Social Performance Management
•Developed Progress out of
•Objective client poverty
•Already PPIs for 21
Helping microfinance institutions create systems of
accountability around their social goals
Serving the World’s Poorest People
•Identify, test, scale and
replicate solutions that
•Provide financial tools
•Give access to business
Breaking down barriers to reaching the poorest people with
microfinance and technology
Technology for Microfinance
•Mifos: open source
in five organizations
helping organizations adopt
and manage new technology
Increasing efficiency of microfinance organizations
Technology For Development
•Establishing cell phone
•Providing vital information
and services such as health
and agriculture via cell phones
Giving poor people access to relevant information and
Access to Commercial Capital
Microfinance institutions need financial tools and resources to
help them grow and expand efficiently
•Growth Guarantees: $60 million
program guarantees loans in
local currency from local banks
•Pioneer Fund: direct investment
in smaller institutions working
in poorest communities
Growth Guarantee Program
• The basics
First US$31 million round launched in November 2005 with 9 Donor
Guarantors. GF is currently inviting new Donor Guarantors to join the
program, bringing total program size to $60 million. Current commitment
is $54.5 million.
• How does it work?
Donor Guarantors use their credit, not their money: Program supporters
do not make a direct financial contribution. They participate by providing
their names and credit while continuing to earn returns on their individual
By working through local banks, GF generates over $4 in micro-loans for
each $1 of guarantee commitment. 100% of a Guarantor’s commitment
goes to leveraging micro-loans for the poor.
• Who does the program support?
Poverty-focused microfinance institutions (MFIs) aspiring to expand
rapidly and capable of managing large amounts of commercial financing.
GF works with a select group of leading MFIs around the world with
excellent track records in financial and operational performance, strong
management teams, and poverty focus.
The Pioneer Fund (initial capitalization of $10 million) endeavors to catalyze the microfinance industry
towards the large-scale provision of financial services tailored to the poor in underserved markets.
The Pioneer Fund will provide senior loans, subordinated loans and standby letters of credit to institutions
that have a strong potential to achieve the its investment objective but lack the required funding.
Investments will be targeted to the following chronically capital-constrained entities:
• High Potential Tier III Microfinance Institutions (MFIs) – Primary Focus
High potential early-stage MFIs who can become tomorrow’s industry leaders and achieve the
Pioneer Fund objectives on a large scale.
• “Industry Pioneers” – Secondary Focus
Innovators with the potential to catalyze the microfinance industry towards achieving Pioneer Fund
objectives, particularly through a demonstration effect. Limited to 25% of total capital deployed
MFIs which are young, small, at or near profitability and not commercially funded are considered
Jennifer Meehan, CEO, Asia
Mike Gabriel, Asia Product Manager, CMAC
Christopher Tan, Country Director, Philippines