We are operating in rural areas where ‘savings’ has meant extra livestock or grain a farmer has been able to store up, or a bit of cash a mother hides in her house,” said Worku Tsega, CEO of WISDOM.

“This program creates a valuable alternative for our loan clients and other poor families to put away a cash cushion safely and cost effectively. For small farmers, who come into most of their cash at harvest time, a savings account would mean less chance of theft or poor use of the funds by family members,” Tsega added.

WISDOM plans to utilize the capital generated by the new savings accounts to expand its microfinance program in Ethiopia, currently serving some 55,700 poor loan clients, most of them women. Experts estimate that less than 10 percent of the demand for microfinance is currently being met in Ethiopia, a country where the majority of the population lives on less than $2 a day.

World Vision’s microfinance programs help families increase their household income and assets through access to a wide range of services, including credit, savings and insurance. In 2009, the aid group’s microfinance subsidiary, VisionFund International, disbursed more than 680,000 small loans to women and men in every region of the world through their network of 43 affiliated microfinance institutions. World Vision’s affiliate microfinance institution in Ethiopia currently reaches some 56,300 poor entrepreneurs—66 percent of them women—with loans averaging $187.

"This new program will provide a template for scaling up savings services in other World Vision affiliated microfinance institutions throughout Africa and beyond," said Anthony Storrow, VisionFund International's regional business development manager, who is providing technical support for the project. "VisionFund International aims to transform at least seven of its affiliates into deposit-taking institutions within five years, potentially reaching four million new clients with savings services," he said.

This grant to World Vision is part of the foundation’s Financial Services for the Poor initiative, which is working with a wide range of public and private partners to harness technology and innovation to bring quality, affordable savings accounts and other financial services to the doorsteps of the poor in the developing world. The foundation believes that setting aside small sums in a safe place allows people to guard against risks, build assets, and provide opportunities for the next generation.

World Vision is a Christian relief and development organization dedicated to helping children and their communities worldwide reach their full potential by tackling the causes of poverty. We serve the world’s poor --regardless of a person’s religion, race, ethnicity, or gender. For more information, please visit www.worldvision.org/press.

]]>

In the Midst of Storm Kestana -An MFI Employee's Report

2009-10-05T00:00:00

By Josephine Bersamina, Community Economic Ventures Inc., WV Philippines

Tropical Storm Kestana, locally known as Ondoy, ravaged our archipelago nation of the Philippines on September 26, 2009.

Our capital, Manila and 25 neighbouring provinces experienced extreme flooding as the country experienced the most intense rainfall in 40 years.

I work as an enterprise development officer with the World Vision and VisionFund affiliated microfinance institution, Community Economic Ventures Inc. (CEVI). I help people in my local community access funds to start small businesses or expand existing ones.

One community where I work is Maragondon Cavite. As a lowland area, it is vulnerable to flooding. For three days this area was under water. Strong currents washed away homes and uprooted trees.

I have 25 borrowers who live near the riverside area. When tropical storm hit, most of my clients lost their homes and livelihoods. Their families have been made vulnerable as the loss of income stripped away their ability to provide for their basic needs.

One small loan borrower was specifically hard hit. Marcuylyn Dalanay, 29, and a single mother with a four year old son lost everything when the waters rose and destroyed her home. She found herself in a mixture of water and mud up to her neck, forcing her to hold her son above water, just to survive.

Eventually she found refuge in a local convent, where she and her son were able to rest and regain their strength. She has now found accommodations by renting a small home.

Her small store is gone, and her only access to income to provide for the needs of herself and her son is gone. She is perplexed but not abandoned, as she begins to gather herself and rebuild her life through the support of her community and World Vision.

In total, nearly 300 people were killed and more than two million had swamped or destroyed homes.

To date, the Philippines has received over US$12 million in international assistance.

]]>

Loan empowers woman to counsel abused women

2009-09-08T00:00:00

By Nicholas Ackerman, Strategic Planning and New Product Development, WVUS

Microfinance offers many opportunities for those who are poor to use their skills and business knowledge to better their own lives and the lives of others.

