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Social Performance Reporting. Comlan Ignace Dovi Director of Consortium ALAFIA Email : ignace.dovi@alafianetwork.org. Outline. Experiences in monitoring and evaluation Results and reporting indicators Findings and member reactions Overview and system successes
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Social Performance Reporting Comlan Ignace Dovi Director of Consortium ALAFIA Email : ignace.dovi@alafianetwork.org
Outline • Experiences in monitoring and evaluation • Results and reporting indicators • Findings and member reactions • Overview and system successes • Important program achievements • Lessons learned
Introduction • Consortium ALAFIA is the network of MFIs in Benin, established in 2000 with the purpose of advocating for and contributing to the professionalization and development of MFIs. • As of December 31st, 2009, it has 33 members: • Savings outstanding: $159 million • Loan portfolio: $163 million • Defaulted loan rate (90 days) : 3.9% • Number of active clients: 1.4 million • Number of service points: 440
Introduction • In terms of performance, though most members adopt different approaches according to their institutional structure, they manage to reach the poor and neglected and achieve social performance. • However, improvements are expected for better geographic coverage, lower service costs, and diversification of funded activities.
Experiences in Monitoring and Evaluation • ALAFIA published member performance analysis reports from 2002 to 2007. • Monitoring of and analysis of member performance contribute to the mission of providing information to industry stakeholders on member achievements and the sector. • This activity is not without difficulties. • A network specializing in project management should be supported in this work
Results and ReportingIndicators • The tangible results are i) the performance reports published between 2002 and 2007, ii) creation of the database and iii) lessons from ALAFIA’s experience passed on to other networks. • Members report on both types of indicators. However, the Central Bank’s financial indicators are reported on the most. Reporting on social indicators is still new to most.
Results and ReportingIndicators • The tangible results are i) the performance reports published between 2002 and 2007, ii) creation of the database and iii) lessons from ALAFIA’s experience passed on to other networks. • Members report on both types of indicators. However, the Central Bank’s financial indicators are reported on the most. Reporting on social indicators is still new to most.
Conclusions and memberreactions • Findings relate to institutional knowledge on performance (strengths and weaknesses), the sector, and the role of the institution with regards to competition • Members consider analysis to be a reliable source of information that they can reference for information on the sector and for compare themselves to other institutions.
Overview of the System • Secure and customizable Windows system • Captures financial and social data • Data processing (computing) for publishing financial ratios and social performance indicators (SPI) for each member using the system • Migration from the ACCESS database to the SQL SERVER • Automatically generates member performance reports consolidated by network
Lessons Learned • Choosing the right development platform from the outset in order to avoid starting over (e.g. problem with database license) • Implementing the system in MFIs’ facilities is not without difficulties (e.g. problems with operating system compatibility, driver files, etc…) • Availability of stakeholders improves the quality and implementation of the project and allows it to be completed on time
Conclusion • Social performance reporting is necessary for the social transparency and effectiveness of MFIs, which is a network objective • Creating relevant, sophisticated, and easy-to-use measurement tools may motivate MFIs to further pursue social goals. • It is important to have trainings on social performance tools so that MFIs adopt them in the same way as financial reporting tools. • It is necessary to coordinate, normalize, and standardize social performance indicators in order to facilitate the dissemination and collection of more comprehensive and reliable information on social performance from MFIs.