Strømme Foundation Microfinance AS Annual Report 2007 by Strømmestiftelsen

ST R Ø M M E

F O U N DAT I O N

M I C R O F I NAN C E

D E PARTM E N T

ANNUAL REPORT 2007

Following up the momentum

Contents

2007 – Following up the momentum 20

Foreword

Strømme Foundation Microfinance ance Department in brief

2006 end ended with the Celebration of the Nobel Peace Price Laureate Dr. Mohanned Yunus and Grameen Bank. Almostt all of a sudden the world turned their eyes to Microfinance as a tool for eradicating poverty. New initiatives were taken and new actors entered the field. 2007 has been the year of following up the attention, the interest and the momentum. In Norway we welcomed the private ivate initiative by some iinvestors inviting the government represented by Erik Solheim to join hands for investing in Microfinance. This priva private/public alliance has had its working group and steering committee that has prepared the creation of and structure ucture a fund in co-operation co-ope with the NGO-community represented by Strømme Foundation. We are w welcoming this initiative and very much looking forward to the launching hopefully before the end of 2008.

Strategic guidelines Governance Structure

5 6

Main activities 5.1 Financial Services 5.2 Non-financial services 5.3 Networking

Internally 2007 has been a year of preparing for the future. Two new members have been recruited for the Microfinancee team and by 1st January Januar 2008 they are both operationally active in the organization. Further 2007 was the end of the 5 year agreement ent with Norad that was pprolonged out 2008. Reviews of policies, strategies and means of intervention will continue in 2008.

Activities by geographical distribution, incl. financial statements 6.1 East Africa - SMF EA Ltd 6.2 Asia 6.2.1 SMAGL 6.2.2 Bangladesh 6.3 SMF Dept. including West Africa end South America 6.4 Summarizing statistics and comments

We are envisaging a future where donors and other private actors are more interested in the activities and results of our involvement. This is challenging and motivating in our effort towards more effective and efficient means of interventionn and building inclusive financial systems and providing services to the unbanked, driven by the conviction that access to sustainable financial services will help poor improve their lives.

Highlights and achievements from 2007

Challenges in the year to come

13 Kristiansand, 1 May 2008

Appendix I Financial Report Appendix II Personnel in SMF Appendix III Abbreviations

Follow up the momentum

14 14 15

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Lars Erik Harv Microfinance Director

Follow up the momentum

Øyvind Aadland Secretary General

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2] Strømme Microfinance Department (SMF-Dept) in Brief:

3] Strategic guidelines.

Strømme Foundation (SF) has organised all its involvement in Microfinance (MF) through the Microfinance Department (SMF Dept.). The global MF activity will further be named as SMF, meaning the MF sector in SF including both the SMF Dept. as well as all Apex institution. SMF Dept. in Norway serves as a coordinator of all MF activities within SF worldwide. SMF Dept. is working according to the development policy and vision of SF; Eradicating Poverty. The role is further to be a liaison office between the SF microfinance bodies, the funding partners (like Norad etc) and other stakeholders in the Global North.

The SF Board of Directors discussed and approved the adjusted Microfinance strategy in January 2007 and decided to promote the following basic guidelines for its MF involvement:

Aiming for long term partnerships, the SF relationship to partners may vary from technical assistance, grants, loans, guarantees, equity holdings or networking with other partners. The contents of these partnerships vary from time to time and from partner to partner. This long term partnership and involvement both financially and non-financially is what we call our holistic approach. The essential parts of SMF strategy are: 1) Financial services – i.e. loans, equity holdings, guarantees etc. 2) Non-Financial Services/ Technical Assistance (TA) – i.e. Facilitate and promote training, fund equipment, workshops and participate in developing appropriate tools such as Management Information Systems, reporting standards etc. 3) Networking – i.e. partnering and working with appropriate stakeholders, nationally, internationally and both vertically and horizontally to promote best practices etc. and efficient ways of involving in MF. Our involvement in Microfinance is contextualized and we are using conventional MF as well as Community Managed Microfinance as methods. Community Managed Microfinance is based on the principle of the participants´ ownership and the loan fund is funded by the savings of the participants.

