Last updated January 31, 2013

Status Update - January 31, 2013

Hope Congo's risk rating has been changed from 1 stars to 2.5 stars, signifying a decrease in risk. This change resulted from a regular re-assessment by Kiva analysts, and is based on operational and financial data collected about this partner, as well as conversations with key members of its staff.

Hope Congo is a young institution that began lending in 2010, and its initial low risk rating can be attributed to its lack of an established track record. Since then, it has built a solid portfolio with low delinquency and adequate internal controls. Kiva is pleased to see this progress and continue to support the institution's growth.

Partner Description:

Hope Congo is a microfinance institution located in Brazzaville, Republic of the Congo that began operating in May, 2010. A faith-based organization that provides financial services and training to bolster the physical, moral and spiritual health of poor people in the Republic of the Congo, HOPE Congo is part of HOPE International, an NGO that works in the microfinance sector in 14 countries worldwide.

The mission of HOPE Congo is to invest in the enterprises of poor and underprivileged people to help them live more securely. In so doing, HOPE Congo plans to improve living conditions of the population of the Republic of the Congo, empower its citizens, and bridge the gap between formal and informal financial services.

Through the creation of community banks with a group guarantee, HOPE Congo provides savings, credit, and educational services to its clients. These services will nourish a culture of saving and an independent community of responsible and self-sustaining entrepreneurs.

HOPE Congo is Kiva’s first partner in the Republic of the Congo. Despite being one of the fastest-growing economies in the world due to its oil wealth, Congo-Brazzaville’s GNI per capita was $3280 in 2011 (World Bank Group), and the average life expectancy languishes in the low 50s (UNDP, 2009). With infrastructure and agricultural production yet to recover from the civil war that wracked the country during the late 1990s-early 2000s, an estimated 33% of the Republic of the Congo’s inhabitants are undernourished (World Food Programme, 2009.

With its community-banking methodology, HOPE Congo will not only provide credit services, but encourage the community of entrepreneurs in Brazzaville to come together and support one another. It is through solidarity and the hard work of HOPE Congo’s staff members, that HOPE Congo’s mission: “to improve living conditions of the population of the Republic of the Congo, empower its citizens, and bridge the gap between formal and informal financial services” will be achieved.

As a start-up organization, HOPE Congo would usually not qualify for partnership with Kiva as our selection criteria does not allow for it. This case, however, is unique as Kiva has been able to negotiate a full institutional guarantee with HOPE International (based in the US) to protect against institutional risk. This guarantee structure is a new arrangement that Kiva is starting to explore in challenging countries such as the Congo.

Additionally, because HOPE Congo is a start-up institution, Kiva has not been able to use existing financial audits to verify the portfolio yield and profitability of the institution. We have, however, discussed their plans and pricing structure with the field staff, and as soon as we are able to provide audited figures to Kiva lenders we will do so on this page.

We are excited to have an opportunity to help support the Congo's burgeoning microfinance sector through this unique partnership.

Kiva HelpRepayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Jun 2, 2010 Oct 12, 2005
Total Loans $1,563,950 $535,743,725
Amount of Raised Inactive Loans $0 $325,675
Number Of Raised Inactive Loans 0 364
Amount of Paying Back Loans $145,275 $108,847,475
Number Of Paying Back Loans 26 112,638
Amount of Ended Loans $1,418,675 $426,570,575
Number Of Ended Loans 809 548,146
Delinquency Rate 0.00% 3.61%
Amount In Arrears $0 $2,527,996
Outstanding Portfolio $96,844 $70,107,758
Number of Loans Delinquent 0 12,066
Default Rate 0.00% 1.02%
Amount of Ended Loans Defaulted $0 $4,346,140
Amount of Ended Loans $1,418,675 $426,570,575
Number Of Ended Loans Defaulted 0 14,095
Currency Exchange Loss Rate 0.00% 0.05%
Amount of Currency Exchange Loss $0 $294,028
Refund Rate 0.12% 0.82%
Amount of Refunded Loans $1,950 $4,415,650
Number Of Refunded Loans 3 4,862

Kiva HelpLoan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans To Women Entrepreneurs 66.27% 74.09%
Average Loan Size $686 $417
Average Individual Loan Size $669 $655
Average Group Loan Size $4,208 $1,810
Average Number Of Entrepreneurs Per Group 6.1 8
Average GDP Per Capita (PPP) in Local Country $2,250 $3,463
Average Loan Size / GDP Per Capita (PPP) 30.47% 12.04%
Average Time To Fund A Loan 3.6 days 5.27 days
Average Dollars Raised Per Day Per Loan $190.40 $79.14
  Average Loan Term 3.86 months 10.04 months

Kiva HelpJournaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 79 268,352
  Journaling Rate 9.73% 42.14%
  Average Number Of Comments Per Journal 0.00 0.09
  Average Number Of Recommendations Per Journal 0.00 2.06

Kiva HelpBorrowing Cost Comparison (based on 2011 data)

    This Field Partner Median for MFI Peers in Country All Kiva Partners
  Portfolio Yield 66.50% 29.01% 34.93%
  Profitability (Return on Assets) -8.5% -0.44% -1.11%
  Average Loan Size (% of Per Capita Income) 25.70% 74.65% 42.70%

Kiva HelpCountry Fast Facts

Field Partner Staff

Peter Brinkerhoff
Micah Crist
Allie Hill
Nate Hill
Rachel Kimbembe
Patricia Lembo
Clement Ngoma
Manny Palis
Mara Seibert
Loveline Toudissa