The MasterCard Foundation, a private Canadian foundation that supports microfinance, recently announced it would provide a USD 4.5 million grant to Fonkoze, a Haitian microfinance institution (MFI) serving 200,000 borrowers and savers. The grant will allow Fonkoze to provide enterprise training, a livelihood asset such as a goat or chicken, a small short-term stipend and one-on-one mentoring to 1,000 low-income women. An additional 4,000 low-income women will receive small loans to create or rebuild small businesses. The grant will also aid Fonkoze in restoring its headquarters, which was destroyed during the January 12 earthquake.
Mennonite Economic Development Associates (MEDA), a Canada-based development organization, will manage the funding from The MasterCard Foundation and provide ongoing progress reports and advisory services.
By Stefanie Rubin, Research Associate
About Fonkoze:
Fonkoze was established in Haiti in 1995 with the mission of “building the economic foundations for democracy in Haiti by providing the rural poor with the tools they need to lift themselves out of poverty.”
Fonkoze is comprised of three institutions: Fonkoze, Fonkoze Financial Services (FFS) and Fonkoze USA. Fonkoze is a non-profit microfinance institution that opens and builds new branches. FFS is a commercial MFI that expands the branches established by Fonkoze. Fonkoze USA channels financial and technical support to its Haitian partners.
As of 2008, Fonkoze and FFS served over 50,000 borrowers and had over 100,000 depositors, making it the largest Haitian MFI listed on the MIX Market, the microfinance information clearinghouse. As of 2008, Fonkoze had a gross loan portfolio of USD 4 million; FFS has a gross loan portfolio of USD 8.2 million.
About the MasterCard Foundation:
Based in Canada, the MasterCard Foundation is an independent, private foundation with over CAD 3 billion (the equivalent of USD 2.9 billion) in assets. The foundation’s goal is to enable people living in poverty to improve their lives with increased access to microfinance and education. The Foundation was established in 2006 by a gift of shares of MasterCard Worldwide during the company’s initial public offering.
About the Mennonite Economic Development Associates (MEDA):
Mennonite Economic Development Associates (MEDA) is a not-for-profit company dedicated to helping the lives of families who are living in poverty in the developing world through investment, primarily microfinance. MEDA is currently active in 44 countries and makes investments based on its network of agents and partners around the world. MEDA’s history dates back to 1953 when a group of Mennonite businessmen invested in a dairy farm in Paraguay, an early investment in a socially-motivated small business.
MEDA’s Product Lines:
Investment Fund Development: Establishing private investment as an effective solution to global poverty.
Member Engagement: Helping their members strengthen faith-work development connections in their own lives and in all the places touched by their work.
Microfinance: Providing innovative and sustainable access to savings and credit for the poor.
Production & Marketing Linkages: Providing innovative and sustainable access to markets for small producers and/or giving the poor better access to products that serve their basic needs.
Additional Resources:
Source Article: PRNewswire: ”Partnership Stimulates Haiti’s Long-Term Economic Recovery,” http://www.prnewswire.com/news-releases/partnership-stimulates-haitis-lo…
The MIX Market: Fonkoze: http://www.mixmarket.org/mfi/fonkoze
MicroCapital Universe: Fonkoze: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fon…
MicroCapital Universe: MasterCard Foundation: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mas…
MicroCapital Universe: Mennonite Economic Development Associates (MEDA): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mennonite+Economic+Development+Associates+%28MEDA%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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