How do we choose our partners?
Before starting work in a country, Opportunity International Australia identifies areas where microfinance and other support services would have the greatest impact. These are countries where there is a free market for buying and selling and where the main issues facing the poor are income generation and employment.
To carry out our work with the poor, we partner with organisations that are capable of substantial social impact and sound operational sustainability. To decide whether we will partner with a particular microfinance institution, we consider two sets of criteria:
1. Mission alignment
Our partners must share our values and objectives, and be unlikely to ‘sell out’ the poor in order to satisfy the financial requirements of fund providers.
We look for microfinance institutions:
- with the primary objective of helping people lift themselves out of poverty.
- that work in the poorest, largely unserved regions.
- operating within a market that exhibits a relevant ‘gap’, with conditions that are favourable for microfinance.
- with sound future strategies, showing continued intent to lift people out of poverty. This avoids a potential ‘mission-drift’.
- that demonstrate commitment to client satisfaction and impact.
2. Performance and leadership credentials
In order to properly exercise stewardship, we need to see that our partners can operate sustainable businesses.
We look for microfinance institutions with:
- excellent, inspiring leadership.
- strong risk management and governance.
- a solid operating platform and capable staff.
- good financial performance and an ability to manage significant growth.
- comprehensive business plans and projections underpinning a sound future.
- a history of financial self-sufficiency or, for start-ups, a forecast to be so within two years.