1) The document discusses new models for poverty reduction being developed by ACTED, including microfinance institutions, social business initiatives, and technology platforms. 2) Key initiatives described are the OXUS Group of microfinance institutions, the Octopus open source microfinance management software, the South Asia Microfinance Network, and the Convergences 2015 think tank. 3) The goal is to promote economic development and fight poverty through increased access to financial services for vulnerable populations worldwide using these various models and initiatives.

1. Building on new Models
for poverty reduction ACTED
Microfinance and
Microfinance MiS peer-to-peer Social BuSineSS Social Business Initiatives

2. content
Introduction New Models for Poverty Reduction
OXUS Group Microfinance Institutions
ACTED Platforms Incubators
Octopus Software
Convergences 2015 Think-Do Tank
SAMN Network
Babyloan Peer-to-Peer
ACTED Microfinance and Social Business Initiatives
Editors: Michaël Knaute, Jon Sallé, adrien tomarchio
Pictures and design: raphaël de Bengy, William daniels,
Gwenn dubourthoumieu, anne Saunier-françois, acted, oXuS
ACTED / OXUS (paris) october 2010

3. BUIlDIng On nEw MODElS fOr POvErTy rEDUCTIOn
C
reated in the field in 1993 and relying today In this regard, over the past years, microfinance and
on a team of more than 3,500 people in 33 livelihoods projects have proved to be a crucial component
countries, ACTED has progressively become of our intervention strategies. Microfinance contributes
one of the main European actors in the to provide fair means to the most vulnerable people so
field of international relief and development. Every that they can participate in the economic development,
year, ACTED works with over 3 million beneficiaries, in the countries and contexts where these are virtually
through more than 200 projects and programs, in inaccessible. The linkages between microfinance and
various contexts. our livelihoods and development projects have also
proven to be very efficient.
ACTED’s mission is to support vulnerable populations
worldwide and to accompany them in building a This strategic focus has led us to build, support and
better future. Our programs, in Africa, Asia, the improve various microfinance, livelihoods and social
Middle East, Central America and the Caribbean seek business initiatives in the past 5 years within an open-
to cover the multiple aspects of humanitarian and minded and pragmatic framework that led to several
development challenges through a multidisciplinary converging initiatives. These new models, presented
approach which is both global and local, and adapted in this brochure, are supported by all ACTED’s relief,
to each context. development and microfinance teams worldwide.
ACTED’s vision is that adapting to local situations, The South Asia Microfinance Network (SAMN),
finding out needs and demand, keeping a bottom-up ACTED’s regional platforms, the OXUS Microfinance
approach, identifying what is working and what is Group, the peer-to-peer micro-lending website
not, taking responsibility for our actions, promoting Babyloan, the Octopus software and the Convergences
collective solidarity and individual responsibility, 2015 Think-Do Tank have been so far successful,
creating partnerships are key conditions to ensure impacting and cross-fertilizing initiatives, paving
the sustainability of our interventions and breaking the ground for a pragmatic and significant approach
the poverty cycle. for poverty reduction. Our teams constantly link their
projects and the beneficiaries to these initiatives and
We also believe that poor people need sustainable are trying every day to identify and promote new ways
livelihoods in order to get out of poverty. for poverty reduction.
3

4. acted Microfinance
Microfinance institutions in low-income countries
The oXus group
created by acted in 2005, the oXuS Group is
acted’s private specialized actor devoted to microfinance.
ACTed-oXus ConTinuuM
Humanitarian emergency and development
disaster development and Microfinance
OXUS’ mission is to fight poverty through the provision
of microfinance services to the working poor.
OXUS aims at empowering disadvantaged people
by integrating a commercial approach into a broad
human development framework.
Therefore, it plans to lead in the provision of financial
services to the working poor through a worldwide
network of 15 MFIs in 4 sub-regions by 2015.
Projected portfolio per sub-region in 2015
Projected portfolio per sub-region in 2015
Since its inception, OXUS
has granted 102,000 loans Asia
amounting USD 52.5 million.
Sub-Saharan Africa
In 2015, OXUS Middle East & North Africa
will provide USD 130 million
to over 400,000 clients. Latin America & the Caribbean
4

