Fonkoze and the Haitian Remittances

Fonkoze and the Haitian Remittances
By Katleen Félix, M.Sc.
UNITAR - Labor Migration, Protection and Development Oct 2nd
About Fonkoze
Founded in 1994 Fonkoze is a MFI who targets the rural
poor, wherever they are in Haiti:
37 branches, in all departments of the country
Over 1,000 credit and education centers
99% of our clients are women
Mission
Provide Haiti’s poor with the financial and educational services they
need to make their way out of poverty;
Eliminate in Haiti the type of extreme poverty that leaves families
without hope by replicating proven models;
Reverse the decline in Haiti’s economy by empowering families to
engage in sustainable economic development
Latòti
The Fonkoze
Branch Network
Pòdpè
Jan Rabèl
Pòmago
Gwomòn
Okap
Lenbe
Answouj
Fòlibète
Mamlad
Twoudinò
Wanament
Gran Rivyèdinò
Gonayiv
Sen Michel
Lestè
Piyon
Machandesalin
Ponsonde
Mayisad
Ench
Tomasik
Sen Mak
Tomonn
Boukàn Kare
Beladè
Sodo
Mibale
Laskawobas
Lagonav
Kabarè
Pwentarakèt
Tomazo
Site Solèy
Jeremi
Pòtoprens
Dammari
Latwazon
Kwadèboukè
Gantye
Petyonvil
Bomon
Ansavo
Leyogàn
Miragwan
Bizoton
Kenskof
Twen
Kanperen
Okoto
Okay
Aken
Sen Lwidisid
Fondwa
Fondèblan
Lavale
Marigo
Tyot
Kotdefè
Jakmèl
Ansapit
About Fonkoze
Through this infrastructure we offer a full range of
financial services:
175,000 savers - US$12 million in savings
55,000 borrowers – loan portfolio of US$11 million
Micro-Insurance
Currency Exchange: $35 million per year
Remittances
We also offer extensive literacy & education services
Basic literacy
Business skills
Sexual and Reproductive Health
Under development: Environmental Protection and Human
Rights
Fonkoze’s Borrowers
Climbing the Ladder out of poverty
• Regardless of where our clients start, Fonkoze offers them a range of services to
keep them on the ladder. We cannot make the climb for them but we can accompany
clients to keep them from falling off.
Fonkoze’s Borrowers
Chemin Lavi Miyo/Road to a better life(Pilot)
• Reaches out the poorest of the poor. Pilot funded by CGAP and Concern
• Accompanies for 2 years with training, one-on-one supervision and encouragement,
confidence building and other services like health care and home repair.
• Provides some initial assets to starts their own microenterprise.
Fonkoze’s Borrowers
Ti Kredi (Little credit)
• For Families that are not ready for large loans
• Loan range $25 to $75
• Shorter repayments periods, additional support from loan officer and literacy class
Fonkoze’s Borrowers
Solidarity Group (Core program)
• Groups of 5 friends form solidarity groups and take a loan together.
• Groups are part of a Credit Centers of 30-40 women - long term associations of
women devoted to individual and community economic & social development.
• Loans range from $75 to $1300 for 6 months.
Fonkoze’s Borrowers
Business Development level
Year-long loans from $1300 to $25,000 & More
Clients are part of a formal economy and create jobs in rural Haiti where there is little
employment.
Fonkoze Commits
If you stay 5 years with Fonkoze as a responsible
member:
• You and your children will eat every day
• You will know how to read and write
• All you children will go to school
• Your home will have a cement floor, a tin
roof, and a latrine
• You will have assets that you can see
accumulating day by day (land, buildings,
animals, savings)
• You will have the confidence to face your
future, no matter what it holds.
Haitian Migration
Highlights
Migration of Haitians 18th thru 21st
century
Period/Waves Socio-Political
Context
Emigrants Profile
Destination
1791-1810
Revolutionary war and post
independence
Mulatoes, White French,
limited blacks
US: Philadelphia,
Baltimore, Savannah, New
Orleans, NY
1915-1934
US Occupation of Haiti
Intellectual Elites, Blacks
Dominican Republic, Cuba
1934-1950
Search for better Education
Upper Middle Class
France, Canada, Africa
1957-1963
Francois Duvalier (Papa Duck)
elected President of Haiti
Politicians, professionals,
educated elite, upper
Middle Class
Africa, France, Canada
1964-1971
Francois Duvalier is selfproclaimed President for life
Black Middle Class and
politicians
Africa, France, Canada, US
1971-1986
Jean-Claude Duvalier (Baby
Duck) is named to rule as
successor Pres.
Massive emigration of
Middle Class and lower
class
US (southern state and
Florida), Venezuela, the
Bahamas, Dominican
Republic and Canada.
2001-2004
Aristide overthrown by the
military
Massive emigration of
Middle Class and lower
class
US and Canada
Reference: “The legitimacy of the Haitian Diaspora” by Linda Cesar, President The Edge Worldwide
Ref: Mobility in the Caribbean (La mobilite des populations dans les caraibes par Andre
Calmont et Cedric Audebert) – Cartographe Gandrille.
