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.


Kiva HelpRepayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Mar 27, 2010 Oct 12, 2005
Total Loans $2,830,675 $537,835,100
Amount of Raised Inactive Loans $0 $320,475
Number Of Raised Inactive Loans 0 249
Amount of Paying Back Loans $782,575 $109,850,425
Number Of Paying Back Loans 309 113,387
Amount of Ended Loans $2,048,100 $427,664,200
Number Of Ended Loans 633 549,502
Delinquency Rate 19.20% 3.39%
Amount In Arrears $69,680 $2,403,768
Outstanding Portfolio $362,912 $70,950,902
Number of Loans Delinquent 101 10,653
Default Rate 0.10% 1.01%
Amount of Ended Loans Defaulted $1,951 $4,334,868
Amount of Ended Loans $2,048,100 $427,664,200
Number Of Ended Loans Defaulted 6 14,050
Currency Exchange Loss Rate 0.03% 0.06%
Amount of Currency Exchange Loss $898 $298,028
Refund Rate 0.59% 0.82%
Amount of Refunded Loans $16,700 $4,417,000
Number Of Refunded Loans 6 4,864

Kiva HelpLoan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans To Women Entrepreneurs 82.99% 74.09%
Average Loan Size $132 $417
Average Individual Loan Size $599 $656
Average Group Loan Size $3,104 $1,812
Average Number Of Entrepreneurs Per Group 23.7 8
Average GDP Per Capita (PPP) in Local Country $400 $3,463
Average Loan Size / GDP Per Capita (PPP) 32.92% 12.05%
Average Time To Fund A Loan 6.46 days 5.28 days
Average Dollars Raised Per Day Per Loan $20.37 $78.99
  Average Loan Term 5.91 months 10.05 months

Kiva HelpJournaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 153 268,526
  Journaling Rate 18.41% 42.10%
  Average Number Of Comments Per Journal 0.03 0.09
  Average Number Of Recommendations Per Journal 0.01 2.06

Kiva HelpBorrowing Cost Comparison (based on 2011 data)

    This Field Partner Median for MFI Peers in Country All Kiva Partners
  Portfolio Yield 57.60% 45.60% 34.93%
  Profitability (Return on Assets) -3.3% -3.3% -1.11%
  Average Loan Size (% of Per Capita Income) 43.30% 256.30% 42.70%

Kiva HelpCountry 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