ENDA is the first, and still the only, organization to introduce international best- practice micro-credit in Tunisia, thereby ensuring sustainable credit services to increasing numbers of Tunisian micro-entrepreneurs. The programme serves Tunisia’s urban disadvantaged populations, as increasing numbers of Tunisians live in urban areas (more than 60% in 2005), as a result of rural exodus. ENDA is one of the few NGOs operating in urban development within the country, contributing to the reduction of urban unemployment and increasing family wellbeing. In a country where charity-based social programmes are highly developed and there is a strong tradition of non-repayment of government-provided loans, ENDA has achieved a repayment rate surpassing 99% since the inception of its programme. Since it launched its micro-credit program in 1995, ENDA has developed a strong record of innovation and creativity in the delivery of financial and non-financial services to micro-entrepreneurs, constantly adapting its products to its clients’ needs. In terms of innovation in financial services, ENDA is the first MFI to have introduced group guaranteed lending in Tunisia and has distinguished its services from many other MFIs by offering group as well as individual loans. The groups are often mixed and have women as their leaders, enabling women to exchange experience with their male counterparts on the men’s business world. ENDA also offers an innovative set of parallel loans, small amounts that can be accessed by the clients to increase inventory during periods of higher sales or to seize an opportunity requiring quick cash, allowing higher profits. ENDA has recently established disaster loans to cope with unforeseen events such as floods or fire, and a provident fund to support client’s families in case of death or incapacity. Through its non-financial services programme, ENDA has provided female micro-entrepreneurs with opportunities to meet, network and develop their skills together, providing a social safe-haven for them, much like the traditional cafés are for men • Business development services include promotional fairs in various areas of the country, allowing women to increase their sales and develop confidence thus contributing to their empowerment. . Excursions, sometimes to low-priced areas and sometimes simply to visit the country, as well as get-togethers, serve to promote networking between the clients.

ENDA began its micro-credit programme in Hay Ettadhamen, the largest poor suburb in the country, with only $20 000 USD in capital and a mere 22 active clients. At that time it had no professional experience in micro-credit. Over a period of ten years, it has received just 2 million DT ($ 1,6 million) in grants for lending capital. With this capital, loans to a total value of 34 million dinars ($28,3 million) have been made and nearly 3 million dinars ($2,5 million) have been capitalized. Today, its portfolio has reached 4500 000 USD serving over 17000 active clients. In the past ten years it has granted more than 82 000 loans to Tunisian micro-entrepreneurs. It achieved financial sustainability in 2003: ENDA is one of only 9 sustainable MFIs in the Arab States, and the only one in Tunisia. ENDA continues to expand, bringing its services to a range of poor urban districts across Tunisia. In 2004 it opened four new branches in towns outside of Greater Tunis, and it plans to open another five in 2005. By 2009 ENDA will be able to serve 100 000 micro-entrepreneurs throughout the country with a portfolio of $25 million covering a substantial share of the market. The institution serves as an example to other microfinance actors in Tunisia and neighboring countries.

ENDA’s credit program is directed at helping micro-entrepreneurs escape poverty and vulnerability through empowerment and increased business revenue. Its latest impact study ENDA shows that it has had a significant impact on micro-entrepreneurs (micro-enterprise, household, and community as well as promoting personal empowerment. The main needs of the clients, as micro- entrepreneurs, are for capital, training and assistance with marketing. ENDA provides all these, though its capacity to serve clients with respect to training and marketing remain limited since they are costly and require more staff than can currently be allocated.
 

In a few words, it may be important to highlight the meaning of the word Kashf”. Kashf is a multifaceted word - literally translated it means miracle or revelation. In other words, Kashf is a process of self-discovery - a conscious realization of one’s inner capacity - where the hidden potential of women can be brought out and accentuated. The mission of the organization is to alleviate poverty by providing quality and cost effective micro finance services to low income households especially women in order to enhance their economic role and decision-making capacity
Keeping the above mission in view by 2008 Kashf will target 250,000 clients, through a network of 100 branches providing microfinance services to women at their door steps. At the same time the programme will continue to impact on the social empowerment of women through its gender and social advocacy approach combined with its focus on building viable and effective centres where women can come together in a women friendly space.

