Operating in a Near Crisis Environment Roshaneh Zafar, Kashf Foundation


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Operating in a Near Crisis Environment Roshaneh Zafar, Kashf Foundation

  1. 1. Operating in a near crisis environment Roshaneh Zafar, Founder and Managing Director Kashf Foundation
  2. 2. What Microfinance does for the Unbanked….. • Helps build sustainable businesses through • Increase in incomes • Fostering entrepreneurship • Helps reduce vulnerability through: • • • • building safety nets providing access to formal savings accounts Increasing food security Increased expenditure on social wellbeing, e.g. visits to doctor, children’s education
  3. 3. Impact of Natural Disasters on Low-Income Households • Directly Affected Communities: • Impacted through the actual loss of life, property and savings • Absence of formal safety nets increases vulnerability to exogenous shocks • Indirectly Affected Communities • Impacted through price hikes, especially food inflation • Impacted through diversion of aid, government subsidies, and NGOs towards disaster struck areas
  4. 4. Strategies for Directly Affected Communities – Beyond Business As Usual • Corroboration of information about affected Directly communities through internal research teams Impacted Communities • Undertaking needs-analysis and survey to • • • • • prioritize community needs Start a fund for immediate emergency relief with a pro women focus and emphasis Supplement relief with more grant led aid for reconstruction and rehabilitation activities Extension in loan repayment tenure/rescheduling of loans Develop products and services for the post rehab phase eg a capital recovery loan Provide immediate access to savings
  5. 5. Strategies for Indirectly Affected Communities – Improving on Business As Usual Scenarios Indirectly Impacted Communities • Continue with the provision of microfinance, microinsurance and savings products • Introduce new products such as the emergency loan to deal with inflationary pressures • Modification of the loan process to ensure proper utilization of loans through business appraisals • Introduction of financial literacy programs to help clients increase the ‘value’ of their money • Help communities build formal financial safety nets through savings • Increased focus on Consumer Protection Code • Special emphasis on Responsible Finance to ensure proper loan targeting and reduce over-indebtedness
  6. 6. Case Study: Kashf Foundation’s Initiatives in the August 2010 Flooding • Relief Phase • Distribution of relief packages comprising dry ration, first aid, and basic household necessities. • Targeted communitiesCharsadda, , Multan, Ranjanpur, Muzaffargarh, Jacobabad, Jamsharo, Bhubak, Jampur, Badin, Dadu, Thatta and Shikarpur. • 15,000 families served- approximately 100,000 individuals
  7. 7. Case Study: Kashf Foundation’s Initiatives in the August 2010 Flooding • Reconstruction and Rehabilitation • Phase I • Selection of 10 communities for rehabilitation and income transfer scheme • Phase II • Provision of microfinance, microinsurance, and savings products to the communities • Initiating a community rebuilding program targeted towards securing a clean drinking water supply for the community or helping the community rebuild schools
  8. 8. Current update (Thatta, Badin, Muzaffargarh • Selected 3 flood prone areas: Thatta, Badin & Muzaffargarh • Focused on building sustainable livelihoods • Established 9 branches in the 3 areas • Have covered 6,000 households • Outstanding balance amounting to $830,000