How Oikocredit works








Equity investments in partners



Social Enterprises

Renewable energy


Oikocredit is an international cooperative which invests members’ funds in social enterprises and organizations around the world, with a high impact in development and in line with its social mission. We provide credits, support and investment capital to organizations that extend finance to the people and projects who most need it.

This infographic shows you how Oikocredit’s business blended model works.


Individuals and organizations invest in Oikocredit looking for a modest financial return but a high social return.

Investments in Oikocredit can be made through various financial products, including shares and convertible notes.


Organizations also lend funds to Oikocredit.


Oikocredit maintains a certain amount in reserves to manage its exposure. This enables Oikocredit to invest in countries or partners that need funding but are deemed to be risky.

Our reserves are pooled in with the other incoming funds, so we can draw on one single pool of funds to make our loans and investments.

Total funds

All resources that Oikocredit receives are pooled in its total funds. By doing this, we make sure we can balance loans and investments in riskier regions with more secure financing elsewhere.

Our way of blending all our resources together enables us to put our mission first, and ensures that we are a very stable organisation, pioneer in financing development.


Oikocredit provides loans to microfinance institutions (MFIs) and other organisations, including farmer’s cooperatives and small to medium enterprises. We select our partners through a series of ethical and financial criteria and a thorough due diligence process, to ensure we effectively reach those who need financial support to achieve a sustainable improvement in their lives and their communities, but lack enough opportunities. Oikocredit refers to all of these organizations that help us in carrying out our mission as partners.

Oikocredit aims for long-term relationships. Once a partnership is established, Oikocredit carries out social performance monitoring and mentoring, and occasionally assists partners with technical assistance.

To make borrowing easier for our partners, Oikocredit provides loans in hard or in local currencies, and the rates, terms and guarantees are reasonable and defined case to case with the client.

Equity investments

Oikocredit also directly invests in socially responsible organizations that are aligned with our mission and values. We invest in equities for dual returns: development impact (social performance) and capital gains to cover operative costs, risks, and dividends, and reinvest in portfolio growth.

Oikocredit has a specialized equity team to manage its investment portfolio.

Ethical term investments

For risk management and liquidity purposes, Oikocredit maintains a portfolio of ethical term investments besides its loans and investments.


Oikocredit invests in various countries in Africa, Asia and Latin America, through regional centres and local representation in the focus countries.

Direct investments

In our region, over 30% of the portfolio goes directly to cooperatives and other social enterprises. These direct investments are usually in agricultural producers, trade cooperatives and small to medium enterprises.

Renewable energy

Oikocredit provides financing for solar, wind, small hydropower, biomass and energy-efficiency projects.


In SASR region, over 60% of the portfolio goes to microfinance institutions. These partners have the know-how and local expertise to provide small loans and other products (savings, insurance, etc.) to people who need them but would otherwise have no access to these services, usually for lack of collaterals.

Part of Oikocredit’s mission is to empower those in disadvantage to deliver a positive impact in the world and on the lives of people, reaching out to vulnerable sectors like women and people in rural areas. Over the years we’ve learnt how to carefully select the partners we work with, monitor their programmes and improve the quality of their work, to make sure that our support reaches the people it’s intended for. Over 50% of the clients reached by our partners are women, and around 20% live in rural areas.

Investors' return

Investors receive a modest financial return on their investment.

Lenders' return

Lenders receive a modest return.


A percentage of the funds repaid by partners flows back into Oikocredit's reserves.