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

August 6, 2020 - COVID-19 Update:

Kiva has been in contact with SPBD Solomon Islands 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. The Solomon Islands has imposed temporary moratoriums on loan payments, affecting not only microfinance, but the economy as a whole.

As a result, borrowers and SPBD Solomon Islands 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 SPBD Solomon Islands. 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 SPBD Solomon Islands to support them and their borrowers through the COVID-19 crisis. SPBD Solomon Islands is sending regular updates to Kiva, and we'll update Partner Pages as we learn more. 

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

 

Partner description:
South Pacific Business Development Solomon Islands (SPBD Solomon Islands) opened in 2012 and is part of a larger SPBD network offering microfinance services across the Pacific region. The Solomon Islands is one of the poorest countries in the South Pacific. One third of the population of Honiara, the capital city, lives below the poverty line. 

 
Microfinance services in the Solomon Islands are almost non-existent. SPBD Solomon Islands is the only sustainable institution offering comprehensive microfinance services in the country. The organization provides critical financial assistance to numerous financially excluded populations.
 
Kiva funding will be used to help SPBD Solomon Islands expand its services in a largely underserved microfinance market. Kiva’s goal is to help SPBD Solomon Islands scale and provide loans to more clients.

After 26 months on Kiva and 248 loans fundraised, SPBD Solomon Islands has graduated out of Kiva's Experimental Partnership program and been given a risk rating of 1 star.

 
A unique lending approach:
 
SPBD Solomon Islands uses a group lending strategy to provide working capital to women and help them develop small businesses. SPBD Solomon Islands targets low-income women who are either unemployed or are engaged in informal business activities. The main economic sectors women participate in are agriculture, fishing, livestock farming, transport, beauty salons, retail stores, sewing, handicraft production and food. The organization also offers loans to women to pay for home improvements and children’s school expenses.
 
In addition to loans, SPBD Solomon Islands offers other financial and non-financial services including voluntary savings plans, payment protection insurance, life micro-insurance, financial literacy and business training.

A note about SPBD Solomon Islands' portfolio yield:

We care deeply about the cost that Kiva borrowers pay for their loans, which is why fair pricing is a core part of our initial due diligence process for Field Partners. With Kiva's 0% capital, many of our Field Partners are also able to add additional value to their loans by reducing interest rates, offering non-financial services or creating new loan products.

For partners with reported portfolio yields or average APRs higher than 50%, Kiva takes steps to check that the high rates are justified by the impact of the loans. Kiva also verifies that the partner is not generating unreasonable profits or paying inflated salaries, and that the partner’s elevated operating costs are justified by its operating environment and/or the design of its loan products.

We seek to support loans that don’t impose an unjustifiable cost burden on hard-working borrowers. We nevertheless recognize that in order to reach vulnerable and excluded people with high-impact products and services, some of our partners incur high costs that necessitate charging higher-than-average costs to borrowers in order to allow for sustainability and scale.  

Factors that drive up the costs that this partner organization charges its borrowers include:

  • They operate in the Solomon Islands, which is classified as a fragile situation by the World Bank. This can greatly increase the cost of safely delivering financial services to borrowers. 
  • They provide more than just cash to many of their borrowers, including costly wraparound services such as healthcare, financial or business training, agricultural extension services, insurance or access to education.
  • They’re based in an area with a high cost of living and doing business. This is often due to the high demand and low supply of adequate housing and goods.
  • They work in areas with very poor infrastructure, such as limited roads. This increases the costs of finding clients and maintaining branch offices.
  • They work extensively in rural areas, which requires their employees to engage in costly travel to find and serve their clients.
  • They operate in a region known to be at risk of natural disaster, which increases the cost of doing business.
  • They operate in an area with a limited or poorly functioning banking system. This makes it difficult to access funding locally, and makes it more challenging to send and receive payments on loans from outside the country.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Nov 11, 2014 Oct 12, 2005
Total Loans $2,013,125 $1,421,756,075
Amount of raised Inactive loans $0 $1,229,200
Number of raised Inactive loans 0 93
Amount of Paying Back Loans $696,875 $153,559,600
Number of Paying Back Loans 964 195,710
Amount of Ended Loans $1,316,250 $1,266,967,275
Number of Ended Loans 1,507 1,637,982
Delinquency Rate 39.07% 26.49%
Amount in Arrears $132,063 $25,853,010
Outstanding Portfolio $337,344 $97,594,557
Number of Loans Delinquent 933 125,705
Default Rate 0.06% 1.76%
Amount of Ended Loans Defaulted $744 $22,245,293
Number of Ended Loans Defaulted 4 53,957
Currency Exchange Loss Rate 0.00% 0.39%
Amount of Currency Exchange Loss $2 $5,566,508
Refund Rate 0.04% 0.63%
Amount of Refunded Loans $725 $8,903,500
Number of Refunded Loans 1 8,413

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 100.00% 76.53%
Average Loan Size $790 $394
Average Individual Loan Size $802 $612
Average Group Loan Size $2,565 $1,763
Average number of borrowers per group 5.3 7.8
Average GDP per capita (PPP) in local country $1,800 $5,741
Average Loan Size / GDP per capita (PPP) 43.88% 6.87%
Average Time to Fund a Loan 10.13 days 7.2 days
Average Dollars Raised Per Day Per Loan $77.93 $54.81
  Average Loan Term 12.29 months 11.38 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 647 901,137
  Journaling Rate 34.44% 43.93%
  Average Number of Comments Per Journal 0.00 0.03
  Average Number of Recommendations Per Journal 0.00 0.71

Borrowing Cost Comparison (based on 2016 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 59% PY N/A 25.81% PY
  Profitability (return on assets) -16.6% N/A -2.17%
  Average Loan Size (% of per capita income) N/A N/A 12.55%

Country Fast Facts

Field Partner Staff

Raymond Hopkins
Nathaniel Legu
Vanessa Rausi
Constance Suiga
Ronald Vikash Prasad