Micro-finance program

Presented by: D. OnonProgram Chief coordinator

UB CityMay 22, 2010

Brief introduction to the program

• In 2008, under the vision of “Together Against Poverty” foundation MNCCI, Petrovis LLC and Xac Bank have organized “Life forever beautiful” TV reality show.

• In 2009, as the 2nd part of joint activities, same entities have organized “Organic Food – Basis for a Healthy life” program.

• In 2010, as the 3rd part of the program the joint activities were directed towards developing the notion “Organic Mongolia” - green development, green economy, implementation of the 3C principle among micro-businesses, promote consumption of environmentally friendly products and finance micro-businesses in the sphere of agriculture with a “green vision”.

Program initiators: MNCCI, Petrovis LLC- The leading petrolium company, Xac Bank-Leading micro finance bank , Max Group- Trade and service network , Energy Resources LLC- Coal mining company

Media sponsors:NTV Television

Supporters:ADRA International organization-Business training&monitoringIkh Kharanga LLC –The leading Led and billboard advertising company Olloo.mn – The leading portal site Daily news –The leading daily newspaper

Program objectives

• Reduce poverty• Support micro-businesses by providing low

interest rate loans with no capital guarantee. /collateral requirements/

• Promote entrepreneurial spirit and develop business ideas

• Implement 3С – Clean production- Clean product- Clean environment, the green economy principle among micro-businesses

• Increase the importance of environmental awareness among the public

Program direction

• Reduce level of poverty and increase ‘green production’ by supporting entrepreneurs with favorable term loans for production of natural organic products

• Organize different kind of activities among the public to promote environmental awareness and unite in this ‘green movement’ towards consumption of natural products and environmental protection.

• Cooperate with local citizens, private enterprises, government entities and international organizations for realization of common goals towards

Importance of Organic Mongolia program and its Value chain

• Consumption of natural products– Eco-friendly production- Better environment for the future generations

• Reduce poverty- Increase quality of life

• Increase understanding and importance of environmental protection among the public–Prevent ecological damage, reduce pollution– Recovery and protection of the environment

• Support national micro businesses – Protect local production of organic products – Decrease dependence imported products – Improve public health through consumption of natural products

Parties

Private sector entities

Medias

Public organizations

NGO

International organizations

• Micro businesses

• Cooperatives

• Individuals

Organizors Program Participants

2009 оны 5-9-р сар

Year 2009 -Annual report

Status of completion of 2009 activities

• In 8 aimags, 48 projects were selected for financing as a result in average around 400 citizens directly or indirectly benefited from the program and have contributed to supply of organic food products to the local market

• Organic Mongolia program have succeeded in creating understanding among the low-income household and unemployed individuals how to establish their small business based on producing of organic food products

• Organic Mongolia program has successfully promoted the importance of organic food products and the aim to reduce dependence on imported food. The program also have created significant awareness among the public and private organizations in Mongolia, as a result in 2010 many enterprises have directed their attention to the socially responsible activities related to environmentally friendly operations and promotion of organic production.

• The program has played a major role for the organizer companies in increasing their reputation and acquiring credit among the private enterprises for strengthening the Corporate Social Responsibility principles and uniting leading Mongolian companies.

2009 plan fulfillment and implementation of the action plan

Stage 1: March-April• Selection of applicants in 10 aimags and corresponding soums • Development of all paperwork and official documentations• 88 projects were selected among 150 applications received• Over 60 organizations, including international, local, public and private entities were sent official collaboration letters and program introduction

material

Stage 2: May-June• Distribution of loans with favorable terms and without any collateral requirements• Short-term onsite training has been conducted in the areas of business and marketing for selected applicants• Trip-1 from the 88 applicants selected from stage 1, 42 projects were financed /after august 4 more projects were selected/• Organic Mongolia program has signed a permanent memo with ADRA International organization to have patricipants attend training and have

their operations monitored throughout the project completion

Stage 3: July-August• Constant improvement, advise and additional training has been conducted to the necessary projects, including specific knowledge on agronomy,

financial and business operations.• P.R., TV and photo session, as well as other marketing activities were made during the program

Stage 4: September - November• In association with NTV, Olloo, Ikh Kharanga and other media sponsors 30 full-time series of TV program has been produced and broadcasted

by NTV.• Organic Mongolia projects have successfully participated in the biggest exhibition - ‘’Green days of autumn’’, organized by the Ministry of

Agriculture and Industry • Organic Mongolia program have organized an exhibition under its own name in collaboration with Bio-Eco production committee at MNNCI.• Stage 4 training for the projects (subject: Agronomy, business, finance, branding)• TV program assessment survey has been conducted (Sample group: 2000)• Distribution of food products through the network of companies and participating members.

Stage 5: December• Summary TV program consisting of 3 series have been aired to announce the results of 2009, board meeting, discussion and approval 2010

plans.

Organic Mongolia-2009 fair

Business & Agronomy professional training

30series TV programParticipation for the “Green

days of autumn” fair

Major organized activities during the program

ORGANIC MONGOLIA -2009 FAIR

• Door-to-door delivery• Auction for Organic

food products• Promotional sales• Competition and

awards• Live TV program• Reception with

organic food products• Marketing and PR

activities for organizing companies

Contents of Organic Mongolia exhibition in collaboration with Bio-Eco production committee at MNCCI 9October 14-18, 2009)

Cooperation with the Minister of Agriculture & Industry, and MNCCI

Successfully participated for the Food security conference organized by Ministry of Agriculture & Industry

SME international fair and Organic Mongolia fair was organized with the cooperation MNCCI’s Bio Eco Production Counsel, Sustainable production & Consumption department

Laboratory analysis of organic products

• Samples were tested at the MNCCI’s authorized laboratories and certificates were given on the spot

Distributed loan information

• 200 applications were received

• 48 projects selected and financed

• 48 projects implemented in 8 aimags

• Total distributed loan 160 million MNT

The total number of 2009 projects

• Cultivation of a wide variety of vegetables - 27• Dairy products-5 • Greenhouse produces-6• Processed fruit products-3 • Honey production, bee farm– 2 • Farming- 2 • Soy bean production-1 • Mushrooms-1• Animal nutrition products– 1 • Total 48.

Media sponsors

• Following organizations have contributed to the program with following actions:

1 – TV broadcasting (NTV)2 – Online information (www.olloo.mn,

www.organicmongol.mn )3 – LED street advertisement (Ikh Kharanga)4 – Newspaper information (Daily news)5 – Organizer companies’ network

Advisors

• Doctors and professors at Univeristy of food and agriculture

• Business advisory centers

• Business and financial experts

Successfully organized full time training with the cooperation ADRA international organization & University Food & Agriculture of Mongolia

Monitoring

• ADRA international organization is fully responsible with the cooperation local CCI for monitoring and onsite training.

Financial information

• XacBank is fully responsible for monitoring and repayment schedule of all distributed loans and risks associated with these loans

ORGANIC MONGOLIA 2009 MICRO BUSINESS PROJECTS

IMPLEMENTATION

Samples of Organic Mongolian products PRODUCED by 2009 year MICRO BUSINESS participants