Kiva conducts regular, ongoing monitoring of all Field Partners, but only posts status updates here in response to relevant, major changes at the partner.

April, 16 2020 - COVID-19 Update:

Kiva has been in contact with Vahatra to understand how we can best support their business and borrowers during the ever-evolving COVID-19 pandemic. We continue to prioritize the safety and well-being of all staff, borrowers and their families as this global pandemic continues.

While country-specific responses to the crisis vary, most governments have imposed curfews, travel restrictions, and nation-wide shutdowns. This has caused many economies and businesses to grind to a halt. For Madagascar in particular, the government has declared a state of health emergency. As in many countries, children no longer go to school, gatherings are prohibited and travel is limited. Due to these many restrictions and closures of establishments, businesses, etc. - economic activity is slowing down, thus greatly impacting the activities of our borrowers. In Vahatra's areas of involvement, traders are permitted to only sell during the morning hours. In addition to that, movement to and from the capital Antananarivo is limited causing outlets to be limited and a large part of farmers are forced to sell at a loss. This situation is especially difficult since 75% of the population in Madagascar live below the poverty line (source World Bank). 

As a result, borrowers and Vahatra may experience difficulty making and collecting loan repayments due to the aforementioned restrictions or fallout effects of the virus. Over the coming months, it’s possible that lenders will see a delay in repayments and new loans posted by Vahatra. As an impact-first funder, Kiva is committed to serving our Field Partners, as in past crises. We are sympathetic to temporary increases in repayment delays and delinquency in order to help Field Partners and borrower communities recover. 

Kiva is working closely with Vahatra to support them and their borrowers through the COVID-19 crisis. Vahatra is sending regular updates to Kiva, and we'll update Partner Pages as we learn more. 

On behalf of Kiva and Vahatra, we’re grateful for your continued support through this difficult time. 

Partner Description:

Vahatra is a non-profit organization in Madagascar that provides loans to low-income families who earn an average of $1 a day.

Vahatra's lending is focused primarily on supporting clients' new or existing income-generating activities. The organization has also designed loan products to help borrowers pay for school fees, emergency situations, professional training, and to support community-based social groups. Vahatra carefully evaluates each family’s need and economic capacity before issuing a loan in order to tailor a solution for each situation.

A unique lending approach:

Vahatra provides loans to low-income families. Borrowers can take out loans for a range of services including enterprise loans to cover commerce, and social loans to cover professional training and school fees. Additionally, the organization offers health insurance at two branches, provides career development training to young people, and runs a preschool and other family services.
Vahatra offers two customizable microenterprise loan products- a “first loan” and a “subsequent loan.” First loans are capped at $60, while subsequent loans can be as much as $1,400, depending on client capacity and repayment history during previous loan cycles. With Kiva funding, this small organization will be able to provide services to to more families.


Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Mar 2, 2015 Oct 12, 2005
Total Loans $1,583,725 $1,449,369,725
Amount of raised Inactive loans $0 $1,208,375
Number of raised Inactive loans 0 250
Amount of Paying Back Loans $383,275 $146,793,450
Number of Paying Back Loans 1,776 166,255
Amount of Ended Loans $1,200,450 $1,301,367,900
Number of Ended Loans 4,658 1,706,449
Delinquency Rate 7.58% 22.34%
Amount in Arrears $19,526 $21,032,049
Outstanding Portfolio $139,637 $94,127,897
Number of Loans Delinquent 396 73,201
Default Rate 0.05% 1.73%
Amount of Ended Loans Defaulted $617 $22,469,421
Number of Ended Loans Defaulted 9 54,461
Currency Exchange Loss Rate 0.19% 0.40%
Amount of Currency Exchange Loss $3,019 $5,838,311
Refund Rate 0.07% 0.63%
Amount of Refunded Loans $1,100 $9,150,775
Number of Refunded Loans 3 8,489

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 67.55% 76.68%
Average Loan Size $246 $395
Average Individual Loan Size $246 $611
Average Group Loan Size $0 $1,773
Average number of borrowers per group 0 7.8
Average GDP per capita (PPP) in local country $1,000 $5,730
Average Loan Size / GDP per capita (PPP) 24.62% 6.89%
Average Time to Fund a Loan 1.61 days 7.43 days
Average Dollars Raised Per Day Per Loan $153.13 $53.14
  Average Loan Term 9.19 months 11.37 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 3,537 910,334
  Journaling Rate 55.30% 43.83%
  Average Number of Comments Per Journal 0.00 0.03
  Average Number of Recommendations Per Journal 0.00 0.70

Borrowing Cost Comparison (based on 2016 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 46% PY 42.00% PY 25.38% PY
  Profitability (return on assets) 1.3% 0.9% -1.35%
  Average Loan Size (% of per capita income) N/A 142.00% 12.34%

Country Fast Facts

Field Partner Staff

Vero Randriamihaja
Julio Vahatriniaina