Annie Nyangomba on the 2011 Annual Report

“Since 1996,” Annie Nyangomba says, “I was selling sweet potatoes in the main road and in the Masina Market. I was earning $10 daily and $260 per month, not enough to rent a house and feed my two children–Esther, eight, and Ephraim, seven–and pay their school fees. I was informed by my friend Miss Mwamba, a client of Opportunity DRC, that I could have the loan I needed to expand my business.” Since joining Opportunity, Annie’s income has risen 20% and she receives business training and advice from her loan officer, Pelagie Kawadio.

Annie didn’t want to open an account at a bank before because she thought it would be too expensive. But now that she has, she says she feels more secure and recognized. “Now I get more respect,” she says, ”and I hope to see my social life change. I feel more secure for the future of my children.” Annie’s goal today is to be financially independent and to open her own wholesale supply in the market. But her transformation is not merely financial. “I especially have a sense of hope. It’s like God is giving me a second chance to change my life.”

Annie’s story is inspiring, but it’s not unusual. By the one-year anniversary, this past May, of Opportunity DRC’s grand opening, more than 5,000 Congolese clients had received over 8,000 loans to grow local businesses and increase their incomes, not only empowering them to help their families, but strengthens the local economy as well. In addition to loans, clients receive extensive training in business management, leadership skills and personal development, enabling them to improve their lives economically and socially. Opportunity has opened our second Kinshasa branch in the local Gambela marketplace, expanding to reach more of the local community. Through biometric identification we’re able to access women with their first-ever access to formal banking. Today, approximately 66% of Opportunity DRC’s clients are women.

In 2012, Opportunity DRC is on track to reach our milestones:

• We will open a third and fourth branch by the end of the year.
• We will expand beyond Trust Group loans, adding small group and salaried loans.
• We have applied for a license to take deposits so that we will be able to offer families a safe place to save their earnings.
• We’ll introduce more training modules in financial education for our clients.
• Through the support of corporations, individuals, and bi-lateral and multi-lateral contributors, Opportunity aims to grow from 5,000 clients to over 10,000 clients.

Opportunity DRC CEO Gilbert Lagaillarde says, “The economic outlook in the DRC today is one of hope. Opportunities are opening up for sustainable economic growth, and Opportunity International’s presence here is evidence of that. There are many good things ahead.”

For more on our clients, our work and our impact, read the 2011 Annual Report here.

At the event, Gilbert Lagaillarde, Opportunity DRC’s CEO, and Keith Flintham, Chair of Opportunity DRC’s Board of Directors, addressed the crowd, giving updates on Opportunity DRC’s progress, praising the hard work and dedication of local staff members, and acknowledging the support of the global and local strategic partners who have helped make Opportunity DRC’s growth possible. Among those supporters are the DRC’s Central Bank, the U.S. Embassy, and Opportunity’s private supporters and global strategic partners, including the Bill & Melinda Gates Foundation, UNCDF, UNDP, USAID, Freeport MacMoRan & TFM Co., the Caterpillar Foundation, SAJE Foundation, Ralph Doudera/Simply Distribute Charitable Foundation, Robert and Martha Haley, the Michaelsen Family, Dr. Sandra Crowder, and Robert J. Perry. Three churches–Christ Presbyterian Church of Edina, Minn.; the Paul Carlson Partnership/Evangelical Covenant Church; and the Christ au Congo Church–also lend crucial support to Opportunity DRC. In addition to this list, Flintham thanked our other partners, including consultants, auditors, suppliers and more. ”No matter what role you have played,” he told attendees, “your support is invaluable for the worthy cause we are called to serve. Because of all of you, I see a bright future not only for Opportunity DRC, but for our growing numbers of clients whom we have the privilege to serve.”

Lagaillarde followed up Flintham’s thanks by expressing his gratitude for the hardworking local staff. ”This past year,” Lagaillarde said, “I’ve been blessed to work alongside an amazing group of 50 dedicated and talented staff members, including over 22 loan officers who are at the heart of our work, offering support and counsel to every client. I am extremely grateful to each and every one of the staff members.”

