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Needs Microfinance

 
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Khurram Owais Shah



Joined: 07 Nov 2007
Last Visit: 09 Oct 2010
Posts: 45
Location: Karachi
PostPosted: Wed Apr 14, 2010 5:40 am    Post subject: Needs Microfinance Reply with quote

Project: Microfinance scheme for rural women
NGO: Network for Educational and Economic Development Services
Project Team: Arifa Khandwalla, Butool Rizvi, Shehryar Khan, Sabeen Shahid
EC: Saad Hasan, Shuaib Siddiqui
Consultant: Alan Cordova
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Saad Hasan



Joined: 12 May 2009
Last Visit: 04 Sep 2010
Posts: 7
Location: San Francisco
PostPosted: Wed Apr 14, 2010 10:09 pm    Post subject: Reply with quote

Team,

Good call today. We had Shehryar, Butool, Sabeen, Shuaib and myself on the call, Alan had some problems connecting.

Would be great if we could get our feedback /key questions as discussed this morning on to the forum by EoD today. Then the PT can consolidate the key questions and run with the initial diligence as we go towards our second call on May 8th.

Arifa please reach out if you want an update, we essentially agreed with your comments as the right starting point for looking at this project, and are appending any other relevant key questions wed like to address on the forums today. I am attaching the initial question list to this post as well.

Thanks everybody for a productive call.

Best,
Saad
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Saad Hasan



Joined: 12 May 2009
Last Visit: 04 Sep 2010
Posts: 7
Location: San Francisco
PostPosted: Wed Apr 14, 2010 10:26 pm    Post subject: Reply with quote

Team,

Key questions I had concerns about and thought we could focus on were the following:


1. Can they do this?
a) More beneficiaries than anything they have done before
b) Microfinance is a different beast from previous efforts

What will give us comfort:
Do they have a detailed operating plan to execute this. Diligence the income and poultry sale assumptions. Do they have appropriate staffing to select and support 100 beneficiaries. Have they thought about contingencies like poultry disease and paying for the vet. And re: the loans, have they thought about how to establish e.g. which chicken is the one our loan bought vs a different one in the event of repayment difficulties? is the local environment one where group pledges will be appropriate/effective? Success is contingent on a thoughtful execution plan for this sort of enterprise.


Where will we find it:
Lets talk to Humayun, Alan, and use Shuaib's expertise to help guide us on a lot of these questions (as well as our own research and past project knowledge).


2. Does this make a difference?
a) Is poultry the right microfinance enterprise
b) What is the ROI on microfinance vs other projects in the area?

What will give us comfort:
Is there a ready market for these products (assume yes) and is this the line of work that is most likely to encourage women to start an enterprise? Do they truly have the resources and willingness to have poultry in their backyard etc? How can we compare the impact of est. +2000/month per family vs other projects?


Where will we find it:
Same sources as above + site visit and more extensive look at past ADP projects.


Last Point: We have worked with this NGO in the past and been impressed (lets get details from past project team on this). We would like to partner to help them scale if it is appropriate. Are there any other structures in which this may work? Would partnering with other large microfinance organizations in the area dilute ADP mandate?


These are some thoughts that are additive/elaborate on Arifa's Qs, team please add your comments as well and then let's go get some answers!

Thanks everyone

Saad
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SHEHRYAR KHAN



Joined: 01 May 2010
Last Visit: 15 Aug 2010
Posts: 5
Location: New York City
PostPosted: Sat May 01, 2010 1:38 pm    Post subject: Reply with quote

Below are some of my risks/issues:

Risks:
1) Poultry sick/dying before the "1" year mark.
2) Ability/Training of the women to be farmers.
3) 100 families are too much as an initial launch, should start with 50 and monitor the progress/success after 6 months.
4) Ability of families paying off the loan - what if they just take the money and use it for something else. (It's not like they have repo/claimers or credit history to worry about). Rolling Eyes

Other suggestions:
Give them flexibility in producing what they want: loans to grow vegetables, fruits, food, or provide handicraft services - carpets, clothes, pots, etc.


