amy lofgren spbd tonga what we know, what we don't know about microfinance in the pacific

What We Know, What We Don’t Know and What We Need to Know About

Microfinance in the Pacific

The Practioner’s View

South Pacific Business Development (SPBD) Microfinance Network

SPBD Overview

• Operates 9 offices - ccurrently serving 13 islands• Ha’apai (population 8,000) is smallest island with an

office– serving remote and rural populations– 5 Islands served in Tonga have populations below 250

• Staff compliment – 117 employees• Conducting Social Impact Reviews – internal and

external• Has reached Financial Self Sufficiency


SPBD Outreach

Total Active Micro-credit members

Loans OutstandingLoans DisbursedAverage Disbursed Loan SizeTotal Life Insurance AccountsSavingsTotal Life Insurance AccountsOSSROAPAR>30 daysTotal Number of Staff


6,482

2,296,5863,966,859

61614,401

345,8326,482146%

9%0.5%

28

4,230

1,974,5023,420,571

7306,195

243,6724,230130%

9%0.130

3,287

661,8021,412,724

4285,126

301,8923,287

45%-54%4.0%

36

13,999

4,932,8908,800,154

61025,722

891,40213,999

101%1%

0.8%106

-

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12

Year Of Inception Samoa(2000)

Tonga(2009)

Fiji(2010)

SolomonIslands

(2012)**

SPBDConsolidate

Network

Indicator (Year-end 2012) SPBD Microfinance Network


SPBD Financial Products• Micro Credit

– Micro Enterprise (start up and existing business)– Childhood Education– Home Improvement

• Savings– Fully secured savings collected weekly– Individual, Centre, Group Funds

• Life Insurance– Currently only for members

• Training– 50 “5 “ minute business development modules– Financial Literacy (Cash flow Diaries and data analysis)– Ongoing motivation and support

SPBD Member Profiles and Social Impact

• SPBD members work in every sector of the economy– Traditional crafts – weaving, tapa making, handicrafts– Village retail shops, – Food production - schools, tourists, office workers– Growing crops and animal husbandry

• Members have varying levels of education and opportunity• Housing conditions improving



One Brick At a Time – Tupou Lesi’ili

I was born by the river in a little tent Oh and just like the river I've been running ever since It's been a long, a long time coming But I know a change gonna come, oh yes it will …..

Sam Cooke

Keys to Success

• Adhering to MF Best Practices– Pushing for Operational Self Sufficiency– Ensuring transparency to MF members and donors

• Investing and developing staff capacity• Building financial capacity of MF members• Collaborating with Governments to create

enabling economic playing field


The Caribbean Experience Characterized by a number of small and vulnerable economies

who have single source dependencies

A number of small island masses engulfed only by the Caribbean Sea and not physically or emotionally connected

Political independence of all member states and as well some countries are overseas territories of the French, British, and the Netherland Antilles

Public private sector dialogue exists at different levels if at all

Multitude of first languages- English, Spanish, Dutch, French and local dialect


Challenges in Small Island Developing States

• What does Tourism really mean• Disenfranchisement of lower economic classes• High cost of imports and problems with

balance of payments/trade• Governments and political parties• China


How Does the Pacific Look for MF?Geographic Markets (in order of population)

• PNG – huge market (Nationwide and PNG Mf)• Fiji – SPBD growing rapidly• Solomon Islands – SPBD launched• Samoa – SPBD • Vanuatu - VANWODS• Kiribati • Tonga – SPBD• Federated States of• Marshall Islands


Not So Different from the Caribbean

• Constraints to growth– Funding• local currency debt funding• grants for innovation

– HR development– Technology costs • MIS• technology in the field


What Donors Should Know

• Developing island states have limited economies of scale

• Need to think outside the boxes of agricultural export of primary products and tourism as tools of economic growth

• Creating linkages between the micro sector and larger economy

• Greater focus on development intra-regional trade and infrastructure

• Innovation is expensiveSouth Pacific Business Development (SPBD) Microfinance Network

amy lofgren spbd tonga what we know, what we don't know about microfinance in the pacific

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