Lagaillarde also gave an update on Opportunity DRC’s progress. Since January 2011, he shared, more than 5,000 Congolese clients have received over 8,000 loans to grow local businesses and increase their incomes, which not only empowers them to help their families, but strengthens the local economy as well. In addition to loans, clients receive extensive training in business management, leadership skills and personal development, enabling them to improve their lives economically and socially. We’ve opened our second Kinshasa branch in the local Gambela marketplace, expanding to reach more of the local community. And Opportunity is among the few financial institutions in the country to utilize biometric identification for clients to access their accounts, an important layer of security especially for women. Today, approximately 66% of Opportunity DRC’s clients are women.

In 2012, Opportunity DRC is on track to reach our milestones:

• By June, we will open a third branch in Kinshasa.
• Our fourth branch will be opened by end of the year.
• We will expand beyond Trust Group loans, adding small group and salaried loans.
• We have applied for a license to take deposits so that we will be able to offer families a safe place to save their earnings.
• We’ll introduce more training modules in financial education for our clients.
• Through the support of corporations, individuals, and bi-lateral and multi-lateral contributors, Opportunity aims to grow from 5,000 clients to over 10,000 clients.

Lagaillarde shared that the goals in the long-term are to serve more families across the large country of the DR Congo with a strategically placed network of low-cost branches, ATM kiosks and point-of-sale (POS) devices placed in retail agent partners, and to be at the forefront by enabling our clients to transact with our bank via their cell phones. Once Opportunity DRC achieves scale in terms of client numbers, loan portfolio, deposits and infrastructure in Kinshasa, we plan to expand into geographically remote areas of DRC with a comprehensive rural program that includes tailored financial products for smallholder farmers and small businesses within the agricultural value chain.

“The economic outlook in the DRC today is one of hope,” Lagaillarde said. “Opportunities are opening up for sustainable economic growth, and Opportunity International’s presence here is evidence of that. There are many good things ahead. [...] With God’s help and the support of our donors, investors and staff, we hope to see a client base of 10,000 in 2012 grow to 100,000–and when we reach 100,000, we will not be satisfied. We are looking forward to the day when every family in the Congo has access to the financial services that can help them increase their income, save for the future, create jobs for their neighbors and transform the economy of this nation. [...] On behalf of the entire Opportunity International family, we offer our continued commitment to the clients and staff of the Opportunity DRC and thank the people of Kinshasa who have so warmly welcomed us, and who have never given up hope for a better future.”

Keith Flintham echoed this dedication to our work in the DRC and expressed our mission this way: “For Opportunity International, serving our clients in the DRC, in Africa, and beyond is not a job. It is a calling. We feel called to make a positive difference in the lives of our clients, their families, and in their communities. It is our great privilege to serve them, and we feel blessed that you have taken the time to join us today and share in our one-year anniversary event.” ]]> http://www.opportunity.org/blog/one-year-anniversary-of-grand-opening-of-opportunity-drc/feed/ 0 http://www.opportunity.org/blog/what-were-reading-tapping-into-the-potential-of-the-unbanked-in-the-drc/ http://www.opportunity.org/blog/what-were-reading-tapping-into-the-potential-of-the-unbanked-in-the-drc/#comments Wed, 16 May 2012 17:11:44 +0000 Kadita Tshibaka http://www.opportunity.org/?p=22111 Read more...]]> This post, “Tapping into the Potential of the Unbanked in the DRC,” was originally published Wednesday morning on ACCION International‘s Center for Financial Inclusion Blog, written by Kadita Tshibaka, a member of Opportunity‘s Board of Directors. Kadita was born and raised in the Democratic Republic of the Congo, and spent 33 years working around the world in Citibank‘s Operations, Credit/Risk, Financial Institutions, Treasury, Corporate Banking, and Country Management, culminating in his role as head of corporate credit risk for Emerging Markets, overseeing operations in 77 countries. He has provided leadership and support to Opportunity since 2003, joining our Board of Directors in 2008. Click here to read the original post on the Center for Financial Inclusion Blog.

The “Global Findex” (Global Financial Index Database)–a project by the World Bank, funded by the Gates Foundation–has only been out for a couple weeks now, and already I am seeing its use for my own work in the Democratic Republic of the Congo (DRC).

