Microfinance

Fonkoze, Haiti's most successful micro-lending institution, has released its annual report.  After a year of growth in 2009, the earthquake was a major blow to its operations.  Ten Fonkoze branches were severely damaged or destroyed.  Four hundred and fifty staff lost their homes and over 19,000 clients lost homes and/or businesses.  Fonkoze responded by expanding support to earthquake affected clients, including the use of micro-insurance as a tool to help rebuild their livelihoods.  Attached is both the annual report and an impact analysis.  Below is a summary of their 2009 and 2010 activities.    

In 2009, the Vincentian Family (a religious group that draws inspiration from St. Vincent de Paul) and Fonkoze (Haiti’s largest micro-lender) initiated a pilot project, named Zafen, that allows people to loan or donate to businesses in Haiti.  The website showcases businesses that have been subject to due diligence, provides easy online access for reviewing them, and offers Haitian entrepreneurs access to capital for expanding their operations.  In its first six months, Zafen raised $140,000 and provided funding for 300 projects ranging from coffee cultivation to community dairies.  An official press release follows.  Take a look at the Zafen website as well.

Microfinance has been successful throughout the world, including in Haiti. Thanks to Mix Market, there is now an application that allows users to track microfinance.  Mix Market has published data on more than 1,500 microfinance institutions (MFIs) in 190 countries.  As Development Seed puts it,"The Mix Market is a Bloomberg for microfinance...it opens this information up to help MFIs, researchers, raters, evaluators, and governmental and regulatory agencies better see the marketplace, and that makes for better international development."