MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2007 ii
Microenterprise Results Reporting (MRR) AnnualReports summarize USAID’s investments andpriorities in microfinance and microenterprisedevelopment. This Annual Report for Fiscal Year2007 documents USAID funding for microenterprisedevelopment through more than 250 diverseimplementing partners, ranging from private voluntary organizations (PVOs) and non-governmentalorganizations (NGOs) to for-profit banks andenterprise development service providers. This year’sdata show strong Agency support for non-profitorganizations (PVOs, NGOs, cooperatives, and creditunions), which as a group received 49 percent($94 million) of overall obligations in FY 2007. The FY 2007 report reflects USAID’s continuedcommitment to leveraging its investments inmicroenterprise development. USAID helpsstrengthen the performance of increasingly commercial microfinance institutions (MFIs), allowing them to attract private investors and grow faster thanif they relied solely on donor support. USAID alsoreduces some of the risk to private investors andlenders by offering partial credit guarantees and otherenhancements. As of FY 2007, $3.4 million in USAIDfunding for credit guarantees was supporting up to$177 million in private sector lending to MFIs andmicroenterprises.For the FY 2007 MRR, USAID refined its datacollection surveys, both to improve the measurementof its microenterprise development activities and tobetter align with the Agency’s new accounting andprogram reporting system. Where practical, data validation tools have been updated and more optionshave been provided to deal with missing or partialdata. In addition, the poverty loan proxy thresholdshave been corrected for inflation since 1995, thusproviding a more accurate basis for reporting. Thefinancial services questionnaire now includes a moreeasily verifiable option for providing all financial datain local currency. This report fulfills the 12 reporting requirementsincluded in the Microenterprise Results and Accountability Act of 2004 (PL 108-484). Key findings include:1.
In FY 2007, USAID provided $193 million infunding for microenterprise developmentthrough 184 new and existing grants, coopera-tive agreements, and contracts in 61 countries.2.
USAID provided $21.5 million in funding through central mechanisms in FY 2007.3.
USAID provided $93 million in funding through contracts in FY 2007. Just under$45 million in microenterprise funding in FY 2007 was subgranted or subcontracted, withlocal institutions receiving 81 percent of thisfunding.4.
In FY 2007, USAID missions reported that$24 million in USAID funds were matched by an additional $6.2 million from sources outsidethe U.S. Government.5.
For the first time, 31 USAID-assisted partnersin 12 countries used USAID-certified poverty assessment tools to measure and report theshare of their clients who are “very poor”according to standards specified in recentlegislation.
Based on their reports, USAIDestimates that 19.1 percent of funds directly benefited “very poor” clients as defined in thatlegislation.
Amendments to the Microenterprise for Self-Reliance Act of 2000 define the “very poor” as people living on less than $1/day atpurchasing power parity, or those in the poorest 50 percent of those living below their country’s poverty line.