Principles The basic principles of Strømme Foundation Microfinance are: • • • • •

Promote building of inclusive financial systems, based on Best Practice Microfinance, re CGAPs 11 principles nance. inciples of microfi microfinance To emphasize demand-led and pro-poor financial systems. To work as whole sale lending institutions through partner Micro Finance Institutions (MFI) To support established and promising partner MFIs through loans and grants for TA. To aim for the total field structure of entities within Strømme Microfinance to reach operational sustainability by end of year 2008.

• • • • •

Create and support a structure of strong regional wholesale lenders / Apex companies in which Strømme Foundation plays the role of majority stakeholder. Promote a ”holistic approach” implying close, long term responsible relationship with the partners. Encourage and support strong partnerships and networks, both vertical and horizontal. Keep a clear poverty orientation, focusing on underserved, rural and other vulnerable groups Aim to stimulate innovations, find special niches and promote new methods and tools – i.e. provide ”cutting edge” microfinance.

SF Countries of activity

MAURITANIA

MALI

BANGLADESH NIGER

INDIA

SUDAN

CAMBODIA

BURKINA FASO UGANDA RWANDA PERU

BURMA

KENYA

SRI LANKA

TANZANIA

BOLIVIA

EAST TIMOR

MADAGASCAR

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4] Governance Structure

5] Main activities.

The organisation chart illustrates the MF organisation of Strømme Foundation at present. SF has organised its work in the microfinance sector through a department at the head quarter in Norway. The manager of the SMF Dept. is called “Director of Microfinance”. He/she represents the Secretary General in issues concerning MF.

SF has decided to focus on three core activities for it´s involvment in Microfinance, namely: Financial Services, Non-Financial Services (TA) and Networking.

As the total MF activities differ in size and complexity in the four southern regions of SMF, the microfinance work has been contextualized to meet needs of our partners. In the regions of South America and West Africa, as well as in a few other cases, the MF portfolio is managed in collaboration between the regional director and the SMF Dept. The latter is serving as credit committee for new loans, while the regional office staffs is responsible for identifying, supporting and monitoring MF partners. The activities in East Africa, Sri Lanka and in Bangladesh are organised as separate legal and administrative entities. The entity in Bangladesh is not yet fully implemented.

5.1 Financial Services SMF’s main means of financial intervention have so far been: • • •

Loans Guarantees Equity holdings

SMF also aims at exploring various quasi equity instruments, such as subordinated loans when involved in this sector. Acknowledging the inadequate capital structure of most NGOs / MF players, the latter is a challenge calling for innovations.

As such, SMF conducts wholesale lending as one of its main interventions. (Promotion of clients’ savings, however, is of essential importance for the funding and security of the MFIs)

SF COUNCIL Entity with separate Board SF BOARD OF DIRECTORS Regional MF-activities SECRETARY GENERAL

MICROFINANCE DEPARTMENT MF Director

OTHER DEPARTMENTS

SMF EAST AFRICA LTD BY SHARES (UGANDA)

PARTNER MFI

SMF ASIA LTD BY GUARANTEE (SRI LANKA)

PARTNER MFI

MICROENTERPRISE DEVELOPMENT FOUNDATION (BANGLADESH)

PARTNER MFI

MF-ACTIVITIES WEST AFRICA

PARTNER MFI

MF-ACTIVITIES ASIA (OUTSIDE BANGLADESH & SRI LANKA

PARTNER MFI

This is the organisational chart functioning per end 2007. We have a dormant company limited by shares, SMF AS, to replace the SMF Dept. as umbrella institution for all SMF activities. The Board of Directors in SF has already approved this transfer, but we are still waiting for clearance from Norad pertaining to financial support a shareholder company.