Sometimes that means helping someone to purchase chickens to sell to generate income for a family. And sometimes that means providing a service that benefits the broader community, which is exactly what Maria del Carmen of Mexico has done. Maria is impacting the lives of women in her community through counseling support services offered to women who have been mistreated and abused.

The city of Ecatepec, where she lives, has the second highest rate of violence against women in the entire country.

Many of Mrs. Carmen’s clients come to her business thinking that they have done something wrong, and that they deserve the abuse they receive from their husbands or boyfriends. These women simply need a safe person to listen to them and guide them forward.

The majority of the women cannot afford to pay the fees that Mrs. Carmen charges, but these are the people that she wants to help the most - those who have barely enough money to feed their families and no where else to turn for help. Ingeniously, she uses the money she makes from wealthier patients to support their treatment.

With the help of a loan provided by Fundación Realidad, the VisionFund affiliated microfinance institution in Mexico, Mrs. Carmen was able to expand her counseling business.

She used her loan to transform her home into a place where her clients would feel more comfortable, as well as purchase needed counseling materials. Presently her living room serves as her office, but she would like to buy more chairs to set up a waiting area outside of her apartment.

Mrs. Carmen loves her work more than anything else because it gives her a chance to give back to her community and help many people who have no other resource. Part of why she has the strength to work with these women is because people have believed in her efforts to positively impact the lives of women in need.

]]>

Environmental policies offer economic opportunity

2009-08-20T00:00:00

By Brad Stave, VisionFund International, Marketing and Communications

Early in the morning before the sun rises, scores of women employed by the state of Rwanda take to the streets with brooms in hand. They will spend the day cleaning sidewalks, curbs and roadways – and Rwanda will be spotless.

In 2004 Rwandan officials decided that the country needed a policy to curb littering and promote cleanliness, which consequently led to a country-wide ban on disposable plastic bags.

When most people saw this new rule as a nuisance, Agnes Mukashyaka, 51, saw it as an opportunity. She has eight children and lives in southern Rwandan, an area known for its hilly landscape, prolific tea plantations and acidic soil that makes for unsustainable farming.

Upon learning of the new rules eliminating plastic bags in the county, Ms. Mukashyaka seized the opportunity to create a cooperative that produced long-lasting shopping bags in compliance with the government’s standards.

She and 18 other women established the cooperative called “Korujyimbere,” which means “work for development.” They pulled their resources and talents together and began producing goods such as her shopping bags.

When the cooperative soon faced a supply shortage, since the women could not afford to purchase enough materials to keep all of them working for an entire week, the women contacted VisionFund’s affiliated microfinance institution in Rwanda, Vision Finance Company (VFC).

The women’s request for a loan of 300,000 Rwandan franks ($530 USD) was granted, enabling them to begin turning an even larger profit.

“We can buy more supplies in the Rwandan capital of Kigali and make fewer trips. This allows us to produce our bags at a cheaper price and earn more profits,” said Ms. Mukashyaka.

The creation of the cooperative hasn’t only economically benefited these women, but it has improved social relations as well.

“One of the women who works with us had a husband who was an alcoholic. He would abuse her and tell her she was worthless,” said Ms. Mukashyaka. “After she began making profits at the cooperative, she bought her husband a sports jacket. Now with his new sports jacket, he feels more confident and has begun respecting his wife more.”

It is just the beginning of the journey for Ms. Mukashyaka, but she is already making over three times her original wage. With this new income, she is able to help support her large family and provide hope that a better future awaits her children.

]]>

Loans provide alternative income when remittances wane

2009-06-26T00:00:00

By Mauricio Rosaldo, WV Mexico, and Brad Stave, VisionFund Marketing and Communications

In many parts of the world, people regularly depend on remittances (money sent from abroad) to survive.

In fact, money sent home from migrants constitutes the second largest financial inflow to many developing countries, exceeding international aid. Such is the case for places like Mexico, and for people like Sebastiana Sanchez Ocaña.

Like many Mexicans, Sebastiana’s son, Mateo, migrated to the United States from Mexico several years ago in search of a better life for his family.

“He left with the intention of earning money to buy a little piece of land, because he has a daughter and a wife and he wants the best for them,” said Sebastiana.

