Social performance management and capacity building
In addition to giving out loans and financing to enterprises, Oikocredit found it vital to give more support to strengthen the organizations they work with to improve viability and sustainability, so as to deliver the promised social benefits. This is done through "capacity building" in areas of governance, risk management, staff development and client protection and social performance management.
Eligibility for capacity building funding
In general, all Oikocredit’s partners are able to apply for funding for a specific capacity building intervention. During a due diligence or during the relationship that is built up between an Oikocredit loan officer/country manager and a partner organization, it becomes easy to determine specific needs in the organization. Capacity building can also be attributed to potential partner organizations.
If certain areas for strengthening are determined by the analysts. Finally also other type of stakeholders, like staff of Oikocredit or partners, network organizations and end clients may be supported from the capacity building. A beneficiary organization is obliged to contribute 20% of the total budget of an intervention. This increases commitment and secures the fact that the intervention is really contributing the.
It is regarded as a valuable feature of Oikocredit’s capacity building program that interventions are based on the needs of partner organizations.
Oikocredit support the following key areas:
- Risk Management & Governance
- Social performance Management
- Market coverage analysis and strategic positioning
- Product Development
- Agricultural Value Chain Finance
Risk Management & Governance
Risk management is an area that focuses on addressing one of the main risks for our partner organizations and through them also for Oikocredit. It may encompass all sorts of risks an organization is facing, like credit risk, governance, market risk, exchange rate risk, agricultural risk, and internal audits. Interventions in this area are typically given in the form of training. This may be an introductory training to a group of organizations in a country/region or an in-house training in for example one MFI. Next to training of staff of or our partner organizations training of Oikocredit’s own staff, has been an important aspect of Risk Management interventions.
For production organizations Oikocredit can support exchange visits or seminars in training and learning from each other in the field of market risks or improved production techniques to reduce i.e. agricultural risks (harvest, weather, climate change).
For an example of capacity building, read the case study of the Nakasongola SACCO or the case study of the Revival Church SACCO.