Follow up the momentum

The lending activities have increased significantly over the last years. SMF aims at offering competitive facilities for our partner MFIs, yet without compromising the local financial markets. SMF thus should not subsidize the interest rate, as we believe one of our missions is to promote inclusive, financial markets. Having that said, SMF must also aim at promoting business between local banks and national MFIs. In certain cases there is need for extra support to MFIs for capacity building. A loan on market based terms may, in such situations, be accompanied by a time- and amount limited grant from SMF. This arrangement avoids a situation of subsidized interest rate. See more on our involvement in Technical Assistance later.

MF-ACTIVITIES SOUTH AMERICA

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stakeholder companies in the North, open doors of collaboration with international players in the field, give access to information and new networks and let SMF become an international, recognised MF player. When investing in partner MFIs in the South, the rationale could be a need for closer monitoring by having a seat on the Board, a symbolic support to an interesting, growing partner or a financial investment in a strong MFI.

Guarantees have become more common over the years. It is of great importance for the MFIs to have access to local capital. This is all the more possible since commercial banks in most of the SMF countries of intervention are over liquid. A guarantee is needed when there is too much asymmetry between the lender (Bank) and the borrower. This is frequently the case when MFIs want to access the commercial financial markets. The conventional financing institutions have very limited knowledge of the MF sector. Hence a guarantee from an accepted institution can help the MFI access commercial capital. In this process it is essential that the guarantee should decrease over time (or the loan amount increase) so that the guarantee amount may be leveraged. Thus a certain amount in guarantee will leverage a higher amount in loans. An Apex institution could play a key role in this context. That is what SMF wants to do. As a way of supporting the MF sector and build external relationships, SMF has chosen to make direct investments. These equity instruments, when invested in Follow up the momentum

5.2 Non-financial services / Technical Assistance (TA) By non-financial services and Technical Assistance, SMF is promoting a number of different services related to Microfinance, and which are necessary for our partners to provide or facilitate a supply of services that really corresponds to the needs of their clients. Services can be Impact Assessments, product development, developing manuals and plans for the institutions, institutional capacity building, market development support, applied research, provision of equipment for the MFI etc. Where applicable, SMF offers grants to cover deficits and one-time investments in the MFIs. By building up a strong structure for the MF entities in the regions, concentrating on directoring MF services to MFIs with good governance, strong management, transparency and accountability. The grants are increasingly directed at the emerging MFIs in the early part of their life cycle. Since all parties should strive to reach at least operational sustainability, the grant element should be limited accordingly and reducing.

5.3 Networking The involvement in Networking can be further divided according to two categories: 5.3.1 Networks for capacity building SMF acknowledges the importance of strong, national networks within MF, be it on MFI level, Apex level, between different donor agencies or collaboration with governmental bodies, both in the Global South as well as in Norway. These networks vary in quality, functionality and in some countries they are non existent. Uganda and Association of Microfinance Institutions in Uganda (AMFIU), is an example of how the structure of networks can be built and what an important role such networks play in securing a sound, vital development of the MF field. SMF believes, through financial and managerial support, one should support these structures in the chosen countries of intervention.

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5.3.2 Networks for funding and co-operation In line with the increasing professionalism and commercialisation of the MF industry, SMF sees an ever growing need to partner up with other, strong entities involved in our playfield. Reasons for partnering is both co-funding, sharing of resources and responsibility in a project as well as strategic co-operation and knowledge sharing. Partners are both traditional donor communities, such as Norad etc .as well as other actors like Terrafina Microfinance from The Netherlands (=ICCO+ Oikocredit + Rabobank Foundation), SIDI in France etc. Below is a list of some of the networks where we are affiliated: Internationally: Microcredit Summit and CGAP, Opportunity International European level: The European Microfinance Platform in Luxembourg ICCO, Oikocredit, Terrafina Microfinance, SIDI, OIKOS, EQUITY FOUNDATION

6] Ac Activities by geographical involvement I this chapter we will give an overview of the Apex institutions in the structure In as well as present some features about the rest of our involvement. As mentioned, the activities are contextualized and in accordance with local legislations to better serve the needs of our target group. 6.1 SMF Dept. including West Africa, South America and parts of Asia The MF involvement in West Africa, South America and parts of Asia is governed by the SMF structure through the SMF Dept’s supervision and managed by the RDs. The regional office is doing the due diligence and all assessments where the SMF Dept. serves as Apex and credit committee. Practically, the regions need authorization from SMF Dept. under the leadership of the MF director for loan approvals. Due to local legislation, regulations and practicalities, some partnerships are handled from the Head Office and through SMF Dept. These include involvement in South Asia apart from Sri Lanka and Bangladesh and one partner in Kenya, Jamii Bora.