In the 1970s, I was privileged to be part of the team that launched Citibank in my country, the DRC, an experience that was to become useful for another start-up in the Cote d’Ivoire and later, decades later, in Eastern Europe. My career in banking started in operations where cash and tellers were part of my responsibilities. While I was formally exposed to cash first hand, Citibank was a corporate bank in the DRC, with very limited offerings of individual deposit accounts.

This experience with Citibank, while useful and educational, contrasted in many ways with my experience in cash management as I was growing up.

First, my family had very little of it (cash). Second, whatever little they had would be hidden in mattresses or in crevasses in our mud huts. This was the case with my sister, the oldest in our family, who sold peanuts to earn the small sums she saved under a pillow. As she related to me during a summer vacation, she was saving for the dowry that I would need to pay for my future wife. Little did she know I would end up getting a scholarship to attend university in America at one of the best institutions in the country, Dartmouth College, and marry an American woman who did not need a dowry!

In my youth, I was also able to see my mother joining arrangements with a group of other women where they would contribute small sums that they would take turns using to help members gather the lump sum needed for punctual needs such as funerals, marriage, school fees, etc.

Now, 40 years later, I continue to see complex money management in my life in the U.S. Those without bank accounts can go to check-cashing stations. The college-aged might ask for informal loans from their parents or for government-supported loans. ATMs are readily accessible to American consumers. So, whether in America or in the developing world, people are always balancing their money, be it through formal or informal means (Daryl Collins et al.’s Portfolios of the Poor confirms this observation).

When the Global Findex was published, I was especially interested in the formal versus informal financial tools in the country that continues to be close to my heart—the DRC. Talking about money management, see the chart below, which shows how the DRC compares with the rest of Sub-Saharan Africa and the world.

Chart of formal vs. informal financial tools in DRC compared to rest of Sub-Saharan Africa and the world (Source: Global Findex)

When we compare the formal financial sector in the DRC to its Sub-Saharan African context and to the rest of the world, it lags considerably behind. We do know, though, that despite an underdeveloped formal financial sector, the Congolese people, like their counterparts elsewhere, are managing their finances. They just do it in different ways. Look, for example, at the data on credit (in the next chart below). While only 2.5% of people in the DRC have a loan with a financial institution, about 30% of people have a loan from a family or friend.

Chart of sources of credit in the DR Congo (Source: Global Findex)

The problem is that there is a limit to how much credit friends and family can offer. And where the generosity of family and friends ends is where the need for formal institutions is felt. The demand is strong, as we can see. People are accessing loans from different sources and are especially reliant on their personal networks. There are only a handful of microfinance organizations in the DRC, but those that are there—Opportunity International, FINCA, ProCredit, and others—are working hard to provide alternative sources of credit.

These efforts are very welcome for a country with an estimated 71 million people and where only a small fraction–less than 1%–has access to formal financial institutions. When I visited Kinshasa for the official inauguration of Opportunity DRC in May 2011, about 2,500 Congolese were already benefiting from loans at our four-month old institution. Some 70% of these clients were using formal banking for the very first time in their lives, an astounding statistic that is increasingly being addressed by the opening of new microfinance institutions in the country!

As important, or more important, as credit, however, are safe places to save. While the survey reports that 25% of people saved in the past year, only 4% of all respondents have an account in a formal financial institution. Eight percent saved in a savings club. What about the other 13%? Where are they putting their funds? Again, just as credit is happening informally in the DRC, so are savings activities. Funds are going under mattresses or in tin cans.

Kadita Tshibaka at the grand opening celebration of Opportunity DRC in May 2011.

I am challenged by this data. I realize that in Opportunity’s work in the DRC, we must work hard to earn the trust of clients and continuously strive to offer them cost-effective products and services at costs that they can afford. This is where the judicious use of technology can help as delivery costs are lowered and the resulting gains are transferred to clients. Opportunity DRC has applied for a deposit-taking license to give the Congolese people one more safe place to keep their small savings–somewhere better than mattresses.

When I talk about tapping into the unbanked, therefore, I mean tapping into what they are already doing on their own by giving them the facilities and tools to manage their funds securely and more effectively.

Thanks to the Global Findex, we now have a visual of what this looks like. In the graph above, what I would like to see over the next decade is for that bar on the far left to grow, indicating that people are able to get credit from a formal financial institution when they need it. We’re pushing for choices; we’re pushing for quality; we’re pushing for inclusion; we’re pushing for fairness and respect in our dealings with our clients; we’re pushing for transparency; and we desire to build sustainable institutions focused on delivering transformative services to our clients.