Mateo used to send his mother US$40 every month to support her. But with the financial crisis impeding his ability to find work, he no longer is able to send her the typical monthly finances she relied on.

Forced to search for alternative income, Sebastiana began attending a financial seminar and discovered Fundacion Realidad (FRAC), World Vision’s microfinance institution (MFI). She connected with FRAC and applied for a loan.

She then gathered her friends and neighbours to form a solidarity group called “El Tulipan,” and used the money from her loan to open a candy story and purchase several chickens and ducks.

“With the money I earn from selling candies and chickens, I can support my family. I trust the Lord that I will continue to be able to access credit and that doors will not close for me,” she said.

She added, “although for the moment Mateo cannot send me money, I do not worry about it because my business is growing little by little.”

Despite economic markets contracting and traditional forms of revenue ceasing during the financial crisis, World Vision’s MFIs are continuing to provide small loans at reasonable rates to the entrepreneurial poor.

Last year, about 1.8 million children were impacted by the work of VisionFund International (VFI) and the small loans provided to hundreds of thousands of micro entrepreneurs around the world. These small loans are not only sustaining families, but they are forever changing lives.

For more information about World Vision’s work in microfinance through VFI, please visit:visionfundinternational.org

]]>

PayBox Technology Improves Client Service

2009-05-21T00:00:00

By Andrea Vujosevic, World Vision Microfinance Communications

Microfinance institution CREDO has launched a new type of payment system for clients in Georgia, enabling them to make loan payments at no charge via Payment Machines called ‘PayBox," located in shops, streets and villages across the country. Designed to increase convenience and save time for clients, the new system also means significant cost savings for CREDO, as well as increased cash flow and efficiency of its operations.

This newly adapted method of payment is already in use in Georgia with people using these machines to pay mobile phone bills, Internet and utility expenses 24 hours, seven days a week.

It means easier payment, because people are no longer required to travel great distances to make payments and are not confined to bank working hours.

“PayBox Technology means savings for clients and CREDO. For clients it is time saving with repayment points closer and they can repay at their convenience. For CREDO it means cost savings; repayment data from PayBox will be automatically imported to our loan tracking system," emphasized Ljiljana Spasojevic, CEO of AzerCredit Azerbaijan and Credo Georgia.

The whole system of repayment will be simpler and more user friendly and it is particularly convenient for village residents who will no longer have to travel to the cities to make a payment, saving them valuable time and resources.

“It is good I can make payment everywhere. Machines are located close to my house so I do not need to wait in long lines and it does not require travel to the city. I am happy that I can make payments on non-working days too," said Eva Gvajeva, CREDO client.

Thousands of PayBoxes are located across Georgia, consequently, easing the repayment process at any geographical location.

All clients will receive SMS (instant messages on their mobile phones) with information about the new payment system. CREDO will also distribute brochures with a detailed explanation of the procedures involved in this new service. In the meantime loan officers are already personally informing clients that they can make payments via this service.

“CREDO has decided to become more focused on rural lending in the future. PayBox Project is one of the first steps in that direction. With this new technology we will enable clients in rural areas, where banking services or branches do not exist, to access our products," added Ljiljana Spasojevic.

]]>

New Technology Helps Secure Business Operations

2009-04-03T00:00:00

By Andrea Vujosevic, World Vision Microfinance Communications

Microfinance institution (MFI) EKI has become the first MFI in Bosnia and Herzegovina to implement the Business Continuity System in alignment with international standards of information security.

The system will not only improve the efficiency and reliability of EKI’s business processes but will also benefit its 60,000 clients, who can use the system to monitor the process of loan closures, new loan applications or changes in interest rates.

By harnessing the power of information technology (IT) and using the proper management information system, MFIs can become more efficient and effective while reaching more people in a more economic way. While a few MFIs are taking advantaging of technology, the majority are facing difficulties in finding the right solution.

“EKI uses IT in all aspects of business processes. That means we are highly dependent on IT and that should be protected. EKI recognised the importance of securing the process not only for the organisation but also for our clients”, explained Sadina Bina, EKI CEO.

