Firm Partners MFBs, SMEs to Boost Liquidity

Oikocredit Limited of Netherlands said it has extended its funding
activities to
Microfinance Banks (MFBs) and Small and medium scale Enterprises (SMEs) in the
country as part of efforts to enhance business activities in the country.

A statement from the development finance institution said the organisation also
promote global justice by challenging people, churches and others to
share their
resources through socially responsible investments and by empowering
disadvantaged people with credit.

However, the Chairman, National Association of Microfinance Banks (NAMB), Lagos
State Chapter, Mr. Olufemi Babajide, confirmed the claim in a chat with THISDAY
as he said his association has also benefited from the scheme.

According to Babajide, funds obtained by most MFBs in Lagos state would help
operators effectively play their intermediary role after the credit
squeeze that
affected the industry.

Babajide stated that though lending rate in the financial sub-sector currently
stands at about 60 per cent per annum, the injection from the Credit firm would
pull down rates.

Oikocredit said that in the past 35 years, its primary goal has been to provide
credit to organizations which may otherwise not have access to funding.

“Oikocredit is one of the world’s largest sources of private funding to the
microfinance sector. We provide credit and equity to small businesses through
microfinance institutions across the developing world and directly to trade
cooperatives, fair trade organizations, Agriculture and SMEs. We offer a dual
return to our investors: social and financial. In addition to earning modest
financial returns, investors are secure in the knowledge that their money is
being used to fight poverty, promote fair trade and respect our planets natural
resources.

“We monitor certain social performance indicators to ensure our microfinance
partners reach the right target groups and provide services that work towards a
positive change in peoples’ lives. The numbers of borrowers reached by
Oikocredit’s microfinance partners are over 20million of which female clients
are 86 per cent and rural clients 44 per cent. We work with more than 592
Microfinance Institutions (MFIs) worldwide in 80 countries,” it added.

The statement also said Oikocredit assessed both social and financial return of
a project and are building lasting relationship for the achievement of shared
goals: poverty reduction and fair financing.

Source : Thisday