The objective of the initial projects (2 in total) was to strengthen FHAF in its efforts to expand services to microcredit clients, at a moment when those services where starting in Haiti. The results were positive, which gave rise to a second loan to allow FHAF to continue growing its microcredit program. Throughout the years, FHAF has been able to maintain it credit program, and has been servicing it regularly.
FHAF
US$1,007,000 FOMIN (SEP Program) and US$0 counterpart financing
FHAF operates with clients in the Haitian informal sector, constituted of low-income microenterprises directed in their majority by women and engaged in micro projects in the production or commerce of goods and services. FHAF supports the development of these microenterprises by facilitating them access to credit, training and self-help savings services. FHAF has 3007 clients, comprised mostly of low-income women. It is estimated that 1,753 of them are in the earthquake hit areas. About 200 had yet to be localized as of February 2010.
The HESAR to FHAF seeks to ensure that the institution can continue providing microcredit services to its clients across Haiti and particularly in the 5 branches that collapsed after the earthquake.
US$152,000
FHAF is an important provider of microcredit services in Haiti. It was particularly hard hit by the earthquake, with 5 of its 15 branches/buildings having collapsed. FHAF has now the challenge to reestablish its operations in these offices where it has about 58% of its clients. To do so will enable FHAF to continue with the provision of microfinance services to its clients, who are mostly low-income women. Credit is of particular importance at this moment of crisis, to allow microentrepreneurs to finance their investment and working capital needs, so as to restart their economic activities and generate income for their families. Savings, which it encourages through mutual societies, are good for asset accumulation. The infrastructure of five of FHAF’s key branches was destroyed, and with its furniture, information systems equipment (computers) needed for the provision of these services. FHAF is relocating its branches to rented offices, and needs to re-equip its branches in order to restore its financial services, as well as to maintain control of its existing loan portfolio. The requested expenditures under the Emergency Allocation Support will allow FHAF to purchase the lost equipment, including information technology (computers), office furniture and a motorcycle to put its inhabilitated branches back in operations. Two consultancies will also be hired, one to help FHAF prepare and implement a contingency plan to deal with its portfolio at risk and the earthquake impacts, and another for a diagnostic and an institutional strengthening plan, that would serve as the basis for FHAF to look for complementary technical cooperation support. The requested amount covers only part of the overall post-earthquake needs of FHAF, but provides support with critical items that will help restore services.