Client Needs: What do we know (and how do we Reach the Poorest) Chris Pain, Social and Economic Development Unit, Concern Worldwide

Low Assets Lack of Return on Assets How Concern Understands Extreme Poverty Extremely Poor People Risk and Vulnerability

How have we utilised this – to distinguish between countries Countries in which we workCountries in which we do not work Bottom 1 – 10 Afghanistan, Somalia, Sudan, Chad, DR Congo, Niger, Haiti, Central African Republic, Angola, Eritrea Bottom 11 – 20 Sierra Leone, DPRK, Ethiopia, Zimbabwe Guinea, Guinea Bissau, Yemen, Mali, Myanmar, Nigeria Bottom 21 – 30 Burundi, Rwanda, Liberia, Bangladesh, Mozambique Cote d’Ivoire, Djibouti, Lesotho, Mauritania, Cameroon Bottom 31 – 40 Zambia, Uganda, Pakistan, Malawi; Kenya Nepal, Burkina Faso, Papua New Guinea, Madagascar, Senegal Outside Bottom 40 India, Cambodia, TanzaniaTimor Leste, Gambia, Comoros, Togo, Benin, Ghana

How have we utilised this – to distinguish between countries

What does this mean at programme Level Reaching this target group will cost more and require a different type of programme =>A shift away from sector based programme Multi Sectoral Series of Interventions, pulling in a number of elements of our work To make this work requires a multitude of skills – many of which we do not have – we need to work in partnership Source: Income Distribution – Sierra Leone

Level TwoLevel ThreeLevel FourLevel Five 12 months6 months 36 months 6 months Ideal timeframe Potential timeframe HH at this level have moved beyond vulnerability to poverty and have “sustainable livelihoods” All included in the programme are at this level Poverty Line Survival Line (Food Poverty Line = All resources spent on consuming 2,100 kcal per day) Livelihood Line Asset Generation Line Level One Always the possibility HHs will fall back a level due to shocks – programme will be flexible enough to allow them to rejoin

Developing a Relationship with a Microfinance Investor Takes time to build the relationship Foundation depends on shared values, vision and working principles  Operational - Cambodia (AMK) and Zambia (AMZ)  Feasibility Studies – Malawi and Mozambique The needs of the poorest is the starting point in the design of an appropriate product  Seasonality of clients agricultural livelihoods  Transparent Communications on the price of loans  Reducing transaction costs Focus on both Social and Financial returns  AMK – submits social performance reports to MIZ markets  AMZ – internal reports on limited number of social indicators

Reacting to the needs of the Poorest – Differences in Monthly Cash Flows and Expenses (Zambia)

Where does the complementarity between Concern and Agora Emerge ConcernMIVComplementarity TargetBased on wealth ranking, equality, vulnerability Depth of outreachProgramme participants and MFI clients pools overlap Needs/ Demand Focus on the basic needs and capacity to generate income to access basic services Focus on the need to better manage finances: demand for a range of appropriate financial services smooth consumption and increase income Purchasing Power Programme participants may be unable to pay for the goods and services Clients are able to pay for appropriate financial services Provide resources that help sustain and develop purchasing power EqualityAddressing practical needs (basics of life) and strategic interests (power, control, legal rights….) Starting operations where financial inclusion is the lowest; providing equitable access to appropriate products to different client groups Social performance Management – not just access to credit but clients have the potential to transform power relations and empower the poor

Where does the complementarity between Concern and Agora Emerge ConcernMIVComplementarity AssetsFocus on human, social, physical, natural and financial assets Focus on financial assetsMFIs are one group of partners that Concern works with Returns100% returns on programme participants’ assets stay with programme participants Financial costs are charged to programme participants for the use of service; both client and MFI sustainability are considered Both focus on graduating and maintaining the poor to above extreme poverty / food poverty line Risk and vulnerability DRRClient protection We have very common areas of interest, but often use different language