MICROCAPITAL BRIEF: MicroScore From MicroNed Measures Success of Microfinance Institution Capacity Building Programmes

MicroNed, a network of Dutch organizations involved in microfinance, has introduced MicroScore, a tool intended to help microfinance institutions (MFIs) and cooperatives assess themselves before, during, and after conducting capacity building programmes. MicroScore measures the following four performance ratios: governance, institutional, financial performance management, and services and social performance management.

Joost de La Rive Box, a Dutch microfinance consultant specializing in impact study and financial projection models, developed the tool in conjunction with MicroNed. MicroNed members, as well as Dutch microfinance support organization, Terrafina Microfinance, tested and developed the tool for one year before releasing it to the public free of charge.

As of 2011, MicroNed reported supporting microfinance activities in approximately 50 countries with an annual budget of EUR 250,000 (USD 322,000). Terrafina Microfinance provides financial and technical support to MFIs primarily in rural areas of West Africa. From its founding in 2005 through 2010, Terrafina reports involvement in approximately 100 projects with 62 African MFIs.

By Brett Cohen, Research Associate

About MicroNed
MicroNed is a network of Dutch development finance organizations that includes: Cordaid, a Catholic humanitarian agency; Hivos, a nongovernmental organization (NGO) that provides grants and technical assistance; the Interchurch Organization for Development Co-operation (ICCO in Dutch), which provides financial services to socially-oriented organizations; Ofxam-Novib, an investment fund that supports microfinance institutions; and the Rabobank Foundation, a microfinance-focused initiative of the Rabobank financial services group. As of 2011, MicroNed reports supporting microfinance activities in approximately 50 countries and operates on an annual budget of EUR 250,000 (USD 322,000).

About Terrafina Microfinance
Terrafina Microfinance is a Dutch organization that was founded in 2005 by the Interchurch Organisation for Development Cooperation (ICCO in Dutch), Rabobank Foundation, and Oikocredit. It provides financial and technical support to microfinance institutions (MFIs) primarily in rural areas of West Africa. As of 2010, Terrafina reported involvement in approximately 100 projects with 62 African MFIs. The size of this organization’s budget is unavailable.

Sources and Additional Resources:

Microfinanceplatform.nl story, “MicroNed launches measurement tool for capacity building”
http://www.microfinanceplatform.nl/2012/05/microned-launches-tool-to-mea…

Microcapital.org story, December 24, 2012, “MICROCAPITAL BRIEF: Vietnam Sets 10-Year Microfinance Strategy, French Development Agency Donates $1.3m”
https://www.microcapital.org/microcapital-brief-vietnam-sets-10-year-micr…

Microcapital.org story, September 8, 2011, “MICROCAPITAL BRIEF: MFTransparency, Association of Ethiopian Microfinance Institutions (AEMFI) to Launch “Transparent Pricing Initiative in Ethiopia” with Funding from MicroNed”
https://www.microcapital.org/microcapital-brief-mftransparency-associatio

MicroCapital Universe Profile MicroNed
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mic…

MicroCapital Universe Profile: Terrafina Microfinance
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ter…

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

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