The Koret Israel Economic Development Funds (KIEDF) was established in Israel in 1994 upon the initiative of the Koret Foundation of San Francisco to stimulate economic development and employment opportunity in the private sector in Israel. Since inception, KIEDF has facilitated close to $225 million in financing to over 8,500 small and micro businesses in Israel while creating and supporting more than 45,000 jobs.

Since 2003, KIEDF is involved with development and implementation of microenterprise development programs throughout Israel to increase employment and socioeconomic advancement opportunities for low income populations facing barriers to business training and financing on reasonable terms. Thousands of microenterprises have been supported and developed with the support of these programs.

In 2006, KIEDF established SAWA – Israel's first microfinance program providing direct non-bank loans. Group and individual direct loans are distributed by KIEDF's revolving loan fund at the Postal Bank. Loans support a wide variety of businesses including small commerce, grocery stores, animal raising, hairdressing, sewing, day care etc. Kiva works only with KIEDF's SAWA direct lending program to expand access to financial services to excluded populations.

During the first 4 years of operation, SAWA operated mainly among Bedouin women in the south of the country. In 2010 the program has expanded to additional populations throughout the country including unemployed Jewish women, immigrants, orthodox Jewish women and additional Arab Israeli women. At the end of 2012, SAWA began its lending operations in Jerusalem. The success of SAWA, one of a few microfinance program in Israel, illustrates tremendous possibilities of microfinance in combatting poverty.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Dec 8, 2010 Oct 12, 2005
Total Loans $994,650 $576,348,175
Amount of raised Inactive loans $0 $223,100
Number of raised Inactive loans 0 244
Amount of Paying Back Loans $622,225 $120,282,525
Number of Paying Back Loans 139 126,748
Amount of Ended Loans $372,425 $455,842,550
Number of Ended Loans 138 580,754
Delinquency Rate 12.57% 3.31%
Amount in Arrears $45,287 $2,628,327
Outstanding Portfolio $360,226 $79,478,788
Number of loanDelinquent 116 11,186
Default Rate 9.14% 1.09%
Amount of Ended Loans Defaulted $34,043 $4,987,519
Amount of Ended Loans $372,425 $455,842,550
Number of Ended Loans Defaulted 21 15,361
Currency Exchange Loss Rate 0.00% 0.07%
Amount of Currency Exchange Loss $0 $406,266
Refund Rate 0.56% 0.78%
Amount of Refunded Loans $5,525 $4,479,350
Number of Refunded Loans 1 5,008

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 98.23% 74.22%
Average Loan Size $3,598 $418
Average Individual Loan Size $3,598 $656
Average Group Loan Size $0 $1,825
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $28,930 $3,439
Average Loan Size / GDP per capita (PPP) 12.44% 12.17%
Average Time to Fund a Loan 4.87 days 5.52 days
Average Dollars Raised Per Day Per Loan $739.31 $75.87
  Average Loan Term 27.82 months 10.25 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 58 287,934
  Journaling Rate 30.23% 42.60%
  Average Number of Comments Per Journal 0.12 0.08
  Average Number of Recommendations Per Journal 0.05 1.92

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Portfolio Yield 6.00% N/A 33.65%
  Profitability (return on assets) -7.9% N/A -1.40%
  Average Loan Size (% of per capita income) N/A N/A 41.35%

Country Fast Facts

Field Partner Staff

Anna Avital
Anna Avital
Chagit Rubenstein