Kiva conducts regular, ongoing monitoring of all Field Partners, but only posts status updates here in response to relevant, major changes at the partner.
Status update — January 10, 2017
Following resumption of SMT’s Kiva program in August 2016, Kiva continues to monitor progress of their fundraising activity as well as repayment of the amount owed to Kiva lenders. Since August, SMT has cumulatively raised over $70,000 in loans, most of which has been used to repay overdue balances due to lenders, bringing down their outstanding overdue amount to $64,542, as of the end of December 2016. This is part of a phased repayment plan that Kiva agreed with SMT upon resumption of their fundraising on the Kiva platform. Following this progress and our assessment of liquidity needs at SMT, we've agreed to allow SMT to repay the remaining overdue amount gradually through June 2017. Kiva will continue to monitor SMT’s fundraising progress to ensure that SMT continues to make progress on their repayment plan each month. We thank lenders for their patience and hope they’ll continue to support SMT borrowers in the future.
Status update — July 7, 2016
In March 2016, Kiva and SMT came to an agreement regarding a phased repayment plan for the amount owed to Kiva lenders, taking into considering SMT’s liquidity situation following the Ebola crisis of 2014. To date, SMT has successfully repaid $40k to Kiva, in accordance with this plan, and the amount has been settled out to lenders.
SMT will be resuming fundraising for new loans on Kiva in July 2016, nearly 2 years after their Kiva program was suspended due to the Ebola crisis. The decision follows a positive assessment from an onsite monitoring visit by Kiva staff, who travelled to visit SMT in May 2016. From the visit, we ascertained that SMT’s lending program is now fully back on track and requires additional funding to meet rising demand for capital from borrowers, in particular from their clients whose businesses were severely affected by the economic crisis arising from Ebola epidemic.
With resumption of Kiva funding, Kiva expects that the cumulative amount collected by SMT from Kiva borrowers during the inactive period will eventually be repaid to lenders in full.
We thank lenders for their patience and support of SMT and other West African partners affected by this crisis, and hope they’ll continue to support SMT borrowers in the future.
Status update — February 2, 2016
As of January 2016, Kiva has finalized with the reconciliation exercise whose goal was to determine the status of all outstanding Kiva loans in the books of SMT. Based on this information, we have determined the outstanding amount that SMT owes Kiva lenders from loans repaid by Kiva borrowers but not remitted to Kiva during the grace period. Unfortunately, a number of loans were identified as irrecoverable and have already been written off by the Field Partner, and will therefore be defaulted on Kiva and respective lenders updated accordingly.
For the amount collected by SMT but yet to be remitted back to Kiva lenders, we have agreed on a phased repayment plan, taking into account the financial needs and cash flow position of the organization. We expect the first $20k to be sent to Kiva before the end of February 2016 and settled out to lenders in March, and we’ll continue to work with this partner to recover any additional amounts owed to lenders that was repaid by SMT borrowers.
Status update — August 6, 2015
The repayment grace period for Field Partners affected by the Ebola outbreak in West Africa concluded at the end of May 2015. Kiva has started the process of establishing the status of all outstanding Kiva loans made through these partners. The goal is to identify the actual amounts repaid by Kiva borrowers to the partner during the grace period, identify loans that have since become delinquent and require rescheduling of original repayment terms, as well as those that will be defaulted or written off. Once Kiva has more complete information on the status of the Field Partner's portfolio we'll provide that information here.
Status update — March 10, 2015
Kiva is extending the existing grace period for Field Partners impacted by the Ebola outbreak until the end of May 2015. This will allow the partners time to carry out comprehensive audits of their operations, and to share information with Kiva on outstanding loans and their plans going forward.
Salone Microfinance Trust (SMT) operates in Sierra Leone, one of the countries in West Africa that was most affected by the Ebola outbreak. As a result, SMT had to close some of their branches and suspend disbursement of loans last year. The organization has now resumed regular operations and plans to being making payments to Kiva in March. They also hope to resume posting new loans to Kiva this month.
