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VisionFund is the microfinance subsidiary of World Vision

VisionFund International

An Overview of the Microfinance Arm of World Vision

VisionFund is the microfinance subsidiary of World Vision InternationalVisionFund is the microfinance subsidiary of World Vision

Our Vision

Our vision for every child, life in all its fullness.

Our prayer for every heart,the will to make it so.

VisionFund is the microfinance subsidiary of World Vision International

What is Microfinance?


Microfinance provides tools for sustainable livelihoods by providing loans at reasonable interest rates that allow borrowers to repay over 98.7% of the time.

Sustainable livelihoods increases the economic well-being of the poor and allows them to provide for their children

By improving the average household income, communities are able to pay for ongoing services (schools, clinics, water wells) and reduce their dependence on aid.

“Microfinance is the practice of providing financial services, such as micro credit, micro savings or micro insurance to poor people”


• It works in synergy with other development interventions, like those that promote, health, education, nutrition, and offers an empowering hand up, not a hand out.

• Microfinance is an intervention capable of producing a quadruple bottom line:– Relieve suffering1. Bring dignity2. Become sustainable3. Inspire supporters

- Microcredit Summit Campaign report 2006

Why Microfinance?



• Leverage and Recycle – Since donations for loans can be leveraged and recycled to

impact family after family, they are up to 25 times as effective as traditional interventions.

• Impact – An entrepreneur benefits from the loan, and when it is repaid,

the funds are made available for another entrepreneur. The impact is exponential.

• Sustainability– Increased results for the long-term

• Studies show– Improved education, health, diet– improved sense of empowerment– HIV/AIDS support capability– greater resilience in disasters

Why Microfinance?



How Does it Work?


Donations Become Exponential

Loans recycle to impact lives over and over again


Large Scope and Impact – 5000 staff (which is more than all WV Support Offices combined) and assets which make up 42% of the WVI balance sheet

Child-well being focused“Life in all its fullness” for children includes economically empowered

parents who can provide food, healthcare, education, housing, clothing and a hope for a better future!

Unique holistic approach to microfinance Integrated with all aspects of World Vision’s development work

• Clean water, Health care, Education, Food security, Advocacy, other Economic Development programming

Who is VisionFund?

As the microfinance subsidiary of World Vision, VisionFund builds a better world for children by providing financial services as part of World Vision’s integrated programmes that empower the entrepreneurial poor to liberate their families and communities from poverty.1993: WV began microfinance programming2003: VFI was established by WVI as a wholly-owned subsidiary to oversee World Vision’s microfinance work


Leadership

Scott Brown

President and CEO


VisionFund support enables institutions to strive towards both mission and quality:

1. Mission first• To provide financial services to entrepreneurs in the communities

where World Vision works, empowering them to lift their families out of poverty. • Child-focused• Community based• Motivated by Christian faith

2. Metrics second• Operating best-in-class microfinance

institutions that raise the standard for the industry and benefits the disadvantaged poor.

What Motivates VisionFund?


Significant Impact and Growth

Since 1993, World Vision’s microfinance arm has distributed over

3,120,000 loans, totaling more than

$1,380,000,000 (US). For each job created or sustained

through a microfinance loan13 people benefit.

In fiscal year 2009 VisionFund served more than

620,000 borrowers and worked in 43 nations. More than 2.2 million children benefited from increased family

income. VisionFund’s microfinance institutions employed over 5,000 staff

members and had more than $380 million (US) outstanding loan portfolio.


Children Impacted: 2.2 millionJobs Impacted: 1,080,000Borrowers: 625,000Female Borrowers: 68%

Loan Portfolio: $381 millionRepayment Rate: 96.7%Client Savings: $12.2 millionNations Served: 43

Investing for Impact in FY09


Investing for Impact (continued)

InvestImpact

Transform

Every small loan promises big returns when invested in the passion of the enterprising poor.

Work means dignity for parents, food, health care and education for their children and jobs, future and empowerment for communities.Small loans can

energize communities to move beyond poverty. But transformation comes when all the causes of poverty are tackled together.


Business Types

VisionFund clients operate businessesIn a wide variety of sectors.


Innovation through Integration


A Holistic Model of Development

Through VisionFund’s network of institutions, microfinance is integrated into World Vision’s programs. By providing access to clean water, health care, stable food sources and education, communities are able to focus on entrepreneurial ventures.

The result is a truly holistic, integrated approach to community development that empowers poor families and communities to solve their own problems.




