John de Bruyn, with emcee Jenny Alexandra Reyes, leads the group in prayer

With 150 attendees at the beautiful Metropolitan Club, in the hills above Bogota, Opportunity Colombia’s CEO Enrique Ordonez and his staff were on hand to welcome the finance community, local corporations, donors, the Board of Directors and Opportunity International’s global operations staff. Jenny Alexandra Reyes, Chief of Collections at Opportunity Colombia, was the emcee, and John de Bruyn, Chair of Opportunity Colombia’s Board, led the group in an opening prayer, giving thanks for the opportunity to help people in poverty to transform their lives.

Opportunity Colombia CEO Enrique Ordonez at the podium

Enrique welcomed attendees and thanked staff and supporters. Since 1973, he said, loans have been a critical tool Opportunity used to help impoverished Colombians build or expand their businesses. In 1971, Mr. Ross Clemenger, a Canadian Citizen who developed his pastoral activities in our country, gave the first Opportunity loan in Colombia to Mr. Carlos Moreno. Though Mr. Clemenger passed in July, his work is more vigorous today that ever. But in these years, one equally vital tool was missing: savings. “Tonight,” Enrique said, ”we open the doors of a new financial intermediary that has as its sole objective to offer opportunities to the less fortunate [so that they can] save money.”

Alois Gitterle of Credit Suisse

Alois Gitterle, Director and Senior Client Advisor at Credit Suisse, highlighted the continuing need for capacity development, financial inclusion and effective training in the microfinance sector to keep up with its exponential growth. The collaboration between Credit Suisse and MFIs like Opportunity Colombia helps to accomplish this, enabling Opportunity to develop the people, processes and products it needs in Colombia to meet its social and financial goals and increase its geographic footprint to new areas, adding four new branches in the cities of Bogota and Cucuta. Alois discussed the Microfinance Capacity Building Initiative (MCBI), established in 2008, which is funded through the Credit Suisse Foundation and complements the bank’s long-term business engagement in the sector, leveraging their banking expertise. They’re proud of their long history in microfinance. They were recently awarded a special commendation for microfinance engagement in connection with the Financial Times/International Finance Corporation Sustainable Finance Awards in recognition of 10 years of comprehensive and complementary work in microfinance across all divisions of the bank.

Client Cecilia Oquendo Gomez prepares to cut the ribbon

Credit Suisse also contributes funding and expertise to the training of thousands of staff members at microfinance institutions around the world, including Opportunity Colombia. They help to develop a quality workforce by partnering with Opportunity Colombia in NextGeneration Banker staff training and development programs. And they helped implement the back-office technology Opportunity Colombia needed to gain constitutional and operational licenses, such as the T24 banking system. “Credit Suisse is proud to partner with the dedicated management and staff of Opportunity Colombia,” Alois concluded. “We’re satisfied that this is a bank that will continue to adopt best practices well into the future.”

The ribbon cutting

Harry Turner, CEO of Opportunity International’s Global Microfinance Operations, noted that what sets Opportunity Colombia apart from other local MFIs is its dedication to holistic client transformation. Clients gain improved economic status, are better able to build their capacity in business and in life, and they receive social support from their Trust Group and the guidance of their loan officer. And this philosophy led to Opportunity’s Code of Conduct, which reminds us to always treat clients with dignity, fairness and respect, offering transparent fees and clearly explained contractual obligations.

Cecilia Oquendo Gomez, one of Opportunity Colombia’s most successful clients, told the sad story of her daughter Vanessa’s long battle with cancer. When Vanessa passed away a few years ago, it was difficult not only because they had lost their daughter, but because their deep debt from her medical fees meant that they risked losing the business they had worked years to build. Even though Cecilia’s first loan from Opportunity was small, that capital and her subsequent loans helped her to slowly reestablish her family’s business.

David Simms hands a commemorative plaque to Carlos Moreno, with Enrique Ordonez at right

Finally, David Simms, Chairman of the Board of Opportunity’s Global Microfinance Operations, took center stage to thank Opportunity’s donor community for their unwavering support, patience and trust in the goal to make this day a reality. More than 1,000 partners contributed to this historic effort, including Credit Suisse; Caterpillar Foundation; Citi Foundation; InterAmerican Development Bank; private foundations (Soran Foundation, John and Jacque Weberg Foundation); as well as the Robert Jenkins Family, Warren and Mary Lynn Staley, and Alan Barnhart. David presented a commemorative plaque to Carlos Moreno, Opportunity’s first loan client, honoring him for his historical place in Opportunity International’s legacy.