5. and Social Business initiatives
wHo we ARe
the oXuS Group is structured around a holding created in 2007.
it is now made of 5 Mfis and a consulting company.
Its main specificities and strengths are:
• A strong relationship with OXUS Group’s main
shareholder, ACTED, enabling the group to enter
post-emergency and low-income countries as first
mover and to reduce its implementation costs;
• An international, innovative and diversified
investment strategy focusing on greenfield
microfinance institutions and limiting monetary
risks and regional crisis impacts;
• The experience of a group of over 500 people
worldwide, having worked successfully in highly
complex contexts for the past 5 years with
the support of a management and technical
assistance team of 15 professionals in Paris.
ouR ACTiViTies
Mid 2010, the oXuS Group serves nearly 18,000 active customers,
totalizing an outstanding portfolio of more than uSd 10 million.
The products provided by OXUS MFIs aim at enabling • group Credits
the group to reach profitability without compromising OXUS participates in the creation of groups of micro
our identity through diversifying our portfolio at the entrepreneurs who do not possess traditional collaterals
closest of our clients’ needs. Currently, the range of but who however become accountable for each other.
OXUS services includes the following products: Collective responsibility within the group enables its
member to subscribe to microcredits in order to develop
oXus MFis KeY indiCAToRs as of June 30th 2010 their activities.
Active Clients • individual Credits
OXUS Tajikistan 7,977 OXUS individual loans target micro entrepreneurs, whose
activities offer certain guarantees. OXUS is developing its
OXUS Afghanistan 7,651 activities in urban areas, where micro economic activities
OXUS Kyrgyzstan 2,142 need greater financing. However, OXUS remains strongly
attached to its development missions, with a sustained
Total 17,770 presence in areas poorly deserved by adequate financial
services.
outstanding Portfolio (usd)
OXUS Tajikistan 6,301,533 • other products and services
OXUS Afghanistan 2,850,359
A large array of added-value products is currently being
developed. On the one hand, savings, remittances and
OXUS Kyrgyzstan 1,110,883 micro-insurance will complete our offer. On the other
Total 10,627,775
hand, the development of mobile banking services will
increase our geographic outreach.
5

6. acted Microfinance
MMMic
Microfina
P LATFORMS
regional platforms to support new poverty reduction initiatives
ACTed PlATFoRMs
acted supports over 3 million
people in 33 countries throughout
the world. nearly 3000 staff is
working on 275 programs, with
specific support provided by teams
in 3 regional centers in africa, asia
and the Middle-east. this strong
field presence is at the origin of
acted’s capacity to incubate a
large array of initiatives close to
the needs of its beneficiaries.
ACTed builds its interventions on 8 main pillars
responding to emergencies
Whatever the nature of a crisis, acted intervenes to provide initial assistance, such as food, water, hygiene or shelter.
the food security imperative
a community mobilization effort is systematically put in place in order to define together the priority needs and the means to provide for.
Health at the heart of development
no long-term development is conceivable without a satisfactory sanitary environment and hygiene education.
access to education, diversifying the range of life choices
access to education is a necessary milestone in individuals’ development and in the economic and social enhancement of countries worldwide.
Supporting local economic initiatives
acted contributes to recovery efforts likely to lead to sustainable activities with long-term economic and fair prospects.
Microfinance as an extension of acted’s humanitarian actions
funding micro-entrepreneurs’ projects will increase synergies by enabling the development of targeted, innovative and inclusive solutions.
advocacy, institutional support, regional dialogue
through the promotion of local governance, acted strives to develop ownership, democratic principles, transparency and accountability.
cultural promotion
acted aims at raising communities’ consciousness of their cultural heritage to help them build upon it and consolidate their development efforts.
6

