Grameen Foundation Australia assists the poor to become self-employed and work their way out of poverty. We provide them with micro-credit on terms that are suitable to them and by teaching them sound financial principles. Our work is currently focused in the Philippines where we support four microfinance projects and other development programs, but we are also considering many developing countries and communities in need for our next project. The demand for this service is very  high. The growth potential in the Philippines is enormous and a lot of people are still in need of micro-loans. This demand requires GFA to seriously look into increasing the number of  land-based projects and branches to begin meeting this ascertained demand.

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        A borrower receiving her loan, in Pampanga in the North of the Philippines

A Timeline of GFA's Work

Based on an enduring relationship with the Grameen Bank in Bangladesh and inspired by their work,  Grameen Foundation Australia (GFA) was created 13 years ago (1998) to further the Grameen Bank legacy, values and objectives and to accelerate the impact of microfinance on the world’s poorest people. Since our creation, our action has always been driven by the wish to defeat global poverty.

GFA's early activities were government funded work  related to microfinance projects such as project design, in-country analysis, feasibility study or expansion programs in several poor Asian countries (Vietnam, Nepal, East Timor, Philippines…).Later, GFA undertook the responsibility to fund and implement its own micro-finance projects.

The first one was the Northern Samar Coalition Against Poverty (NSCAP) microfinance project in the Philippines which started its operations in 2004. It began with P19 million capital (400 000 AUD), thanks to a soft loan accessed from the Philippines national government through the efforts of the Provincial Governor, and donations from Grameen Foundation Australia. Over time this microfinance program had shown to be a very successful one.  It has started up timidly with operations in only one barangay (meaning a ‘village’ subdivision of a municipality), with only 20 clients pursuing their various livelihood activities. The demand for the service quickly increased and the project has grown considerably, serving today around 14,000 people.

Indeed, many of the local people soon realised the integrity of this pro-poor microfinance program which applied a very low interest rate, allowing for affordable weekly amortization. It would pose as a

genuine alternative to the widespread financing activities of “loan sharks” levying a rate of at least 20 percent interest monthly. One of the biggest issues for poor people is  a lack of access to collateral, making them unable to approach major banks for a loan. Our program  lends small amounts of money to people who would not be able to access loan money any other way. The collateral is human collateral: people helping people. As a result it has stimulated self-employment amongst the local communities and helped a lot of people to improve in their situation by launching or developing sustainable and viable business.

In the span of three years of operation, the popularity of the program had grown such that the initial funds under management of P19 million capital was not sufficient to meet demand. Following deliberations with GFA, the Provincial Governor, and other stakeholders, an expansion plan was considered. This resulted in negotiations with GFA’s local partner, Fundacion Grameen Philipinas (FGP) to manage what would become the expanded program. FGP is a locally incorporated and Philippines-based NGO established on the imprimatur and support of GFA, in order to build capacity and focus on pro-poor interventions along the Grameen model.  Within a year under FGP management, an additional P18.5 million was infused into the microfinance program to reach out to more clients across new barangays and municipalities.

The growth and development of the NSCAP program was salutary, and the project turned out to be very successful.  From the starting point of operation at one barangay  with only 20 clients and a loan portfolio of only P80,000 ; to the present outreach of 386 barangays, covering 20 municipalities, servicing 14 000 clients and a revolving line of credit expanding to around P80 millions (AUD 17 million), we have seen great progress and strive to keep doing so.

GFA current projects

Due to the sucess of its first project , GFA launched three other microfinance projects: Pampanga in 2009,  Bataan in September 2010 and Manila in 2010.  GFA has  acquired good knowledge of the Philippines and now has strong experience in setting up and managing its own microcredit projects, allowing us to be very efficient and productive.

Microfinance is the provision of tiny loans without collateral to the poorest of the poor for self-employment purpose. It constitutes the most important part of our activities. We use two different models of micro-finance. The first one is the traditional Grameen model and the second one is “no-interest loan” model which we started with the Manila project.

Microfinance Projects :

Map of our current microfinance projects in the Philippines:

Projects in partnership with University of Eastern Philippines

 -Livestock Bank (social business) is a partnership between the Grameen Foundation and the School of Agriculture of the University of Eastern Philippines. Its purpose is to develop high quality livestock through research and produce livestock that poor people will buy for fattening and re-sale.The Livestock Bank in Northern Samar is a tool for technology transfer through instruction, research and extension of the university. It also serves as a training ground for agriculture students through learning. The project started June 12, 2008. By the end of 2008, we were able to produce 79 piglets. By 2009, 229 piglets were produced. As of March 2011, we had the capacity to produce 700 piglets per year. We are conducting research in order to expand this project. Our goal is 10,000 piglets per year, the expansion of production capacity is currently underway.

 -HELP (Higher Education Loans Program) is a Grameen initiative that provide 200 scholarships to students who attend UEP.  These scholarships are not merit-based; they are targeted at the poorest 200 students who are at the greatest risk of dropping out due to financial pressures. After graduation HELP-scholars are welcome to repay their scholarships if they have the capacity and the will to repay.