Social return

We offer our investors and funders a guarantee of social responsibility. As a counterpart, it is essential that the projects that receive support commit themselves to submit the required reports of the activities carried out, attained impacts and expected results for the comming months.

We use the latest innovations in social performance tools to ensure and guide our partners to reach the right groups and provide services that help people move out of poverty.

Our social performance and impact assessment tools focus on:

Selection of partners

To ensure that the impact reaches our target areas, partners are selected in accordance with strict ethical and financial criteria: project partners must provide services and/or generate employment among disadvantaged groups; priority is given to women's participation in management and/or implementation; positive impact on community and absence of negative impact on environment; animal welfare; financial feasibility and suitable management in place.

Monitoring social performance

Oikocredit uses a series of monitoring tools to follow the results of social performance of our partners and confirm they stay in line with the standards of their sector, an also assess whether we are reaching our target market, identify changes in the segmentation of the portfolio, collect information for investors, and provide a database to support internal and external decision making process. Since December 2006 Oikocredit has been collecting social performance indicators of its MFIs partners, and since 2008 we also begun collecting data from our production and service partners.

Capacity building

Oikocredit provides capacity building (technical assistance) to partner organizations as a complementary service to loans and equity investments. It aims at reinforcing their social and financial performance.

Close local presence

Oikocredit’s decentralized structure lets us keep a close contact with our partners, which also allows us to hold them accountable to their social objectives and to gather their feedback to develop products and services.

Comprehensive involvement in the MF sector

Oikocredit, as a financial organization, aims to play a leading role in promoting integrity and social focus of the sector. Working with other actors in the microfinance sector contributes to improving transparency, accountability and generate an improvement on the offer of products and services.