7. and Social Business initiatives
Microfinance and social business initiatives
having emerged from ACTed’s grass-roots programs
• sAMn developed at the closest of our MFIs’ needs by a team
The South Asia Microfinance Network (SAMN) is an of developers located in Kyrgyzstan and supported in
initiative launched mid-2008 by a number of South Paris. Octopus is now one of the cheapest and most
Asian and European microfinance stakeholders to user-friendly MIS for microfinance, available and
promote economic development. It is among the adapted to all fast growing MFIs in the world.
first initiatives of its kind, aiming at enhancing the
quality and outreach of microfinance in the region. It • ACTed microfinance local programs
originated from a need expressed by ACTED’s Delhi In 1997, ACTED initiated basic microcredit programs
regional center. in Tajikistan. It was the consequence of the direct
expression of some of its beneficiaries. Gradually,
• octopus those initiatives were included into ACTED’s
The Octopus project was launched in 2005 to solve development programs and became more complex,
the issue of the lack of effective and affordable MIS leading to the creation in 2005 of a dedicated
for OXUS microfinance institutions. The software was business entity, the OXUS Group.
inclusiveness and modernity lead ACTed
towards entering microfinance and social business
Financial Profits
Maximization
Repayment of
no recovery of
invested capital
capital
(self-sustainability)
Social Business as the link
social Profits between the humanitarian
Maximization and the commercial spheres
Yunus, Moingeon and Lehmann-Ortega,
Long Range Planning, April 2010
7

8. acted Microfinance
open Source Management information System for microfinance
oCToPus
Management information Systems (MiS) are strategic tools to help fast growing
microfinance institutions (Mfis) become more efficient and sustainable. However,
most of them have to cope with relatively high software prices, poor it know-how
and a complex adaptation to local context.
OXUS, the ACTED microfinance operator, with the Octopus is known to be among the most user friendly
support of the French IT-consulting company OCTO, and easy to use products in the market.
started to develop Octopus Microfinance Suite in
2005. The idea was to provide a general purpose Octopus approach differs from others by it’s
MIS suitable for all microfinance institutions. Open team know-how and experience in agile and lean
source was an obvious mode of distribution from this methodologies, aimed at making MFIs using Octopus
perspective. as autonomously as possible and at allowing them to
improve the accessibility of poor families to financial
Octopus is a free and open source software aimed at services. More than an open source product, Octopus
managing an MFI entire business, from customers, offers a process of continuous improvement,
loans, savings and other products, to accrual gathering the best practices from the field. Moreover,
accounting and reporting. It is multi-user, multi- free software does not mean no assistance. Octopus
currency, multi-branch and can adapt to any network and its partners offer win-win partnerships and solid
topology, from totally centralized (high quality contracts to MFIs: implementation, maintenance
network) to totally decentralized (no network). and technical support, training...
Main features:
Know your individuals and groups, customizable fields, historic
customer
credit and different interests rates and other parameters, flexible repayment schedules, customizable
savings exotic products, current accounts, fixed-term deposit products, compulsory savings
accounting cash/accrual, multi-currency, export of transactions
reporting extensive (par, active loans, savings and other 30 reports), multi-currency
8

9. and Social Business initiatives
At the end of 2010, the project is run by a team of 1
coordinator, 6 developers and 2 trainers. The software
is used by 15 MFIs with regular use of technical
support and 20 others self-sufficient MFIs. Octopus is
updated every month and is approximately downloaded
100 times a month. The online help forum and the
wiki are seen about 500 times per month.
cashing in on those elements, the services & consulting software as a service
octopus community will continue Trainings Hosting your information system
growing in the future.
Implementation you just pay for what you need
Migration
and this is only the beginning, as
octopus plans to operate from 5 Coaching
regional centers to enhance its Custom developments
outreach by 2015. Support and maintenance
9

