A recent study by the US-based nonprofit Grameen Foundation titled “Rapid Response in the Wake of Disaster: Using the PPI to Design and Support Fonkoze’s Earthquake Recovery Program,” describes how Fonkoze, a Haitian microfinance institution (MFI), is using the Progress out of Poverty Index (PPI), a country-specific poverty assessment tool, in disaster affected areas to monitor and evaluate the progress of its clients [1].
PPI, which has been used by Fonkoze since 2006, is a part of the social performance management system that Fonkoze has adopted to gather information about whether their clients are “making their way out of poverty.” For the full study you may visit http://www.progressoutofpoverty.org/fonkoze. The study is second in a series that profiles the uses of PPI.
PPI is a collaboration among the following US-based entities: Grameen Foundation, nonprofit CGAP (Consultative Group to Assist the Poor), the Ford Foundation and the consulting firm Microfinance Risk Management LLC. It is a tool that estimates the “likelihood that clients fall below the national poverty line or the $1/Day/PPP and $2/Day/PPP international poverty lines.”
Fonkoze is comprised of three institutions: Fonkoze, Fonkoze Financial Services (FFS) and Fonkoze USA. As of 2009, Fonkoze reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 8.3 million, a gross loan portfolio of USD 2.6 million, approximately 15,800 borrowers, return on assets (ROA) of -37.3 percent and return on equity (ROE) of -176 percent. As of 2010, Fonkoze and FFS serve approximately 50,500 loan clients and had approximately 234,000 depositors.
By Nisha Koul, Research Associate
About Fonkoze: Fonkoze was established in Haiti in 1994 with the mission of “building the economic foundations for democracy in Haiti by providing the rural poor with the tools they need to lift themselves out of poverty.” Fonkoze is comprised of three institutions: Fonkoze, Fonkoze Financial Services (FFS) and Fonkoze USA. Fonkoze is a nonprofit microfinance institution that opens and builds new branches. FFS is a commercial MFI that expands the branches established by Fonkoze. Fonkoze USA channels financial and technical support to its Haitian partners. As of 2009, Fonkoze reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 8.3 million, a gross loan portfolio of USD 2.6 million, approximately 15,800 borrowers, return on assets (ROA) of -37.3 percent and return on equity (ROE) of -176 percent. As of 2010, Fonkoze and FFS serve approximately 50,500 loan clients and had approximately 234,000 depositors.
About Grameen Foundation: The Grameen Foundation, a nonprofit based in Washington, DC, aims to help microfinance institutions throughout the world replicate the joint-liability model of the Grameen Bank of Bangladesh. The Grameen Foundation provides financial, technological and managerial support to provide new business opportunities and telecommunication services for poor people in rural areas. Though it is independent of the Grameen Bank, Muhammad Yunus, the founder of the Grameen Bank, serves on the foundation’s Board of Directors. Grameen Foundation reported total assets of USD 33.1 million as of March 31, 2010.
About CGAP (Consultative Group to Assist the Poor): CGAP is a policy and research center dedicated to providing financial access to poor people worldwide. CGAP is supported by approximately thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors. CGAP reports having taken in USD 20.9 million in total revenue during fiscal year 2010.
About the Ford Foundation: The US-based Ford Foundation provides grants and loans that address the issues of democratic and accountable government, human rights, social justice, economic fairness, metropolitan opportunity (jobs, schools transportation, housing), sustainable development, educational opportunity and scholarship, freedom of expression, and sexuality and reproductive health and rights. The foundation was chartered in 1936 by Edsel Ford. As of 2010 it reported total assets of USD 10.7 million.
Sources and Additional Resources:
[1] Grameen Foundation Press Release, “New Study Profiles How a Haitian MFI is Using the Progress out of Poverty Index® to Target and Aid in Rapid Disaster Response,” http://www.grameenfoundation.org/press-releases/new-study-profiles-how-haitian-mfi-using-progress-out-poverty-index%C2%AE-target-and-aid-r
MicroCapital.org story, June 21, 2011, “MICROCAPITAL BRIEF: Microfinance Institution (MFI) Fonkoze Initiates Claims Process for Clients Affected by Heavy Rains in Haiti,” https://www.microcapital.org/microcapital-brief-microfinance-institution-mfi-fonkoze-initiates-claims-process-for-clients-affected-by-heavy-rains-in-haiti/
MicroCapital.org story, October 28, 2010, “MICROCAPITAL BRIEF: Clinton Bush Haiti Fund (CBHF) Releases $1.5m in Grants to Microfinance Institution (MFI) Fonkoze and Gheskio of Haiti,” https://www.microcapital.org/microcapital-brief-clinton-bush-haiti-fund-cbhf-releases-1-5m-in-grants-to-microfinance-institution-mfi-fonkoze-and-gheskio-of-haiti/
MicroCapital.org story, September 17, 2010, “MICROCAPITAL BRIEF: Haitian Microfinance Institution (MFI) Fonkoze Releases 2009 Social Performance Report,” https://www.microcapital.org/microcapital-brief-haitian-microfinance-institution-mfi-fonkoze-releases-2009-social-performance-report/
MicroCapital Universe Profile: Fonkoze, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fonkoze
MicroCapital Universe Profile: Grameen Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Foundation
MicroCapital Universe Profile: CGAP, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+%28Consultative+Group+to+Assist+the+Poor%29
MicroCapital Universe Profile: Ford Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ford+Foundation
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROCAPITAL BRIEF: Grameen Crédit Agricole Foundation Loans $3.2m to Faten for Microfinance in Palestine
- MICROCAPITAL BRIEF: Grameen Credit Agricole Foundation Loans $760k to Microfinance Institution Oxus Tajikistan
- MICROCAPITAL BRIEF: Oxus Kyrgyzstan Borrowing $1.6m from Grameen Credit Agricole Foundation for Microfinance Lending
- MICROCAPITAL BRIEF: Mi-Bospo of Bosnia and Herzegovina Borrowing $2.2m from Grameen Credit Agricole Foundation for Microfinance Lending
- MICROCAPITAL BRIEF: FINCA Ventures Places Equity in Agtech CassVita, Seeking to Boost Incomes from Farming Cassava in Cameroon
