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 SMT's risk rating from 4 to 3 stars. The analysts have found that SMT's risk variables, reviewed in the new risk rating model, were most representative of a 3-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.  To view that, please go here: http://www.kiva.org/updates/kiva/2011/09/07/kiva-risk-ratings-now-with-half-stars.html.

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

Original Partner Description

Salone Microfinance Trust (SMT) is an independently run microfinance institution, founded by ChildFund International in Sierra Leone, an affiliate of the international humanitarian aid organization ChildFund International. SMT’s approach of concentrating in ChildFund program communities helps ensure that it reaches vulnerable populations and integrates micro-enterprise development with more traditional ChildFund programs whose focus is the well-being of vulnerable families.

Over the last three years, SMT has become a major participant in the active and progressive microcredit sector in Sierra Leone.

Mission statement: SMT’s mission is “To reduce poverty among the economically active poor by providing sustainable access to financial services”.

Goals: SMT’s goals are to:

• Support micro-entrepreneurs to strengthen and expand their businesses
• Assist individuals to create their own livelihoods
• Help micro-entrepreneurs build their capacity to manage businesses
• Help create employment in rural areas
• Recruit and retain committed, honest and qualified staff, who recognize the value of clients needs
• Increase target areas independence from humanitarian assistance

Vision: SMT’s vision is “To be a financially self-sufficient institution, with an outreach that is broad, deep and having a significant impact on the lives of the economically active poor and their families to which it serves”.

SMT's website is http://www.salonemicrofinancetrust.org, and the organization can be contacted via email at reginasulla2000@yahoo.co.uk