Social Performance Assessments

Potential Clients

Direct Lenders.
These may include commercial banks, leasing companies, micro-finance institutions and international organisations

Financiers:
International Organisations, NGOs who provide financing to direct lenders.

Potential Beneficiaries

Clients and the Public at Large

Service Overview

CRA undertakes a Social Performance Assessment (SPA) of the lending institutions.

The benefits of an SPA are different from a traditional credit rating. SPAs serve 4 principal purposes:

1) They allow the lending institution (typically a Microfinance Institution –MFI) to analyze its own social purpose and operations to gauge how it compares to MFIs worldwide in terms of its social objectives. The SPA gives them a very detailed and granular assessment of their total operations in seeking a real positive social impact in their market. It will show them where they are weakest and their strengths compared not only to their local and regional African peers, but internationally. This helps them focus on areas for improvement.

2) For outside donors and investors, it gives them insight not only on the financial strength of the MFI, but also allows them to assess whether those grants, donations or investments qualify as socially responsible activities for their own mission fulfillment. It offers a more transparent MFI, which will help it attract additional funding. The SPA can be made available through MIX and therefore reach an even greater audience.

3) For the national regulator, it also gives an additional measuring stick and detailed analysis of international quality, to monitor and supervise its full financial market, particularly at the microfinance level which is often difficult to assess and monitor by the regulator. In turn, this aids the MFI itself to receive the seal of approval of the regulator and thus to establish itself as a credible and responsible operator in the financial market and community. And finally,

4) Assists the MFI in raising its profile in its own market, establishing local and international credibility with clients, and expanding its market share.

The assessment by CRA will entail an evaluation of the social impact that has been brought about by the lending institution. A comprehensive evaluation of outputs and outcomes will be undertaken, as well as correlation to resources employed to quantify value-for-money.

Core competencies

Financial Analysis
Monitoring and Evaluation
Communication Skills

Outputs

Report with Clear Recommendations