Annual Microenterprise Results Report 

to Congress Fiscal Year 2014

August 2015

MICROENTERPRISE 

RESULTS REPORTING
This report presents the progress of 

USAID’s microenterprise development 

efforts for fiscal year 2014.

Cover Photo: 

Karungi Jauline hauls bananas from Western Uganda to 

Kalangala once a week to sell to the hotels and shops. 

PHOTO CREDIT: USAID

Date of Publication: June 2015
List of Acronyms 2

About the Report 4

Sources of Funding 7

Program Areas 7

Development Approaches 7

Where we Work 8

Engaging Markets 10

Development Credit Authority (DCA) 11

Cost-Effectiveness and Sustainability 11

The Better than Cash Alliance 11

How USAID Implements Microenterprise Programming 12

Sub-Recipients 12

Ending Extreme Poverty 14

Victims of Human Trafficking 15

Poverty, Race and Ethnicity 16

Additional Information 18

Annex A: MRAA Reporting Requirements 19

TABLE OF CONTENTS
I am pleased to share with you USAID’s FY 2014 Microenterprise Results Reporting. As the global 

community establishes a new set of sustainable development goals, there is keen recognition that inclusive 

economic growth is essential to reducing extreme poverty. Microenterprise development plays an important 

role in USAID efforts to accelerate growth that engages and benefits all of society--regardless of economic 

class, gender, sex, disability or religion.

Over the course of more than 30 years USAID’s microenterprise efforts have evolved from a focus on 

microfinance to the provision of a much broader array of interventions aimed at expanding access not only 

to finance, but also to markets, services and other resources for poor and marginalized populations. As 

highlighted in this year’s report, USAID puts this into practice through a wide range of activities in a number 

of sectors. 

As a result of USAID support, smallholder farmers growing avocados in Tanzania, where two-thirds of 

the population lives on less than $1.25 a day, now have greater access to planting materials, post-harvest 

services and other types of support needed to connect to global markets and increase incomes. In Haiti, 

residents of poor neighborhoods in Port-au-Prince, that are often subject to high crime, are now able to 

save money and transfer funds without worrying about theft due to USAID support for the use of mobile 

wallets in a Village Savings and Loan Association program. And in Kenya, as a result of a Development 

Credit Authority guarantee, the Kenya Women Finance Trust has provided more than 20,000 micro-loans to 

women entrepreneurs to support their agricultural and clean energy ventures. 

Moving forward, USAID will further the integration of microenterprise development into other sector 

programs, and pursue a multi-pronged approach to strengthen the environment for microenterprise 

development. This new approach will focus on mobilizing private sector capital, engaging a wider set of 

institutions in providing financial services and products, and using digital technologies, such as mobile banking, 

to lower costs and reach women and remote populations. 

In all these efforts, we will embrace local leadership, private investment, innovation and partnerships, while 

relentlessly focusing on achieving results that will contribute to our global commitment to eradicate extreme 

poverty by 2030. 

 

Sincerely,

Charles North

Senior Deputy Assistant Administrator

Bureau for Economic Growth, Education and Environment (E3)

U.S. Agency for International Development

1
DCA Development Credit Authority

E3 Bureau for Economic Growth, Education and Environment

FY Fiscal Year

MFI Microfinance Institution

MPEP Office of Microenterprise and Private Enterprise Promotion

MRAA Microenterprise Results and Accountability Act

MRR Microenterprise Results Reporting

MSME Micro, Small and Medium Enterprise

NGO Non-Governmental Organization

PAT Poverty Assessment Tool

PPI Progress out of Poverty Index

PPP Purchasing Power Parity

QDDR Quadrennial Diplomacy and Development Review

SME Small and Medium Enterprise

USAID U.S. Agency for International Development

USG U.S. Government

VSLA Village Savings and Loan Association

Women farmers in the Banka District of Bihar, India. PHOTO CREDIT: LWR / Jake Lyell

LIST OF ACRONYMS

2
“USAID will continue working with our allies to end extreme poverty through a new model of development. 

Our strategies emphasize sustained inclusive economic growth, which promotes political and economic stability 

and expands the middle class worldwide. Inclusive growth does not simply add to a nation’s GDP; it decreases 

youth unemployment and wealth inequality, promotes gender equality, increases access to electricity, provides 

pathways out of poverty, and increases government accountability. 

[...]

Because new businesses, which are often small, produce the majority of new jobs, expanding the number 

of entrepreneurs abroad leads to social and economic stability and provides new markets for U.S. exports. 

Building on successful programs in this area, the Department [of State] and USAID, in collaboration with other 

[US] government agencies, are supporting entrepreneurship ecosystems and enabling policy environments.”