Nationally: Norway: Bistandstorget (Norwegian Development Network) Uganda: Association of Microfinance Institutions in Uganda(AMFIU). Kenya: Association of Microfinance Institutions (AMFI) Tanzania: Tanzania Association of Microfinance Institutions (TAMFI). Mali: Association des Praticiens et Institutions de la Microfinance (APIM) Sri Lanka: Donor MF Coordination Network, Microfinance Practitioners’ rs’ Network in Sri Lanka Bangladesh: INAFI Bangladesh

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Company Oikos Oikocredit

Country of origin Denmark Holland

UnoPhone

Uganda

BALANCE SHEET (all numbers in NOK): Total current assets: Total non-current assets: TOTAL ASSETS

31-12-07 89 046 389 7 489 400 96 535 789

31-12-06 95 011 512 4 982 180 99 993 692

SIDI Jamii Bora Kenya Ltd

France Kenya

Total current liabilities: Total non-current liabilities: Total equity: TOTAL LIABILITIES AND EQUITY

593 690 3 209 166 92 732 933 96 535 789

103 376 8 214 008 91 676 308 99 993 692

2007 3 009 082 - 252 175 - 920 256 - 2 741 905 - 905 254 - 10 050 150 12 012 029 1 056 625

2006 2 737 367 - 225 192 - 1 365 231 - 1 927 414 - 780 470

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- 6 518 779 18 779 848 11 480 599

13 19 254 502 3, 32 3, 06 0, 77

Equity holdings SMF Department has for various reasons decided to acquire ownership parts in various companies abroad. Below, an overview of the investments:

The loans and equity holdings in the Apexes will appear in the balance of SMF Dept.

INCOME AND EXPENSES STATEMENT Total operating income Total financing expenses Provision for loan losses+write-offs Total operating expenses Net income from operations Income tax Currency loss /gain Cur Total gra grants received Net income after grants for the period

Key performance indicators: Total number of external partners: Total number of outstanding loans: Total number of clients of partners: Gross portfolio yield: Gross Assets yield: Operational Self sufficiency:

Jamii Bora Scandinavia Ltd Sweden

Kolibri Kapital

Norway

SMF EA Ltd

Uganda

Description Amount in NOK Danish bank 106 995 Wholesale lending 79 755 Institution – one of the largest worldwide Grameenphone-like 39 000 company combining the services of MF and Mobile telephones Wholesale lender 363 683 MF part of the 2 185 860 Jamii Bora Group Investment fund with 338 704 purpose of channelling funds for Jamii Bora Norwegian wholesale 20 400 lending Institution SMF Apex 4 375 402

6.2 East Africa - Strømme Microfinance East Africa Ltd (SMF EA Ltd) SMF EA Ltd is a company limited by shares, incorporated in 2004. The company is located in Kampala, Uganda and holding the activities of MF for the East African region (Uganda, Kenya, Tanzania, Rwanda and Sudan). SMF EA is a complete Apex organisation with a local Board of directors, a full set of manuals including a Business Plan, and policies for the Board, Accounting, Human Resources management and Operational & Financial issues. SF holds the majority of shares in the company and the regional director serves as chairperson of the Board.

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SMF EA Ltd is part of the (Apex) wholesale lenders organisations’ network. SMF EA Ltd are also actively supporting the Association of Microfinance Institutions in the respective countries of involvement through participation in meetings, seminars and workshops.

