Poverty assessment rolled out in Central Region

I am happy to report that we are now ready – following lots of field testing and piloting to make sure all the processes are easily operationalized and results are accurate – to roll out the Progress out of Poverty tool (PPI) in the Central Region of Malawi. It’s an exciting next step in the Social Performance Management (SPM) work, as it means we’ll be able to gather data on clients’ poverty levels at entry, during the course of their time with MicroLoan and at exit. We’ll therefore be able to see the poverty levels of the clients we’re reaching and the changes to their poverty status.

Chiko, the SPM officer based in Kasungu, has been in the field the last couple of weeks training the Loan Officers at branches in how to carry out the PPI. They’re given classroom training and lots of hands-on experience in the field to test their new skills.

Muzungu nowhere near Kasungu

Despite now being back in slightly more chilly and grey England, the Social Performance Management work we're doing continues unabated. Chikonzero (or Chiko to his friends and colleagues) is working incredibly hard on all sorts of projects: making sure that the Progress out of Poverty Index (measuring clients’ poverty likelihood) pre-implementation work is going well and preparing for roll out across the Central Region, putting in place pilots testing new products aimed at reaching the most poorest and providing a longer repayment period to fit in with clients’ business schedules, documenting MicroLoan’s training best practice…etc.

Training in practice

On the subject of training, we’re going to be integrating a different training methodology for our clients. Loan Officers will be taught to use the ‘adult learning approach’, which is designed to help clients with limited formal education to learn more effectively. Before that can happen though Chiko’s been speaking to our star training Branch Managers and observing them at work training the groups. We’ll pull together all the best bits from our current in-house training as well as looking at the way other organisations across the globe do their training to develop a new and improved training programme, helping our clients to become even more effective businesswomen. We’re hoping that we can start piloting this very early in the new year.

Above is a picture of one of our Branch Managers working with a group. One of the exercises he has developed which highlights that clients need to know each other well before forming a group is to ask each woman to add a chitenje (cloth worn as a skirt) to a pile. Each potential client has to then give one chitenje back to another potential client, demonstrating that they know each other and recognise each other’s possessions. These kinds of practical exercises are part of the adult learning approach and ensure that lessons are more easily understood and remembered by clients.

Tionana (see you later) Malawi

Sadly this will be my last post for a while, as I head back to the UK this week, leaving MicroLoan Foundation’s (MLF) Social Performance Management (SPM) work in the capable hands of Chikonzero.

It’s been an amazing experience for me! An opportunity to work with MLF’s hard-working and inspiring staff, to learn so much about what the nitty gritty of microfinance really involves, see how clients are benefiting and listen to clients to serve them even better – and of course the opportunity to spend almost a year working in the beautiful and welcoming country that is Malawi.

I am not going altogether, but will continue to work for MLF based out of the UK until the end of the year, assisting Chikonzero with the many facets of SPM work that are coming up. This includes amongst other activities…starting to roll out poverty assessments for new, ongoing and exiting clients to better understand who MLF’s client base is and the differences MLF is making in their lives; integrating the adult learning approach into training methods so it’s easier for clients with limited education to apply the messages; using exit data at branch level, and allowing exiting clients to discuss their issues and suggestions with their Branch Manager.

The plan is to be back in Malawi in November so more updates will follow then. However, until then, it’s tionana!

Visiting Zambia

MicroLoan Foundation doesn’t just work in Malawi, but have two (soon to be three) branches in Zambia too, so I headed over there to see what the issues in relation to Social Performance Management are. I was looking at whether the team there are working with the poorest, how they do their training and what can be done to address client exit. I came away feeling extremely positive: though poverty levels seem to be less severe than in Malawi, the team are being proactive in working with the poorest, the training is thorough and effective, and exit rates are being kept down by good communications between staff and clients, and by responding to clients when they raise a complaint. For example, clients said that they weren’t keen on fortnightly repayments, so the Zambian team have reacted by piloting a 3-weekly repayment loan product.

Otherwise, I was well looked after at a small local guesthouse just 5 minutes walk from the office, where the staff were delighted to learn that I could speak (a few!) words of Chichewa, which is very similar to Nyanja spoken in Zambia. They therefore took it upon themselves to create dictionaries for me to further my education and made sure I was fed the tastiest Zambian chicken and Nsima (local staple)!

Putting Social Performance Management (SPM) into action

We’ve just held our second MicroLoan Foundation (MLF) SPM workshop, with no fewer than 35 attendees, including Malawi and UK management and all of the branch managers from across the country. The purpose of the discussions was to present the findings of all the piloting research that’s been going on over the last 6 months or so, get everyone talking about the issues and ready to commit to tangible actions to ensure that MLF really is reaching its clients in the most effective way it possibly can! It was two days of intense workshopping, including role plays (and great hilarity!), voting and group discussions.

The highlights were:
• agreeing to pilot a couple of new products to make it easier for the poorest to join MLF
• committing to increased focus on training for field staff and clients through a dedicated training development programme
• focusing field staff more on the reasons for client exit via exit assessments and interviews

Integrating the many valuable and practical commitments made on the day will be Chikonzero’s job, though working closely with the Operations Manager.



Picture:
Workshop attendees discuss key operational issues

Senior management in the field

Chikonzero is certainly being kept very busy! This last week he’s taken part in the 3-day internal training course on PRA (see previous post) which also included going to the field to try out his new research skills. In addition, he’s been out doing more business assessments to hone his PRA skills and get more insights into the issues that clients face in running their businesses.

Members of MicroLoan Foundation (MLF) Malawi’s senior management have been coming along to the business assessments to get a feel of what the issues are on the ground for their clients. It was a great opportunity for clients to meet management staff, and for management to reconnect to the charity’s clients, and understand in more detail the ways in which they use the MLF loans. So far we’ve had the CEO, Finance Manager and HR Manager attend the assessments, with more planned.


Chikonzero with James Kajamu (CEO) with a client



Chikonzero with Julius Kamanga (Finance Manager) interviewing another client

Welcome our new SPM officer!

I’m very pleased to report that we have found my replacement! His name is Chikonzero Undi and he comes to us with lots of relevant experience and bags of enthusiasm for making sure MicroLoan Foundation is achieving its social mission. Chikonzero’s background is in research and monitoring & evaluation, and he’s also set up his own community based organisation working on a voluntary basis with vulnerable people.

Chikonzero is being kept extremely busy not only learning the ropes of what MicroLoan Foundation does on a day to day basis – all the way from clients and Loan Officers up to management at Head Office – but also shadowing me on my various SPM activities. He’s already taken on an active role in carrying out some social assessment questionnaires and a business assessment. Next week there’s a 3-day internal Participatory Rural Appraisal (PRA) course taking place for him, the internal audit staff and regional managers. He’ll use the people-centred research skills he learns in his ongoing work with clients, ensuring that MLF’s operations are always working hard to meet their needs. Just as well he’s able to soak information up like a sponge! When I leave (in just over a month) I know that Chikonzero will keep the momentum up on the SPM activity.



Picture: Chikonzero interviews a client as part of MLF’s social assessment work