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 Turame's risk rating from 2 to 3 stars. The analysts have found that Turame'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.
 
Turame has been informed of our analysts’ findings and their corresponding change in rating.

Original Partner Description

Turame Community Finance, s.a. is a leading microfinance institution in Burundi. In 2004 TURAME began its activities as the social development arm of World Relief in two Burundian provinces: Bujumbura and Gitega. Each province started with 8 groups each, for a total of 715 clients. On January 2007, it was then registered as a licensed microfinance institution, which seeks to reduce human suffering caused by poverty through providing financial and non-financial services. As of December 2009, it has grown to work in 10 of 17 provinces with more than 19,000 clients.

TURAME’s vision is to reduce human suffering and empower all Burundian families to live spiritually, economically, and socially transformed lives, enjoying life in abundance in the Kingdom of God.

The mission of Turame is to deliver financial and related non-financial services to productive Burundians, especially the poor and women, through the development of sustainable micro (small-scale) enterprises and by encouraging people to save.

Turame offers competitive products, including credit delivery, savings, credit with education, business training and counselling. The main lending methodology is community banking, Solidarity groups and individual lending.

Turame has a 5-year business plan (2009 to 2013) and the target is to reach 40,000 clients at the end of the business plan. This includes developing several new products according to what the customer wants.


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Mar 27, 2010 Oct 12, 2005
Total Loans $3,163,150 $576,348,175
Amount of raised Inactive loans $0 $223,100
Number of raised Inactive loans 0 244
Amount of Paying Back Loans $749,800 $120,282,525
Number of Paying Back Loans 283 126,748
Amount of Ended Loans $2,413,350 $455,842,550
Number of Ended Loans 778 580,754
Delinquency Rate 15.88% 3.31%
Amount in Arrears $58,678 $2,628,327
Outstanding Portfolio $369,397 $79,478,788
Number of loanDelinquent 80 11,186
Default Rate 0.49% 1.09%
Amount of Ended Loans Defaulted $11,830 $4,987,519
Amount of Ended Loans $2,413,350 $455,842,550
Number of Ended Loans Defaulted 27 15,361
Currency Exchange Loss Rate 0.03% 0.07%
Amount of Currency Exchange Loss $898 $406,266
Refund Rate 0.53% 0.78%
Amount of Refunded Loans $16,700 $4,479,350
Number of Refunded Loans 6 5,008

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 80.64% 74.22%
Average Loan Size $130 $418
Average Individual Loan Size $599 $656
Average Group Loan Size $3,068 $1,825
Average number of borrowers per group 23.7 8
Average GDP per capita (PPP) in local country $400 $3,439
Average Loan Size / GDP per capita (PPP) 32.56% 12.17%
Average Time to Fund a Loan 6.97 days 5.52 days
Average Dollars Raised Per Day Per Loan $18.68 $75.87
  Average Loan Term 5.99 months 10.25 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 166 287,934
  Journaling Rate 17.14% 42.60%
  Average Number of Comments Per Journal 0.02 0.08
  Average Number of Recommendations Per Journal 0.01 1.92

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Portfolio Yield 67.00% 24.00% 33.65%
  Profitability (return on assets) -10.9% 4.4% -1.40%
  Average Loan Size (% of per capita income) 43.30% 159.00% 41.35%

Country Fast Facts

Field Partner Staff

Esther Bankuwiha
Kent Birdwell
Rebecca Javier
Dirck Kagisye
Christine Manikariza
Jacques Mvunabo
Christophe Nduwayo
Christophe Nduwingoma
Rita Ngarambe
Marie Therese Nijimbere
Louis Perrot Ntirandekura
Primitive Umugiraneza