Facilitator: Connie Stryjak, senior VP, human resources

Panelists:

Anessa Chui, program manager, Credit Suisse, Hong Kong

Nadine Pembele, training director, Opportunity DRC

In the next five years at Opportunity we will be hiring close to 7,000 staff making a strong training program–very important to bring staff up to speed. Opportunity is looking to develop a culture of leadership within the organization. In order to do this, Opportunity’s Emerging Leaders Program (part of the Goldman Sachs 10,000 Women initiative) and Hire Right, Train Right, Treat Right programs were created.

The Emerging Leaders Program (ELP) was designed to help the organization:

• increase the quality and bench strength of the leadership pipeline
• improve performance management and the authentic values-based relationships with employees
• improve holistic transformational impact among staff and clients
• improve business results, increase leaders`engagement, retention, and team work
• blended employee development system

Hire Right, Train Right, Treat Right (HTTR) is an in-branch, leader lead training that looks at developing our core values and create the standards for development.

Opportunity’s newest bank in the Democratic Republic of the Congo (DRC) has been a great training ground for implementing these programs that have been designed to adapt to the local culture. Since starting with their first client in January 2011, the DRC has grown to 5,350 clients and recently opened up its second branch.

Questions:

Anessa, why is Credit Suisse supporting Opportunity and interested in capacity building?
They wanted to do something that was different in a way to support microfinance. It is also a great way for them to lend their skills to Opportunity. They choose Opportunity because they are interested in partnering with organizations that are focused on what they do and know that business, so Credit Suisse can then help them expand in other areas of need that may be lacking.

Staffs’ reaction to the training–they were very excited to be able to work for Opportunity and excited that the organization is interested in seeing them grow as people. It is a new culture that Opportunity is bringing into the Congo that is not about management overseeing them, but working alongside them with respect.

How do you blend the values of the traditional banking with the non-profit in training?
It is by focusing everything on the core values, creating the “Opportunity Way,” that will help set the expectations and the staff is expected to keep a specific standard based on these values. At the same time, the leadership will also be working under those values and the staff will be able to expect the same respectful treatment.

One of the challenges that Opportunity has had is in staff retention because the word on the street has been “let Opportunity hire them and train them and then we will hire them”

In addition, employees come because of the mission of Opportunity. They could work elsewhere for more money, but they are there for the mission. They are loan officers but are also marketers, debt collectors, social workers and more. As Connie sees it, “The heart, hands and feet of Opportunity are our loan officers.”

This post was written by Andrew Macdonald. Andrew is the Manager of YAO and Philanthropy for Opportunity International Canada. In his role, he is excited about seeing Canadians meet their dreams of making a global difference and transforming their own lives.

Odette Ngonza (left) and Monique Moseka Mwembu (right) have received loans and training from Opportunity DRC Loan Officer Henriette Ndjoka Wembonyama (center). Odette says, "Thanks to Opportunity, we are now a family."

As Opportunity DRC CEO Gilbert Lagaillarde explains, financial training is a key part of providing financial services to clients. “There is a critical need to orient clients to the dynamics of group lending. Clients who expressed disappointment by other loan providers said they didn’t fully understand all aspects of group lending, which led to a lack of trust.” That’s why Opportunity DRC educates each and every client on the services they provide, so that they can get the most out of their loans, effectively breaking free of the limitations of poverty.

Currently, Opportunity DRC has a staff of 32–11 of whom are loan officers. The staff, comprised mostly of university graduates, is subjected to a rigorous recruitment process. Recently, five women graduated from the Goldman Sachs’ 10,000 Women Emerging Leaders Program. This program provided the women with the knowledge and skills they needed to become training managers. One of these women, Nadine Nzenza Pembele, is currently a training officer but aims to continue her education and eventually earn a position as a Human Resource Manager. She has vowed to do her part to make Opportunity the premiere microfinance institution in the DRC, making a difference in the lives of her fellow Congolese citizens.

Since launching our operations, Opportunity DRC has distributed hundreds of loans and has provided in-depth financial training along with each one. In the future, Opportunity DRC will secure its deposit-taking license to begin accepting savings deposits, and they plan to open more branches in Kinshasa.

