Linking Up with Cordaid

SEDPI and SCCI have signed cooperation agreements with Cordaid, one of the largest NGOs in the Netherlands. The SEDPI-Cordaid partnership has four components:

l The Capacity Building for Small and Emerging Microfinance Institutions
seeks to improve the financial performance and organizational sustainability of small and emerging MFIs. Participating MFIs will be given the tools and techniques to improve their financial products, streamline service delivery, and reach out to more poor households. Under this component, eight MFIs are undergoing TAMA all over the Philippines. A 0% capacity building loan may be extended to the MFIs so they can cope with the expenses incurred for TAMA.

l The Wholesale Loan to Microfinance Institutions complements the first component. Through SCCI, small and emerging MFIs can access loans that would otherwise be unavailable to them. By establishing their loan track record, MFIs can eventually borrow from commercial sources.

l The Financial Literacy Program for Remittance Senders and Receivers aims to inculcate in these groups the discipline and commitment of personal financial management. The program also encourages the productive use of remittances through socially responsible investments and intends to break the cycle of dependency on remittances. The training provides concrete guidelines and practical tools to make informed decisions on investments, business establishment, and financial planning. To date, some 1,000 overseas Filipinos have attended the training programs held in Austria, Belgium, Denmark, Germany, Hong Kong, Italy, Luxembourg, The Netherlands, Singapore, and United Arab Emirates.

l The Guarantee Fund to Migrant Investments seeks to boost migrants’ participation in socially responsible investments. Migrants may invest in SCCI’s Sustainable Investment Fund, which carries a higher rate of return than commercial banks. Cordaid has placed a guarantee to migrant investments placed with SCCI through an escrow agreement with Metropolitan Bank and Trust Company. The guarantee aims to protect migrant investments in SCCI up to PhP250,000. The SCCI pioneer investors are members of the United Migrants Development Workers and Stichting-Habagat based in the Netherlands.

Cordaid is one of the world’s biggest international development organizations with a network of almost a thousand partner organizations in 36 countries in Africa, Asia, Central and Eastern Europe, and Latin America. It has more than 90 years of experience and expertise in emergency aid and structural poverty eradication. The counterpart bodies work on various themes, including healthcare, quality of urban life, access to markets, and peace and conflict.