Building on new Modelsfor poverty reduction                                   ACTED                                       ...
contentIntroduction New Models for Poverty ReductionOXUS Group         Microfinance InstitutionsACTED Platforms           ...
BUIlDIng On nEw MODElS fOr POvErTy rEDUCTIOnC         reated in the field in 1993 and relying today   In this regard, over...
acted Microfinance                                       Microfinance institutions in low-income countries    The oXus gro...
and Social Business initiativeswHo we ARethe oXuS Group is structured around a holding created in is now made of 5...
acted Microfinance                   MMMic                           Microfina                                            ...
and Social Business initiativesMicrofinance and social business initiativeshaving emerged from ACTed’s grass-roots program...
acted Microfinance                                             open Source Management information System for microfinance ...
and Social Business initiatives At the end of 2010, the project is run by a team of 1 coordinator, 6 developers and 2 trai...
a think-do tank against poverty     Convergences 2015     convergences 2015 aims at promoting an economy that would includ...
what was the last edition in May 2010?The third edition in May 2010 introduced Convergences         The essential innovati...
acted Microfinance                                                            a regional microfinance networksouth Asian M...
and Social Business initiatives   sAMn focuses on three main areas of action   Building capacity   SAMN provides to 2nd Ti...
acted Microfinance                                          the first french peer to peer microcredit website     what is ...
and Social Business initiatives The logic behind Babyloan?                                                 Online         ...
ACTED Microfinance andSocial Business InitiativesOXUS groupemail: paris@oxusnetwork.orgweb: www.oxusnetwork.orgACTED Platf...
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Acted Microfinance Activities

  1. 1. Building on new Modelsfor poverty reduction ACTED Microfinance andMicrofinance MiS peer-to-peer Social BuSineSS Social Business Initiatives
  2. 2. contentIntroduction New Models for Poverty ReductionOXUS Group Microfinance InstitutionsACTED Platforms IncubatorsOctopus SoftwareConvergences 2015 Think-Do TankSAMN NetworkBabyloan 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. 3. BUIlDIng On nEw MODElS fOr POvErTy rEDUCTIOnC 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 sofield 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 virtuallythrough more than 200 projects and programs, in inaccessible. The linkages between microfinance andvarious contexts. our livelihoods and development projects have also proven to be very efficient.ACTED’s mission is to support vulnerable populationsworldwide and to accompany them in building a This strategic focus has led us to build, support andbetter future. Our programs, in Africa, Asia, the improve various microfinance, livelihoods and socialMiddle 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 severaldevelopment challenges through a multidisciplinary converging initiatives. These new models, presentedapproach 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 Microfinanceapproach, identifying what is working and what is Group, the peer-to-peer micro-lending websitenot, taking responsibility for our actions, promoting Babyloan, the Octopus software and the Convergencescollective 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, pavingthe sustainability of our interventions and breaking the ground for a pragmatic and significant approachthe poverty cycle. for poverty reduction. Our teams constantly link their projects and the beneficiaries to these initiatives andWe also believe that poor people need sustainable are trying every day to identify and promote new wayslivelihoods in order to get out of poverty. for poverty reduction. 3
  4. 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 Caribbean4
  5. 5. and Social Business initiativeswHo we ARethe oXuS Group is structured around a holding created in 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 ACTiViTiesMid 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 Creditsthe group to reach profitability without compromising OXUS participates in the creation of groups of microour identity through diversifying our portfolio at the entrepreneurs who do not possess traditional collateralsclosest 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. 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. 7. and Social Business initiativesMicrofinance and social business initiativeshaving emerged from ACTed’s grass-roots programs• sAMn developed at the closest of our MFIs’ needs by a teamThe South Asia Microfinance Network (SAMN) is an of developers located in Kyrgyzstan and supported ininitiative launched mid-2008 by a number of South Paris. Octopus is now one of the cheapest and mostAsian and European microfinance stakeholders to user-friendly MIS for microfinance, available andpromote economic development. It is among the adapted to all fast growing MFIs in the world.first initiatives of its kind, aiming at enhancing thequality and outreach of microfinance in the region. It • ACTed microfinance local programsoriginated from a need expressed by ACTED’s Delhi In 1997, ACTED initiated basic microcredit programsregional center. in Tajikistan. It was the consequence of the direct expression of some of its beneficiaries. Gradually,• octopus those initiatives were included into ACTED’sThe 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 dedicatedfor OXUS microfinance institutions. The software was business entity, the OXUS Group.inclusiveness and modernity lead ACTedtowards 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. 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-currency8
  9. 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. 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. 11. what was the last edition in May 2010?The third edition in May 2010 introduced Convergences The essential innovation of Convergences 2015 forum2015 as one of the major annual gathering for the lies in its ability to gather a wide field of actors. Lastmicrofinance and social entrepreneurship stakeholders year, it established a partnership with the Frenchin Paris. The last event brought together about 1,200 leading national newspaper “Le Monde” – whichpeople attending various roundtables, led by a total dedicated a special edition in its economy supplementof 80 experts during 2 days in Paris City hall. They to the forum –, with the major public players (Agencetackled the current issues regarding microfinance, social Française de Développement, Caisse des Dépôts etbusiness 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 banksinnovative 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 socialreport 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 ofConvergences 2015 in 2011? More publications are on to come:Convergences 2015 was initiated by ACTED three the “Microfinance’s barometer” 2010years ago. Today Convergences 2015 is becoming apermanent and independent organization, under the edition will be followed by a new structure of an association. It is led by a steering the second edition will evaluate thecommittee composed of 40 members that are eitherexperts 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 regardingcommittee intends to raise debates and synergiesin order to build up thoughtful considerations on social entrepreneurship in france. BothConvergences 2015’s matters. will be released before the 2011 forum. 11
  12. 12. acted Microfinance a regional microfinance networksouth Asian Microfinance networkthe South asian Microfinance network (SaMn) is a regional microfinance networkof 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. Itsuse or are excluded from financial services. Therefore, mission is to enhance financial inclusion for lowthe growth of microfinance promises to be one of the key income population in the countries of South Asia. Ittools in addressing the challenge of financial inclusion. envisions achieving this through strong partnership with microfinance stakeholders that deliver diversifiedNevertheless, South Asia together with East Asia and and sustainable financial services to the low incomePacific receives 12% of global microfinance investments, population to build their financial and social capital.compared with 45% for Eastern Europe & Central Asiaand 36% for Latin America and the Caribbean.
  13. 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. 14. acted Microfinance the first french peer to peer microcredit website what is Babyloan? created with the support of acted, 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. 15. and Social Business initiatives The logic behind Babyloan? Online repayment Remboursement par virement 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. 16. ACTED Microfinance andSocial Business InitiativesOXUS groupemail: paris@oxusnetwork.orgweb: www.oxusnetwork.orgACTED Platformsemail: paris@acted.orgweb: www.acted.orgOctopusemail: info@octopusnetwork.orgweb: www.octopusnetwork.orgConvergences 2015email: convergences2015@acted.orgweb: www.convergences2015.orgSAMnemail: sugandh.saxena@samn.euweb: www.samn.euBabyloan.orgemail: contact@babyloan.orgweb: