Author: Mariel Vincent Rapisura

Philippine Rural Reconstruction Movement

The Philippine Rural Reconstruction Movement (PRRM) was established in 1952 and is committed to the cause of Filipino peasants. PRRM’s sustainable livelihood and enterprise development strategy aims to contribute to household food security, increased incomes, and building sustainable livelihood systems. Alternative finance programs that involve the extension of financial services to the poor are implemented under this strategy.

Two PRRM chapters, North Cotabato and Camiguin, and Stichting Kapatiran Philippines, Inc. participated in a training and mentoring assistance (TAMA) with SEDPI. The TAMA resulted in financial product designs that are fit to the needs of the target markets; in improved portfolio quality; and in efficient information systems among others.

Plan International

One of the goals of Plan Philippines is to improve the economic capabilities of the rural families and therefore reduce the poverty-inflicted risks and impacts to children. Plan hopes to achieve this through its sustainable livelihood development program. The program aims to facilitate and deliver critical services that will improve the capacities of the poor to develop and implement livelihood activities. Plan Philippines recognizes that a sustainable and logical approach to livelihood development in this context starts with ensuring that people are being provided of appropriate support interventions that would best address their needs particularly in improving their livelihoods.

SEDPI facilitated capacity building to technical staff and community leaders in Plan’s areas of operations. The capacity building is in line with the thrust to help communities develop group enterprises that would result in wider outreach and benefits for the majority of community populations. Simple business plans were developed and used
as a guide of the people to plan and implement their own community-based enterprises

Sustainable Economic Activity and Development

The Sustainable Economic Activity and Development is a spin-off organization of CARE-Philippines. SEAD regularly commissions SEDPI to provide training to its management staff. The trainings are designed to equip and update management staff on microfinance and microenterprise development interventions. The trainings are on delinquency management, financial product design and development, and making market work for the poor. SEDPI is also conducting impact assessment to seven of its client microfinance institutions.

Muntunlupa Development Foundation

An organization that dramatically improved its financial performance and organizational development throughg the training and mentoring assistance is Muntinlupa Development Foundation (MDF). MDF consulted with SEDPI when its microfinance portfolio hit bottom with approximately 80% portfolio at risk. MDF staff had low morale and management was pressured by the board to improve performance. Through TAMA, MDF was able to improve its portfolio quality to 2% while maintaining the original value of its loan exposure. The staff have higher esteem and sense of accomplishment becasue they can immediately attribute their efforts with the marked improvement in the organozation’s performance. An added motivation was the development of an incentive scheme, which in time, all the field staff were able to avail. In December 2006, MDF successfuly re-launched its main financial product and renamed it “Asenso Loan” (Loan for Progress). The organization is currently is developing its five-year strategic plan to be able to seize oportunities and reach out to more urban poor communities.

The Philippine Rural Reconstruction Movement (PRRM), one of the biggest Non-Government Organizations in the Philippines had two of its branches with microfinance operations undergo training and mentoring assistance. By January 2007, these organizations are set to finish TAMA and are prepared to re-launch their financial products. Most of the participants have availed of the option of making the TAMA credited towards a diploma course in microfinance through the Ateneo de Manila University. The branches were able to improve their financial performance, increase outreach and install systems through TAMA.

PEF Projects in 2005

Peace and Equity Foundation (PEF) is one of SEDPI’s largest clients. Through PEF’s support SEDPI implemented a Training and Mentoring Assistance to five organizations in Southern Luzon – Sandigan ng Magsasaka, Malayang
Lapian ng Kababihan, Magsaka-CA, and Joint Enterprise Development for the Indigent. Anak Dagat Multipurpose Cooperative (ADMPC), a PEF Luzon Regional Office-supported cooperative, has demonstrated improvement in its Portfolio at Risk Ratio from 74% to 17%. For 2005, ADMPC was able to post modest financial performance compared to industry standards.
A subsector research to identify the appropriate interventions needed to support coastal-based microenterprise was also implemented in Iloilo, Bohol, and Eastern Samar. Impact assessment to four microfinance institutions are conducted – Barangka Credit Cooperative, Negros Women for Tomorrow Foundation, Tulay sa Kaunlaran, Inc., and Katotohanan, Pagkakaisa at Serbisyo, Inc.

Mr. Rapisura and Mr. Salonga are development associates of PEF. As such, they regularly conduct appraisals of microfinance and microenterprise proposals. Mr. Rapisura was part of a team that crafted proposals for the United Nations Development Program and Cordaid