oikocredit in the field: update from peru
DESCRIPTION
Presentation by Frank Rubio, Oikocredit Regional Manager of South America Northern Region. NovemberTRANSCRIPT
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Frank Rubio, Regional Director
South America Northern Region
November 3, 2011
Peru Update
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Agenda
1. Overview of Oikocredit Peru Office
2. Background on Sector in Peru
3. Oikocredit in Peru
4. Oikocredit in Peru: Microfinance
5. Oikocredit in Peru: Agriculture / Production
6. Oikocredit in Peru: Capacity Building
7. Conclusion
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Oikocredit Peru
• Country office located in Lima, Peru
• Operating since 2005
• Frank Rubio (RM), Werner Thorne (DRM),Carina Torres (CM),
Yolirruth Nuñez (SPM), Cesar Maita (LO), and Paola Ozambela
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Peru: Background Microfinance:
• MFIs regulated: 40, MFIs non-regulated: 34
• Portfolio: USD 7,984 million
• Clients: 2,728,946 active borrowers
• Individual, solidarity groups, and village banking
Credit and Saving Unions:
• 86 credit and saving unions, out of which 15 are regulated
• Portfolio: USD 354 million
• Clients: 111,456 active borrowers
Fair Trade and organic cooperatives/associations:
• 92 producers coops/assoc. certified, 25 new applicants
• Coffee, cocoa, banana, mango, tea, cotton, quinoa. Coming soon: maca and
wood.
• Nearly 70,000 small farmers
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Our Portfolio
Total Outstanding Portfolio: EUR
34 million (Sep. 2011)
40 active projects
13 Fair trade and organic Projects
27 MFIs
4 Saving and Credit Unions
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Countries with Largest Oikocredit PortfolioAt 31 December 2010
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Oikocredit Peru Supports Projects that Generate…
Financial Return
Social Return
-Generates Positive Economic Returns
-Allows for greater incomes for beneficiaries
- Targets the poorest
- Provides positive quality of life changes
- Does not harm environment
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How Do We Choose The Right Project Partners?
• Prior positive experience
in activity
• Targets poor clients
• Preference for rural over
urban
• Transparent and Fair
Pricing
• Social Performance
Strategy
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OIKOCREDIT PERU IN MICROFINANCE
OIKOCREDIT PERU AND MICROFINANCE
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Peru Microfinance Portfolio Facts & Figures:
• 27 Microfinance partners (12 NGOs, 4 Coops, 10 non-bank, 1 MF
bank)
• Total Microfinance Portfolio: € 24million
• PAR: 0%
• Average Loan Size: €600,000
• 2 Equity Investments (Confianza and Proempresa)
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Microfinance Portfolio: What We Offer
• Loans
• Equity
Investments
• TA
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Oikocredit Client Since: 2006
US$ 711,112 loans outstanding
Portfolio Balance: US$ 10,815,627
19,099 Total Clients
45% Target Rural areas
67% Target Women
31% New Clients Under Poverty Line
50% Exclusive Clients (bancarizacion)
Implementing New Health Products for Clients
NGO PRISMA:
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Oikocredit Client Since 2009
US$ 825,397 loans outstanding
Portfolio Balance: US$ 4,711,421
16,145 Total Clients
31.0% Target Rural areas
88.4% Target Women
34% New Clients Under Poverty Line
60% Exclusive Clients (bancarizacion)
Implementing New Health Products for Clients
NGO FINCA PERU
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Oikocredit Peru in agriculture
Our more active presence in the agriculture sector follows our mission and the conviction of having a more positive social impact in the farmer´s life.
Cocla, Quillabamba, Cusco
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Productive Portfolio•Products:
• Coffee beans and roasted• Cocoa beans and chocolates• Cocoa powder, butter and
liquor• Banana• Sugar cane• Jam
•Credit lines:• USD 150k to USD 1.5 million• 10 coops, 4 associations
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Productive Partners: Examples
Cepicafe: coffee, cocoa, sugar
cane and jams. FLO, organicNaranjillo: Cocoa and
Coffee. FLO, organic
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Fair Trade Portfolio
Chirinos, technical staff
• First client Cepicafe (2006)• Credit lines for pre-exporting• Average amount: USD 500k• Mostly small farmer coops• 100% certified by FLO cert• Organic certification, NOP, and
USDA
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Fair Trade Portfolio
CAC Oro Verde
• Others: UTZ, RA, Global Gap• Outreach: 280 to 7,500
farmers• Strong support from local
networks• Permanent contact with
international buyers.• Contact with Fair trade Liaison
Officers
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Positive Impact of Fair Trade in Coops
• High outreach in rural areas
• Development of local economies
and poverty reduction
• Empowerment of farmers and
their families
• Increased income
• Improvement of social welfare
• Guaranteed minimum price and
social bonus for organizations
• Linking buyers with producers
CAC Oro Verde, buyers testing
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Oikocredit Capacity Building Funds
Training Planning
Exchange Local Fairs
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Thank you!