2015 Quadrennial Diplomacy and Development Review 

3
The Fiscal Year 2014 (FY 2014) USAID Microenterprise Results Reporting (MRR) responds to the annual 

reporting requirements of the Microenterprise Results and Accountability Act (MRAA) of 2004 (Public Law 

108-484). The MRAA directs the Administrator of the U.S. Agency for International Development (USAID) 

to “submit to the appropriate congressional committees a report that contains a detailed description of the 

implementation of this title for the previous year.” Specifically, this report summarizes USAID’s investments and 

reach in microfinance and microenterprise development, and addresses the 12 reporting requirements included in 

the MRAA.1

The report was authored by the Office of Microenterprise and Private Enterprise Promotion (MPEP) in the 

Bureau for Economic Growth, Education, and Environment (E3). 

From November 2014 through January 2015, the survey team collected data from 76 USAID Missions and 

three USAID/Washington Bureaus. From January to May 2015, the survey team collected project data from 84 

implementing partners. The survey captures data on approximately 90 percent of the funding, or $223.6 million 

of the approximately $255 million that USAID invested in microenterprise development activities in FY 2014. 

1 Summarized in table form in Annex A

ABOUT THE REPORT

Sseggujja Gerald runs a hardware shop in Kalangala. PHOTO CREDIT: USAID

4
USAID promotes inclusive local markets by integrating 

the poor and marginalized into formal financial systems 

and by unlocking private capital flows. As a result of 

USAID’s continuing efforts to promote microenterprise 

development, millions of micro-entrepreneurs who were 

once locked out of financial systems are now accessing 

finance. Nonetheless, approximately half of the world’s 

poor remain without access to formal financial services, 

and are thus constrained in their ability to contribute to 

and benefit from economic growth. 

THE PAST

USAID was one of the first major donors to recognize the 

importance of microenterprise as a means for advancing 

inclusive economic growth in the early 1980s. Over the past 

three decades, USAID supported the establishment of some 

of the most significant actors in the microfinance industry 

and helped transition this industry to a financially sustainable, 

market-based model. Not only has this increased the 

efficiency of development programming, it also demonstrates 

the importance of engaging private sector investors in 

achieving sustainable and inclusive economic growth. 2

OVERVIEW

TODAY

The microenterprise world has significantly changed since 

USAID’s first involvement in this sector more than 30 

years ago, with the transformation of former NGOs and 

Microfinance Institutions (MFIs) into fully regulated banks, 

and the introduction of modern retail banking to low-income 

populations. Branchless banking is widespread and small 

financial institutions increasingly are filling the space between 

big banks and small customers. Digital technologies have 

substantially lowered the delivery cost for a wide range of 

financial products and services.

Women prepping to sell homegrown tomatoes, Khatlon Province, Tajikistan. PHOTO CREDIT: USAID / Sayora Khalimova

For a more detailed discussion on USAID’s historic legacy in promoting 

microenterprise, see ‘From Microenterprise to Financial Inclusion’ 

produced by USAID’s Bureau for Education, the Environment and 

Economic Growth (E3).

2

5
GOING FORWARD

The global economy has evolved substantially since USAID first began promoting microenterprises. Today, 82 percent of all 

capital flows to the developing world come from the private sector and demand for private investment and financing from 

developing country businesses and governments continues to grow. The Agency is now moving toward a multi-pronged 

approach to building a stronger ecosystem for microenterprise development: 

Mobilizing Private Capital

USAID seeks to catalyze private 

capital investment that support 

financial institutions serving the poor, 

engage microentrepreneurs, and 

promote the growth and productivity 

of microenterprises. Access to finance 

is critical to the ability of micro and 

small enterprises (MSEs) to grow and 

support their communities.

Promoting Digital Financial 

Services 

Digital platforms enable financial 

institutions to reach a greater number 

of microenterprise customers more 

cost-effectively, particularly in remote 

locations. Digital delivery can also 

catalyze the emergence of a more 

diverse set of financial products, such 

as savings, remittances and insurance. 

Digital platforms also promote 

transparency and accountability, which 

can help protect women, the poor and 

the most vulnerable.

Advancing Financial Inclusion

USAID microenterprise activities 

balance profit with an emphasis on 

improving access to quality financial 

services through customer centered 

design, consumer protection, 

and social performance. This is 

particularly important for ensuring that 

microenterprise development benefits 

women and the extreme poor.

Making a living from dairy, Amhara, Ethiopia. PHOTO CREDIT: USAID / Kelley Lynch

65
Within the Economic Growth Program Objective, several 

Program Areas significantly contributed to the Agency’s 

microenterprise development efforts (see Chart 2). 

