September 11, 2011

As part of an ongoing effort to fully migrate risk ratings to our new and enhanced risk rating system, Kiva has conducted a re-assessment of the level of risk posed by this institution.

During this re-assessment, our analysts were able to gather updated operational and financial information about the institution, as well as speak with key members of the staff. 

The information gathered during this process, together with the Kiva's new risk rating system and half-star support, has led us to revise CAURIE Microfinance's risk rating from 4 to 3 stars. The analysts have found that CAURIE Microfinance's risk variables, reviewed in the new risk rating model, were most representative of a 3-Star rating.

We have prepared a blog post with more information on Kiva's new and enhanced risk rating system, along with a chart showing the relative magnitude of the overall changes for Kiva's portfolio.  To view that, please go here: http://www.kiva.org/updates/kiva/2011/09/07/kiva-risk-ratings-now-with-half-stars.html.

CAURIE Microfinance has been informed of our analysts’ findings and their corresponding change in rating.

CAURIE Micro Finance was established in October 2005 by Catholic Relief Services (CRS) Senegal and Caritas Senegal after a long process of institutional transformation which began in 1999. CAURIE stands for Coopérative Autonome pour le Renforcement des Initiatives Economiques par la Microfinance (Independent Credit Union for the Reinforcement of Economic Initiatives by Microfinance). CAURIE Micro Finance currently operates from six branch offices throughout Senegal, serving 31,700 clients.

The mission of CAURIE Micro Finance is to offer microfinance services adapted to impoverished micro-entrepreneurs, primarily women, based on the principles of ‘credit for the poor’ and on microfinance best practices, all while investing in order to become financially independent.

The program’s philosophy is based on the following guiding principles of “credit for the poor”:

• serve the poorest;
• link loans to savings;
• use collective guarantees;
• practice participative management;
• invest in order to broaden scope and become autonomous; and
• plan for sustainability.

To meet its objective and serve its customers, the institution’s methodology is based on the creation of organized, structured and communally governed groups called “Bancs Villageois” (literally meaning Village Bench, thus stressing the nature of gathering villagers and distinguishing itself from the more formal term Bank). These groups are made up of an average of 50 self-selected women from local community groups. The “Bancs Villageois” are fundamentally based on the principles of participative management and collective guarantees.

Current customers are for the most part poor women who are micro-entrepreneurs from villages or semi-urbanized towns (peri-urban neighborhoods) and who have difficulty gaining access to financial services in order to develop income-generating businesses. Most customers are women who are either illiterate or who read and write at a very basic level.

Support Caurie MF’s staff by joining their lending team and find clients from Caurie MF who are currently fundraising.

Photo credit, left to right:

• Mr Latyr FAYE, Responsable des Systèmes et Réseaux informatiques
• Mlle Ndèye Aida THIOUNE, Secrétaire
• Mr Mamadou Lamine GUEYE, Directeur Général
• Mme Mariame TRAORE, Directeur Financier
• Mr Roger Christian NDIONE, Chargé E-Fundraising