Lift Above Poverty Association (LAPO), Microfinance Bank Limited in Nigeria—the largest microfinance institution (MFI) in the country—ended 2010 with a Training of Trainers (ToT) workshop on the use of the Progress out of Poverty Index (PPI). Conducted by Grameen Foundation in Lagos, the three-day workshop attracted 17 LAPO staff members from the head office in Benin City, along with the Coordination office in Lagos and area offices and branch operations.

LAPO had been using a poverty estimation tool to target clients and provide baseline data. However, this tool was not standardized. LAPO decided to adopt the PPI because it provides an objective assessment of clients’ poverty status aligned with the Nigerian poverty line. In short, LAPO wants to use the PPI to monitor outreach, track clients’ progress over time, and potentially incorporate PPI data into its marketing and business development activities. The goal is to better understand clients’ satisfaction and improve or expand its products’ value to its clients.

Last August, my colleague Babacar Sambe and I set out in earnest to plan Grameen Foundation’s first deployments of the Progress out of Poverty Index (PPI) in Sub-Saharan Africa (SSA). After analyzing the landscape, considering budget constraints and the location of local GF staff, we decided to begin our first efforts in Mali and Senegal. Rather than go it alone, we reached out to other international NGOs that support poverty-focused microfinance institutions (MFIs). And to round out our collaborative group, we invited other important locally based constituents-- namely a microfinance rating agency and the national associations of both countries. Our group of PPI supporters was formally branded the PPI Users Collaborative in Africa, otherwise known as PUCA (pronounced PUCK –a). PUCA includes Catholic Relief Services, Grameen Foundation, Oikocredit, Terrafina Microfinance, Planet Rating, and the national associations – APSFD Senegal and APSFD Mali.

Our intent was to go slow and steady – selecting the right MFI partners, training local staff and consultants, and engaging the national associations strategically as we moved along. We formally began our journey together in February of this year with three MFI partners of the international NGOs – two from Senegal and one from Mali – that are committed to managing their social as well as financial performance. Of the three, two have their completed pilots and one is very well-positioned to start its implementation.

Beyond working with these three partners, PUCA has expanded the number of local staff and consultants trained in both countries. At the beginning of 2010, there were five local PPI trainers across the two countries, and now there are 11. We pushed beyond the early boundaries we’d set for ourselves – hosting trainings in Mali and Senegal – by supporting APSFD Senegal’s trainer, Absa Gueye, in her first PPI training in English outside of her homeland. This event made APSFD Senegal the very first national association in the world to offer a retail-priced PPI training outside of its borders.

At the start of the year, Senegal was the only country in SSA to have had a GF-led PPI training. Six months later, a total of four trainings have been held in both countries – two in Senegal and two in Mali. Each collaborative member of PUCA now has staff with good knowledge of the PPI and their training capacities are still being strengthened. The PPI has been introduced to a total of 7 MFIs. Of the four that are not currently a part of PUCA, three have expressed interest in piloting the tool and preparations are being made to work with these institutions in the coming months.

It feels like PUCA has been around for a long time, but as I sit here and count I realize it’s only been 11 months since our formal launch and a year since all members committed to its creation. Are we moving too slowly or is 11 months a long period of time? We had expected that our three original MFI collaborators would be in the process of completing their implementation strategies by now, but things have moved more slowly than anticipated, largely due to unforeseen personal tragedies and a few life-changing blessings affecting SPM project leads. As life events arise, we’re reminded that there is only so much planning that can be done. So, in those moments, we’ve taken deep breaths and provided emotional support to our colleagues.

As I think about the ecosystem we’re trying to build, I ask myself, “Have we gained enough traction and interest this year? Have we built out a sufficient support network for both MFI users and trainers?” I think the jury is still out. Using the PPI is a process and it is as much about managing change as it is about assessing poverty outreach and measuring improvement in clients’ lives. So perhaps the next year will be more telling for PUCA as we wrap up our initial implementations and begin work with a new batch of MFIs. We’ll see if the slow-and-steady approach does in fact win the race.

Sharlene Brown is a Program Officer with the Grameen Foundation Social Performance Management Center, handling trainings for MFIs in Sub-Saharan Africa and Middle-East/North Africa. Sharlene is based out of Washington, DC.

