BID-IFAD-Fonkoze Partnership: Enhancement of Remittance Services to and within Rural HaitiRemittances, Remesas 2009 PPP'SFelix

Fonkoze

Inter-American Development Bank (IDB)

English

Research Papers in Economics

The BID-IFAD-Fonkoze 
Partnership:
Enhancement of Remittance Services 
To And Within Rural Haiti
May 20, 2009Presentation Highlights
• High level of the project
• What we did since the last cluster meeting;
• How we tried to integrate both side of the 
remittance corridor in our model?
• How we did our outreach and get the 
Diaspora involved?About Fonkoze
Founded in 1994, Fonkoze is a MFI which targets the rural 
poor, wherever they are in Haiti:
9 40 branches, in all departments of the country
9 Over 1,000 credit and education centers
9 99% of our clients are women
Mission
 Provide Haiti’s poor with financial and educational 
services they need to make their way out of poverty; 
 Eliminate in Haiti the type of extreme poverty that leaves 
families without hope by replicating proven models; 
 Reverse the decline in Haiti’s economy by empowering 
families to engage in sustainable economic developmentWhy did Fonkoze decide to add the 
Remittances in their portfolio?
9 Assist families to increase the dollars available 
to them as a means of combating poverty
9 Increase transparency, thereby contributing to 
downward pressure on the fees
9 Increase loyalty of existing clients
9 Means to attract new clients
9 New revenue stream for FonkozeHighlight of Remittance Enhancement project
Components
• Technology
– 18 branches were provided with satellite, batteries, invertors and computers 
• Development of a Database of HTAs
– 300 Hometown Associations and support groups identified
• Capacity building activities
– 65 Fonkoze employees received training to use software and computers for 
transfers and specific software of partners
– Training of Haitian HTAs (Best practice for development and HTAs from other 
countries) (about 200 leaders trained)
– Training of Haitian HTAs and support group leaders on Financial literacy (training 
of trainers) (about 200 leaders trained)
• Partnerships
– CNB NJ, Moneygram, CAM, Dolex, BHD, Unitransfer, UNO and Allianza.
• Haitian Diaspora Outreach & Promotional campaignStats
2006-07 2008-09
%
# of Branches 30 40 25%
# of Savers 105,000 190,000 45%
# of Borrowers (1) 45,000 55,000
18%
# Transfers (2)
28,803 65,500  56%
Total value of 
remittances 
(individual and 
collective) (3)
$ 23,617,479 $ 39,500,000 40%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1
07
Q2
07
Q3
07
Q4
07
Q1
08
Q2
08
Q3
08
Q4
08
% of Transactions # by Partners
 BHD
 Cam
 Uno
 Unitransfer
 Fonkoze
 MoneygramAverage Value per Transaction (excluding 
Fonkoze Collective Remittances)
$-
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
Q1
07
Q2
07
Q3
07
Q4
07
Q1
08
Q2
08
Q3
08
Q4
08
 Cam
 Unitransfer
 Uno
 BHD
 MoneygramNumber of transfers monthly 
(excluding Collective Remittances)
0
1000
2000
3000
4000
5000
6000
7000
Month
Feb-07
Apr-07
Jun-07
Aug-07
Oct-07
Dec-07
Feb-08
Apr-08
Jun-08
Aug-08
Oct-08
# of transfers
Average value
per transaction
monthly
(excluding
collective
remittances)Number of transfers monthly 
(Including Collective Remittances)
0
2000
4000
6000
8000
Jan-0 7
Feb-07
M ar-07
Apr-07
May-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Feb-08
Mar-08
Apr-08
May-08
Jun-08
Jul-08
Aug-08
Sep-08
Oct-08
Nov-0 8
Number of
incoming
transfers
Average Value
per transcation
montly
(including
Fonkoze)What we are working on now?
Open dialogue with the Haitian Diaspora and promotion of 
Fonkoze financial products
– Launch of Fonkoze Prepaid Debit card in the USA (IFAD-IDB)
– Services of Payroll, Investment accounts, Business 
Development*
Future:
• Diaspora Investment fund (for small projects $50K and 
less)
• Database of successful projects and micro-franchise 
mechanisms
• Access to Needs Assessments and information about 
existing programs through website
• Launch of new Micro Insurance products (with AIC)Haitian Diaspora (Migrants) and 
Development
• Almost 300 active HHTAs and support groups in the US, Canada 
and France
• Existing Federations:
– AFHED (Boston)
– CENTRECH (Montreal)
– FHARE (NY)
– ROCAHD (Montreal)
• Existing departmental Associations:
– FEDASE (South HTAs NY)
– Nord’ Ouest Reunit (NY)
– Tourinord (NY)
• Facilitators and HHTAs support group
– ORAISO (NY)
– Haitian Hometown Association Resource group (NY, Miami and 
Boston)Questions?
Comments?
Ideas?
Katleen Felix
kfelix@fonkoze.org
917-375-6902Pòmago
Okap
Fòlibète
Wanament
Gonayiv
Ench
Boukàn Kare
Mibale
Sodo
Ponsonde
Pòtoprens
Jakmèl
Fondwa
Twen
Lavale
Leyogàn
Jeremi
Okay
Lagonav
Pòdpè
Twoudinò
Tomonn
Gwomòn
Piyon
Miragwan
Tyot
Marigo
Sen Michel
Bizoton Bomon
Laskawobas
Kabarè
Sen Mak
Dammari
Tomasik
Mayisad
Aken
Lestè
Latòti
Sen Lwidisid
Answouj
Gran Rivyèdinò
Kanperen Fondèblan
Mamlad
Ansapit
Kenskof
Kwadèboukè
Tomazo
Kotdefè
Petyonvil
Pwentarakèt
Machandesalin
Site Solèy
Ansavo
Gantye
Beladè
The Fonkoze 
Branch Network
Milo
Jan Rabel
Lenbe
Montoganize
Latwazon
OkotoRegardless of where our clients start, Fonkoze offers them a range of services to keep 
them on the ladder. We cannot make the climb for them but we can accompany clients to 
keep them from falling off.The IDB-IFAD Partnership
 Program Name:
Remittances and Rural Development Program in Latin America and the Caribbean:
Strengthening the Income Generating Capacity of the Rural Poor in the 
Remittance Recipient Countries
 Objectives:
1. To support the development of low cost, efficient and accessible local financial 
and communications services for migrants and their families
2. To strengthen and empower migrant associations interest in supporting rural 
development in their countries of origin
3. To build the capacity of migrant associations for planning and implementing 
rural development activities in their countries of origin
4. To improve the income and living conditions of the rural poor through joint 
ventures between migrants and local organizations for sustainable 
rural agricultural and non agricultural enterprises

The BID-IFAD-Fonkoze Partnership: Enhancement of Remittance Services to and within Rural Haiti

http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=2014315

The BID-IFAD-Fonkoze Partnership: Enhancement of Remittance Services to and within Rural Haiti

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