Today, security of information and maintaining business continuity are imperative for every business.

Business Continuity System aims to secure the availability of important data in the case of serious business incidents, relief situations, terrorist attacks, hardware and software failures, weather interference and also to ensure fast recovery of the key business process.

“The new technology will make our work more transparent for all players in the business, including staff, clients and investors. This will show our professionalism, where we do not accept any interruptions in our daily work and ensure continuity of our business process in all circumstances”, added Mrs Bina.

By employing this best practice of business continuity, EKI is not only an example for MFIs in Bosnia and Herzegovina but also for World Vision MFIs worldwide.

EKI is one of the leading microcredit institutions in World Vision with a vision aiming to reduce economic causes of poverty in Bosnia and Herzegovina. Currently EKI has more than 60,000 clients with a loan portfolio over US$137 million.

EKI's main goal is to create a strong and financially sustainable institution which will reinvest its profit into additional loan capital to help fulfil its mission and vision.

]]>

Team World Vision and the Solvang Century: Riding Bikes

2009-03-18T00:00:00

By Jessica Congelliere

In the early morning hours of March 14th, 2009, 4,500 riders from around the country gathered in the sleepy Danish community of Solvang, California.

Assembled to compete in the 26th annual Solvang Century and Half-Century, athletes lined up to ready themselves for their turn to role through the start and begin either a 50 mile (~80KM) or 100 mile (~160KM) cycle ride through the beautiful California countryside.

Amongst the participating riders were cyclists who were racing with a purpose. More than 60 riders competed as participants with Team World Vision.

Team World Vision cyclists secured sponsorship and raised over $55,000 this weekend to provide loans for bikes in Zambia. These bicycles are used by entrepreneurs to bring more products to market, increasing revenues and profit. Through additional income, the lives of families and children in Zambia are improving.

Bicycles are supplied through loans for $134, and are repaid within three to six months. With nearly $240,000 that has been raised in the last eleven months, more than 178,000 bicycles will be delivered over the next five years, by means of the multiplying power of microfinance. World Vision employee, Jonathan Cox, understands the need for bicycles. Cox shared, “I use my bike every day, not just for recreation, but as a form of transportation. I can appreciate the bike as a tool, a tool that can change the lives of people that I have seen firsthand in Africa.”

For more information or to sign up for the next team World Vision cycling event please visitwww.teamworldvision.org. For more information about the Bikes for Africa project visit towww.visionfundinternational.org/bikes.

]]>

First loans for rural Albanian branch promise growth

2009-02-23T00:00:00

By Bardha Prendi

#ALBANIA - A new microfinance branch in Albania’s rural Librazhd commune has distributed its first loans, signalling long hoped-for income-generation opportunities for families that have traditionally struggled to eke out a living here.

The opening ceremony of World Vision’s new Building Futures branch in Librazhd brought together the mayor of Librazhd, Commune Leaders, Community-Based Organisation (CBO), Non-Governmental Organisations (NGOs), Village Association representatives, World Vision and Building Futures staff.

“Maybe for someone else this loan appears to be very small but for me and my family it is a really significant help”, said Harif Nezha.

The first Building Futures clients in Librazhd received the loans to build or improve their small businesses.

“I have a small stall near the school where I sell a few things, but now I have the chance to build even a vineyard. I always wanted to do it but I didn’t have the financial resources”, said Azem Kushta.

Librazhd District is located about an hour and a half southeast of the Albanian capital city, Tirana. The United Nations Development Program 2002 report states that Librazhd is one of the poorest districts of Albania. Its primary sources of income are farming and agriculture, small businesses and remittances from abroad.

World Vision Albania through an Area Development Programme (ADP) in Librazhd has been working for more than two years on improving health and education.

“Having an Area Development Programme ADP, being a poor district and rural area with few microfinance providers was the main reason that we decided to open a new branch here in Librazhd”, said Mike Low, Director of Building Futures.

“You are engaging these people in such businesses that are appropriate not only for Albania, but especially for the rural area here in Librazhd”, said commune leader Firdus Kurti.

