The microfinance institution (MFI) evaluated has a high social impact. Its main objective is to "sustainably improve the living conditions of poor families", by primarily targeting families living on less than 2 dollars per day per person and meeting socio-economic and health criteria established by a social categorization tool called "family photo". It is mainly aimed at women (67%), and targets agricultural activities (70% of the portfolio) and activities linked to services and trade (23%). It supports its customers both economically and socially (via a social support service and a mutual health insurance scheme) to make families more resilient.
The MFI currently has over 17,000 borrowers, spread across 36 service points in the Hautes Terres region of Madagascar. The beneficiaries, traders and farmers, are generally populations excluded from productive credit, savings and economic advice, in both urban and rural areas. Several branches will be opening over the next few years. The MFI plans to develop new branches.
The MFI offers these beneficiaries the following services:
- Microcredit: Loans to finance income-generating activities are granted without any material collateral or prior savings.
- Savings : A mandatory saving account is opened during the duration of the credit. Beneficiaries can also save additional money on a voluntary saving account.
- Borrower training: the aim of this training is to provide beneficiaries with advice on how to improve the management of their activity (bookkeeping, family budget management, etc.).
- Social support: Social support provides solutions for families with difficulties relating to health, education, administrative documents, income or psychosocial problems (problems of domestic violence, children's schooling, access to contraception, lack of administrative documents, etc.). These activities mainly involve individual follow-up of families at home, drop-in sessions, workshops with children and teenagers, early-learning workshops for mothers and their youngest children, animation and awareness-raising sessions on social themes.
- Mutual health insurance: The mutual health insurance service is designed to provide a financial solution in the event of hospitalization for borrowing families. The mutual company offers different types of services to members, such as coverage of hospitalization costs, referrals, support and follow-up during hospitalization. Membership is compulsory for all beneficiaries.