Oikocredit in the Field: Update from Peru

Frank Rubio, Regional Director South America Northern Region November 3, 2011 Peru Update

Agenda
1. Overview of Oikocredit Peru Office
2. Background on Sector in Peru
3. Oikocredit in Peru
4. Oikocredit in Peru: Microfinance
5. Oikocredit in Peru: Agriculture / Production
6. Oikocredit in Peru: Capacity Building
7. Conclusion

Oikocredit Peru
Country office located in Lima, Peru
Operating since 2005
Frank Rubio (RM), Werner Thorne (DRM),Carina Torres (CM), Yolirruth Nuñez (SPM), Cesar Maita (LO), and Paola Ozambela

Peru: Background
Microfinance :
MFIs regulated: 40, MFIs non-regulated: 34
Portfolio: USD 7,984 million
Clients: 2,728,946 active borrowers
Individual, solidarity groups, and village banking
Credit and Saving Unions :
86 credit and saving unions, out of which 15 are regulated
Portfolio: USD 354 million
Clients: 111,456 active borrowers
Fair Trade and organic cooperatives/associations :
92 producers coops/assoc. certified, 25 new applicants
Coffee, cocoa, banana, mango, tea, cotton, quinoa. Coming soon: maca and wood.
Nearly 70,000 small farmers

Our Portfolio
Total Outstanding Portfolio: EUR 34 million (Sep. 2011)
40 active projects
13 Fair trade and organic Projects
27 MFIs
4 Saving and Credit Unions

Countries with Largest Oikocredit Portfolio At 31 December 2010

Oikocredit Peru Supports Projects that Generate… Financial Return Social Return
Generates Positive Economic Returns
Allows for greater incomes for beneficiaries
Targets the poorest
Provides positive quality of life changes
Does not harm environment

How Do We Choose The Right Project Partners?
Prior positive experience in activity
Targets poor clients
Preference for rural over urban
Transparent and Fair Pricing
Social Performance Strategy

OIKOCREDIT PERU IN MICROFINANCE
OIKOCREDIT PERU AND MICROFINANCE

Peru Microfinance Portfolio Facts & Figures:
27 Microfinance partners (12 NGOs, 4 Coops, 10 non-bank, 1 MF bank)
Total Microfinance Portfolio: € 24million
PAR: 0%
Average Loan Size: €600,000
2 Equity Investments (Confianza and Proempresa)

Microfinance Portfolio: What We Offer
Loans
Equity Investments
TA

Oikocredit Client Since: 2006
US$ 711,112 loans outstanding
Portfolio Balance: US$ 10,815,627
19,099 Total Clients
45% Target Rural areas
67% Target Women
31% New Clients Under Poverty Line
50% Exclusive Clients (bancarizacion)
Implementing New Health Products for Clients
NGO PRISMA:

Oikocredit Client Since 2009
US$ 825,397 loans outstanding
Portfolio Balance: US$ 4,711,421
16,145 Total Clients
31.0% Target Rural areas
88.4% Target Women
34% New Clients Under Poverty Line
60% Exclusive Clients (bancarizacion)
Implementing New Health Products for Clients
NGO FINCA PERU

Oikocredit Peru in agriculture Our more active presence in the agriculture sector follows our mission and the conviction of having a more positive social impact in the farmer´s life. Cocla, Quillabamba, Cusco

Productive Portfolio
Products:
Coffee beans and roasted
Cocoa beans and chocolates
Cocoa powder, butter and liquor
Banana
Sugar cane
Jam
Credit lines:
USD 150k to USD 1.5 million
10 coops, 4 associations

Productive Partners: Examples Cepicafe: coffee, cocoa, sugar cane and jams. FLO, organic Naranjillo: Cocoa and Coffee. FLO, organic

Fair Trade Portfolio Chirinos, technical staff
First client Cepicafe (2006)
Credit lines for pre-exporting
Average amount: USD 500k
Mostly small farmer coops
100% certified by FLO cert
Organic certification, NOP, and USDA

Fair Trade Portfolio CAC Oro Verde
Others: UTZ, RA, Global Gap
Outreach: 280 to 7,500 farmers
Strong support from local networks
Permanent contact with international buyers.
Contact with Fair trade Liaison Officers

Positive Impact of Fair Trade in Coops
High outreach in rural areas
Development of local economies and poverty reduction
Empowerment of farmers and their families
Increased income
Improvement of social welfare
Guaranteed minimum price and social bonus for organizations
Linking buyers with producers
CAC Oro Verde, buyers testing

Oikocredit Capacity Building Funds Training Planning Exchange Local Fairs

Thank you!

Oikocredit in the Field: Update from Peru

by Lgage on Nov 09, 2011

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Oikocredit in the Field: Update from Peru — Presentation Transcript