APSFD Senegal, in collaboration with Grameen Foundation, successfully completed a four‐day PPI Training of Trainers (ToT) workshop for 16 participants in Nairobi, and received positive evaluations with strong “pasha moto”, as Sharlene describes in her blog above.

Because of its social performance management (SPM) promotion plan along with its interest in working as a leader of SPM in Africa, APSFD Senegal was given the opportunity to test its training services abroad for the first time, generating extra income for the association. Sharlene and I provided an overview of global SPM trends, underscoring the importance of social performance for the sector, social investors, and for individual MFIs. The training session allowed leaders of MFIs interested in social performance and the PPI to ask questions and share experiences with other invited organizations like Microfinanza and KEEF. Overall, the participants had a good experience and appreciated the level of engagement the workshop offered. This kind of partnership will be duplicated in the future in other countries.

We are now moving forward in supporting the institutions as they lay the foundation to implement PPI, and a Google Group is set up to aid sharing and provide feedback.

I was excited to test the first experience of the PPI training in English, a third language for me. I was skeptical at the beginning but felt pretty confident at the end, due to the help of my young, winning team (Sharlene and Donald Bodzo) and the nice environment in which we have been working with the participants.

Ndeye Absa Gueye is the Manager of the MISION 2 Project – Social Performance Management in Senegal. MISION is a program of Catholic Relief Services in Senegal. APSFD Senegal is dedicated to coordinating the activities of the project and promoting SPM and the PPI in Africa.

At the close of our four-day training in Nairobi, Kenya, Stephen Makanga of KADET stands up and requests that the participants acknowledge in a Kenyan way the excellent job done by the facilitators. He instructs the group of Kenyans and Ugandans to rub their hands together (creating heat), and then to open them up a bit when he calls half-kilo, then wider at one kilo, even wider at kilo-and-a-half, and wider at two kilos, followed by the rotating of the wrist as though working flour and when he called “Pasha Moto,” they clapped in unison to acknowledge a job well-done. Absa, Donald, I wore huge smiles at this gesture of appreciation and to acknowledge the liveliness and engagement of the participants during the training, we too participated in demonstrating pasha moto!

It was just four day earlier that we started the training and several of the participants, staff of AMFI Kenya (Association of Microfinance Institutions in Kenya) or MFI members of the association that also served on the board or the committee evaluating AMFI’s strategic direction on social performance, wore their reservation regarding the PPI on their faces and in the skeptical glances I received. Certainly, I could not feel the warmth on this day. By the end of the first day, after we, the training team, had thoroughly covered the intent and construction of the PPI, the mood in the room had shifted. We asked participants to share thoughts they had as we wrapped up the first day together and several comments surfaced:

“This was eye-opening!”
“Thank you for demystifying the PPI!”
“We had it in our heads that Grameen Foundation came to Kenya,
conducted a mini-survey, and then created the PPI.”
“I came prepared for battle [on the indicators]!”

I smile thinking of where we began just a few days ago. The concerns regarding indicators and misinformation about the creation process are not unique to this training or participants; these are challenges or concerns I deal with in almost every place I train. But, it is nice knowing that we’ve moved from cool to lukewarm to pasha moto! By all accounts, the friendships made and the exchange of knowledge, this training has been hugely successful!

Sharlene Brown is a Program Officer with the Grameen Foundation Social Performance Management Center, handling trainings for MFIs in Sub-Saharan Africa and Middle-East/North Africa. Sharlene is based out of Washington, DC.

In June, three PUCA (PPI Users Collaborative in Africa) members– national association APSFD Senegal, along with Catholic Relief Services (CRS) and Grameen Foundation – excited about the success of the dual country training events in Mali and Senegal, began to discuss the possibility of a unique opportunity for APSFD Senegal. The association is the flagship partner of CRS’ Mision II Afrique social performance management initiative and has primarily focused its attention on educating and supporting its in-country members interested in better understanding and managing their social performance. We jointly explored the feasibility of APSFD Senegal offering a PPI training of trainers outside of its borders using a retail pricing model where each participant paid a registration fee. This would be the first time that such an offering would be made in Africa, and we’ve learned that it is the first time in the world that a national association has hosted a training on the PPI using this retail pricing approach outside of its borders. Elsewhere in the world, national associations have sometimes been asked to consult for specific organizations and train on the PPI, but the initiative and pricing approach taken by APSFD Senegal in this case is unique.