Remittances
Fonkoze- IDB- IFAD Remittance
Enhancement project to and within rural
Haiti
The IDB-IFAD Partnership
Program Name:
Remittances and Rural Development Program in Latin America and the Caribbean:
Strengthening the Income Generating Capacity of the Rural Poor in the
Remittance Recipient Countries
Objectives:
1.
To support the development of low cost, efficient and accessible local financial
and communications services for migrants and their families
2.
To strengthen and empower migrant associations interest in supporting rural
development in their countries of origin
3.
To build the capacity of migrant associations for planning and implementing
rural development activities in their countries of origin
4.
To improve the income and living conditions of the rural poor through joint
ventures between migrants and local organizations for sustainable
rural agricultural and non agricultural enterprises
Fonkoze- IDB- IFAD Remittance
Enhancement project
1.
Installation of electricity, computers and satellite
communications in rural branches
2.
Development of a data base and directory of
Haitian hometown associations (HTAs) in the U.S.
and Canada
3.
Training of HTAs in needs assessment* and open
dialogue on development interventions in rural Haiti
4.
Promotional work and financial literacy training in
Haitian American communities
The main idea is to start working closely with Haitian
HTAs, facilitating transfers and partnerships.
About Fonkoze Our Partners
•
City National Bank of New Jersey
•
Rapid Transfer : CAM, Moneygram, UNO,
Dolex, Banco BHD (Dominican Republic)
•
Unitransfer
•
MIF-IDB/IFAD
Project Objectives
• Expand and improve the delivery of money transfer services
in rural Haiti
• Improve the effectiveness of HTA and support groups as
agents of development for local communities in Haiti.
•
•
Prepaid transfer cards: Allianza and CNB Enib
Oklahoma
Digicel (FONKOSEL program)
Remittance Products Actual and future
Actual
• 37 live-real time branches in rural Haiti
• Fonkoze act as a payer in rural area for our money transfer partners using partners
Web based and Transfer Software
• Sub-products
–
–
–
–
Savings account (for senders and receivers)
Churches, Haitian Associations and NGOs thru City National Bank can transfer for a flat fee
of $10 regardless of the amount.
Payroll service for NGOs (within rural Haiti)
Visa Prepaid Debit Card (NEW): $6 for $2,500
Future
• Stronger dialogue with Haitian HTAs (Hometown Associations) to add new services
for the Diaspora. We are working on an Investment Fund (Diaspora- International
Donors and Fonkoze)
• More coverage in rural area (more branches and stronger live network)
• Mobile phone banking– (Digicel & Fonkosel new network)
–
–
–
•
Transfer confirmation via SMS
Micro payments
Mobile to Mobile transfers
New financial products for remittance clients (senders or receivers), ex: life
insurance, repatriation insurance, web control of savings account, generation of a
Capital fund, Retirement program etc)
Haitian HTA Database – highlights
•
More then 200 Haitian Hometown Associations (HTAs) in NY, MIA, Boston,
Montréal, Ottawa and French Caribbean's
•
Most of Haitian HTAs are not registered they don’t get tax deductions or any
government support or international aid.
•
3 active Federations identified - NY: FARHE, Boston: AFED and Montréal:
ROCHAD
•
Various professional associations: Engineers, Doctors, Nurses and Lawyers
•
Main activities of the HTA:
– Fundraising for building or support Schools, Churches, Hospitals. Libraries,
Clinics, Orphanages etc…
– Social events and gatherings
– Scholarships for Diaspora Students and for Haitian student in Haiti.
– Support after disaster
•
Some HTAs are doing economic activities and investments
–
–
–
–
–
Farming activities
Craft productions and training
Reforestations with fruit trees, coffee plants etc
Ecotourism projects
Micro-loans
Haitian Women Associations principal activities in the US
Examples of action Beyond remittances:
•
Integration support (housing, job, ESL program, literacy English and
Creole)
Health: (often partnership with Haitian Nurses and Doctors associations)
•
–
–
–
–
–
•
•
•
•
Support to refugees in the US, Bahamas and Dominican Republic
Humanitarian support (food, clothes, medicine etc for disaster relief)
Schools support in Haiti and scholarship in the US
Political representations and human right advocacy (in the US and Haiti)
–
–
•
•
Family planning
Breast cancer
Diabetes
Hypertension
HIV - AIDS
Denunciation of child abuses “Rest’avek” problem in Haiti
Domestic Violence: Advocacy, education and outreach
« Douk »
Economic support program (new initiatives - small scale)
How Fonkoze is supporting
Diaspora Associations in Haiti?
• 37 branches covering the country
• Savings accounts available for the Diaspora
• Payroll service (employees or vendors only need a
Fonkoze account)
• Reliable Transfers at low cost:
– Classic transfers:
• Individual
• Associations: $10 flat fee regardless the amount
– Visa Prepaid Debit Card (NEW): $6 for $2,500
Questions?
Comments?
Ideas?
Katleen Felix
[email protected]
917-375-6902