Our future goals are ambitious, but we know with God anything is possible. We are following God’s call to reach as many people as possible with quality services that empower them financially and spiritually.
Microfinance is a high-risk enterprise—making small loans to a population characterized by low stability requires great planning and skill. The risk is somewhat offset by higher interest rates and greater volume of loans, but microfinance is still one of the most difficult financial programs to practice.
CAFECC has faced challenges in its growth and will continue to face more in the future. However, we have overcome many challenges already. For example, low reliability for electric power is a major issue in our area, so we have installed solar power in our office to offer more dependable, convenient service.
We experience problems common to all MFIs. Loan capital and human resources constraints have hampered our ability to serve a greater number of clients and have contributed to risk, making it difficult to achieve operational sustainability—that is, our revenue completely covering our expenses. This goal is only achieved by 5% of MFIs,1 but we achieved it in 2013 and currently in 2016, we are working hard to maintain the sustainability at over 100%.
To address challenges like these, we have rolled out the following initiatives:
- Develop and launch up to four new products: equipment loan, School fees loan, salary loan and corporate loan. As it is now (Dec 2016), we have these loans available to our clients.
- Continue to update and expand our online presence
- Develop ways to more effectively manage risk- especially Portfolio at Risk (PAR 30)
- Serve up to 1,000 active clients