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. 

Kiva's new risk rating system, which now includes half stars, has enabled us to display WAGES's risk rating with a higher level of granularity. As a result, WAGES's risk rating will now be displayed as 3.5 stars instead of 4 stars. 

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.

WAGES has been informed of the change in the display of their rating on Kiva's website.

Women and Associations for Gain both Economic and Social (WAGES) has been a Kiva Field Partner for 33 months. During that time, WAGES' borrowers have paid back $1,146,125 in loans, while WAGES has maintained a 0% delinquency and default rate.

Kiva recently conducted on-site monitoring at WAGES in order to re-assess the level of risk posed by this institution, as part of an ongoing effort to fully migrate risk ratings to our new risk rating system. During this visit our analysts were able to gather updated operational and financial information about the institution, as well as meet with key members of the staff.

The information gathered during this visit, when reviewed in Kiva's new risk rating model, has led us to decrease WAGES's risk rating from 5 to 4 stars. The analysts found that WAGES's risk variables are most representative of a 4-Star rating. WAGES has been informed of our analysts' findings and their corresponding decline in rating 

Original Partner Description:

WAGES (Women and Associations for Gain both Economic and Social) was founded as a project of CARE International Togo with the initial goal of meeting the socioeconomic needs of 3,900 Lomé women during a period of three years, with one possible renewal.

This goal was reached and exceeded in less than three years thanks to a committed staff. Having achieved these excellent results, WAGES grew into a full-fledged microfinance institution.

VISION

WAGES aims to become an stable microfinance institution that will serve as a model for other Togolese organizations, and to actively participate in the socioeconomic development of its client base.

TARGET CLIENTS

Most of WAGES' clients are women. They are:

• Individuals
• Solidarity groups
• Credit associations
• Corporations

WAGES serves urban, periurban and rural areas.

SERVICE OFFERINGS

Financial Services

Savings Products

Short-term Savings

• Voluntary savings
• Periodically accessible voluntary savings

Long-term Savings

• Savings that mature over a six-month period
• Minimum deposit: 50,000 CFA (approximately $100)
• Competitive interest rates
• Flexible loan terms ranging from 6 months to 5 years

Obligatory Savings

• A savings account offered to borrowers which allows them to borrow up to 4 times the amount deposited in urban areas and 10 times the amount deposited in rural areas.

Tontine Savings

• A savings account requiring daily deposits of up to 200 CFA (approximately $0.40)

Loan Products

• Ordinary Loan

This loan is meant for clients with active savings accounts who are engaged in revenue-generating activity.

• Direct Loan

Meant for lowest-income borrowers, this loan is disbursed to clients organized into solidarity groups and requires no collateral.

• Special Loan

Made available to loyal WAGES clients, this short-term loan is offered on a 2-5 month repayment schedule.

• Forced Savings Loan

A loan for which the borrower deposits 20% of the loan amount as collateral.

• Tontine Loan

This loan is available to clients who have regularly participated in Tontine savings during a 3-month period.

• Rural Loan

This Loan is offered to individuals or groups of farmers and artisans living in rural areas and does not require savings.

Western Union Money Transfers

• WAGES offers Western Union money transfer services.

Direct Deposit with Automatic Repayment

• Salaried borrowers can have their paychecks deposited to their WAGES accounts with their loan repayments deducted automatically.

Non-Financial Services

Training

With the hope of empowering its clients, WAGES offers various training programs. Program topics include: business administration, savings management, credit management, revenue management, marketing, accounting, basic literacy, AIDS and malaria awareness, advocacy, and more.

Institutional Support

Wages offers extra support to its clients:

• Helping to organize business and solidarity groups
• Strengthening solidarity groups with legal and administrative advice

SECTORS FINANCED BY WAGES

• Commerce
• Agriculture
• Skilled services
• Artisanal production
• Investment
• And more...

WAGES operates 10 branch offices in Togo, with 6 operating in Lomé and 4 in the interior of the country. In addition to these 10 branches, WAGES maintains 5 service points located in rural areas.