In its inaugural PPI training outside of Senegal that began today, APSFD Senegal will train 9 institutions and 16 participants from Uganda and Kenya. Absa Gueye, APSFD’s social performance manager and the lead trainer for this Training of Trainers (ToT) is joined by me and GF Fellow Donald Bodzo to observe and support this first-of-its-kind event. Attendees include staff members of AMFI Kenya, a national SPM association, several Kenyan MFIs, Microfinanza, international NGOs Catholic Relief Services, Stromme Foundation and Oikocredit, and staff from a software company and microfinance consulting firm. This retail pricing approach has brought together an interesting mix of individuals seeking to learn more about the PPI for different purposes and should lead to an engaging learning exchange.

I am personally excited about this event and the foundation we are laying for other national associations that are interested in including social performance trainings into their business models as a source of revenue generation. After the training, our hope is to document the learnings from our journey in making this experience a reality.

More to come on our experience over the next few days! Karibu Kenya!

***

The CRS Mision Africa is an initiative that provides intensive support for training, technical assistance and mentoring for a three-year period to build the capacity of national associations and AFMIN (African Microfinance Network), an association of microfinance networks in Africa.

PUCA is an innovative, two-year initiative designed to help African microfinance institutions effectively use the PPI. The initiative, the first of its kind in Africa, unites five charter partners—Oikocredit, Catholic Relief Services, Terrafina Microfinance, Planet Rating and Grameen Foundation—with the national microfinance networks APIM/Mali and APSFD Senegal.

Sharlene Brown is a Program Officer with the Grameen Foundation Social Performance Management Center, handling trainings for MFIs in Sub-Saharan Africa and Middle-East/North Africa. Sharlene is based out of Washington, DC.

As the program officer responsible for PPI deployment in Sub-Saharan Africa and Middle East North Africa, I have the opportunity to meet people from many countries and help them to understand social performance management better. I also have the opportunity to help reshape their perceptions of an American. When I first began working with our West African representative based in Senegal, we had many phone calls, but he never realized that I am a woman of Caribbean descent since I have no accent. The Internet connection was rarely strong enough for video chat so he didn’t realize I have skin the hue of many people in Senegal. In fact, he came to the airport looking for a white American woman – a fact he later shared with me and we had a good laugh about. I sound American but to many Africans I could be one of them…until I open my mouth. I am perhaps a paradox – a self-identified Caribbean-American woman with no Caribbean accent working in development; I suspect there are few who could fit this description. 

 
Sharlene Brown is a Program Officer with the Grameen Foundation Social Performance Management Center, handling trainings for MFIs in Sub-Saharan Africa and Middle-East/North Africa. Sharlene is based out of Washington, DC.

It’s Friday and it’s all coming to a close. Participants from FDEA and and MEC Feprodes are preparing their action plans—getting ready for their PPI pilots and ensuring appropriate allocation of time and resources for using the PPI. This is an incredibly important step in the process; we find that without action plans, many participants would return to their institutions, overrun with work, and PPI plans would lag. Action planning gives our trainees a chance to consider all the possible operational issues, resulting in a draft plan to take back to their executives and to talk over with their field officers. Together management and staff can then understand the needs and costs of using the PPI. The planning process also results in strong commitments from more institutions to invest in social performance, an excellent way to wrap up our training.

This trip has been eye opening on so many different levels. It has given me a clearer understanding of how MFIs see the PPI and why they choose to use a poverty assessment tool. In poverty stricken countries such as these it is so important for MFIs to be able to be able to show they are mission aligned, to track their clients' progress out of poverty, and to reinforce the image of microfinance as an important tool in the fight for poverty alleviation. Lastly,  this trip has definitely reinforced the need to practice my French more when I return to DC.

West Africa may be very poor economically but the people are incredible, they are committed, and they are so generous with their time, their homes, with everything. Their “teranga” always comes through. Merci bien à tous, c’était un grand plaisir, a la prochaine!

To close, I'll leave you with a clip from our Executive Day in Bamako that was covered by Mali National Television (ORTM).

 Preeti Wali is Communications Officer at the Grameen Foundation Social Performance Management Center (SPMC). She is based in Washington, DC.

Today I took a short trip with Ali (Babacar's brother) and Andre Roland Youm, Director of Operations at Caurie MF, to Thies in west central Senegal. Thies is situated 35 miles 56 km) east of Dakar, a 90-minute drive from Saly, where we held our PPI Training and Executive session. Thies, one of the largest cities in Senegal, is an important transportation center. The junction of the eastern Dakar-Niger River railway and the northern rail and road systems is located there. So is Caurie Microfinance, one of the larger MFIs within the country.