As David told the crowd, “The grand opening and expansion of Opportunity Colombia is the result of a strong and sustaining vision, great commitment, hard work and abiding faith. I share this joyful moment with the entire Opportunity International family of staff and supporters.”

Congratulations on this wonderful achievement, Opportunity Colombia!

CEO Sam Chandar (left) visits with a client (June 2012).

At the same time, in India, where Cyclone Neelam touched down Wednesday in the states of Tamil Nadu and Andhra Pradesh, eleven people have been reported dead, power is down and schools and businesses are closed. Though relief and rescue teams across the country’s southern states have been deployed to combat the destruction caused by the storm, and the government is working to respond, the recovery will undoubtedly be slow for more remote and impoverished areas of southern India, where many Opportunity clients reside.

Early Wednesday afternoon, as an update to our staff, Harry Turner, CEO of Opportunity’s Global Microfinance Operations, sent this message from Sam Chandar, CEO of one of our microfinance institutions in India, describing the preparations for the storm.

Two of Opportunity’s women clients from Chennai (International Women’s Day, March 2011)

Chennai is bracing itself for the onslaught of Cyclone Neelam approaching us at a speed of 85 kilometers per hour [about 50 mph] and [it is] targeted to hit us in the next couple of hours. All harbors, schools, colleges and government institutions have been closed. Hundreds of trees are uprooted and there are power outages in several areas. It is raining heavily across Tamil Nadu. There are possibilities that the cyclone may change direction at the last minute and head for Andhra Pradesh. It is expected that Mahabalipuram on the coast will also suffer damage. As a precautionary measure we have advised our staff to leave early and return to their homes. As usual, in the spirit of [Opportunity India], we try to maintain calm even during the storm.

It’s times like these that we at Opportunity are grateful that we can offer some financial stability and help to our clients in extreme poverty. When a natural disaster hits, families already in a precarious financial position risk slipping back into a cycle of poverty. But fortunately, our Indian loan clients have support in rebuilding and growing their businesses if the unexpected occurs. In addition to small business loans, Opportunity India is also developing an emergency loan product and they’re working with our insurance subsidiary, MicroEnsure, to pilot health, life and accident insurance. In partnership with Habitat for Humanity, Opportunity India conducted a housing survey to measure the need and interest for financing home improvements. We’ve disbursed over 150 housing loans, which include loans for home improvement and incremental building purposes, as of September 2012.

Clients receive orientation for Opportunity India’s housing loan program in June 2012.

Though these products are helpful for our Indian clients, many undoubtedly will still struggle to protect their families and pick up the pieces after this tragedy. Please keep our U.S. colleagues and friends affected by Sandy, and our global staff and clients in India who are struggling with Neelam, in your thoughts and prayers now and in the coming days and weeks as they deal with the tragic effects of these storms.

We’ll continue to provide you with updates and reports from our leaders about our clients and our staff on the ground in India to let you know how they are faring after Cyclone Neelam.

Olympic torchbearer Lydia!

The British bank Lloyds TSB is an Olympic sponsor and a strategic partner of Opportunity-UK, and they had a spot available for a torchbearer. So Lydia’s Opportunity colleagues nominated her, telling the story of her upbringing and her family’s struggles in Ghana. Here is her story:

Lydia is Ghanaian. She has five brothers and her parents made ends meet in a two-roomed house through sheer hard work. Getting jobs was near impossible but a small loan from an organization like Opportunity International gave her mum the hand-up the family needed to run a microenterprise.

Despite constant money worries, the children’s education was her parents’ priority. They always said, “We don’t have ‘cocoa’ to leave you (meaning an asset) but acquire knowledge and no one can take it from you.” Lydia remembers selling vegetables and charcoal in the scorching sun to help the family. One of the best days of her life was to see the smile on her parents’ faces when she graduated from university.

For 10 years, Lydia has worked for Opportunity; serving impoverished clients and raising money to give countless families, like her own, a way out of poverty.

Well done on your Olympic moment, Lydia!