-Shehryar Cool
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SHEHRYAR KHAN



Joined: 01 May 2010
Last Visit: 15 Aug 2010
Posts: 5
Location: New York City
PostPosted: Sun Aug 15, 2010 8:26 am    Post subject: TEAM KICKOFF MEETING Reply with quote

Hello everyone -

Thank you for volunteering to help evaluate the proposal submitted by NEEDS. I'm writing to introduce you to the rest of the team ahead of the kick-off call scheduled for later today. The call is scheduled for Wednesday, April 14th, 12pm Eastern time/ 9pm Pakistan time.

Please note the dial-in details below:

Conf. dial-in: +1 (605) 475-4875
Pin: 521355#

I have attached the project related documents with this email once again in case anyone hasn't had a chance to review them yet. Arifa's feedback is attached as well.

The project team includes:

Arifa Khandwalla (team lead)
Arifa is a permanent team leader at ADP. She is currently completing a second masters degree at Columbia University. Previously, she was a real estate developer and has also conducted climate change research. She was a fellow at the Kennedy School of Government at Harvard University and at the University of Massachusetts. She obtained her undergraduate degree from Smith College and her master's degree in engineering and public policy from Carnegie Mellon University. She has also been an editor for Chowrangi Magazine. Arifa is avaialable at (212) 580-1609

Butool Rizvi
Butool has been volunteering with ADP since 2009 and has previously been on a project team. Butool is currently pursuing an MBA at Institute of Business Administration, Karachi, having majored in marketing as an undergrad at the same institution. Previously, she has interned at HBL, Unilever Pakistan and Engro Foods. Butool grew up in Karachi, attended City School and holds wide ranging extra-curricular interests including volunteering; You can reach her at +92 (346) 323-9455

Sabeen Shahid
Sabeen joined ADP in 2009 and has been involved on and off since. She is the lead-designate for the Lahore chapter and this is her first project evaluation. Sabeen attended Lahore School of Economics and has been serving as a Clients Relation Manager at MCB for several years. Her number is +92 (334) 424-8663

Shehryar Khan
Shehryar joined in 2010 and this is his first project evaluation. Shehryar majored in Industrial Engineering at Pennsylvania State University and is now working as a senior consultant at IBM. He is currently based in the D.C. area and can be reached at (814) 574-1303

The EC for the project includes:

Saad Hasan (PEC)
Saad joined ADP in 2008 and has previously served as an EC member for Project KRDO and Al-Qasim. He is currently pursuing an MBA at Stanford. Previously he worked as an Associate at Hellman & Friedman, a private equity firm, and was a consultant at Bain & Company in New York and Johannesburg. He holds a Bachelor's degree in Economics from Dartmouth College. Saad currently lives in San Francisco and grew up in Karachi, Cairo & Jeddah.

Shuaib Siddiqui (EC)
Shuaib joined joined ADP in 2009 and this is his first project as an EC member. Shuaib is currently a portfolio associate at Acumen Fund's New York office where he focuses primarily on the housing and renewable energy sectors. Previously, he worked at Citadel Investment Group, a hedge fund based in Chicago, and as an Assistant Vice President at Merrill Lynch. Shuaib holds a BA in Economics from New York University.

Alan Cordova (Consultant)
Alan will be joining this evaluation as a consultant with background in developing microfinance institutions in the third world. His previous consulting experience (including evaluation, research and recommendations) includes work with ACCION USA, the First MicroFinanceBank of Tajikistan and Agora Partnerships. Alan holds an MBA from Columbia Business School.
The EC and PT are encouraged to get in touch with Alan whenever required for questions pertaining to successful implementation of the microfinance scheme. Alan is based in New York and can be reached at (206) 245-9915

With introductions out of the way, here's some important information for everyone.

Forums: Please direct all your input and document attachments to http://forums.developpakistan.org/viewtopic.php?t=280. You will need to register using your full name before you can post. Contact me if your account is not activated within 24 hours.

Work Plan: In order to complete the evaluation in a timely fashion, it is imperative that we stick to the work plan outlined below. Although there may be unavoidable delays at times, efforts should be made to complete all tasks by the listed deadlines to make the process as efficient and productive as possible.

