Presentation of KIVA
KIVA is the first microcredit web site to enable individuals to loan directly to entrepreneurs in developing countries (peer-to-peer lending). In order to enter this system, Alidé signed a contract with KIVA enabling Alidé to benefit from this opportunity to finance some of its borrowers.
–> The borrower’s photo and profile are posted on KIVA’s website in order to obtain financing.
–> KIVA lenders agree to lend an amount of money to individuals or groups that are posted as borrowers on KIVA’s website. Lenders read through the borrowers’ profiles (information sent by Alidé) to choose the people they wish to lend money to.
The eligibility criteria for institutions wishing to register with KIVA can be found on their website: www.KIVA.org. The main conditions are:
- To serve at least 1.000 active borrowers
- To have at least 2 to 3 years experience in microfinance in the country of operation
- To be registered as a legal entity in the country of operation
- To have at least one year’s audited financial statements
- To be registered with Mix market (preferably).
Presentation of Alidé
The Association de Lutte pour la promotion des Initiatives de Développement (Alidé) is a Beninese microfinance institution which emanates from the institutional transformation of the “Programme Crédit Epargne” – PCE (loans and savings programme) which had been launched by the French NGO Initiative Développement (ID).
This programme started off in 1995, when ID launched an integrated programme in the poor suburbs of Cotonou (Placodji and Akpakpadodomé). The programme comprised of various activities, including one of microfinance. The microfinance activity transformed in 1998 into a full fledged programme and gradually extended its areas of intervention, reaching out to many other areas in Cotonou. Alidé now has 6 branches, and offers financial services (loans, savings) and non-financial services (training, social referrals) to more than 6.000 people.
The strong growth in its activities these past years calls for a significant increase of the institution’s loan fund; its active portfolio exceed 1 million euros at end of March 2008 (an increase by +62% in 6 months).