Caurie Microfinance has a portfolio of 31,479 clients in 6 branches. It is one of three MFIs that have most recently completed a PPI pilot in Senegal through the PPI Users Collaborative in Africa (PUCA) and is a partner of Catholic Relief Services (CRS).Caurie MF is using the PPI to know their client base, to better target whom to reach, and to understand the poverty movement of those clients over time.

I met with Mamadou Lamine Gueye, the CEO of Caurie Microfinance to talk about why Caurie chose to use the PPI, what it has learned and what it is planning going forward. Check out the interview below!

Preeti Wali is Communications Officer at the Grameen Foundation Social Performance Management Center (SPMC). She is based in Washington, DC.

“Pit-a-pat, pit-a-pat, pit-a-pat” - the sound of heavy rain on a zinc rooftop. “Image is important,” I hear Alou Sidibe’s* words in my head.

“Pit-a-pat, pit-a-pat, pit-a-pat,” the rain continues. “Kafo is serious,” says Bourama, the first client interviewed with the PPI in the field test**, as we converse in his sitting room and he sweeps away the water that seeps in from the heavy rain outside.

“Pit-a-pat, pit-a-pat, pit-a-pat,” continues the rain. “Kafo is safe,” say Mamadou, the second client interviewed in the field test, as he explains that his family was robbed of all their savings which they kept in their home, and he had a good experience with Kafo a very long time ago when he lived in the village.

“Pit-a-pat, pit-a-pat, pit-a-pat,” the rain beats down on the truck window as we journey on rough pathways that are supposed to be roads to our last interview. During our trip, I reflect on the comments of the client which whom we’ve spoken and realize that Mr. Sidibe’s comment, “Image is important,” is so simple, but encapsulates so much of what social performance is about.

Social performance is about image – that of the microfinance sector, the MFI players, and the clients of those institutions. In essence, it is about how the sector and its actors, microfinance institutions, are perceived by a variety of stakeholders. Perhaps most importantly it is about how clients perceive these institutions and the potential value MFIs bring into their lives.

Ultimately, as participants in and observers of the microfinance sector, reaching the poor and unserved and improving their lives is the image of microfinance that we equate with success. To solidify this image, the sector and its actors must have strong data…and PPI data can get us there.

*Alou Sidibe is director general of Kafo Jiginew based in Bamako, Mali. Kafo Jiginew is a partner of Oikocredit, a member of the PPI Users Collaborative in Africa (PUCA).

**A field test is the application of the PPI questionnaire (scorecard) to a handful of clients by loan officers. It provides loan officers with the opportunity to conduct a few interviews, raise questions or issues they have around any of the indicators, and assess clients’ reactions to the questions.

 
Sharlene Brown is a Program Officer with the Grameen Foundation Social Performance Management Center, handling trainings for MFIs in Sub-Saharan Africa and Middle-East/North Africa. Sharlene is based out of Washington, DC.

“Can you drive a wheel? Can you drive a door?” As pictures of pieces of a car were passed around the room, these are the questions our trainers asked. Of course, the response was a resounding “No.” Just so, the trainers explained, “The PPI is like a car, you can only drive it if you have all the parts in place.”

The most common questions during training are usually around specific PPI indicators and how they are chosen, why they are chosen, and if they can be changed. However, the PPI is not just a compilation of random questions; each question is carefully chosen through a statistical logit regression process, based upon the national survey and the correlating strength of the questions, to determine poverty likelihood. PPI trainers use exercises like the one about the car to show how those indicators are chosen, Trainees learn that the PPI is the sum of its parts, not to be broken apart. This said, it is common practice in the PPI development process and it is absolutely vital that we obtain input from institutions working on the ground to determine if there are large concerns with any of the indicators and, if so, to consider putting in a different indicator that is statistically relevant.

These exercises go a long way. They help assure participants that this is an objective process based on real data that drives the indicator selection process: “It’s not a person, it’s the machine that does the math.”

To learn more about how the PPI is developed visit our "What is the PPI?" section! 

Preeti Wali is Communications Officer at the Grameen Foundation Social Performance Management Center (SPMC). She is based in Washington, DC.