Agriculture (44 percent) represents a significant portion 

of economic growth programming. This reflects the 

substantial impact the Feed the Future Initiative (FtF) has 

had on USAID reaching its microenterprise objectives. 3

Private Sector 

Competitiveness 9%

Counter-Narcotics 11%

Education 4%

Environment 4%

Other 9%

Agriculture 44%

Economic 

Opportunity 19%

CHART 2: 

FY 2014 Microenterprise Obligations by Program Area

PROGRAM AREAS

Microenterprise promotion is integrated throughout 

USAID programs as a means of achieving broader 

development objectives, in areas such as food security, 

health, and economic growth, while at the same time 

advancing the Agency’s microenterprise goals. 

Chart 1 details the numerous Program Objectives that 

contributed to microenterprise development in FY 2014. 

While USAID funds microenterprise development under 

nearly all of its major Program Objectives, Economic 

Growth is the predominant source, representing 79 

percent of funding. 

Peace and Security 12%

Investing in People 5% Humanitarian Assistance 4%

Governing Justly &

Democratically .21%

Economic 

Growth 79%

CHART 1: 

Microenterprise Funding By Program Objective

SOURCES OF FUNDING

USAID utilizes numerous approaches to promote microenterprise development (see Chart 3). This includes 

a range of activities designed to promote access to microfinance, markets, and resources for the poor. In FY 2014, 

agricultural value chain development remained the most 

prevalent approach. Nearly one-third of USAID’s microenterprise activities fell within this area. An additional 26 

percent of the Agency’s microenterprise development activities occurred within economic strengthening, including 

establishing and supporting savings groups and developing 

entrepreneurial capabilities. 

Non-Agrigultural Value 

Chain Development 7%

Other 11% Agricultural Value Chain 

Development 30%

Digital or Mobile 

Finance 3%

Microfinance 

14%

Enabling Business 

Development 9%

CHART 3: 

FY 2014 Obligations by Approaches to Microenterprise Development

DEVELOPMENT APPROACHES

3 See page 18 for an example on how Feed the Future has advanced 

microenterprise objectives in Tanzania

Economic 

Strengthening 26%

7
In FY 2014, 74 USAID Missions and three USAID/

Washington Bureaus reported microenterprise development 

programming. This funding was programmed through 143 

new and existing agreements—including grants, cooperative 

agreements, and contracts—with 167 active implementing 

partners.4 Of this funding, $1 million was programmed 

through USAID/Washington’s Office of Microenterprise 

and Private Enterprise Promotion (MPEP).5 The majority 

of microenterprise programming ($223 million) occurred 

through USAID Mission-level obligations. 

WHERE WE WORK TABLE 1: TOP 20 MISSIONS IN FY 2014

Microenterprise Results Reporting Requirement (MRR) 1. See Annex A for 

a list of all MRR Requirements. A list of all microenterprise recipients is 

provided in Annex I at www.mrreporting.org. 

MRR requirement 2.

4

5

Rank Mission Total

1 Afghanistan $21,573,924

2 Tanzania 17,999,000

3 Ethiopia 11,465,000

4 Colombia 10,913,400

5 Haiti 9,955,307

6 West Bank and Gaza 9,400,000

7 Rwanda 7,574,421

8 Liberia 7,266,851

9 South Sudan 7,260,271

10 Malawi 7,189,710

11 Peru 7,116,000

12 Mozambique 6,972,613

13 Cambodia 6,468,942

14 Somalia 6,295,888

15 Kyrgyzstan 5,885,107

16 Uganda 4,945,800

17 Lebanon 4,862,025

18 Iraq 4,802,037

19 DR Congo 4,758,065

20 Kenya 4,743,954

21 USAID/Washington 7,400,000

CHART 4: FY 2014 Funding by Region

Asia

Africa

Middle East

Europe & 

Eurasia

Latin America & 

Carribean

$0 $20 Million $40 Million $60 Million $80 Million $100 Million $120 Million

103

51

30

24

8

8
Tanzania is a country in which two-thirds of the 

population lives on less than $1.25 per day, and 73 

percent live in rural areas and rely on agricultural 

production for nutrition, food security, and livelihoods. 

It is also a very young country—with 64 percent of the 

population under 25 years of age. Thus, broad-based 

economic growth that is inclusive of women and youth is 

a significant priority for USAID/Tanzania.

With support from the U.S. Government’s Feed the 

Future (FTF) initiative, thousands of smallholder farmers 

in Tanzania—including women and youth—are now 

producing and selling high-quality avocados to large 

markets throughout Europe. This has been possible 

through the development of a market system that engages 

and benefits smallholder farmers and creates jobs. USAID 

has catalyzed this process by working closely with two fastgrowing, local private sector companies. 

