Poverty Eradication & Community Empowerment

Gross Loan Portfolio USD, 2011: 2.9 million

Number of active borrowers 2011: 18,088

Average loan balance per borrower USD, 2011: 162.0

Deposits USD, 2011: 836,946.2

Assets USD, 2011: 3.6 million

Number of depositors 2011: 22,758

Mission:

To serve the enterpreneurial poor by providing sustainable and quality services for creation of emploment and income generation with ultimate objective of enhancing household food security.

Background and Main Challenges:

The establishment of PEACE MFI was intitiated by Agriservice Ethiopia, which is indigenous NGO and which itself used to deliver savings and credit services prior to the new MFI policy. The Poverty Eradication & Community Empowerment (PEACE) MFI S.c has been formally established on november, ... Read more

Address:

P.O. Box 21 382 Code 1000

Addis Ababa

Ethiopia

Phone:

251-11-6521541 / 42

Fax:

(251) 665-4088

Email:

peace [at] ethionet [dot] et

Main Funding Sources:

Grants

Loans

Savings

Shareholder Capital

Products and Services:

Loans

Voluntary Savings

Looking for (Investment Types):

Loans in Local Currency

Donations

Capacity Building Grants

Equity investments

% Operations Comprised by MF:

91 - 100

Date established:

Jan 1 1999

FYE:

30-Jun

Current Legal Status:

NBFI

Regulated:

yes

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Clients living in rural areas	1
Women	1
Adolescents and youth (below 18)	1
Other target market:	1
Clients living in urban areas	2
Int msg targetmothertext c	Farmers, physically challenged clients
+ Development goals (ranked by importance)
Gender equality and women's empowerment	1
Youth opportunities	1
Employment generation	1
Increased access to financial services	1
Growth of existing businesses	1
Poverty reduction	1
Development of start-up enterprises	2
+ Poverty targets
Very poor clients	1
Poor clients	1
Low income clients	1
+ Governance
Has trained members of its board on social performance management
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises	1
Microcredit for household needs/consumption	1
SME loans
Loans for agriculture	1
Loans for education	1
+ Savings products offered
Voluntary savings accounts
Compulsory savings accounts (cash collateral)
Fixed term deposits
Special purpose savings accounts
Community-based organizational savings
+ Compulsory insurance products required
+ Voluntary insurance products offered
Voluntary credit life insurance	1
+ Other financial products and services offered
+ Non-financial services offered
+ Enterprise services offered
+ Education services offered
Financial literacy education	1
+ Health services offered
+ Women's empowerment services offered
Leadership training for women	1
Women's rights education/gender issues training	1
+ Products and services targeting the poor
Products and services specifically designed to target the poor:	We also provide financial services to physically challenged clients and HIV/AIDS groups without discriminating.
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Internal audits check household debt exposure, lending practices that violate procedures including unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of staff rules or debt collection manual.
The organization's corporate culture values and rewards high standards of ethical behavior and customer service.
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. (Suggestion boxes alone are generally not considered adequate.)
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
Flat interest method
+ Social responsibility to staff
+ Human resources
Transparency on salary (a clear salary scale based upon market salaries)
Benefits (medical insurance, pension contribution)
Protection at work (safety, anti-harassment)
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)
The company has a bonus policy based on productivity and championship cup and a seperate bonus award to motivate staff
+ Basis of staff incentives related to social performance
Ability to attract new clients from target market
Outreach to remote/rural communities
Outreach to women
Quality of interaction with clients based on client feedback mechanisms
Quality of social data collected
Client retention/drop-out rate
Portfolio quality
Bonus based on financial profitablity and social profitablity
+ Social responsibility to the environment
This institution raises clients' awareness about environmental impacts
This institution identifies enterprises with environmental risk
+ Poverty measurement tools in use