“This is a great possibility for the poor families that can not cope with the large interest of the banks. I’m sure that this is going to impact and develop the rural area here”, concluded Mr. Kurti.

The Building Futures branch and World Vision Albania ADP will work together within the same communities (communes) in Librazhd District.

“Microfinance is an important tool used to help ADP-based clients to expand their businesses. When someone’s business grows, the first people to benefit are the business owner and his/her family”, said Jason Evans, World Vision Albania National Director.

“The community will also indirectly benefit because if a business owner’s family is doing better, they will spend more in the community, which in turn will help others and potentially they may also be able to contribute more to community needs”, he concluded.

Since 2001, Building Futures has been supporting poor Albanian families, with two branches, in Korça, southwest of Tirana and in Lezha, located an hour northwest of the capital. More than 1,500 clients have developed small businesses to provide not only for their families, but for the communities in which they live.

In the Librazhd branch, Building Futures is using a new methodology called Village Association used in developing countries such as Serbia, Montenegro, Georgia and Kosovo. It involves creating an association of villages, and then selecting one or more persons from those villages to be a Village Counsellor that helps with marketing, client selection and managing loan administration.

For more information about World Vision's work in the Middle East and Eastern Europe, please visit this link.

]]>

MIX Recognises Four VisionFund MFIs as among the top100

2009-01-09T00:00:00

By Brad Stave

The Microfinance Information Exchange (MIX) recognised four VisionFund network microfinance institutions (MFIs) as among the top 100 microfinance institutions in the world. MIX is a leading business information provider dedicated to strengthening the microfinance sector and providing financial and social performance information from leading players in microfinance.

The four VisionFund microfinance institutions are:
• FODEMI of Ecuador (ranked 45th)
• CREDO of Georgia (ranked 47th)
• EKI of Bosnia and Herzegovina (ranked 60th)
• VisionFund Cambodia of Cambodia (ranked 67th)

Institutions considered by MIX were audited and ranked based on their success in providing clients with expanding access to financial services. Their costs per client were evaluated and they were scrutinized in reference to their ability to minimise costs. This, along with insuring transparency and assessing profitable operations, were some of the considerations during the selection process.

To review the details of this year’s MIX global 100 composite ranking please reference the following document:

MIX global 100 composite

]]>

International Women's Day - Mexico

2008-11-19T00:00:00

By David Munoz

Mrs. Blanca Flor Patricio Lopez lives in the state of Chiapas in Mexico. She is a woman who recently received a loan from FUNED, the VisionFund affiliated microfinance institution.

In the middle of small coffee aisles and hen houses made of mesh, one must cross a little stream in order to get to the place where the intense smell of fresh coffee originates. A dense cloud of smoke covers the house patio. At 67 years old, we find a woman filled with spirit. She brings out a few chairs, feeds the hens, cleans the table and blows the timber in the stove with her palm fan. She is eager that we taste her delicious coffee.

“I have always wanted to have a mill, but I could not buy it because I didn't have the resources.”

Mrs. Blanca Flor cannot sit at all, while she answers questions, she stands up to roast more coffee and puts some more logs in the fire.

“In my parents’ house I remember that there were small coffee plantations for our self-consumption. Now, I have my little plants, and as you can see it tastes better than the instant coffee.”

Mrs. Flor approached the local microfinance institution and asked for a loan in order to purchase a mill.

Just a few weeks later, Mrs. Blanca Flor was awarded a loan of $400. Through this loan, she was able to fulfil the dream she pursued for so many years.

"It works for me because people comes to grind, it is a business… it is a good business. When the time comes to pay the credit I already have the money in advance.”

Mrs. Blanca Flor reveals that the mill not only blessed her financially but little by little transformed her life. When she became a widow more than five years ago, she was totally on her own. Two years later her youngest children decided to move to the USA.

“It helps me very much because people come to grind coffee, corn, pinole and chocolate. All different types of people come here; they grind from three to five kilos up to 20 kilos in just one day. For example, there is an old lady who can barely walk and she asked me to grind for her two kilos of corn. I do not even charge her and I ask a (local child) to help her take all her things to her house. I feel good doing these types of things.”