WaterCommunities often have access only to dirty, disease-infested water that spreads diarrhea and deadly parasites. Simply providing access to clean water and improving sanitation can cut child death rates in half. World Vision serves communities by drilling new wells, protecting existing water sources, and piping from safe springs. Economically speaking, clean and plentiful water is a necessity. With adequate water supplies, agricultural based businesses can thrive. In addition, access to clean water results in less illness, and keeps workers from getting sick and missing work. A Case StudyWorld Vision Zimbabwe agronomist, Phumelela Peace Mwelasi surveys an irrigation channel. Innovative irrigation projects similar to this one in Zimbabwe are changing the agricultural economical landscape of regions in Southern Africa. By addressing water shortages, agricultural businesses can thrive.




HealthcareWorld Vision helps bring medical care and increased knowledge of health, nutrition, and hygiene to children and families in need through emergency medical care, training and access to health resources. When parents earn additional income, they can provide the healthcare needed for their children.

A Case StudyIn Zambia, teen mothers are involved in a sewing group sponsored by the World Vision ADP Chainda. Young mothers, with their babies, learn sewing skills and hear lessons on HIV and AIDS prevention, testing, and what to do if they are living with someone infected.

Not only are young Zambian women learning a practical trade, but they are also receiving health education and resources that can save their lives.




EducationEducating children and families is critical for the future of a community. Published studies show that when girls learn to read to the eighth-grade level, benefits to the community include reduced mortality rates and increased per capita income. Through microloans, business income increases and enable parents to pay for school fees.

A Case StudyVisionFund microfinance institution in Serbia, AgroInvest, is changing the lives of children through the “Happy Child” programme.

2.5% of all of AgroInvest’s profits are used to develop schools, teachers and students around the country through “Happy Child.” This is one example of how profits from microfinance loans are impacting rural education.




Food & AgricultureBy securing its own regular and sustainable sources of food, a community is able to cut death rates among vulnerable families in half again when added to water and health improvements. The right seeds and tools, plus training in agriculture and animal husbandry, enable a community to increase its production of meats, vegetables, and grains for healthy diets. Improved storage capabilities enable families to survive periods of food shortage.A Case StudyIn 2007, thousands of people were impacted by a series of floods in Tabasco, Mexico. VisionFund responded by providing loans, capital and resources to assist devastated agricultural businesses.

The man picture here casts a net over his fish pond. Through VisionFund, he was able to rebuild his business and benefit himself, his family and his community by means of fish harvesting.


Women and Microfinance

The Challenge• Women work two-thirds of the world's working hours, produce

half of the world's food, but earn only 10 percent of the world's income and own less than one percent of the world's property.

The Response• VisionFund understands that women need more opportunities

and are providing loans for hundreds of thousands of women around the world. Within VisionFund microfinance institutions, over 68% of loan clients are women.

• Through VisionFund, women are able to develop savings accounts and obtain insurance. These two financial resources empower women.

• Women spend the majority of their income on improving the lives of their children through providing healthcare and accessto education.



Elvia in Honduras• borrowed $24 initially• started a jam manufacturing company • used her loan to buy jars, lids, cooking pots, stove•Outcomes

– Was empowered to leave an abusive situation – Built a house for her five children– Has an extra plot of land to grow vegetables – Can pay for all her children to go to school – Can buy clothes for her children and feed them well– Is mentoring many other women now– Is passing on new confidence and self-esteem to her children

Client Profile



Client Profile


• borrowed $360 • opened a restaurant in Rwanda • used her loan to buy furniture, cooking oil, rice

Eustachie – a Rwandan WidowOutcomes• Took in two orphans• Built a house for her 7 children• Can pay for all of her kids to go to school • Recently paid for medicine when her daughter got sick• Bought a cow (a significant sign of wealth)• Hired laborers to grow vegetables for her restaurant• Employs several staff to cook and serve in the restaurant• Has started catering for NGOs in the rural area


Borrowers in the Field


"Though I am widowed, I believe the sky is the limit. I still remember the words of my mother—that victors are definitely failures who refused to give up. I will never give up.“

~Grace Atieno AmolA 38 year old widowedmother of four from KenyaClothes Retailer

"We would never be able to produce and have what we have now, if it weren’t for the fact of having access to credit."

~Isidro Galo Cruz father from HondurasAgriculture

"Now, because the dolls we produce, and thanks to God, the women I employee can buy clothes or a piece of furniture, to support their homes. Such a tiny thing, that we made of scrap, is changing their lives, isn't it? “

~Nilza Barbosa Brazilian doll maker

Nilza Barbosa Brazilian doll

maker


VisionFund has developed the following resources:• Videos – Eight in Total• Digital Resources – Annual Reports, Brochures, Financial

Maps, VFI FAQ and QA Sheets• Internal VisionFund Newsletter – Email [email protected]

to be added• Articles/Human/Interest Stories/Press Releases available at

VisionFund’s media resource centre• MFI Overview Brochures• Internet Website• For more information visit:

http://www.visionfundinternational.org/media


Available Resources


Economy & Finance

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