MICROCAPITAL BRIEF: MicroCredit Enterprises Partners with Freedom from Hunger to offer Health-related Services to Clients of Microfinance Institutions (MFIs)

MicroCredit Enterprises (MCE), a US-based NGO microfinance fund manager, and Freedom from Hunger, a US-based NGO that aims to alleviate hunger and poverty, are collaborating on a project that will offer “health-related education, loans, savings, insurance and linkages to local healthcare providers” in hopes that it will alleviate loan defaults caused by poor health and strengthen clients’ abilities to endure income-producing activities [1]. An undisclosed loan amount financed by MCE will be given to unspecified microfinance institutions as a means to “leverage” clients’ health-related costs of services to local healthcare providers [1]. Ongoing financial contributions of an unspecified amount will be facilitated by both MCE and Freedom from Hunger, and both organizations continuously will seek additional funders to contribute to the alliance.

Gary Ford, president of MCE, views health services as “vital” to the success of microfinance initiatives: “As we have seen first-hand, ill health is often a determining factor in families falling into poverty or remaining trapped there. That is why it is vital for us… to develop more holistic approaches to alleviating poverty and empowering MFIs in the developing world. [1]”  In addition to benefiting the clients, Freedom from Hunger president Steve Hollingworth states that “this provides a way to enhance [MFIs’] financial performance over the long term by strengthening client loyalty and differentiating themselves in an increasingly competitive field. It’s a win-win.[1]”

MicroCredit Enterprises was established in 2005 and is funded by individuals who serve as loan guarantors. As of 2010, MCE manages total assets of USD 17 million. Freedom from Hunger, formerly known as “Meals for Millions,” works to alleviate hunger and poverty for its 5.1 million clients in 24 countries in Africa, Asia and Latin America. As of 2011, Freedom from Hunger reported assets totaling USD 6.5 million.

By Anesa Kratovac, Research Associate

About MicroCredit Enterprises (MCE)

Established in 2005, MicroCredit Enterprises is a US-based nonprofit microfinance fund manager. MCE’s principal financial partners are guarantors. Wealthy individuals, who each commit a minimum of USD 1 million, provide financial backing to MCE in the form of a guarantee of a line of credit or note. MCE then borrows money against this guarantee in order to lend to microfinance institutions in developing countries. As of 2013, MCE is backed by a growing network of Guarantors with a current  total of $68 million in guaranties.

About Freedom from Hunger

Freedom from Hunger is based in the US city of Davis, California. Formerly called “Meals for Millions,” it is an NGO that operates in 19 countries with the aim of alleviating hunger and poverty. Its microfinance programs service approximately 2 million families through 26 partner microfinance institutions. As of June 2013, Freedom from Hunger works with a total of 150 partners in 24 countries and has 5.1 million clients. As of 2011, Freedom from Hunger reported assets totaling USD 6.5 million.

Additional Sources and Resources:

Microfinance Gateway document, July 2013, http://www.microfinancegateway.org/gm/document-1.9.62169/MCE_FFH%20partnershiprelease_FINAL_Approved_July2013.pdf

MicroCapital.org Article, January 28, 2012, “MICROCAPITAL BRIEF: Microcredit Summit Campaign, Freedom from Hunger Partner on Effort to Bring Health Services to 3.7m, Program to be Piloted in India,” https://www.microcapital.org/microcapital-brief-microcredit-summit-campaign-freedom-from-hunger-partner-on-effort-to-bring-health-services-to-3-7m-program-to-be-piloted-in-india/

MicroCapital.org Article, March 25, 2012, “MICROCAPITAL BRIEF: Freedom from Hunger, Oikocredit to Implement Health Protection Through Microfinance Institutions in Ecuador, Peru,” https://www.microcapital.org/microcapital-brief-freedom-from-hunger-oikocredit-to-implement-protection-through-microfinance-institutions-in-ecuador-peru/

MicroCapital Universe Profile: MicroCredit Enterprises (MCE), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroCredit+Enterprises+%28MCE%29

MicroCapital Universe Profile: Freedom from Hunger, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=freedom+from+hunger

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