2 Foundation partners honored in the 2023 microfinance index

When defining its impact model in 2019, the Foundation set itself the goal of improving the living conditions of vulnerable populations. To measure the achievement of this objective, the Foundation needed to collect data on the ground, directly from its partners' clients.

In 2022, the Foundation contributed to the first microfinance index created by 60-Decibels, a company specializing in social impact measurement, which surveyed nearly 18,000 clients of 72 microfinance institutions in 41 countries that year.

In 2023, 60-Decibels expanded its index coverage by surveying more than 30,000 clients from nearly 110 MFIs across 30 countries. This year, the Foundation once again contributed to the index by co-financing eight impact studies to expand the number of partners it engages with on the theme of impact and contribute to a particularly innovative and promising initiative for the sector to improve its impact.

What results in 2023?

• Clients continue to access microcredit for the first time;
• Customers who use their loans for business purposes (rather than consumption) report better outcomes for their households and businesses;
• There is a repayment burden, which has an impact on individuals and households. This last point reminds us of the importance of having institutions that are committed to applying customer protection standards, such as microfinance institutions committed to the customer protection path.

The Foundation's partners are on average outperforming the 2023 benchmark (well done to them!) and some are even champions in their region (MLF Zambia in Africa and Humo in Asia).

The Foundation has therefore decided to engage, in collaboration with the other co-financiers (Global Partnerships, SIDI, Symbiotics, Gojo, Triodos, Triple Jump, Baobab Group, VisionFund International), discussions with each MFI on the results in order to support them in taking action. Most MFIs plan to communicate the results (internally and externally), to deepen customer surveys to explore the findings that have interested them, or to improve communication in branches.

The Foundation hopes to continue its collaboration with its partners and 60-Decibels in the coming years to continue to engage its partners in measuring results, so that they can improve their products and services through customer feedback.

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