USAID Tanzania started working with Africado in West 

Kilimanjaro in 2010 to strengthen extension services and 

initiate a planting program for smallholder farmers. As a 

result of these initial successes, Africado has made a large 

investment in a new packaging facility which has created 

PROJECT SPOTLIGHT 

Catalyzing Inclusive Growth by Linking 

Smallholder Farmers to Export Markets

Lameck Vehankira displays his Hass avocados, set to be exported through the Kilimanjaro-based Africado. PHOTO CREDIT: Fintrac Inc.

many jobs for women and youth. Since 2009, Africado 

has expanded to 2,400 outgrowers, with a total of 

110,000 trees. Fruit exports are expected to reach more 

than 2,000 tons by 2019. 

In Mbeya Region, the Rungwe Avocado Company 

(“Rungwe”) started with a 100-hectare farm in 2009 and 

within two years grew to become a network of 2,000 

smallholder farmers. In 2012, FTF began improving 

smallholder access to planting materials, postharvest 

services, and logistical support to ensure the delivery of 

high-quality produce. In 2014 alone, Rungwe exported 

200 tons from more than 3,000 smallholder farmers. 

For Lameck Vehankira, a farmer in Kilimanjaro Region, 

the increased demand has convinced him to transition 

from banana and coffee plants to more avocado trees. 

“Avocados have given me extra income from the sales 

of the fruit to Africado, and this provides food for the 

family,” says Vehankira. He has harvested 200 kilograms 

from his small plot during the past two years

9
USAID’s new model for development encourages forging 

new ways of investing in development, as countries 

require investments from multiple sources to achieve 

sustained and inclusive economic growth. This new 

approach is reflected in initiatives combining local ownership, private investment, innovation, multi-stakeholder 

partnerships and mutual accountability. 

DEVELOPMENT CREDIT AUTHORITY 

(DCA)

USAID’s Office of Development Credit expands and 

mobilizes the private capital for microfinance-lending by 

providing partial credit guarantees to financial institutions. 

Some of these guarantees encourage lenders (i.e., banks) 

to extend credit to microfinance institutions (MFIs) by 

mitigating a portion of the real or perceived risk. In 

so doing, these guarantees help MFIs to expand their 

portfolios and to provide new products and services. In 

other partnerships, DCA guarantees a portion of the 

portfolio of micro-loans made by MFIs, which ultimately 

helps increase access to credit for micro-entrepreneurs. 

USAID’s active microfinance credit guarantees (active in 

FY 2014) have the potential to leverage up to $651 million 

in private sector credit to MFIs and microenterprises 

(through 113 guarantees).6 In FY 2014, USAID Missions 

ENGAGING MARKETS

reported two new guarantees.7 These guarantees have the 

potential to leverage an additional $21,048,545 in private 

sector credit to MFIs and microenterprises. 8 

MATCHING ASSISTANCE

USAID also partners with other entities to leverage resources 

for microenterprise development. In FY 2014, an additional 

$17.3 million was leveraged from other sources, such as 

private donations, multilateral funding, commercial and 

concessional borrowing, savings, and program income.9

COST-EFFECTIVENESS AND 

SUSTAINABILITY

For this report, USAID analyzed cost-effectiveness and 

sustainability by reviewing the financial sustainability of 

partner institutions that implement microfinance programs. 

Financial sustainability is defined as an organization being 

able to cover the full cost of its activities so that it can 

continue operating at a stable or growing scale without 

being overly reliant upon any single source. Of the 40 

USAID-supported MFIs that reported sustainability 

measures for FY 2014, 37.5 percent were self- sustaining. 

Financial sustainability results did not vary in any significant 

manner across implementing mechanism types (contracts, 

grants, and cooperative agreements) 10

A list of all DCA guarantees related to microenterprise development is provided in Annex T, located 

online at www.mrreporting.org

The MRR reports on DCA guarantees that USAID Missions identify as primarily serving MFIs. The 

