Beirut - May 2009

The Human Impact: Measuring Changes in Client’s lives

Barbara MarcussenMicrofinance Officer

Sanabel 6th Annual Conference

OIKOCREDIT

OIKOCREDIT PROFILE

• International development finance institution since 1975

• Over 30 yrs in development financing: MF, other sectors

• Active in 68 countries

• Leading privately funded , not donor funded

• Supported by over 33,000 socially responsible investors and

600 institutional members

• TOTAL MEMBER CAPITAL OUTSTANDING: € 365 million (as of Dec08)

OIKOCREDIT: A SOCIAL INVESTOR

• Recognized as socially responsible by well-respected screening agency, Ethibel

• Open and transparent communication with partners

• Client Protection Rights

• Values based on integrity and sharing

• Dual returns for investors:

High social return / Modest financial return

FINANCING CRITERIA

• Served the broad range of institutions (small, young,

mature to large MFIs)

• Largest number of partners worldwide (480 MFIs)

• Benefit income generating activities of disadvantaged

entrepreneurs

• Positive contribution to social and economic development

• Women’s participation

SOCIAL PERFORMANCE MANAGEMENT

Focus : Our Partners

Purpose: Challenge our partners to be accountable to their social goals and objectives, thus challenging Oikocredit

Dual Strategy 1) Internal: - SPM Information System - Capacity building

2) External: - Technical Assistance to Partners - Networking within the Industry

SP- Internal management: A. Information system

Development of a database with social indicators

- Target groups

- Scope of activities

- Geographical outreach

- Policies and tools used to monitor social performance

Grameen Foundation: => Progress our of Poverty Index (PPI)

Piloting countries: Peru & Philippines

- Developed a core of trainers jn PPI tool, - Developed data capture systems - MFIs and cooperatives introduced to PPI use- Establishing learning networks for PPI practitioners at

country and intercontinental levels.

SP- Internal Management:B. Capacity Building

SP- Internal Management:B. Capacity Building

CERISE:

=> Social Performance Indicator (SPI) tool

2008:

- Piloting phase: 25 projects in Central America, South America and the Caribbean region

2009:

- Capacity building of staff in the use of SPI

- CERISE’s feedback on results as SPI is applied to other partners

SP- External relationsA. Technical Assistance

Besides PPI and SPI, promotion of other SP tools:

- Supported 5 Social Ratings for partners in Peru

- Impact Assessment Studies & Technical assistance - The Philippines with MFI PFALSI (completed) - Côte d’Ivoire with market cooperative, Cocovico in progress)

- Consultancies; training seminars and information on systems

(MIS, accounting, etc)

- Introduction of SROI (Social return on Investment) to partners in

the Philippines, Indonesia and Cambodia

SP- External relations B. Networking• ILO : Research on Microfinance for Decent Work: 15 MFIs, Oikocredit’s partners are participating as case

studies (from MENA, Asia, Central Asia, Latin America)

• Participation in road show promoting SP organized by MFC in Central Asia

• CERISE: developing Social Audit tool for Social Investor Comprehensive and systematic social audit of Oikocredit

(pilot)

SP- External relations B. NetworkingDevelopment of social performance awareness:

- Dutch Platform for Microfinance

- European Platform for Microfinance

- Social Investor’s subcommittee of the Social Performance Task Force

- Global campaign for the Promotion and Protection of client’s rights.

Thank you for your attention!