Source: Oikocredit.
Amersfoort, February 6 – In a time when the financial markets have been battered by the credit crisis, Oikocredit – one of the world’s largest private financier of the microfinance sector – managed to increase its field investments by 32 percent to no less than Euro 365 million. In microfinance alone we invested Euro 287 million in small, medium and large microfinance institutions. Meanwhile, the ratio of our microfinance projects at risk dropped to the lowest level in our history: 1.5 percent.
Reports from our project partners confirm that our credit portfolio has not been affected by the crisis so far. Our partners continue to support entrepreneurs, enabling them to build a better life for themselves, their families and community. The social performance of our project partners is key to this success. Nearly 1 billion people live on less than USD 1 a day. For them shortage of money is a daily reality. In 2008 Oikocredit’s microfinance partners reached 15 million households, both in remote rural and in urban areas. It is our mission to service many more.
Focus on Africa
With its high rates of poverty, Africa has a special place in the long-term development strategy of Oikocredit. In 2008, we increased our investments in Africa to Euro 52 million (up from Euro 47 million in 2007). However, this growth rate does not match the average growth of 32%. Consequently, we are now exploring opportunities to expand our financing activities in Africa. The recent decision to add Mozambique to our list of focus countries has already reinforced our presence on the continent. Throughout 2009 we will further explore the opportunity of launching lending activities and equity investments in Nigeria. Nigeria hosts a booming microfinance sector that counts over 800 institutions that strive to reach out to a vast underserved market.
Growing demand for financing
No investor in Oikocredit has lost a cent in over 30 years of our operations. Money invested in Oikocredit has been reinvested time and again to support more cooperatives of farmers, small entrepreneurs and microfinance institutions. Still, our capital outstanding does not match the ever growing demand for financing. If we want more people to access microfinance services, to develop their own business, stabilize their revenue, send their children to school and access medical services, we need to continue investing in them, also in times of crisis.
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