Status update — October 23, 2014
Salone Microfinance Trust (SMT)operates in Sierra Leone, one of the countries in West Africa currently experiencing an Ebola outbreak. This epidemic is the largest in history, claiming thousands of lives and having a deep impact on the national economy. SMT has temporarily stopped funding on Kiva as they respond to this crisis. Learn more about the epidemic here.
Kiva has allowed SMT a 4-month grace period for repayments until the end of 2014, at which time we will reevaluate the situation. The Kiva team is in regular communication with SMT and will provide an update when they resume funding on Kiva.
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.
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 firstname.lastname@example.org
• 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
A Note on SMT’s 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 Sierra Leone, 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 work in areas with very poor infrastructure, such as limited roads. This increases the costs of finding clients and maintaining branch offices.
- 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.
- This partner is working in a country where doing business is difficult and costly due to regulatory, procedural and governance issues.
- They work extensively in rural areas, which requires their employees to engage in costly travel to find and serve their clients.
Repayment Performance on Kiva
|This Field Partner||All Kiva Partners|
|Start Date On Kiva||May 21, 2007||Oct 12, 2005|
|Amount of raised Inactive loans||$0||$246,850|
|Number of raised Inactive loans||0||286|
|Amount of Paying Back Loans||$210,125||$153,984,725|
|Number of Paying Back Loans||224||196,046|
|Amount of Ended Loans||$3,997,100||$839,942,350|
|Number of Ended Loans||4,444||1,055,629|
|Amount in Arrears||$32,371||$8,865,405|
|Number of Loans Delinquent||125||30,827|
|Amount of Ended Loans Defaulted||$9,276||$11,900,367|
|Number of Ended Loans Defaulted||60||34,261|
|Currency Exchange Loss Rate||0.29%||0.45%|
|Amount of Currency Exchange Loss||$12,003||$4,517,245|
|Amount of Refunded Loans||$15,750||$5,985,075|
|Number of Refunded Loans||19||6,003|
Loan Characteristics On Kiva
|This Field Partner||All Kiva Partners|
|Loans to Women Borrowers||63.87%||75.51%|
|Average Loan Size||$233||$398|
|Average Individual Loan Size||$548||$627|
|Average Group Loan Size||$1,006||$1,756|
|Average number of borrowers per group||4.7||7.7|
|Average GDP per capita (PPP) in local country||$2,100||$5,871|
|Average Loan Size / GDP per capita (PPP)||11.07%||6.78%|
|Average Time to Fund a Loan||4.62 days||6.92 days|
|Average Dollars Raised Per Day Per Loan||$50.28||$57.53|
|Average Loan Term||9.11 months||11.13 months|
Journaling Performance on Kiva
|This Field Partner||All Kiva Partners|
|Average Number of Comments Per Journal||0.21||0.05|
|Average Number of Recommendations Per Journal||6.08||1.14|
Borrowing Cost Comparison (based on 2015 data)
|This Field Partner||Median for MFI's in Country||All Kiva Partners|
|Average Cost to Borrower||55% PY||47.00% PY||26.33% PY|
|Profitability (return on assets)||-0.3%||-9.5%||-1.14%|
|Average Loan Size (% of per capita income)||40.20%||28.00%||16.31%|
Country Fast Facts
Field Partner StaffAlusine Bah
Mosses Y. Bangura
Daniel B. Banya
Abibatu A. Conteh
Edna B. Conteh
Elizabeth E. Conteh
Mary V. Conteh
Mary Y. Conteh
Sylvia Umu Conteh
Patrick Dura Gassama
Ibrahim O. Jalloh
Ibrahim Oumarr Jalloh
John B. Kamara
John B. Kamara
Yeankain A. Kamara
Mabinty J. Kanu
Bockarie D.S Marah
Harold M. Massaquoi
Simeon S. Mustapha
Edward A Ndoinjeh
Vincent A Ndoinjeh
Ahmed B. Shaw
Mohamed L. Tarawalie
Joseph A Turay
Melvina N. Turay
Rosaline S. Turay
Sarah Nbonga Turay