10. a think-do tank against poverty
Convergences 2015
convergences 2015 aims at promoting an economy that would include a higher
social impact. to achieve this objective, the project’s goal is to create synergies
between the various economic, social and public players in order to alleviate
world poverty. By bridging the gap between the wide scopes of the stakeholders,
convergences 2015 calls on a large gathering to give birth to debates of ideas,
innovative action plans and alternative offers.
Convergences 2015 identified 3 topics to study in
priority to achieve these synergies and reach its goal:
convergences 2015’s mission is
microfinance, social business and social economy. threefold:
To enable the emergence of an international exchange • think tank think, debate and produce ideas
forum of network and conferences for these specific • advocacy promote these ideas and
sectors’ professionals, Convergences 2015 has
implemented a process by work groups along the year. considerations to political leaders and the
The major focus is to work out in-depth considerations general public
on the 3 issues. The forum is also an opportunity • do-tank promote the creation of bridges and
to introduce and broadcast the research studies projects around these topics.
produced by the work groups during the year.
10

11. what was the last edition in May 2010?
The third edition in May 2010 introduced Convergences The essential innovation of Convergences 2015 forum
2015 as one of the major annual gathering for the lies in its ability to gather a wide field of actors. Last
microfinance and social entrepreneurship stakeholders year, it established a partnership with the French
in Paris. The last event brought together about 1,200 leading national newspaper “Le Monde” – which
people attending various roundtables, led by a total dedicated a special edition in its economy supplement
of 80 experts during 2 days in Paris City hall. They to the forum –, with the major public players (Agence
tackled the current issues regarding microfinance, social Française de Développement, Caisse des Dépôts et
business and social economy. At the same time, research Consignations, United Nations, European Union, etc.),
studies have been launched that allowed the release of an with several large companies and important banks
innovative publication entitled “Microfinance’s barometer”; (Schneider, Danone, BNP Paribas, Crédit Coopératif,
this paper is a 12-page document that provides a status etc.), and with most of the stakeholders in the social
report of the image of microfinance in France and of the field interested by these issues.
action of French investors and operators in this field.
what is the project of
Convergences 2015 in 2011?
More publications are on to come:
Convergences 2015 was initiated by ACTED three the “Microfinance’s barometer” 2010
years ago. Today Convergences 2015 is becoming a
permanent and independent organization, under the
edition will be followed by a new issue.
legal structure of an association. It is led by a steering the second edition will evaluate the
committee composed of 40 members that are either
experts or key figures in the fields of microfinance,
evolution of the sector. at the same time,
social entrepreneurship and social economy. The a new study will be launched regarding
committee intends to raise debates and synergies
in order to build up thoughtful considerations on
social entrepreneurship in france. Both
Convergences 2015’s matters. will be released before the 2011 forum.
11

12. acted Microfinance
a regional microfinance network
south Asian Microfinance network
the South asian Microfinance network (SaMn) is a regional microfinance network
of 6 national associations and 23 microfinance institutions serving, in 2010,
2 million clients in afghanistan, Bangladesh, india, nepal, pakistan and Sri lanka.
SaMn aims at enhancing the quality and outreach of microfinance in South asia.
South Asia with a population of above 1.6 billion is This is why mid-2008, ACTED has created SAMN,
home to over one forth of the humanity. 1 billion do not the only microfinance network in the region. Its
use or are excluded from financial services. Therefore, mission is to enhance financial inclusion for low
the growth of microfinance promises to be one of the key income population in the countries of South Asia. It
tools in addressing the challenge of financial inclusion. envisions achieving this through strong partnership
with microfinance stakeholders that deliver diversified
Nevertheless, South Asia together with East Asia and and sustainable financial services to the low income
Pacific receives 12% of global microfinance investments, population to build their financial and social capital.
compared with 45% for Eastern Europe & Central Asia
and 36% for Latin America and the Caribbean.