To learn more about the work of Opportunity DRC and its clients, stay tuned to both the Opportunity Blog and our Facebook page.

Tshibaka, a former executive at Citibank, now serves on Opportunity’s Board of Directors. In this June 7th interview with VOA‘s Ndimyake Mwakalyelye, he talks about how Opportunity DRC’s services are improving the lives of the Congolese people at the bottom of the economic pyramid, the importance of education, and Opportunity DRC’s educational microfinance loans that enable clients to build schools and educate the children who are “the future of Africa.” As interviewer Ndimyake reiterates, “These people have the dreams but no access to the money.”

Watch this clip of the Voice of America interview:

Opportunity International staff around the world have been eagerly watching our Facebook and the Opportunity Blog all day, keeping up with news and updates from today’s grand opening ceremony at Opportunity Democratic Republic of Congo (DRC) in Kinshasa. Presenters at the celebration and ribbon cutting ceremony included Opportunity DRC CEO Gilbert Lagaillarde; Opportunity International US board member and Congolese native Kadita “A.T.” Tshibaka; Opportunity International Africa Chairman Francis Pelekamoyo; UNDP Country Director Adama Guindo, and Central Bank of the Congo Governor Jean-Claude Masangu Mulongo.

Watch the video above, check out our updates on Facebook, and read the previous blog post.We’re excited to report in the coming weeks and months on all the ways access to microfinance services will help our Congolese clients create change in their lives.

Central Bank of Congo Vice Governor (left, gray tie), Opportunity International's Kadita "A.T." Tshibaka (center), and other Opportunity supporters and dignitaries at the ribbon cutting of Opportunity’s new community bank in the Democratic Republic of Congo (DRC).

The grand opening ceremony was attended by local government officials and dignitaries, Opportunity representatives from the DRC and the United States, as well as donors, supporters and clients. Among the presenters at the grand opening were UNDP Country Director Adama Guindo and Central Bank of the Congo Governor Jean-Claude Masangu Mulongo. Also presenting and welcoming the honored guests were Opportunity DRC CEO Gilbert Lagaillarde; Kadita “A.T.” Tshibaka, a Congolese native and member of Opportunity’s Board of Directors; and Opportunity International Africa Chairman Francis Pelekamoyo.

Lagaillarde addressed the crowd, saying: “We are pleased to share in this momentous occasion with those of you who have gathered here today. Opportunity International has been laying the groundwork for several years now to open here in the DRC, and it is gratifying to see all of this hard work come to fruition. We are especially grateful for those who have supported us in the endeavor, and proud to now begin providing Congolese citizens with access to safe and affordable financial services.”

Within its first three years of operation, Opportunity DRC expects to mobilize US $4.7 million from 24,000 depositors, and disburse more than 47,000 small business loans. During that time period, Opportunity DRC also expects to add four full-service branches to meet the needs of the people working their way out of poverty.

About the Congo

With an estimated population of 71 million, the DRC is the third largest country in Africa, and among the 20 most populous countries in the world. Offering an abundance of natural resources, the DRC is spread across nearly one million square miles, making it roughly the same geographic size as all of Western Europe. Despite its vast population and national resources, it is also one of the most impoverished countries in the world, with a per capita GDP ranking of 227. Currently, only 1% of the DRC’s citizens have access to basic financial services.

Vice Governor of the Central Bank of the Congo cuts the ribbon at the grand opening ceremony.

Speaking on behalf of the Central Bank of the Congo, Mulongo said: “I am proud for the great strides that the DRC has made in overcoming inflation, boosting growth, and stabilizing the Congolese franc, but we still have much to accomplish. The establishment of Opportunity International’s network of microfinance institutions here in the DRC is an important step toward improving the economic prosperity of our citizens, and I am excited about the impact that improved access to financial services will have on the growth of our economy and the expansion of commerce within the DRC.”

For more details on our grand opening celebration, check out our press release here. At Opportunity, everyone on our global staff is looking forward to helping the Congolese people create change in their lives through microfinance and we can’t wait to see their progress in the coming weeks and months. Stay tuned to our blog and our Facebook page for more updates on the clients and exciting work of Opportunity DRC.