Frank Rubio, Regional Director South America Northern Region November 3, 2011 Peru Update
Jul 02, 2015
Frank Rubio, Regional Director
South America Northern Region
November 3, 2011
Peru Update
Agenda
1. Overview of Oikocredit Peru Office
2. Background on Sector in Peru
3. Oikocredit in Peru
4. Oikocredit in Peru: Microfinance
5. Oikocredit in Peru: Agriculture / Production
6. Oikocredit in Peru: Capacity Building
7. Conclusion
Oikocredit Peru
• Country office located in Lima, Peru
• Operating since 2005
• Frank Rubio (RM), Werner Thorne (DRM),Carina Torres (CM),
Yolirruth Nuñez (SPM), Cesar Maita (LO), and Paola Ozambela
Peru: Background Microfinance:
• MFIs regulated: 40, MFIs non-regulated: 34
• Portfolio: USD 7,984 million
• Clients: 2,728,946 active borrowers
• Individual, solidarity groups, and village banking
Credit and Saving Unions:
• 86 credit and saving unions, out of which 15 are regulated
• Portfolio: USD 354 million
• Clients: 111,456 active borrowers
Fair Trade and organic cooperatives/associations:
• 92 producers coops/assoc. certified, 25 new applicants
• Coffee, cocoa, banana, mango, tea, cotton, quinoa. Coming soon: maca and
wood.
• Nearly 70,000 small farmers
Our Portfolio
Total Outstanding Portfolio: EUR
34 million (Sep. 2011)
40 active projects
13 Fair trade and organic Projects
27 MFIs
4 Saving and Credit Unions
Countries with Largest Oikocredit PortfolioAt 31 December 2010
Oikocredit Peru Supports Projects that Generate…
Financial Return
Social Return
-Generates Positive Economic Returns
-Allows for greater incomes for beneficiaries
- Targets the poorest
- Provides positive quality of life changes
- Does not harm environment
How Do We Choose The Right Project Partners?
• Prior positive experience
in activity
• Targets poor clients
• Preference for rural over
urban
• Transparent and Fair
Pricing
• Social Performance
Strategy
OIKOCREDIT PERU IN MICROFINANCE
OIKOCREDIT PERU AND MICROFINANCE
Peru Microfinance Portfolio Facts & Figures:
• 27 Microfinance partners (12 NGOs, 4 Coops, 10 non-bank, 1 MF
bank)
• Total Microfinance Portfolio: € 24million
• PAR: 0%
• Average Loan Size: €600,000
• 2 Equity Investments (Confianza and Proempresa)
Microfinance Portfolio: What We Offer
• Loans
• Equity
Investments
• TA
Oikocredit Client Since: 2006
US$ 711,112 loans outstanding
Portfolio Balance: US$ 10,815,627
19,099 Total Clients
45% Target Rural areas
67% Target Women
31% New Clients Under Poverty Line
50% Exclusive Clients (bancarizacion)
Implementing New Health Products for Clients
NGO PRISMA:
Oikocredit Client Since 2009
US$ 825,397 loans outstanding
Portfolio Balance: US$ 4,711,421
16,145 Total Clients
31.0% Target Rural areas
88.4% Target Women
34% New Clients Under Poverty Line
60% Exclusive Clients (bancarizacion)
Implementing New Health Products for Clients
NGO FINCA PERU
Oikocredit Peru in agriculture
Our more active presence in the agriculture sector follows our mission and the conviction of having a more positive social impact in the farmer´s life.
Cocla, Quillabamba, Cusco
Productive Portfolio•Products:
• Coffee beans and roasted• Cocoa beans and chocolates• Cocoa powder, butter and
liquor• Banana• Sugar cane• Jam
•Credit lines:• USD 150k to USD 1.5 million• 10 coops, 4 associations
Productive Partners: Examples
Cepicafe: coffee, cocoa, sugar
cane and jams. FLO, organicNaranjillo: Cocoa and
Coffee. FLO, organic
Fair Trade Portfolio
Chirinos, technical staff
• First client Cepicafe (2006)• Credit lines for pre-exporting• Average amount: USD 500k• Mostly small farmer coops• 100% certified by FLO cert• Organic certification, NOP, and
USDA
Fair Trade Portfolio
CAC Oro Verde
• Others: UTZ, RA, Global Gap• Outreach: 280 to 7,500
farmers• Strong support from local
networks• Permanent contact with
international buyers.• Contact with Fair trade Liaison
Officers
Positive Impact of Fair Trade in Coops
• High outreach in rural areas
• Development of local economies
and poverty reduction
• Empowerment of farmers and
their families
• Increased income
• Improvement of social welfare
• Guaranteed minimum price and
social bonus for organizations
• Linking buyers with producers
CAC Oro Verde, buyers testing
Oikocredit Capacity Building Funds
Training Planning
Exchange Local Fairs
Thank you!