MANILA, Philippines - The International Fund for Agriculture Development of the United Nations (UN-IFAD) has rated the Rural Micro-Enterprise Promotion Program (RUMEPP) as “satisfactory.â€
The program is being implemented by the SB Corp., a line agency of the Department of Trade and Industry (DTI).
The UN-IFAD funded the program through special drawing rights (SDR) for a $12.35-million soft loan and another $340,000 grant in 2005.
The program should be completed this year.
The rural development goal is designed to increase economic development and improve job generation resulting in reduced rural poverty among 200,000 poor rural households.
The program has three major components: microfinance credit services, micro-enterprise promotion and development and program and policy coordination.
The microfinance credit services component has a national coverage and covers all rural areas of the country, while the micro-enterprise promotion component focused on 19 provinces in five regions namely CAR, CARAGA, Regions V, VII and XII.
Performance of the microfinance credit services component remains satisfactory as $14.4 million of the IFAD loan allocated for lending is expected to be fully utilized by end of 2013.
In terms of outcome, the target for new micro-enterprise borrowers was met with 56,875 micro-entrepreneurs (MEs) provided with loans from 89 microfinance institutions (MFIs) compared with the original targets of 35,000 MEs and 75 MFIs, an achievement of 156 percent and 119 percent, respectively.
The micro-enterprise promotion and development component has also exceeded its targets as a total of 33,873 MEs received business development services (BDS) and 13,587 MEs were served through 19 MSME centers.
Based on a survey, 78 percent of the MEs served reported an average increase in sales of 82 percent as compared to the five percent target.
The convergence target of 15,000 MEs was also achieved as 15,252 MEs were provided with both BDS and credit services.
For the program and policy coordination component, the mission found some MFI partners.
The People’s Bank of Caraga has adopted a twin approach of providing credit and BDS to MEs at the same time.
The Cantilan Bank in Surigao del Sur adjusted their loan portfolios to cater to the needs of the seaweed producers in Surigao del Sur hit by typhoon “Pablo.â€
The BIBAK Multi-Purpose Cooperative in Kalinga has adjusted its operations to provide credit services for BDS beneficiaries of the program in Kalinga who were unable to access funds during the first four years of program implementation because there were no SB Corp accredited MFIs in the area.