Social Performance Introductory Project Nepal
Social performance is burning issue in Microfinance industry as the MFIs are mostly concentrated on financial targets. In Nepalese case too, there are a number of MFIs mushrooming in many parts of the country. Their focus is generally on short term achievement of financial targets. They have rarely considered or documented the client issues and reviewed their activities accordingly focusing on client protection. This in turn will affect on the responses by the clients and hence they may invite crisis like in Andhra Pradesh in India. In this ground, CMF is involved promotion of social performance practices among Nepalese microfinance institutions including groups and cooperatives. Social Performance Introductory Project Nepal is designed with major components on social performance awareness, measurement and reporting by the MFIs. Microfinance Centre (MFC) Poland is providing financial and technical support to CMF to run the project activities during the project period (September 2011 to November 2012). The MFIs are supported to make their social performance transparent worldwide by reporting to and publishing on the Market Information eXchange (MIX) web site. Transparency in the social as well as financial performance is a practice to make client friendly products and services that ultimately supports strengthen the client base of the institutions.
In this regard, the project has plan to train CMF has programs to develop trained human resources within CMF and MFIs, organize Social Performance Awareness Raising Workshop, Social Performance Standard Reporting Training, Social Performance report verification, Social performance reporting to the MIX, Reporting lessons learnt workshop, Social performance improvements in MFIs, Project lesson learnt workshop and SPM scale-up plan development, client protection assessment, client protection principles training, client protection self-assessment by MFIs and project evaluation.
2. Goal: Promotion of Social and financial performance of MFIs
- Capacity building of Nepalese MFIs for social performance promotion in their institutions
- Capacity building of CMF in social performance issues to support the MFIs in design and implementation of their plans for social performance management
- Promote transparency of MFIs in social and financial performance
4. Expected Results
- 9 MFIs include SP in their design
- 7 MFIs will start using SP data and information in their decision making
- 3 professionals of CMF have been providing the members with training and technical assistance on SPM after the project
- 17 MFIs report their social performance to the MIX
- 17 MFIs self-assess their own organization on applying client protection principles
- 10 percent of the participating MFIs start to practice client protection principles into their operations
- 9 MFIs review their product and services with view of SP focusing on client protection principles
5. Project Funding Partners: Microfinance Centre (MFC) Poland/Ford Foundation