BALANCE SHEET (all numbers in NOK): Total current assets: Total non-current assets: TOTAL ASSETS

31-12-07 37 468 710 127 698 37 596 408

31-12-06 30 105 192 2 142 533 32 247 725

Total current liabilities: Total non-current liabilities: Total equity: TOTAL LIABILITIES AND EQUITY

673 131 22 122 281 14 800 996 37 596 408

77 313 23 427 729 8 742 683 32 247 725

INCOME AND EXPENSES STATEMENT Total operating income Total financing expenses Provision for loan losses+write-offs Total operating expenses Net income from operations Income tax Currency loss /gain Total grants received Net income after grants for the period

Key performance indicators: Total number of active partners: Total number of outstanding loans: Total number of clients of partners: Gross portfolio yield: Gross Assets yield: Operational Self sufficiency:

2 007 3 736 295 - 997 365 - 862 510 - 1 739 922 136 498 - 62 726 3 840 047 3 913 819

2 006 2 892 649 - 858 611 - 1 965 958 - 1 530 789 - 1 462 709 553 395 4 853 638 3 944 324

25 33 501 225 11,67 % 11,22 % 1,04

6.3 South Asia In the Asian region, SMF has chosen to set up two different legal entities. Further, local legislation hinders either one of these from granting loans to other countries in the region. Loans to partners in Myanmar, Cambodia, India, East Timor etc. are therefore included in SMF Depart. Norway.

Follow up the momentum

6.3.1 Sri Lanka - Strømme Microfinance Asia Guarantee Limited (SMAGL) SMAGL is incorporated under the Companies’ Act no 17 at the Registrar of Companies on January 6th 2006 with SF as the Founding Member. The company has taken over all MF activities in Sri Lanka and has its seat in Colombo. A professional board with local resource persons in addition to two members from SMF is governing the processes. The SF Regional Director is chairing the board. The figures given below are joint accounts for SMAGL including Tsunami Disaster Relief Fund, a fund established to answer needs after the Tsunami in 2006.

6.3.2 Bangladesh - Microenterprise Development Foundation (MDF) MDF was a joint venture that was planned launched during late 2006 or early 2007. Unfortunately the efforts of co-operation failed and we did not manage to finalize the process in 2007. Bangladesh used to be SF’s Asian head quarter, thus the portfolio in the region is significant in both amount and outreach.

BALANCE SHEET (all numbers in NOK): Total current assets: Total non-current assets: TOTAL ASSETS

31-12-07 20 017 555 6 053 413 26 070 968

Total current liabilities: Total non-current liabilities: Total equity: TOTAL LIABILITIES AND EQUITY

INCOME AND EXPENSES STATEMENT Total operating income Total financing expenses Provision for loan losses+write-offs Total operating expenses Net income from operations Income tax Currency loss /gain Total grants received Net income after grants for the period

27 161 231 967 7,80 % 7,53 % 0, 83

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31-12-06 17 377 700 29 586 17 407 286

632 038 25 250 300 188 630 26 070 968

260 385 18 065 239 -918 338 17 407 286

2007 1 542 880 - 178 763 - 566 889 - 1 115 894 - 318 667 - 30 727 174 359 -175 035

2006 792 333 - 249 144 - 1 174 177 - 404 958 -1 035 946 8 455

The virtual Apex is at the time functioning as an Apex governed as a division within the Regional Office in Sri Lanka.

Total current liabilities: Total non-current liabilities: Total equity: TOTAL LIABILITIES AND EQUITY

INCOME AND EXPENSES STATEMENT 2007 Total operating income Total financing expenses Provision for loan losses+write-offs Total operating expenses Net income from operations Income tax Currency loss /gain Total grants received Net income after grants for the period

31-12-06 32 208 236

31-12-06 31 940 878

32 208 236

31 940 878

144 062 32 342 400 - 278 226 32 208 236

260 758 31 702 610 - 22 490 31 940 878

2007 1 933 347 - 932 015 - 895 508 - 385 184 - 279 360 - 279 360

2006 1 736 757 - 721 900 - 971 225 - 415 233 - 371 601

6.4 Global statistics If one includes all the Apexes and the involvement through the department, we may present the following information as per December 31st 2007. The financial report is found in Appendix 1:

Total Assets Total Equity Gross Loan Portfolio Total operationg income Total operation expenses

