MICROCAPITAL BRIEF: Online Microfinance Program Zafèn Raises $140,000 For Haiti in First Six Months of Operation

Zafèn, an online microfinance fundraising program targeting small and medium-sized business in Haiti, has reportedly raised USD 140,000 in its first six months of operation.

The website allows users to select projects to support from a list provided by Fonkoze, a microfinance institution (MFI) based in Haiti. Once a project is selected, funders may choose to support it by making a donation or a loan. Loans are made interest-free to the project and serviced by Fonkoze. After the loan has been repaid, lenders may choose to lend to another project or withdraw the funds.

The program has reportedly funded 300 projects in Haiti. Details are not available regarding repayment rates.

By Witt Gatchell, Research Associate

About Zafèn:
Zafèn is an online platform that allows lenders and donors to access both for-profit and nonprofit business projects in Haiti. It was developed to facilitate collaboration between Haiti-based business owners and people interested in supporting the Haitian economy. Zafèn was founded by four organizations: the International Vincentian Family, a nonprofit charitable network operating in more than 135 countries; DePaul University, a Catholic university in the United States city of Chicago; Fonkoze, a microfinance institution (MFI) based in Haiti; and the Haitian Hometown Associations Resource Group, an organization that works with Haitians living abroad.

About Fonkoze:
Fonkoze is a microfinance institution (MFI) that was established in Haiti in 1994 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. 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 50,000 borrowers and had 100,000 depositors, making it the largest Haitian MFI listed on the Microfinance Information Exchange (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.

Sources and Additional Resources
[1] Press Release: Zafèn Haitian Microfinance Effort Nears $150k in First Six Months http://media-newswire.com/release_1128612.html

MICROCAPITAL BRIEF: Zafén Begins Funding Microfinance Loans and Donations to Haiti https://www.microcapital.org/microcapital-brief-zafen-begins-funding-micr…

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

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

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

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