April 4th - 14th: Project orientation, review of materials, identification of key issues.
April 14th: Project kick-off call. Each PT and EC member is requested to read the project materials and post his/her questions on the forums by Sunday 18th April. Project Team: Contact NGO, carry out budget diligence, contact referees or any relevant third-parties to gather information and start filling out the project summary form. Obtain NGO's financial documents. Upload a working draft of the summary form on the forums prior to the first call.

May 8th, 12pm Eastern time/9pm Pak time: First project call. Please mark it on your calendars. If a site visit is authorized, let me know so that arrangements can be made. PT and EC to identify key questions for site visit. PT to fill out Pre-funding Site Visit questionnaire (will be given to you at the time).
Refer project for legal screening. Finalize the project summary form including monitoring plan and success metrics (if applicable) and upload it on the forum prior to the call.If there are any questions/concerns, please feel free to contact Haleema or me.


May 22nd, 12pm Eastern time/9pm Pak time: Second project call. Please mark it on your calendars. PT and EC to reach a consensus on whether to fund the project or not. The decision may be deferred to a third call in case there are outstanding issues that warrant further investigation before a fair decision is made.

June 5th, 12pm Eastern time/9pm Pak time: Third project call (if applicable). Decide on any remaining issues and come up with a final decision on the proposal.

If there are any questions/concerns, please feel free to contact Haleema or me.
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SHEHRYAR KHAN



Joined: 01 May 2010
Last Visit: 15 Aug 2010
Posts: 5
Location: New York City
PostPosted: Sun Aug 15, 2010 8:29 am    Post subject: NEEDS response to INQUIRIES Reply with quote

Mr. Humayun,

We have some more questions for you regarding your operational plan.

Operational Questions
1. Do these groups currently exist? If not how will they be created?
2. How will the groups operate, will there be a president and or secretary?
3. Will the programs also provide assistance to the borrowers?
4. What will be the size of the groups?
5. How often will payments be collected?
6. Is there a saving component for the loan?
7. What will happen if a borrower defaults?
8. How many loans will one loan officer manage?

Financial
1. Will you monitoring Portfolio at Risk (PAR) for 30 days and 90 days?
2. Is the entire loan program sustainable? If so what will be the margin?
3. What is the estimated transaction cost?
4. How many loans do you plan to make?


1. What are the projects you are working on currently? Could you also tell us the size of these projects please?

2.What are your linkages with the community you intend to work with for Microfinance? How entrenched is this community?

3.Please give us a dollar amount of the number of loans you helped operationalize earlier in your microfinance experience? Please tell us the amount you recovered and the amount that was disbursed.

4.Please tell us about the people you plan to hire to operationalize the MF program. Do you have people already in mind? If so please tell us about them. We would love to see a complete staffing matrix for this project. Further, the people you are going to hire will also act as business advisors, well beyond just loan officers.

5. Which key metrics are you going to measure
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SHEHRYAR KHAN



Joined: 01 May 2010
Last Visit: 15 Aug 2010
Posts: 5
Location: New York City
PostPosted: Sun Aug 15, 2010 8:35 am    Post subject: Shehryar's feedback Reply with quote

Hey all,

I read through the queries and it looked pretty straight forward.

Some thoughts I had:

What is the plan for record keeping in-terms of which family paid their bi-monthly fee? Excel spreadsheet, pieces of paper?
How is money being transfered from each of the women, to NEEDS? (need to make sure that funds don't magically disappear)...and also for accounting purposes.
Transaction costs: Didn't see anything for transportation of hens etc, training of how to set up a 'farm', paperwork/agreements, record keeping.
Groups arent formed - how about they first form atleast 50% of the groups/identify people interested, as a pre-requisite to providing some funds. Doesn't make sense to just hand them 500G's and "hope" they get a good group of 100 women together to start mini businesses.
My conclusion:
I think there should be a pilot program of 50 families, provide 1/2 the money they request, see how it runs for 2-3 months, then go-forward with the remaining 50.
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SHEHRYAR KHAN



Joined: 01 May 2010
Last Visit: 15 Aug 2010
Posts: 5
Location: New York City
PostPosted: Sun Aug 15, 2010 8:36 am    Post subject: link to articles and reports on pakistan microfinance indust Reply with quote

http://www.microfinanceconnect.info/financing.php
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