“GO NORTH”

Challenge

OPPORTUNITY BANK

in northern Malawi

Go Norththe first challenge

• Establish a branch office in Mzuzu, northern Malawi

• Provision of micro-credit to vulnerable groups

• Opening of savings accounts

• Issuing micro-insurance policies

• Provision of capacity building training and development for clients and staff

3 key financial services

• Savings

• Loans

• Insurance

“When we bank poor people we must never break their trust. They depend on us.”

Francis Pelekamoyo, Chair OIBM

Income Generating

Loans

Providing a loan says to a client: “We believe in you”

and places responsibility and trust upon her shoulders

Small savings deposits combine to create a virtuous cycle that fuels local growth and development

SavingsSavings

Encouraging SAVINGS is just as important as providing micro-loans.

Small savings deposits combine to fuel local growth and development

Protective Insurance

The lives of the poor are very precarious - a single event can wipe out years of hard work.

Opportunity provides micro-insurance for families and crops, reducing their vulnerability to risk.

• Mobile Branches • ATMs • Point-of-Sale• Satellite offices• Smart Cards• Biometrics

Taking the bank to the market places of the rural poor

Project Targets

At 30th September 2010 the OIBM “Go North” project had exceeded its targets by 25%.

•Micro-credit for 7,069 clients•Micro-savings for 25,029 clients, exceeding target by 25%. Deposit balances totalling MWK 227,755,306•Micro-insurance cover for almost 29,000 families

Project Challenges

• Distance

• Branch location

• Staff

• Deposits

• Competition

Opportunity supports the MDGs

Goal 1: Eradicate extreme poverty & hunger

Goal 2: Achieve universal primary education

Goal 3: Promote gender equality and empower women

When he was at the UN, Mark Malloch Brown said “Microfinance is much more than simply an income generation tool. By directly empowering poor people, particularly women, it has become one of the key driving mechanisms towards meeting the MDGs.”

Goals 4+5. Improve health outcomes for women and children Goal 6. Combat HIV/AIDS, malaria, and other diseases:

Opportunity supports the MDGs

“Households of microfinance clients appear to have better nutrition, health practices, and health outcomes than comparable non-client households. Increased earnings and financial management options also allow clients to treat health problems promptly rather than waiting for conditions to deteriorate.” GCAP

How does it address the Paris Declaration

and the Accra Agenda?

• Closely aligned with Govt of Malawi priorities

• OIBM is regulated by the Reserve Bank of Malawi

• Autonomous and all senior staff are Malawian

• Rigorous training on transparency and accountability for all staff