MICROCAPITAL BRIEF: Microfinance Institution (MFI) Fonkoze Initiates Claims Process for Clients Affected by Heavy Rains in Haiti

Fonkoze, a Haiti-based microfinance institution (MFI), has initiated the claims process for its clients that were affected by recent heavy rains in Haiti. Torrential rains have caused mudslides, flooding and widespread destruction of property in Haiti during June 2011. In response, Fonkoze will be making payments under its catastrophe recovery product, which was launched in January 2011 as a required add-on bought by all Fonkoze clients at the time of their loan disbursement. Clients who have lost their homes or their business as a result of the rains will receive a cash payout of HTG 5,000 (USD 125) to meet emergency needs such as food, shelter, water and temporary shelter. Fonkoze reports, “these clients will also receive a reimbursement of the balance of their existing loan and a new loan when they are ready to restart their business” [1].

Fonkoze project manager Rob Fuller states, “Following a disaster, families desperately need access to money to buy food, water, and shelter… We are gratified that Kore W will help cover some of these costs as affected communities begin the difficult work of recovering from flooding, mudslides, and days of heavy rains” [1].

As of 2009, Fonkoze and FFS report a combined gross loan portfolio of USD 9.2 million and as of May 2011 they serve approximately 55,000 loan clients and 250,000 depositors.

By: Alexandra Pattee, 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 nonprofit 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 May 2011, Fonkoze and FFS together serve approximately 55,000 loan clients and 250,000 depositors. As of 2009, Fonkoze and FFS have a combined gross loan portfolio of USD 9.2 million.

Sources and Resources:

[1] Fonkoze Press Release, “Torrential Rains in Haiti Trigger Catastrophe Protection Payouts”, http://www.fonkoze.org/docs/Kore_W_Payout_PR_-_June_15_2011.pdf

MicroCapital.org Article, April 7, 2011, “Microinsurance Catastrophe Risk Organization (MiCRO) Created to Help Protect Microentrepreneurs in Haiti”, https://www.microcapital.org/microcapital-brief-microinsurance-cataostrophe-risk-organization-micro-created-to-help-protect-microentrepreneurs-in-haiti/

MicroCapital.org Article, October 28, 2010, “Clinton Bush Haiti Fund (CBHF) Releases $1.5m in Grants to Microfinance Institution (MFI) Fonkoze and Gheskio of Haiti”, https://www.microcapital.org/microcapital-brief-clinton-bush-haiti-fund-cbhf-releases-1-5m-in-grants-to-microfinance-institution-mfi-fonkoze-and-gheskio-of-haiti/

MicroCapital.org Article, September 17, 2010, “Haitian Microfinance Institution (MFI) Fonkoze Releases 2009 Social Performance Report”, https://www.microcapital.org/microcapital-brief-haitian-microfinance-institution-mfi-fonkoze-releases-2009-social-performance-report/

MicroCapital.org Article, April 27, 2010, “MasterCard Foundation Provides $4.5m Grant to Haitian Microfinance Institution (MFI) Fonkoze”, https://www.microcapital.org/microcapital-brief-mastercard-foundation-provides-45m-grant-to-haitian-microfinance-institution-mfi-fonkoze/

MicroCapital’s Microfinance Universe profile, Fonkoze, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fonkoze

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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