KASHF started from a belief that the economic empowerment of women was a key factor in enabling Pakistan to move beyond its current economic and social standing. Current poverty statistics reveal that of Pakistan’s 140 million people, 32% live at $1 a day while 85% are living at $2 a day, implying that poverty is an endemic issue in the country. Access to credit for the poor is typically limited to local moneylenders who can charge in excess of 350% per annum. There are thousands of stories where poor households facing extreme financial distress, have resorted to borrowing money at such exorbitant rates.

There is a strong feminization of poverty in the world as over 70% of the world’s poor are women. Women face the most hardships in managing household finances. The progress of women in the community in Pakistan is adversely affected by the negative attitude of men, particularly towards women’s access to credit. There is no organization other than Kashf within Pakistan which is providing an exclusive and effective financial service to poor women. Research shows that women’s financial needs are not being adequately addressed by the 27 other organizations currently providing microfinance services in the rural areas. In its ten years of operations Kashf has demonstrated that not only are poor women bankable but an organization exclusively providing microfinance services to poor women can be sustainable. Kashf has always worked with extremely ambitious targets and has been one of the fastest growing and financially self sufficient MFls in Pakistan, thus ensuring that not only was its organization viable in the long run but that it could also be replicated in other settings. It was for this reason that the organization grew from 15,000 clients in June 2002 to 70,000 clients in December 2004, a 367% growth rate in 18 months. Kashf intends to continue with this growth trajectory as mentioned by reaching out to 250,000 female clients by 2008. Today Kashf is the third largest MFI in Pakistan with the clear and focused mission of alleviating poverty by providing quality and cost effective services to women from low income communities.

Kashf predicates its microfinance programme on solidarity lending, which is also reflective of women’s qualitative needs. The entire microfinance strategy is delivered through centres comprising of 25 women, who self select and also nominate a credit committee from amongst themselves which then makes all the necessary lending decisions. The entire process of setting up centres provides community women an opportunity of sharing ideas, making joint decisions and learning about new techniques and opportunities. The centres meet very regularly after every two weeks, and during the meetings a strong sense of solidarity and social cohesion emerges through time. Currently, Kashf has over 2,800 such centres that have become strong conduits for generating social transformation.

Keeping in view Kashf’s poverty lending vision, Kashf’s target group is comprised of women belonging to economically vulnerable households. The profile of Kashf’s households includes those with irregular sources of income, that is, primarily daily wage earners (with expected daily incomes of between Rs 80-150), with a high dependency ratio, which translates into a low per capita income. Generally, the target households have a very low asset base. The target group that Kashf is focusing is well below the official poverty line of the government of Pakistan, which is Rs 5,200 per month per family.
 

The idea of the project is to grant small credits mainly to rural women, with a methodology of solidarity groups, without guarantees and in a staggered way, beginning with an amount of 9 dollars per person to be reinstated in a weekly way during four months, with an interest rate of 4% monthly. Each solidarity group names a directive table integrated by president, secretary and treasurer that are responsible to strengthen the integration of the group and to support them in the recovery of the credit. Also, an educational process is generated to encourage enterprising and credit culture to increase the income of the family and contribute to the women‘s empowerment.

Maria Teresa Garcia Moses and Martha Beatriz Orantes Gamboa, are the founders of two organizations that participate in a program of microcredits that has reached a great impact, in five states of the country, in areas with a high exclusion index such as Chiapas, Hidalgo, Veracruz, Tabasco and Morelos. Both of the founders, have 30 years of work experience in the rural areas, they have worked in organizational projects that have contributed to raise the production and commercialization and participated in educational health campaigns mainly in the excluded rural areas with fundamentally, indigenous population.

The project aims at giving financial services in an efficient way with competitive rates of interest directed to rural women, mainly. It also aims at promoting educational, and social development programs that allow the targeted groups to raise their standards of living and the acquisition of new skills, knowledge and abilities.

To grant small credits to enterprising people that don’t have access to the commercial banking and that live in rural areas, is such an innovative task in Mexico, where only 15% of the demand of microcredit is covered. The innovative methodology of lending money only to the word given that they will pay back means the trust in the solidarity groups, without any guarantee but the word given or the payment promise, they are able of getting a loan that will allow them to consolidate their business and increase the family income.

The project provided about 70 thousand micro-credits and supported approximately 9000 people of which a 90% are women, who don’t have access to the commercial banking and that want to start or to consolidate a commercial or a services business. In this context the project trained 600 women as professional managers and administrators of family companies, particularly in the field of mother and child care and environmental education reaching 2000 people.

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