Costs charged to use the mill are affordable for most people, which has made her business quite popular. For example, while other mills charge three or five pesos per kilo, Mrs. Blanca Flor does the same work for half the price. Providing her service as a low price, plus how she treats people has given her new clients and friendships.

Cheerfully she tells us that she has begun to put some money aside to invest in two new stones for her mill, in order to be able to grind other materials. She estimated that she can make more money by also grinding pepper, which is very common in the region.

Blanca is also a grandmother of children who are sponsored by World Vision.

“I love to see my grandchildren smile. They can smile because World Vision sends them to school. I did not have those opportunities when I was young, my life was very different.”

And while the smell of coffee continues to saturate the air, it is clear that Blanca’s daily effort coupled with effective credit can help to completely change her life.

]]>

Successful Eighth Annual VisionFund Leadership School

2008-11-17T00:00:00

By: VisionFund Marketing & Communications

Nearly 90 Participants Gather from Around the World in Cambodia

Nearly 90 microfinance leaders from around the world left the VFI Leadership School energized and excited to tackle the challenges and opportunities that lie ahead. These participants described themselves as “family,” a word used by over 30 attendees to express the feeling at the end of the two-week learning summit in Cambodia. This global family - made up of members from Microfinance Institutions, National Offices, Support Offices and VisionFund International – once again gathered to dialogue and discuss the microfinance ministry of World Vision.

During the summit, there was lively discussion on integration with World Vision on all levels, performance measures, leadership development, strategic planning, negotiation, governance, donor and commercial funding, loan tracking systems, as well as a collection of topics that were expanded and engaged on through various breakout sessions. The passion and engagement was impressive, sometimes seeing teams working late into the night, long after the session was closed.

A special thank you to all those who were involved in the planning and execution of this years’ VFI Leadership School. There is much anticipation for the many great things that will come out of this time together.

If you were an attendee of the VFI Leadership School and would like to access the materials, please contact visionfund@wvi.org for the link.

]]>

VisionFund Represented at United Kingdom House of Commo

2008-11-14T00:00:00

By: Sarah Driver

VisionFund Advocate Attends All Party Parliamentary Group on Microfinance

VisionFund, represented by Sarah Driver our new UK Advocate, attended a select All Party Parliamentary Group on Microfinance at the House of Commons. Together with senior representatives from DFID (the UK Department for International Development), other NGOs, commercial sector microfinance specialists, academics and parliamentarians they discussed the following key question: "Is commercialisation undermining the social vision of microfinance?"

Attendees agreed that commercialisation of the market has had its benefits, not least in raising much needed money. However, there remains the need to consider the social objectives of microfinance to ensure that a real, sustainable and permanent difference is made in the lives of those that borrow. It was noted that VisionFund’s focus on serving the rural poor was meeting a real need, as this is an area not reached by most commercial lenders. The holistic approach, including social impact and community services, was also seen as a uniquely positive element of World Vision's microfinance work.

]]>

International Women's Day - Serbia: Dragica Finds Hope

2008-11-13T00:00:00

By Andrea Amosson

Dragica Novaković and her family are one of more than 36,000 families who have been able to improve their quality of life due to microfinance loans in Serbia and Montenegro.

Dragica and her husband live in a town that is about a four hour drive from Belgrade, the capital of Serbia. “With the first loan we bought ten sheep. With the second one, we bought goats and tools for my work in welding,” explained Dragica’s husband Vito.

“With the loans, we have bought more animals and we can build a new house. Now we are secure. We have a future. Having sheep is like savings for us,” said Dragica.

The Novaković family has two daughters, Milena, 15, and Jelena, 13. The girls survived winters without any heating for the past 12 years.

“The winters are terribly cold here, because in this region there’s a lot of fog. My daughters suffered from bronchitis,” continued Dragica.

In 2006 they received help through the World Vision ‘Happy Child’ project. They received a stove, which heats the living-dining room and the kitchen. 'Happy Child' is a social program that directly helps children of microfinance clients. It is financed with a percentage of the microfinance institution’s profit.

“Now, my wife and my girls sleep in the living room in the winter, because it is the only warm part of the house,” said Vito.

