HOFOKAM Ltd., a partner of Catholic Relief Services

Uganda

Last updated November 2, 2012

Partner Description:

HOFOKAM is a microfinance institution founded by the Catholic Dioceses of Hoima, Fort Portal and Kasese in Western Uganda. Funding and technical support are provided by Catholic Relief Services. The institution was founded in 2003 through a merger of three Diocesan microfinance programs and incorporated as a company limited by a guarantee.

In February 2012, HOFOKAM’s legal status changed, and it became a company limited by shares. Today, it’s one of the oldest and largest microfinance institutions serving the rural poor in Western Uganda. It currently reaches over 20,000 clients organized into 1,149 village banks that cover 15 districts. Its portfolio exceeds US$4.7 million.

Recognizing that financial services aren’t the only tools for economic development and poverty alleviation, HOFOKAM has forged synergistic relationships with a number of socially-driven organizations. This has expanded the institution’s reach and social impact, and has helped to shape its strategic approach and competitiveness.

These partnerships enable HOFOKAM to provide clients with new, innovative products and services. In addition to offering loans for agriculture and small business, it also provides education loans for children and adults, and housing and group loans for those who do not have collateral to mortgage. The 0% interest funding provided by Kiva lenders is helping the institution to grow these services.

HOFOKAM has partnered with Kiva since January 2010. With a strong anti-poverty focus, it works primarily in rural parts of Western Uganda and has distinguished itself by targeting very poor clients who require smaller loan sizes. HOFOKAM is proud to be the only microfinance institution in Uganda with headquarters in the countryside where it works. Kiva’s support is also helping the organization expand into the mountainous areas of the country, which are very remote and difficult to reach with financial services.

HOFOKAM’s Vision:

HOFOKAM aims to build economically empowered households in Uganda. It is pursuing this vision through its core values of honesty, trustworthiness, local empowerment, teamwork, stewardship, reliability, commitment to service and excellence.

Awards and honors:

Since its inception, HOFOKAM has received a number of honors from global organizations, including its major partners Catholic Relief Services, Citi Bank and Agri-Finance Marketplace. These awards acknowledge its financial, operational, institutional and social transparency:

- 2011 Award for best financial services for individual farmers in Fort Portal from Agri-Finance Marketplace.

- 2011 Citi Microentrepreneurship Award for extraordinary support for micro-entrepreneurs in Uganda.

- Pricing transparency award from Microfinance Transparency Organization to honor HOFOKAM for clearly communicating all prices and fees to clients.

Repayment Performance on Kiva

	This Field Partner	All Kiva Partners
Start Date On Kiva	Feb 24, 2010	Oct 12, 2005
Total Loans	$3,374,425	$426,651,775
Amount of Raised Inactive Loans	$0	$238,975
Number Of Raised Inactive Loans	0	213
Amount of Paying Back Loans	$989,775	$94,149,725
Number Of Paying Back Loans	1,344	101,646
Amount of Ended Loans	$2,384,650	$332,263,075
Number Of Ended Loans	3,716	435,701
Delinquency Rate	3.98%	1.91%
Amount In Arrears	$23,341	$1,156,960
Outstanding Portfolio	$586,801	$60,497,022
Number of Loans Delinquent	193	9,042
Default Rate	1.99%	0.97%
Amount of Ended Loans Defaulted	$47,528	$3,220,059
Amount of Ended Loans	$2,384,650	$332,263,075
Number Of Ended Loans Defaulted	170	9,823
Currency Exchange Loss Rate	0.01%	0.02%
Amount of Currency Exchange Loss	$422	$77,435
Refund Rate	0.52%	0.95%
Amount of Refunded Loans	$17,500	$4,068,925
Number Of Refunded Loans	28	4,589

Loan Characteristics On Kiva

	This Field Partner	All Kiva Partners
Loans To Women Entrepreneurs	34.30%	74.04%
Average Loan Size	$368	$407
Average Individual Loan Size	$575	$646
Average Group Loan Size	$1,941	$1,744
Average Number Of Entrepreneurs Per Group	13.1	8
Average GDP Per Capita (PPP) in Local Country	$1,700	$3,345
Average Loan Size / GDP Per Capita (PPP)	21.65%	12.17%
Average Time To Fund A Loan	7.57 days	4.68 days
Average Dollars Raised Per Day Per Loan	$48.64	$86.95
Average Loan Term	8.96 months	9.61 months

Journaling Performance on Kiva

	This Field Partner	All Kiva Partners
Total Journals	929	203,741
Journaling Rate	20.91%	39.98%
Average Number Of Comments Per Journal	0.01	0.11
Average Number Of Recommendations Per Journal	0.01	2.72

Borrowing Cost Comparison (based on 2011 data)

	This Field Partner	Median for MFI Peers in Country	All Kiva Partners
Portfolio Yield	45.90%	50.90%	35.02%
Profitability (Return on Assets)	-0.4%	-1.5%	-0.38%
Average Loan Size (% of Per Capita Income)	66.70%	72.10%	46.53%

Country Fast Facts

Country:: Uganda
Capital:: Kampala
Official Language:: English (official national language, taught in grade schools, used in courts of law and by most newspapers and some radio broadcasts), Ganda or Luganda (most widely used of the Niger-Congo languages, preferred for native language publications in the capital and may be taught in school), other Niger-Congo languages, Nilo-Saharan languages, Swahili, Arabic
Population:: 26,404,543
Avg Annual Income:: $1,700
Labor Force:: agriculture 82%; industry 5%; services 13%
Population Below Poverty Line:: 35%
Literacy Rate:: 69.90%
Infant Mortality Rate (per 1000):: 86.15 deaths
Life Expectancy:: 45.28 years