M FIs I mprove S ocial I mpact and O utreach through N etworks in Latin America and Africa

1. MFIs Improve Social Impact and Outreach through Networks in Latin America and Africa June 2009

2. Rationale for Promoting SPM • In pursuit of profitability MFIs have subordinated their social objectives to financial objectives • Design products and select clients to minimize risk and maximize profits • Has resulted in an impressive number of MFIs that have achieved financial sustainability

3. Rationale for Promoting SPM However, the focus on financial objectives has: • Often systematically excluded the poorest and most marginalized people, precisely the segment of the population that most MFIs were created to serve

4. Network Profile • MISION works through National and Regional MF Networks • Started with 2 national MF networks • COPEME and ASOMIF • Expanded to 11 additional national and 1 regional MF networks • ASOMIF, REDPAMIF, REDIMIF, REDMICROH, REDCOM, ASOMI, COPEME, RFR, RADIM, Corporación para el Desarrollo de la Microempresa, PRODESARROLLO. • RECAMIF.

5. Implementation Strategy • Increase the number of MF Networks and member MFIs that implement SPM • Ensure that MFIs serve the poorest and most marginalized • Build capacity of MF Networks and consultants to provide SPM training • Increase stakeholders’ engagement in SPM • Promote innovative approaches to SPM • Improve social performance reporting to the MixMarket

6. Innovations and Learning • Tools • Indicators for gender analysis in MFIs • Self-diagnosis and social audit tool • Guide for developing MFI SPM • Strategic plan using balanced scorecard tool • Environmental impact measurement tool • Service cycle tool for evaluation of client satisfaction • Management tool for staff competencies • Job satisfaction measurement tool • Staff turnover & client loyalty measurement tool

7. MISION II • Project Goal • Microfinance institutions in Latin America and Africa contribute to the reduction of poverty and increased social inclusion among marginalized families through improved social performance management. • Strategic Objectives • MFI networks in Latin America promote the use of SPM systems across their members. • MFIs operationalize the use of SPM systems and expand outreach to poor clients • MFIs document and disseminate key outcomes from their engagement with SPM • African national MFI networks are introduced to SPM.

8. 2009-2012 • Expected Results (IR) • Use the tools and methodologies developed under the MISION project to take SPM to scale in Latin America and introduce the initiative to Africa. • Work through 14 national and regional MFI networks to engage over 100 MFIs in 13 countries. • 60 private consultants are trained and certified to provide SPM advisory services to microfinance networks and their members. • 107 MFIs adopt SPM tools and implement SPM systems. • 60 MFIs introduce pro-poor product innovations.

9. 2009-2012 • Expected Results • Information on the effects of SPM on microfinance institutions is available and widely circulated. • Collaboration with strategic actors results in an understanding of opportunities and a broad plan for the expansion of SPM activities, through national MF networks, in Sub-Saharan Africa. • Pilot SPM initiative in Senegal tests the MISION methodology and accesses resources to have a Social Performance Ratings. • Promotion and dissemination of lessons learned on SPM tools and methodologies as applied in the African context through a strategic learning alliance.