Dragica is one of many women impacted by small loans provided by microfinance institutions affiliated with World Vision’s microfinance subsidiary, VisionFund.

]]>

International Women's Day - Rwanda

2008-09-26T00:00:00

By Frank Higiro

Appoline Kaburame Murangirwa, 52, was born in the Ngororero District of Western Rwanda.

After being exiled from her homeland, losing her husband to war, and selling her car and cows to keep her children in school, Appoline Kaburame Murangirwa was at her wit's end. In 2001, she and her seven children returned to Rwanda from Uganda. Back home, she discovered "I didn’t have anyone to refer to," she said. "I was on my own."

A short time later, Appoline joined a widows' association called Benishyaka that provided counseling and referrals to humanitarian organizations. Appoline was referred to Vision Finance to apply for a business loan. "I had longed for such an opportunity," she said.

Appoline started small. She used her first loan of $109 to sell beans. She turned a profit of $7 a month. "It was like a drop of water in a lake," she said. But she repaid the loan and qualified for successively larger ones, and those made a bigger difference.

Today Appoline earns $350 a month selling imported clothes from Uganda. She owns her own home. Her eldest daughter is studying at the Kigali Institute of Management. The others recently completed high school and aspire for a university education. Appoline herself dreams of expanding her import business. The loans have given her confidence, she said. "I am extremely grateful to God and Vision Finance for restoring a hope in my soul."

]]>

Microfinance Responds to AIDS Pandemic

2007-09-05T00:00:00

By: Brad Stave

For the past two decades, World Vision has been providing small loans in dozens of countries. World Vision's microfinance work has grown to serve over 500,000 clients in 2008 by providing over $400 million in loans within 47 countries. Through World Vision's microfinance subsidiary, VisionFund, the poor are accessing capital and changing their financial situations one loan at a time. Economic health is an important part of development work in countries where World Vision operates. Often, World Vision is able to couple microloans with other services, such as healthcare, education, clean water, relief/refugee work, and HIV/AIDS response.

In 2006, World Vision launched a new program, called PRISMA, aimed at improving the lives of women living with AIDS in East Africa. Promoting Rural Integration and Security through Microfinance in Africa, or PRISMA, operates in Ethiopia, Kenya, Rwanda, Tanzania, and Uganda. PRISMA seeks to improve the lives of very poor women in rural East Africa by combining economic development assistance with improved access to HIV/AIDS care, mitigation services, and education. Women are a primary focus because they tend to invest additional income in improving the lives of their children.

The need for effective microfinance resources amongst women living with AIDS in East Africa is great. Currently, more than 2.7 million women are HIV-positive. Millions more, on little income, are caring for others infected or affected by HIV/AIDS, including orphans and vulnerable children. PRISMA is responding to this need by providing solid responses to real issues. Some of these responses include:

• Increasing the number of World Vision’s female loan clients in five East African countries from 50,000 to 210,000
• Improving the level of net assets among 75 percent of loan clients
• Through lending, creating 277,000 jobs for women and sustaining 1.3 million jobs for women
• Improving care and support for 150,000 orphans and vulnerable children, and impacting 1.8 million children overall
• Offering savings accounts for 150,000 orphans and vulnerable children that can be used for education or to start up a business

Initiatives to engage women living with HIV/AIDS in East Africa with the benefits of microfinance are making a difference. As peer educators work alongside loan officers, small loans are directed to women living with HIV/AIDS who need the additional benefit of sustainable economic opportunities and savings programs.

Stephanie Nyiarambabariye of Kigali, Rwanda, lost her husband to AIDS in 1999. She was tested that same year, while pregnant, and found to be HIV-positive. Stephanie has accepted her status, and is now very active in her community visiting sick families and encouraging others to do so. World Vision is providing counseling for Stephanie and a small loan to help her purchase produce to sell and earn an income.

Many women like Stephanie are benefiting from microfinance opportunities made possible through coupling microfinance to HIV/AIDS care and education. To learn more about other ways in which microfinance is changing the landscape of poverty through engaging in other vehicles of development.

Please click on the icon below to download VisionFund's latest report on microfinance integration.

Integration

]]>