Oikocredit, a Dutch cooperative investment fund, recently released its “Social Performance Report 2010” indicating that the organization reached approximately 28 million people through its microfinance partners, with nearly 1.2 million individuals directly benefiting from Oikocredit funding. Of the 28 million clients served, 86 percent are women. The remainder are enterprises such as production cooperatives and community service organizations focused on health and education.
The results also indicate that 80 percent of new loans during 2010 were issued to second and third-tier microfinance institutions (MFIs), which have smaller portfolios. The threshold to be deemed a “smaller” MFI is not disclosed. As of year-end 2010, Oikocredit reported USD 900 million in total assets, 43,000 investors and 790 active partners, of which 596 are MFIs.
When selecting investees, Oikocredit uses an environmental, social and governance (ESG) scorecard to identify potential partners’ commitment to social and environmental progress. All new loan contracts to microfinance partners require a commitment to the Client Protection Principles, which are promoted by the US-based nonprofit SMART campaign. Approximately 90 percent of Oikocredit microfinance partners reported social data in 2010.
By Hajar Elaalej, Research Associate
About Oikocredit: Oikocredit is a Dutch cooperative investment fund comprised of church groups, cooperatives and individual investors. Established in 1975, it works in 70 countries worldwide, investing mainly in microfinance institutions (MFIs), as well as trade cooperatives, fair trade organizations and small and medium-sized enterprises (SMEs) in the developing world. As of year-end 2010, Oikocredit reported USD 900 million in total assets and 790 active investees, of which 596 were MFIs.
Source and Additional Resources:
Prnewswire.com, “Oikocredit: Access to Credit Empowers 28 Million Borrowers”, http://www.prnewswire.com/news-releases/oikocredit-access-to-credit-empowers-28-million-borrowers-123984319.html
MicroCapital Brief, August 23, 2010, “Oikocredit Invests Equivalent of $3.95m in IMON International of Tajikistan, The First Microcredit Company of Kyrgyzstan and Credit Union ABN of Kyrgyzstan”, https://www.microcapital.org/microcapital-brief-oikocredit-invests-equiva…
MicroCapital Brief, June 18, 2010, “Oikocredit Invests $6.8m in Local-currency Loans in Three Indian
Microfinance Institutions”, https://www.microcapital.org/microcapital-brief-oikocredit-invests-6-8m-i…
MicroCapital Brief, March 18, 2011,“Dutch Microfinance Investor Oikocredit Announces 2010 Financial and Social Returns,” https://www.microcapital.org/microcapital-brief-dutch-microfinance-invest…
MicroCapital Universe Profile: Oikocredit, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Oikocredit
MicroCapital Universe Profile: The SMART campaign, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SMART+Campaign
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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