Total number of MF partners Total number of outstanding loans Total disbursement to partners since inception (year 2000) Outstanding balance Total number of clients in our MF partners Total number of cleints reached by SMF funds

31-12-07 107 928 812 103 068 932 89 829 050 8 331 899 5 982 905

31-12-06 109 618 220 97 679 162 80 608 881 6 447 881 4 278 394

2007 88 327

2006 97 343

218 562 614 89 829 050 2 077 899 204 130

175 500 000 80 608 881 1 817 580 174 542

62 355 - 309 246

-1 027 491 Key performance indicators: Total number of active partners: Total number of outstanding loans: Total number of clients of partners: Gross portfolio yield: Gross Assets yield: Operational Self sufficiency:

10 114 1 090 295 7,89% 6,47% % 0,87

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1111

Outstanding balance per 31.12.2007 2007 Outreach by our partners East Africa 621 225 West Africa 106 614 Asia 1 344 223 South America 5 837 Total 2 077 899

Outreach by our funding 50 528 4 066 149 388 148 204 130

South America Asia

East Africa

56% 39%

Outreach by our funding 150000

112500

5% 75000

West Africa

37500

0 EAST AFRICA

WEST AFRICA

ASIA

SOUTH AMERICA

Outreach by our partners 1500000

East Africa West Africa Asia South America Total

34 822 697 4 674 941 50 168 850 162 563 89 795 707

1125000

7] Highlights and achievements in 2007

8] Challenges in the year to come

The constant strive for identifying and implementing better solutions, working efficiently and developing the industry further should never stop. Some of the challenges we identify are issues linked to these matters, such as Social Performance Management, adequate funding instruments and institutional structure for involvement. These three were named as challenges last year. We are carefully paying attention to these matters and will continue strive for improvement.

As mentioned in chapter 7, Achievements and highlights, some issues are ever relevant and we should never stop striving for better solutions, more efficient tools and means to eradicate poverty as well as being part of the development of the MF industry.

7.1 Changes in staff Internally 2007 has been a year of preparing for the future. Two new members have been recruited for the Microfinance team and by 1st January 2008 they are both operationally active in the organization. Further 2007 was the end of the 5 year agreement with Norad that was prolonged out 2008. Reviews of policies, strategies and means of intervention will continue in 2008. 7.2 Financial sub-committee established The Microfinance team are happy to welcome the establishment of a financial sub-committee appointed by from the Board of Directors. We believe that the highly qualified people represented in the committee will contribute significantly on financial issues and further challenge the SMF staff. External investor entering in SMF EA Ltd The first external investor has bought shares in SMF EA Ltd. SIDI, a French Development Organisation converted their loan to equity and holds 10 % of the shares in SMF EA. This is a step toward the development of a open, attractive investment opportunity for external actors. SMF Dept. has been instrumental in this. Cooperation Agreements with peers in West Africa Two agreements for co-operation in MF were signed during 2007. We have joined hands with Terrafina Microfinance (NL) and Oikocredit (NL) for co-operation regarding assessment and monitoring partner MFIs for funding and for providing technical assistance. The second agreement is formed for the involvement in Community Managed Microfinance with Oxfam America, Plan Mali and Freedom From Hunger.

750000

375000

0 EAST AFRICA

WEST AFRICA

ASIA

There is general acceptance of a double bottom line. Such reporting includes both the financial results as well as the reporting on non-financial results. This is driving the inspiration that access to sustainable financial services will help people improve their lives. We will further strengthen the focus on Social Performance Management and the measuring of outcome in Microfinance for better achieving long term social and economical impact in the lives of the people with whom we are working. The five year agreement with Norad will come to an end in 2008 and the year will be used for planning and preparing the master plan for the coming five years. We will continue to look into our financial activities, tools and methods for MF in order to enhance goal achievements. In 2006 we were on our way to establishing a new Apex, together with CARE in Bangladesh. Unfortunately this failed. In 2007 we have been going over alternatives of co-operation and regulations. We hope to finally formalize the Apex in 2008. There are still hurdles to be overcome since the new legislation and the political situation in the country are not in favour of new company establishments. Since end of year 2007, some major events have taken place. 1st of January the new Microfinance Director Lars Erik Harv started his work in Strømme Foundation. The SMF Dept. now consists of a team. During January Norad visited Strømme Foundation both in Kristiansand and Uganda for a thorough review of the organisation. This is a review with the purpose of giving inputs to the forthcoming 5 year agreement we are signing with Norad during 2008. We are hoping for Norad’s support to include a range of financial and non-financial tools, such as equity holdings, subordinated loans, technical assistance, networking and community managed microfinance.

