AMERMS Course 8: Entering the Field - PPT 3
-
Upload
microcredit-summit-campaign -
Category
Documents
-
view
352 -
download
0
description
Transcript of AMERMS Course 8: Entering the Field - PPT 3
![Page 1: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/1.jpg)
SAVING FOR CHANGE
Mass Sale, Group Managed
Microfinance for the Rural Poor
Microcredit Summit Nairobi
April 10, 2010
![Page 2: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/2.jpg)
CHALLENGE OF REACHING THE POOREST
Microfinance a success • 150 million worldwide But:• 80% or more not reached• rural poor largely left outBecause:• Delivery costs too high• Credit needs too small• Only 1/5 need credit• All need savings
![Page 3: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/3.jpg)
Saving for Change Reaches those Left Out (Focus/Scale/Impact)
• Starts with saving• Highly profitable (for
members) • Vast scale • Simple/Low cost • Builds on local
capacity/knowledge• Delivery by NGOs• Self-replicating• Survives• No external fund• Constant learning
![Page 4: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/4.jpg)
CREDIT LED MICROFINANCE
Microfinance Institution
Bank
Credit Union
Loan
Borrower
Loan with Interest
![Page 5: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/5.jpg)
SAVE
$
![Page 6: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/6.jpg)
BORROW
$
![Page 7: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/7.jpg)
SAVE AND REPAY
$ + $
![Page 8: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/8.jpg)
$
DISTRIBUTE FUNDS AT END OF CYCLE
![Page 9: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/9.jpg)
GROUP LEADERS CREATE NEW GROUPS
$ + $
$
Group 1 Group 2
![Page 10: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/10.jpg)
Surprising Findings:• Poor not “too poor to save” but
their savings lose value • Enough savings among members
for most needsFindings:
• Very few groups disband• 85% of fund on loan• Model virtually fraud proof • Robust groups survive crisis
UNDERLYING PRINCIPLES
![Page 11: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/11.jpg)
0
100000
200000
300000
400000
500000
600000
Apr 05 Dec 05 Dec 06 Dec 07 Jun 09 Jun 10 Jun 11
Mem
ber
s
Mali Cambodia Total
316,219
543,000Increase in membership in 5 years
![Page 12: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/12.jpg)
Current Savings lose 20% per year
HomeAnimalsJewelryTontines
Remittances
Money LendersSuppliers
MFIs
Current Lending Costs money
SfC Model
More savings
20%-40%
More Income
Income Generating Activities
Social Capital
![Page 13: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/13.jpg)
![Page 14: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/14.jpg)
Mali: Chronic Food Insecurity
• Mali 171 of 173 HDI• 1/3 rural households food insecure• 58% of rural households below $1 per day• 28% villages food crisis
Average SfC group member • Illiterate woman• Had malaria past year• 5 children• Hungry part of the year
![Page 15: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/15.jpg)
SAVING FOR CHANGE CREATED A
NEW MARKET FOR MF IN MALI
• 10% had MFI or Credit union loan (In new areas < 1%)
• 19% members of tontines (ROSCAS)
• Now 80% to 90%have access to improved financial services in a village within two years
![Page 16: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/16.jpg)
Mali Snapshot
22 Members
$312 Total group Fund (26% returned as dividends)
$15.Size of
average loan(Most $5 to
$50)
99.8%Loan
repayment rate
![Page 17: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/17.jpg)
WHAT MEMBERS VALUE MOST
Solidarity and Mutual
Assistance39%
Savings and Loans27%
Malaria education
18%
Increased Income
5%
Others11%
![Page 18: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/18.jpg)
Member Satisfaction with SfC
0% 20% 40% 60% 80% 100%
Loan sizes are adequate
I understand the records
I can get a loan when needed
Loans are shared fairly
Group functions harmoniously
I know how much I have saved
Secure place to save
It is worth my time
Mali Cambodia
![Page 19: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/19.jpg)
![Page 20: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/20.jpg)
![Page 21: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/21.jpg)
![Page 22: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/22.jpg)
![Page 23: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/23.jpg)
![Page 24: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/24.jpg)
SfC Impact on Food Security• Opens investment opportunities in trading and
agriculture• With more business more money more food available
and more money to buy it. • When fund divided often used for food and seeds• Less short term fluctuations in Income/reduces risks• Reaches the poorest/ women heads of household• With more prosperity less need to migrate• Many groups purchase grain to use and resell during
the hungry season• Hunger now less likely
![Page 25: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/25.jpg)
Social Impact• Extends women’s social networks• Empowerment• Increased women’s’ role in the community• Increases confidence, leadership• Enhanced cooperation, mutual assistance, and
solidarity among members and communities. • Enhanced a “woman’s ability to manage her nuclear
sub-unit of the household”. • Less stress and increased family harmony• Helps households headed by women, a growing
trend in Mali, are also benefiting from the program.
. •
![Page 26: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/26.jpg)
power
Group Assets $
Change
Household
Village
![Page 27: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/27.jpg)
To sum up
• Saving for Change will not “eradicate poverty,” drought and declining soil quality, endemic malaria and lack of markets and infrastructure also factor in, but the lives of women members and their families have improved.
• Saving for Change provides a more stable platform that allows for the accumulation of assets and reduces the need to sell assets in emergencies. SfC is a key leverage point to promote sustainable development in vulnerable villages.
![Page 28: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/28.jpg)
![Page 29: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/29.jpg)
![Page 30: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/30.jpg)
![Page 31: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/31.jpg)
![Page 32: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/32.jpg)
![Page 33: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/33.jpg)
![Page 34: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/34.jpg)
![Page 35: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/35.jpg)
![Page 36: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/36.jpg)
![Page 37: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/37.jpg)
![Page 38: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/38.jpg)
![Page 39: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/39.jpg)
To Introduce SfC to New Region over Three Years
With $400,000 investment ($25 per member)• 300 villages with SfC• 800 groups, 16,000 members
Includes:• Local partner costs• Costs of NGO selection, training, supervision,
monitoring and evaluation
![Page 40: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/40.jpg)
To Introduce SfC to New Region over Three Years
With $400,000 investment ($25 per member)• 300 villages with SfC• 800 groups, 16,000 members
Includes:• Local partner costs• Costs of NGO selection, training, supervision,
monitoring and evaluation
![Page 41: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/41.jpg)
How it Works
• NGO team of ten animators and coordinator recruited and trained
• Each animator assigned 30 villages• Over three years each animator trains one groups
in twenty villages• In each village trains one to three replicating
agents who train rest of groups in the village• Over three years animators train 200 groups,
replicating agents train 600 groups• Replicating agents train/support additional groups
in future.
![Page 42: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/42.jpg)
Following Procedure insures Quality at Low Cost
• Careful selection of partners• Joint hiring of coordinator and animators• Tight MIS• Simple manuals• Clear ambitious performance expectations• Constant learning and improvement
Oxfam America has SfC teams in Senegal/Mali,
Cambodia, El Salvador to provide this
assistance.
![Page 43: AMERMS Course 8: Entering the Field - PPT 3](https://reader035.fdocuments.us/reader035/viewer/2022070317/55643405d8b42ad3308b4972/html5/thumbnails/43.jpg)
How much does it cost? For five million dollars:• 2,500 villages ($2,000 per village)• 200,000 group members• 10,000 groups• Four to five years• Sufficient “critical mass” to attract more
donors/government. • Potential demand 40,000 to 50,000 groups in country
of 10 to 15 million inhabitants
A mass scale/low cost/locally controlled/locally financed
strategy for food security is the key