Second in a New Series Profiling Innovative Uses of the PPI
September 21, 2011 - Grameen Foundation today released a new study showcasing how Fonkoze, Haiti’s largest microfinance organization (MFI), is using the Progress out of Poverty Index® (PPI®) in its disaster recovery programs. Since 2008, Fonkoze has been using the poverty data collected through the PPI, in conjunction with food security data, to monitor and evaluate the progress of clients participating in its targeted programs for hurricane relief and is now also using it for earthquake recovery efforts.
Fonkoze, which began using the PPI in 2006, was recently fully certified by the Grameen Foundation, signifying that it is fulfilling basic, advanced and tracking over time requirements. The PPI is part of an integrated social performance management system the institution has adopted to better support its clients.
“We were one of the first institutions to embrace the PPI because we wanted to show that we were having an impact on our clients’ lives. The PPI gave us a way to be confident in that regard. The PPI has now become a major part of our social performance management and helps us get information about whether our clients are making their way out of poverty,” said Anne Hastings, CEO of Fonkoze Financial Services.
This study, the second in a series that profiles the innovative uses of the poverty assessment tool, is available at //www.progressoutofpoverty.org/fonkoze.
“Haiti’s poorest people are affected most when disasters like the earthquake and the perennial hurricanes strike and we are pleased that Fonkoze is using the PPI to help it methodically track its clients’ economic well-being as they recover,” said Alberto Solano, Grameen Foundation’s regional CEO for Latin America and the Caribbean. “As a fully certified PPI user, Fonkoze continues to lead the way in the region as an organization that uses social data to ensure that it is serving its clients effectively and is providing a great example for other microfinance institutions.”
This study release coincides with the release of Fonkoze’s 2010 Social Performance Report. This year’s report highlights how Fonkoze’s approach to monitoring and managing its social performance enabled it to respond quickly, responsibly and effectively following the multiple challenges of 2010, including the earthquake. It also shares key outcomes and results of the year which include analysis of PPI and other important data to assess client progress and program effectiveness. The full report is available on Fonkoze’s website at //www.fonkoze.org/docs/Fonkoze_Social_Performance_Report_2010.pdf
Fonkoze currently serves more than 55,000 borrowers and 255,000 depositors in all departments of Haiti. It was founded 15 years ago to fight rural poverty by providing its clients, mostly women, with access to the financial and educational tools they need to make permanent progress in their lives.
About the PPI
The Progress out of Poverty Index (PPI) is a country-specific assessment tool that helps institutions measure outreach to the poor, monitor changes in economic well-being of clients and provide data that helps managers improve the effectiveness of programs and services. Building on the concept of Grameen Bank’s 10-Point System, the PPI was commissioned by Grameen Foundation, in collaboration with Consultative Group to Assist the Poor (CGAP), Ford Foundation and Microfinance Risk Management L.L.C. Launched in 2005, the PPI is now being used by 106 institutions worldwide. For more information, visit www.progressoutofpoverty.org.
About Fonkoze
Fonkoze is Haiti’s largest, most innovative microfinance institution with more than 55,000 borrowers, most of whom live and work in the countryside of Haiti, and more than 255,000 savers. With its network of 46 branches covering every region of Haiti, it is also the only MFI that is truly national in scope. Fonkoze is also an industry leader in social performance management. Its Social Performance Monitoring and Market Research department is a 17-member team dedicated to the routine and systematic monitoring of Fonkoze’s clients and programs. Social Impact Monitors based in branches throughout Haiti interact directly with clients to collect social and economic data and anecdotal information that help Fonkoze managers develop products and services to better suit the needs of Haiti’s rural poor. Fonkoze is a certified user of the Grameen PPI and holds a Gold Certificate from the Social Performance Task Force and the Microfinance Information eXchange (MIX) for achieving the highest standards in social performance reporting. For more information, visit www.fonkoze.org.
About Grameen Foundation
Grameen Foundation, a global nonprofit organization, helps the world’s poorest people lift themselves out of poverty by providing access to financing and management strategies to the local organizations that serve them. It also develops mobile phone-based solutions that address “information poverty” among the poor by providing tools, information and services in the fields of health, agriculture, financial services and livelihood creation. Founded in 1997, Grameen Foundation has offices in Washington, DC; Seattle, WA; Colombia; Ghana; Hong Kong; the Philippines; and Uganda. Microfinance pioneer Dr. Muhammad Yunus, founder of Grameen Bank and winner of the 2006 Nobel Peace Prize, is a founding member of its Board of Directors, and now serves as director emeritus. For more information, please visit grameenfoundation.org.