FINCA International/FINCA Haiti
SCF Investment Narrative
This SCF investment assists one of the most socially and economically impoverished communities in the world. SCF invested in FINCA International, which then directed the funds to its FINCA Haiti Affiliate as desired by SCF. This Affiliate program is one of the most high-risk and underfunded given the ongoing nature of the country’s political instability, economy and the destruction and destabilization caused by the 2010 earthquake. The FINCA Haiti loan fund targets offers small business loans to individuals as well as to groups through its Village Banking model.
Area Needs Profile
Haiti is the poorest country in the Western Hemisphere (even prior to 2010 earthquake) and one of the poorest and least developed countries in the world, with 55% of the population living below the poverty line of $1.25 per day. The literacy rate is 53%, the average life expectancy is 29.3 years and unemployment is 67%
About 3 million people were affected by the quake: approximately 300,000 people died and 300,000 injured; an estimated 1-1.5 million were made homeless; and 180,000 buildings were damaged or destroyed. The cleanup of the 10 million cubic meters of rubble alone is estimated to take between 10-20 years and securing the pledged international humanitarian and economic development aid funding has proven incredibly difficult.
Recipient and Organizational Profile
Recipients: Historically, FINCA Haiti borrowers are 91% women and are extremely low income. Many get loans as part of FINCA’s “Village Banking” program which offers group loans designed to reach the poorest of the working poor.
Organization: FINCA International provides financial services to the world’s poorest families so they can create their own jobs, raise household incomes, and improve their standard of living. It delivers these services through a global network of 21 locally managed, self-supporting institutions. FINCA targets its services toward poor women living in the Americas, sub-Saharan Africa and Eurasia including Central Asia, the Caucuses and the Newly Independent States. By providing very poor families with microloans, individual loans and Village Banking group loans empowers people to create their own jobs, raise their incomes, build assets and increase their families’ well-being.
“It was important to the SCF Board and leadership that one of our inaugural investments address the devastation caused by the Haiti earthquake and the country’s long standing economic challenges. A stronger business class is critical to Haiti’s long-term recovery and FINCA Haiti is working successfully to build this sector through its small business microloan program.”
– Deborah La Franchi, SCF CEO