Pro Mujer Bolivia

Bolivia

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 Pro Mujer Bolivia's risk rating from 5 to 4 stars. The analysts have found that Pro Mujer Bolivia's risk variables, reviewed in the new risk rating model, were most representative of a 4-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.

Pro Mujer Bolivia has been informed of our analysts’ findings and their corresponding change in rating.

Original Partner Description

Pro Mujer Bolivia is Pro Mujer’s flagship program and the foundational model on which all other country programs have been built. For 20 years, the dedicated staff of Pro Mujer Bolivia has been providing poor women with financial and non-financial services to help them improve their lives. Bolivia is a very competitive environment for microfinance, and Pro Mujer has successfully carved out its niche. As of 2010, Pro Mujer operates in all 9 of Bolivia’s departments with regional offices in: La Paz, Cobija, El Alto, Cochabamba, Sucre, Tarija, Santa Cruz, Potosí, Oruro, Trinidad and Riberalta. Currently, all of our Kiva operations are based out of the El Alto regional office.

FINANCIAL SERVICES

Pro Mujer offers loan capital for women’s small-scale businesses and provides opportunities to save a portion of their profits through the communal bank structure. The women who make up the clientele of Pro Mujer bring their skills and strong convictions to provide for their families but very few are able to access the formal financial institutions, even the specialized regulated institutions. For these women, credit alone does not serve their needs. Pro Mujer provides an alternative delivery system for its credit services – the group-oriented communal banks – which appeals to women traditionally accustomed to working in community groups. Furthermore, we offer integrated credit and training services, which few organizations offer.

NON-FINANCIAL SERVICES

Business Training

Pro Mujer’s Business Development Center has educated more than 20,000 clients on the principles of small business development. The curriculum consists of several training modules and suggested action plans for business startups. The center also provides individualized assistance to clients who are already business owners to help them improve their businesses.

Health and Personal Development Services

Pro Mujer’s non-financial services focus mainly on health and personal developments. However, we have also begun offering legal education and support to make women aware of their rights and provide them with information about how to get help if needed, for example in cases of domestic violence.

The Health and Personal Development services have provided information on sexual and reproductive health to more than 10,000 clients. Pro Mujer’s health services include basic primary care as well as gynecological exams and PAP tests for STIs and early cancer detection. Furthermore, health services are provided to the children of clients. As of 2009, over 5000 children were treated for respiratory infection and diarrhea and more than 7000 children received the required vaccinations.

To learn more about Pro Mujer, we encourage you to visit our website. You can also join our lending team to further support our entrepreneurs and connect with other Pro Mujer lenders.

Why Kiva Works With Pro Mujer Bolivia:

Though Bolivia’s microfinance industry is highly developed and very competitive, few Bolivian MFIs have achieved the depth of reach that ProMujer has. Kiva chose to partner with ProMujer because it has used the village banking model to reach some of the poorest female borrowers in Bolivia with small loans, educational programs and health services. Many of these women had no prior access to credit. By lending to ProMujer’s village banks, Kiva lenders are supporting not only poor borrowers and their families, but also ProMujer’s mission to help women build strong futures for themselves and their families through the provision of integrated financial and human development services. ProMujer is dedicated to forwarding the holistic development of its borrowers through small loans, savings programs, lessons in business administration and planning, health education and healthcare. Branch offices employ on-site doctors and nurses who offer borrowers and their families a variety of health services including Pap tests, pre- and post-natal care, breast exams and STD testing for less than $1 a month. Because these programs are quite costly to maintain, interest-free Kiva funding helps ensure that they are sustainable.

Repayment Performance on Kiva

	This Field Partner	All Kiva Partners
Start Date On Kiva	Jul 17, 2007	Oct 12, 2005
Total Loans	$3,399,200	$280,866,475
Amount of Raised Inactive Loans	$0	$8,475
Number Of Raised Inactive Loans	0	16
Amount of Paying Back Loans	$505,375	$76,717,975
Number Of Paying Back Loans	237	92,492
Amount of Ended Loans	$2,893,825	$204,140,025
Number Of Ended Loans	1,156	280,128
Delinquency Rate	0.10%	2.44%
Amount In Arrears	$332	$1,253,784
Outstanding Portfolio	$342,348	$51,303,862
Number of Loans Delinquent	2	11,530
Default Rate	0.00%	1.12%
Amount of Ended Loans Defaulted	$0	$2,280,201
Amount of Ended Loans	$2,893,825	$204,140,025
Number Of Ended Loans Defaulted	0	6,779
Currency Exchange Loss Rate	0.00%	0.00%
Amount of Currency Exchange Loss	$0	$12,824
Refund Rate	0.39%	1.25%
Amount of Refunded Loans	$13,300	$3,520,925
Number Of Refunded Loans	6	4,156

Loan Characteristics On Kiva

	This Field Partner	All Kiva Partners
Loans To Women Entrepreneurs	97.91%	74.89%
Average Loan Size	$261	$389
Average Individual Loan Size	$759	$618
Average Group Loan Size	$2,613	$1,631
Average Number Of Entrepreneurs Per Group	10.2	8
Average GDP Per Capita (PPP) in Local Country	$2,817	$3,403
Average Loan Size / GDP Per Capita (PPP)	9.25%	11.42%
Average Time To Fund A Loan	6.8 days	3.96 days
Average Dollars Raised Per Day Per Loan	$38.31	$98.13
Average Loan Term	5.2 months	9.26 months

Journaling Performance on Kiva

	This Field Partner	All Kiva Partners
Total Journals	316	131,523
Journaling Rate	25.69%	39.37%
Average Number Of Comments Per Journal	0.24	0.16
Average Number Of Recommendations Per Journal	1.48	4.21

Borrowing Cost Comparison (based on 2009 data)

	This Field Partner	Median for MFI Peers in Country	All Kiva Partners
Average Interest Rate and Fees Borrowers Pay (Portfolio Yield)	29.40%	23.60%	36.11%
Average Partner Return On Assets (Average Profitability)	1.9%	1.9%	-1.45%
Average Loan Size (% of Per Capita Income)	21.48%	86.50%	43.69%

Country Fast Facts

Country:: Bolivia
Capital:: La Paz (government), Sucre (Legal)
Official Language:: Spanish, Quechua, Aymara
Population:: 8,857,870
Avg Annual Income:: $2,817
Labor Force:: No reliable data available on labor force by occupation. By sector, the labor force is: agriculture: 12.8% industry: 36.1% services: 51.2%
Population Below Poverty Line:: 64%
Literacy Rate:: 87.2%
Infant Mortality Rate (per 1000):: 51.77 deaths deaths
Life Expectancy:: 65.84 years