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.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Jun 2, 2010 Oct 12, 2005
Total Loans $1,856,575 $590,831,750
Amount of raised Inactive loans $0 $819,825
Number of raised Inactive loans 0 696
Amount of Paying Back Loans $244,500 $116,310,325
Number of Paying Back Loans 40 123,737
Amount of Ended Loans $1,612,075 $473,701,600
Number of Ended Loans 843 601,061
Delinquency Rate 0.91% 4.21%
Amount in Arrears $1,060 $3,160,641
Outstanding Portfolio $115,908 $75,153,836
Number of loanDelinquent 2 14,150
Default Rate 0.00% 1.13%
Amount of Ended Loans Defaulted $0 $5,347,284
Amount of Ended Loans $1,612,075 $473,701,600
Number of Ended Loans Defaulted 0 16,817
Currency Exchange Loss Rate 0.00% 0.09%
Amount of Currency Exchange Loss $0 $536,853
Refund Rate 0.11% 0.77%
Amount of Refunded Loans $1,950 $4,537,625
Number of Refunded Loans 3 5,064

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 65.92% 74.18%
Average Loan Size $674 $418
Average Individual Loan Size $669 $655
Average Group Loan Size $4,481 $1,828
Average number of borrowers per group 6.6 8
Average GDP per capita (PPP) in local country $2,250 $3,430
Average Loan Size / GDP per capita (PPP) 29.95% 12.20%
Average Time to Fund a Loan 3.57 days 5.6 days
Average Dollars Raised Per Day Per Loan $188.79 $74.74
  Average Loan Term 3.88 months 10.35 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 83 295,934
  Journaling Rate 9.70% 42.37%
  Average Number of Comments Per Journal 0.00 0.08
  Average Number of Recommendations Per Journal 0.00 1.87

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 58% PY 58.00% PY 33.27% PY
  Profitability (return on assets) 0.8% 1.7% -1.45%
  Average Loan Size (% of per capita income) 25.70% 164.00% 40.88%

Country Fast Facts

Field Partner Staff

Micah Crist
Nate Hill
Patricia Lembo
Clement Ngoma
Mara Seibert