Micro Enterprise Financing Limited

1. Combating Poverty in Jamaica Micro EnterpriseFinancing Limited

2. Miss UlgaBillett

3. Agenda • Brief overview of MEFL • Analysis of business relationships • How they are doing a better job of addressing poverty in Jamaica • Superior business practices • Focus on poverty’s root causes • Broad reach

4. An Overview of MEFL • Founded in 1996 as a partnership • Four branches • Over US$7.3 million in loans to over 13,000 clients • Average loan size: US$500 • Repayment rate: 96% • Over US$436,000 in savings • 67% self-supporting

5. An Overview of MEFL • Strong values and principles • Accountability • Sustainability • Scalability • Aggressive goals

6. Relationships Create Competitive Advantages CIDA KRC Promotion of MEFL Identification of borrowers $$$ MEFL Social Collateral Interest & Principal Training Loan Micro Enterprises New clients Capital Compulsory savings Interest payments Credit (eventually) Scotiabank

7. Causes of Poverty in Jamaica Lack of Education Poor Social Programs High Violence Poverty High Gov’t Debt Little Investment Weak Currency High Unemployment High Import Levels

8. How is MEFL Doing a Better Job? • Superior business practices relative to other NGOs • Emphasis on treating the causes of poverty rather than the symptoms • Ability to help a larger number of qualified individuals: • Through different product offerings • Through geographic reach • Through minimal collateral requirements

9. Superior Business Practices Careful selection of loan recipients Exceptionally low delinquency rates: 2-5%, compared to as high as 38% for other MFI’s in Jamaica Loan officer incentive pay system Superior delinquent accounts processes

10. Treat Causes Not Symptoms • Many other NGO’s only focus on alleviating poverty’s effects • MEFL has loan products to address the most important causes of poverty: • Lack of education resulting in a cycle of violence • Dependency on imports leading to high food prices and weak currency

11. Addressing Education & Violence Education Assistance Loan for Employed Individuals Increased Levels of Education Increased Human Capital/Curbed Violence Better Business Environment & Large Companies More Willing to Invest

12. Addressing Imports & Food Prices Manufacturing/Production Loans and Agri-Business Loans Local Food Production Reducing Imports Stabilized Currency/Lower Food Costs Better Business Environment & Large Companies More Willing to Invest

13. Addressing Imports & Food Prices Trade Services Loans Increased Bulk Purchases Economies of Scale Lower Food Prices & Higher Living Standards

14. Geographic & Product Reach • 3 types of existing loans • Each targets different needs and clients • Offices in major cities and all three counties in Jamaica • Locations where poverty and violence rates are highest • Future plans for expansion • Refinement of existing loans • Adapting to demand in rural economies

15. The Nature of Collateral • Jamaica’s economy is largely informal • Jamaicans may not be able to post collateral for loans • MEFL has no collateral requirement, but still has higher repayment rates than other MFIs

16. Conclusion • MEFL creates competitive advantage in several ways • Relationships with Scotiabank and government agencies • Superior business practices • Focus on poverty’s root causes • Access to diverse client base • MEFL will continue to improve and help alleviate Jamaican poverty

17. Questions?