13. and Social Business initiatives
sAMn focuses on three main areas of action
Building capacity
SAMN provides to 2nd Tier MFIs targeted and high
quality technical cooperation, through its teams,
partnerships and outsourced contracts with selected
specialists.
facilitating financing
SAMN works as an exchange platform for investors
and microfinance institutions and facilitates financial
flows towards viable and diverse investment options,
thus reducing costs and risks.
creating regional space
for microfinance
SAMN is a hub disseminating information, best
practices and other microfinance related knowledge.
It regularly organizes events aiming at gathering
together a diverse range of local stakeholders.
MEMBERS
C oor dination
Inde
india
A s s is tanc e
HOST
tec hnique credible, Gram utthan, Mahashakti, Sonata, Star, vfS
Pakistan
aSaSaH, cWcd, pak-oman, SafWco
Afghanistan
PARTNERS
Brac, afS, cfa, Madrac, oXuS afghanistan INVESTORS
sri lanka
agro Microfinance, BMi, lolc
Bangladesh
BaStoB, Buro, idf, MSS, uddipan
MFIs
13

14. acted Microfinance
the first french peer to peer microcredit website
what is Babyloan?
created with the support of acted, Babyloan.org is the first french peer to peer
microcredit website: on Babyloan, internet users can choose to lend to micro-
entrepreneurs in developing countries starting from 20 euros.
Launched in September 2008, Babyloan is an
initiative by ABC Microfinance, in partnership with
How does Babyloan operate?
ACTED, the BRED and the Crédit Coopératif.
Babyloan works in partnership with MFIs that grant
microcredits around the world. Via this online
It enables the Internet user to:
loan system, Babyloan contributes to the low cost
• Choose the micro-entrepreneur he wants to refinancing of MFIs, which in turn have to provide
support,
information on the beneficiaries (photographs and
• Lend him / her a certain amount of money, project storylines).
• Follow up the reimbursement of the microcredit.
Babyloan offers a new kind of help, based on a
loan rather than on a donation. Babyloan is also an
interactive community-based website, explaining
what microfinance is and acting as a forum for
discussion and debate.
Today, 7,000 people have chosen
this new form of solidarity. They
have lent more than EUr 1,000,000
to fund over 3,700 projects.
14

15. and Social Business initiatives
The logic behind Babyloan?
Online
repayment
Remboursement
par virement
Babyloan.org
Inter naute
online user plate-forme Internet
"Babyloanien" Web platform
Online payment
Paiement en ligne
P 2 P L ending Monthly wire
Virement mensuel
Prêt de pair à pair
at à la clôture du mois
the end of the month
repayment
+ Micro-crédit
interests
Partenaire IMF
Partner MFIs
Institutions
Microfinance
de Institutions
Microfinance
Remboursement
+ intérêts
microcredit
E ntr epr eneur
entrepreneur
"Babyloané"
what does Babyloan
hope to achieve?
Babyloan was launched to raise awareness about this
fantastic development tool and find a new source of
responsible and sustainable financing necessary to
its growth. As a pioneer in peer-to-peer lending in
France, Babyloan does its best every day to uphold
its founding principles and best practices.
Far removed from the Internet start-ups back in
2000, Babyloan is a development program geared
towards sustainability, efficiency and collaboration
with development enthusiasts and social finance.
Babyloan hopes to become a key financing actor for
Microfinance Institutions, thereby helping to fight
poverty in the world.
The goal is:
• to raise EUR 10 million of social loans from
100,000 Internet users to support 25,000
micro-entrepreneurs in 20 countries,
• to develop proximity cooperation by supporting
micro-entrepreneurs in France,
• to develop Babyloan’s European expansion:
Babyloan is the first European micro-lending
Website. In Italy, Babyloan has already obtained
agreement from the Italian Central Bank and
concluded a partnership with the Etimos
consortium to develop its Website for Italian
Internet users.
15

16. ACTED Microfinance and
Social Business Initiatives
OXUS group
email: paris@oxusnetwork.org
web: www.oxusnetwork.org
ACTED Platforms
email: paris@acted.org
web: www.acted.org
Octopus
email: info@octopusnetwork.org
web: www.octopusnetwork.org
Convergences 2015
email: convergences2015@acted.org
web: www.convergences2015.org
SAMn
email: sugandh.saxena@samn.eu
web: www.samn.eu
Babyloan.org
email: contact@babyloan.org
web: www.babyloan.org