Oikocredit microfinance portfolio sees 8% rise in funding
Netherlands-based microfinance firm Oikocredit, one of the world’s largest private microfinance financiers, has logged an 8% increase in its funding over the 2010-2011 financial year.
Oikocredit’s development finance portfolio reached €520m, up from €481m in 2010. Through its 896 partners, over 26 million people have gained access to fair finance, economic opportunity and community development, the firm said. In the last year, there was net capital inflow of €40m, demonstrating investor commitment to development finance. The loans are distributed through micro finance institutions, cooperatives, fair trade organizations and small-to-medium sized enterprises in the developing world.
In total 2,000 new investors joined in 2011, bringing the number of investors worldwide to 45,000. Investors will share in Oikocredit’s final 2011 result of €15.9m, with €9.7m (2% on member capital) proposed as dividend.
Despite challenges in microfinance in the Indian state of Andhra Pradesh, the total portfolio remained strong because of diverse investments in agriculture, trade and microfinance in almost 70 countries, Oikocredit said. Throughout 2011, its funding supported over 100 capacity-building interventions to enable partners to improve operations and enhance their social mission. Oikocredit will allocate almost €0.5m from its net income for 2011 to reinforce capacity building support to partners.
The past year saw expanded operations in Africa. Oikocredit’s African portfolio remains well above the industry average for social investors of 5% (according to the Symbiotics 2011 MIV Survey Report), with 15% or €75m of the portfolio invested in 17 African countries.
There were 50 new partnerships formed in the past year, and staff added to offices in Nigeria and Mozambique. Operations started in Rwanda, and in 2012, Oikocredit plans to undertake market surveys in Cameroon, Madagascar and Malawi.Alongside its work in Africa, Oikocredit is considering expanding its equity holdings and financing of agricultural projects.