SOUTH AMERICA

Norwegian Microfinance Initiative Development minister Erik Solheim followed-up on his promises given after the Nobel Peace Prize to Dr. Mohammed Yunus. Through 2007 several actors representing the private sector of Norway, the governmental bodies and the NGOs, represented by Strømme Foundation, have been working to create a fund for investing in MF.

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Appendix 1 Consolidated financial report BALANCE SHEET (all numbers in NOK): Total current assets: Total non-current assets: TOTAL ASSETS

31-12-07 104 634 903 3 293 909 107 928 812

31-12-06 104 262 921 5 355 299 109 618 220

Total current liabilities: Total non-current liabilities: Total equity: TOTAL LIABILITIES AND EQUITY

1 650 713 3 209 166 103 068 932 107 928 812

701 831 11 237 227 97 679 162 109 618 220

2 007 8 331 899 - 470 613 - 3 245 163 - 5 982 905 - 1 366 782 30 727 - 1 397 509 - 10 112 876 16 026 436 4 516 051

2 006 6 447 881 343 620 5 476 591 4 278 394 - 3 650 724 0 - 3 650 724 5 956 928 23 695 841 14 088 188

INCOME AND EXPENSES STATEMENT Total operating income Total financing expenses Provision for loan losses+write-offs Total operating expenses Net income from operations Income tax Net income from oper. after tax Currency Cur Cu urrency loss /gain Total gra grants received Net income me after grants for the period

APPENDIX II PERSONNEL

APPENDIX III ABBREVIATIONS:

The executive staff involved in Microfinance in 2007 are composed of the four Regional Directors (RD) as well as a number of Microfinance specialists:

BOD:

Board of Directors

CEO:

Chief Executive Officer

CGAP:

Consultative Group to Assist the Poorest

CMMF:

Community Managed Microfinance

FWA:

Framework Agreement

SMF EA Ltd Priscilla Mirembe Serukka (RD East Africa), Chairperson Paul Mayanja, CEO Elizabeth Naiga, MF Officer Daniel Sentumbwe, MF Officer Denis Okaba, Accountant Badru Lubega, Driver

MF:

Microfinance

MIS :

Management Information Systems

MFI :

Microfinance Institutions

NGO:

Non Governmental Organisation

Bangladesh Zahirul Islam, Microfinance specialist Z Daniel Mondal, Accountant D

RD:

Regional Director (in SF)

SF:

Strømme Foundation

West W Africa Zakariya Abdou, RD West Africa Z Samuel Dao, MF Officer S

SMF:

Strømme Foundation Microfinance

South America S Susana Tapia, RD South America S

TA:

SMAGL Nimal Martinus (RD Asia), Chairperson Upul Batagoda, CEO Nadeera Sumudu, MF Officer Priyantha Saman Bankara, Operations Coordinator Savarimuththu Gnanapragasam, Administration and Finance Officer

SMF Dept.: Strømme Microfinance Department Technical Assistance

SMF Dept. S Johannes Sannesmoen, Acting MF Director J Anja Elise Ø. Husebø, MF Consultant A Heidi Prestbakmo Holtskog, Accountant, (1/5 position) H

Microfinance Department Strømme Foundation, June 2008 Lay-out and graphic design: Strømme Foundation Found ndation dation All photos: Strømme Foundation The Strømme Foundation is member of The Norwegian Control Comittee for Fundraising

14 14

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Follow up the momentum

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