Microfinance Country Information
- South Africa -

Resource Links:

Micro Enterprise Alliance

A member of
Africa Microfinance Network (AFMIN)
Contact address:
PO Box 94211
Yeoville 2143
76 Juta Street, 4th Floor
Republic of South Africa

Contact: Professor Kachesa Bbenkele, Executive Director
Phone: (27) 11-403-96-21
Fax: (27) 11-403-96-23
E-mail: kachesa@mea.co.za
Website: http://www.mea.org.za

MFI Contact addresses

Get Ahead Foundation  
P.O. BOX 3776
Pretoria 0001, South Africa
Tel 27-12-320.65.30 Fax 27-12-320.82.86
E-mail getahead@iafrica.com
Microenterprise Alliance
infocoord@mea.org.za / kachesa@mea.org.za

The Small Enterprise Foundation (SEF) presents a unique opportunity for an insight into the value of social performance management (SPM). SEF has two distinct microfinance programmes: MCP, which uses a general approach, and the TCP, where rigid poverty targeting and impact monitoring are applied. Given this, comparisons between the two will highlight the underlying value of applying a social lens to performance management systems.

An initial analysis was conducted to compare the costs and revenues per client at TCP and MCP branches of similar size and age. Based on data from six TCP and six MCP branches, two key trends can be seen:

  • The average branch cost per client in both clients is virtually equal (55-56 Rand), even though the TCP absorbs the additional cost of loan officer time to perform PWR and impact assessment, as well as branch manager time to oversee the process. Indeed, the average cost per borrower is slightly lower at TCP branches. This trend could be explained by the higher retention rate enjoyed by TCP branches, as well as lower delinquency rates - which result in higher loan officer productivity.
  • Average revenue per client comparisons between TCP and MCP branches reveals a significant difference: 145 Rand for the former, and 167 Rand for the latter. This gap could be attributed to the difference in average loan sizes between branches. In this case, it should be seen as the opportunity cost to SEF of serving poorer clients.

Source: Soundbites - Imp-Act Consortium

Hari Srinivas - hsrinivas@gdrc.org
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