Lydia with the torch	Lighting the flame
Waving to the crowd	Handing off the flame
Lydia with Opportunity-UK’s (from left) Jaymini, Deborah, Sally and Angela	Triumphant Lydia with husband Akwasi and daughter Serwa

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/fathering-opportunity-meeting-congolese-client-and-father-figure-papa-roger/ http://www.opportunity.org/blog/fathering-opportunity-meeting-congolese-client-and-father-figure-papa-roger/#comments Tue, 12 Jun 2012 14:33:19 +0000 Harry Turner http://www.opportunity.org/?p=22674 Read more...]]> The following post is by Harry Turner, CEO of Opportunity’s Global Microfinance Operations, recounting his recent trip to DR Congo where he met Papa Roger, an extraordinary father and a father figure to a group of 17 orphaned young men.

Harry Turner meets Papa Roger (right), pictured with several of the young men taken in and employed by Papa Roger.

On our trip we visited client Papa Roger. There couldn’t be a more holistic view of a person committed to transformation than Papa Roger.

Papa Roger’s business is to cook sweet potato chips (you can see the bags of them in the photo at left). He wakes at four in the morning and cooks through to around midday because the quality of power in the afternoon makes it impossible to cook. (Indeed, the power was out when we visited him.)

The great part about his story is that he employs a bunch of young orphans (17-20 years old) to sell his product. You can see some of them behind us in this photo. Papa Roger had already brought up his own children and they’re now in school, but he took in these young men who had been quite destitute prior to meeting him. Now they have a home and an income, and they receive schooling in the evenings. Papa Roger listened with a proud smile on his face as one of the young men described how he had come to Kinshasa and how Papa Roger had provided him a home and a livelihood.

I asked Papa Roger how he used his loan and he replied, “To buy more stock.” At this stage, the income of the young men who work for Papa Roger is limited by the amount he can produce. When I asked him what his dream was for the future, he described that he wanted to buy a generator so he could produce more throughout the day, to provide better livelihoods for the young men whom he supports. He also had a dream that he could have a savings account and he wanted to encourage the young men who worked for him to have savings accounts as well so that they could save for the future.

These, I believe, are great dreams.

This Father’s Day, meet Opportunity’s male clients like Papa Roger, who take care of their children, and the children in their community, by using loans and training to grow their businesses, provide for their families and employ their neighbors. You can contribute to the livelihoods of these men at opportunity.org/fundaloan.

Image courtesy of www.sustainableenergyforall.org

Opportunity’s clients enjoy some of the world’s sunniest days–but they also experience the darkest nights. Lacking electricity, over a billion people around the world are forced to rely on kerosene lamps that emit no more light than a cigarette lighter, or on batteries that can supply power to a hut but require frequent refilling journeys to diesel-powered charging stations. This is defined as energy poverty–a lack of access to electricity, fuel and more efficient cooking technologies.

A QUESTION
Deborah then asked me if I knew of any initiatives across Opportunity International that sought to use microfinance to address energy poverty. I didn’t have an answer for her!

I’ve asked my colleagues if they’re using microfinance to respond to this energy challenge. And if not, do they know anyone who is. I asked, how are you using microfinance to fund sustainable energy initiatives? What other programs and innovations do you know of that address the needs of people without energy access? Here is what they told me…

Jeffrey Lee, CEO of Opportunity Rwanda:

Opportunity Rwanda has been providing microcredit in cooperation with NURU for microenterprises to sell renewable (bicycle-powered) energy to reduce the use of kerosene. This will also reduce the carbon in the air.

Opportunity Rwanda is also exploring partnerships to provide solar-charger units (with MTN) and solar-powered panels and lights for microenterprises (with Great Lakes Energy) to help preserve the environment.

Lydia Njoroge, CEO of Opportunity Kenya:

Opportunity Kenya is in advanced stages of developing an Energy financing product. Working closely with Lighting Africa to vet the providers of imported solar products for domestic and business lighting, charging cell phones, etc. We are entering into an MOU with the provider to ensure that there is continuity in terms of supply and maintenance. The product pricing will take into consideration our operational costs and the transformational benefit (cost savings) accrued from the use of the product. In a typical Kenyan household, it is the woman’s role to provide fuel for cooking and lighting and we anticipate a higher demand among the female clients.

Marissa Benner, Program Manager at Opportunity-US

Opportunity Uganda is working with the government of Uganda’s Rural Electrification Agency (REA). OBUL is one of six financial institutions involved in the program. They are providing loans (subsidized by REA) to access solar systems. The staff have been trained in basic solar products and the loan. To date, there are over 25 loan applications received and preparation for installation is in progress.

