Professor Yunus and Mr. Carlos Slim signing the MoU for Grameen Carso
Grameen Trust and Fundación Carlos Slim A.C. ("Fundación Carlos Slim"), the family charitable foundation of Mexican businessman Carlos Slim Helú, announced on September 29, 2008, the formation of Grameen-Carso to provide microcredit loans to Mexico's poor. Grameen Trust and Fundación Carlos Slim will equally own the joint venture, which expects to begin its microcredit operations in the poorest areas of Mexico, and later expand operations to other regions within the Mexican Territory. The venture will initially deploy $45 million (U.S.) for microcredit loans destined for needy individuals in the poorest regions of Mexico.
Fundación Carlos Slim will provide $5 million of grant funding and guarantee $40 million in loans to be provided to the venture. Grameen Trust will manage the operations of the joint venture with microcredit experts from Grameen Bank. Eventually, Grameen's managers will train local management to manage the joint venture's operations.
Grameen Carso intends to issue microcredit loans at interest rates that are lower than those currently offered by other microcredit providers in Mexico. This will be a social business -all profits of the joint venture will be recycled back into the business in order to expand operations.
Grameen Carso expects to concentrate on loans to women, as experience has shown that women are the most successful and reliable borrowers.
Grameen Carso reflects the commitment of Fundación Carlos Slim to greatly expand microcredit in Mexico with the support of Grameen Trust for the benefit of persons who are excluded from the traditional banking system.
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Mr. Abdul Hai Khan at a fair of MPRP borrowers
The mission concluded that MPRP has continued to perform well. As of May 31, 2008, the project outreach was 3,650 which was above the target outreach of 2,400 members. Both Chongwe and Lusaka branches had achieved more than 100% operational self sustainability. Overall, the project performance was found to be satisfactory. In an independent review MPRP was reported to be the only MFI in Zambia with 0% Portfolio at Risk (PAR).
There is high unmet demand for Grameen style collateral-free microcredit in Zambia. 66% of Zambians are un-banked and presently MFIs outreach is only 100,000 clients out of a potential market of 3.5 million. Based on the success of MPRP, Grameen Trust has undertaken the initiative to set up more sustainable and successful Grameen microcredit programs in Zambia.
Report by Senti Chakma |
