Last updated February 28, 2013

Status Update - February 28, 2013

HOPE International recently made the difficult decision to close its branch office in Kinshasa and focus its lending activity in a different geographic area in DRC. As you may know, DRC is a very difficult operating environment due to political instability, corruption and ongoing armed conflict in the East. However, HOPE DRC and Kiva both remain committed to continuing microfinance operations in the country and serving the critical needs of borrowers for years to come.

Because HOPE International no longer operates in Kinshasa, the organization has repaid Kiva lenders for outstanding loans made to Kinshasa borrowers. HOPE DRC will continue to post loans to Kiva from its Lumumbashi branch office.

Partner Description:

HOPE International has been providing small business loans and savings services to thousands of entrepreneurs in DRC since 2004. It is also one of Kiva’s earliest field partners, aiming to expand access to financial services to the 99% who live without it.

In a country where there are only 650,000 bank accounts among a population of 66.7 million, HOPE DRC targets small business owners who can use loans to increase their inventories or invest in assets that have the potential to increase their incomes.

Through a community bank and group lending structure, HOPE DRC reaches thousands of clients, 80% of whom are female, with loans averaging $431. Funds from Kiva lenders play a major role in expanding access to affordable, flexible capital for micro-enterprises.

User-added image

Nono (far left) of the Bokoli Plus Group used her loan to buy sacks of sugar and milk to sell at the market. The 12 other members of her borrower group also sell food.

The organization’s operations are largely shaped by the country’s history. Still recovering from a five-year civil war that ended in 2003, many people in DRC are still affected by violence, corruption, and economic instability. While the country is rich in natural resources, wealth in concentrated in the hands of a few.

Today, 95.2% of DRC’s population lives on less than US$2 a day, and 81.7% qualifes as underemployed. As a result, many workers have been pushed into the informal economy, increasing demand for financial services on a small, customized scale.

Status Update - 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 HOPE DRC's risk rating from 3 to 2 stars. The analysts have found that HOPE DRC's risk variables, reviewed in the new risk rating model, were most representative of a 2-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.

HOPE DRC has been informed of our analysts’ findings and their corresponding change in rating.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Feb 21, 2007 Oct 12, 2005
Total Loans $2,236,075 $590,493,925
Amount of raised Inactive loans $0 $760,725
Number of raised Inactive loans 0 618
Amount of Paying Back Loans $0 $122,947,725
Number of Paying Back Loans 0 130,861
Amount of Ended Loans $2,236,075 $466,785,475
Number of Ended Loans 617 593,552
Delinquency Rate 0.00% 4.24%
Amount in Arrears $0 $3,465,940
Outstanding Portfolio $0 $81,785,048
Number of loanDelinquent 0 16,779
Default Rate 0.07% 1.15%
Amount of Ended Loans Defaulted $1,598 $5,349,645
Amount of Ended Loans $2,236,075 $466,785,475
Number of Ended Loans Defaulted 2 16,827
Currency Exchange Loss Rate 0.00% 0.09%
Amount of Currency Exchange Loss $0 $536,772
Refund Rate 0.34% 0.77%
Amount of Refunded Loans $7,575 $4,537,625
Number of Refunded Loans 2 5,064

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 63.29% 74.17%
Average Loan Size $186 $418
Average Individual Loan Size $766 $656
Average Group Loan Size $3,849 $1,828
Average number of borrowers per group 20.9 8
Average GDP per capita (PPP) in local country $119 $3,430
Average Loan Size / GDP per capita (PPP) 156.65% 12.19%
Average Time to Fund a Loan 2.76 days 5.59 days
Average Dollars Raised Per Day Per Loan $67.49 $74.77
  Average Loan Term 3.64 months 10.35 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 276 295,681
  Journaling Rate 35.49% 42.39%
  Average Number of Comments Per Journal 0.30 0.08
  Average Number of Recommendations Per Journal 5.35 1.87

Borrowing Cost Comparison (based on 2011 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 109% PY 56.00% PY 33.46% PY
  Profitability (return on assets) -28.6% 1.1% -1.39%
  Average Loan Size (% of per capita income) 70.68% 15.00% 41.11%

Country Fast Facts

Field Partner Staff

Mercy Allah-Asra
Micah Crist
modeste ETAMBA
Peter Greer
Alanna Heath
yves MBOBA
papy mushila
Liz Myrick
Brad Statnick