Leah Aguirre, Opportunity Philippines:

We are introducing green charcoal to our clients. The Philippines banned the use of charcoals made from wood and we find this a very good opportunity for our clients to make a living out of this. We want to distribute as many briquetting machines as we could to provide livelihood opportunities specially to the sugar farm workers who cannot cope with the needs of the family during off season of the crop. This will help save the trees as it only makes use of dried leaves. There is a high demand for charcoal in the market. The clients will then have the capability to return the money invested in the machine through the sales they make out of green charcoal they produce.

Rolando Victoria, Executive Director, Opportunity Philippines:

Since 2010, Opportunity Philippines in partnership with Hybrid Social Solution Inc. is promoting the use of solar lanterns not only to its clients but to the public as well. They can buy solar lanterns at Opportunity branches with cash or as part of their loan. Aside from solar lanterns, we are looking into other solar energy gadgets and equipment that can help our clients. We are also considering the use of solar panels in the hard-to-reach areas. Opportunity Philippines’s other environmental programs include tree planting–we hope that we can plant one million trees this year–development of spring water for the indigeneous people, and the use of organic fertilizer for our farming clients.

Annsley Scruton-Wilson, Program Manager at Opportunity-US:

Opportunity Ghana has spoken on several ocassions of their interest in exploring partnerships in the solar energy sector this year. This discussion is at the very early stages, although they may have completed some initial research.

Manfred Kuhn, CEO of Opportunity South Africa:

Opportunity South Africa has entered into a partnership with a supplier of solar powered water heating systems. We finance these solar water heating systems for our low-income clients.

Harry Turner, the panel facilitator and CEO of Opportunity’s Global Microfinance Operations, then got the conversation going by asking the panelist to talk about the technologies that are being used in the field.

Skoog talked about recent efforts to bring down the cost of Smart Cards that are being used by Opportunity across the globe. Currently, smart cards cost about $9.50 dlls. a piece. Such a high price is placing great limitations to increasing the client base. Daryl talked about current efforts to make these “Fake” Smart Cards into really smart ones by bringing down the cost to $.5 dlls. a piece.

Geoffrey Thige, COO of Opportunity Kenya, gave an overview of how cell phone technology is being used in Kenya. According to Geoffrey, a cell phone in Kenya is no longer a sign of status. “Everybody needs a cell phone.” And cell phones are now being used for banking every day. There is a large population still living in rural areas that rely on money transfers from urban areas. At Opportunity, they have been working to enable people make safe transactions from urban to rural areas using cell phones. “People at the bottom of the pyramid are now able to make transfers and get payments.” With only a secret code and an official ID, people in Kenya are now able to use their cell phones to get payments and manage their savings.

Richard Leftley, president and CEO of MicroEnsure, then talked about recent efforts to embed simple life insurance products into the cell phone plans of telecommunication carriers in Africa. This model has been very successful in helping telecom companies increase customer loyalty while OI clients have been able to get access to free insurance. “The more air time, the more free insurance.” In that way OI has been able to expand dramatically its customer base. Customers who never had access to life insurance before get to experience the benefits of being insured. Then it is easier to charge for better insurance service or for adding family members to their insurance plans.

Turner then asked the panelist to talk about innovations in the agriculture space. Daryl Skoog talked about the use of cell phones to gather data from interactions between clients and loan officers to get a sense of the kind of agricultural products that are being grown.

Leftley talked about the use of iPods to replace paper in enrollment operations. “iPods might look expensive but works much more cheaply than paper.” Using the case of a coffee cooperative in Tanzania, he talked about how paper is very costly due to illiteracy and the cost of storing, transferring, and managing paper applications. Using a weather-proof iPod touch they are able to capture and send information from clients, take fingerprints and pictures, much faster and cheaper than with paper applications.

Robert Westcott, CIO of Global Microfinance Operations, concluded the interventions from the panelists by talking about the potential of cloud computing. Currently, managing technology places a huge burden on management teams. Current computer systems rely a lot on IT teams, with very high costs on time, money, and energy. Through cloud-based software solutions they have been able to drive down the cost. However, Robert recognized, the weakness of the IT infrastructure in some developing countries will be a barrier in adopting cloud-based technologies.

This post was written by Emilio Martinez de Velasco Aguirre. Emilio is a PhD Candidate at UC Berkeley specializing in innovation and regional economic development. His research explores new initiatives to promote global innovation processes. As a consultant, Emilio has assisted various non-profit organizations developing strategies to create value for Latin America by linking local talent, knowledge and technology with actors and organizations in Silicon Valley.