Office of Development Credit reports that 22 guarantees issued in FY 2014 contain a microfinance 

component; these guarantees have the potential to leverage up to $132.9 million in private sector 

credit to MFIs and microenterprises. For more data from USAID’s Office of Development Credit, see 

http://www.usaid.gov/results-and-data/progress-data/data/dca

6

7

MRR requirement 3

MRR requirement 5

MRR requirement 4

8

9

10

PHOTO CREDIT: Bill & Melinda Gates Foundation / Barbara Kinney

BETTER THAN CASH ALLIANCE 

The shift from cash to electronic financial transactions—

particularly in a way that expands the benefits of financial 

inclusion and savings for the poor—is a complex process 

requiring leadership, resources and technical expertise. As a 

founding member of the Better Than Cash Alliance, USAID 

facilitates the transition for governments, the development 

community and the private sector through advocacy; 

providing policy, technical and financial assistance; and 

developing cutting-edge research products, best practices and 

case studies. Electronic payments benefits include achieving 

cost savings, transparency, security, and the reduction 

of transaction costs. Thirteen governments have made 

commitments to digital payments to encourage growth 

and increase transparency. Other member organizations 

include the Bill & Melinda Gates Foundation, Citi Bank, the 

Ford Foundation, MasterCard, Visa, Coca-Cola, numerous 

international NGOs and development organizations.

10
Entrepreneur, Jemimah Wagathare, Embu, Kenya. PHOTO CREDIT: USAID

A $5 million Development Credit Authority (DCA) loan 

portfolio guarantee issued to Kenya Women Finance 

Trust (KWFT) in 2012 was fully utilized in 2014. The 

guarantee was issued to encourage KWFT to provide 

micro-loans to women active in the agriculture and clean 

energy sectors in Kenya.

Like many Kenyan financial institutions, KWFT has 

historically been reluctant to lend to the agriculture and 

clean energy sectors due to the high perception of risk. 

The result was a lack of finance available for projects 

that could develop the sectors and demonstrate their 

profitability. The limited finance that was available for 

agriculture and clean energy projects was on unfavorable 

terms (i.e., high collateral requirements, short loan 

tenors).

PROJECT SPOTLIGHT

DCA Supports Kenyan Female Entrepreneurs

However, with the support of the DCA guarantee, 

KWFT was able to provide more than 20,000 microloans to Kenyan women entrepreneurs to support 

their agricultural and clean energy activities, including 

greenhouse farming, rain-fed agriculture, dairy farming, 

horticulture, beekeeping, biogas, bio-digesters, cook 

stoves, solar panels, and electricity.

11
TABLE 2: Reported Obligations and Sub-Obligations by Institution Type, FY 2014

Partner Type Number 

of Partner 

Institution Types

Number of 

Sub-recipient 

Institution Types

Amounts 

obligated

Amounts Sub-obligated 

via Sub-Grants, 

Subcontracts, and other 

Sub-mechanisms

Bank, Credit Union, or 

Financial Institution—

Private For-Profit

15 6 $0 $481,161

Bank, Credit Union, or 

Financial Institution—Private 

Non-Profit

1 9 $0 $434,657

Bank, Credit Union, or 

Financial Institution—Public

1 0 $0 $0

For-profit Implementing 

Partners

15 79 $84,173,566 $6,912,182

Cooperative or Producer 

Association

4 130 $0 $19,240,891

Education or Research 

Institution—Private

2 13 $90,000 $2,312,046

Education or Research 

Institution—Public

5 12 $1,665,999 $2,746,202

Government or 

Governmental Agency

9 4 $1,662,824 $139,435

Other For-Profit Enterprise 

or Firm

8 143 $34,842,341 $72,023,955

Other Non-Profit 

Organization

72 234 $89,045,333 $112,900,878

Type Not Reported 35 6 $12,205,807 $2,105,624

HOW USAID IMPLEMENTS 

MICROFINANCE PROGRAMMING

USAID carries out its microenterprise assistance through 

a wide array of implementing partners and funding 

mechanisms. Table 2 summarizes FY 2014 microenterprise 

development funding by partner type. Of the $224 million 

in microenterprise development funding recorded in the 

FY 2014 survey, 31.8 percent ($71 million) was obligated 

through contracts. The remaining 68.2 percent ($153 

million) was obligated through noncontract mechanisms (i.e., 

cooperative agreements and grants).

Nonprofit partners were the direct recipients of 41 percent 

of total obligated funding. For-profit implementing partners 

were the direct recipients of 38 percent of total obligated 

microenterprise funding. Other for-profit institutions, such as 

banks and non-bank financial institutions, received 16 percent. 

Combined, for-profit entities received 54 percent of FY 2014 

obligated funding for microenterprise development. 11

SUB-RECIPIENTS

USAID’s implementing partners frequently make sub-awards 

in the form of grants or contracts. These types of awards 

enhance USAID’s ability to involve smaller partners and 

local organizations that offer valuable skills and expertise but 

may not be appropriate for implementing a large activity. 

These sub-recipients frequently have strong ties to local 

communities and a deep understanding of the cultural 

context in which they operate. In FY 2014, $220 million was 

sub-obligated to 578 institutions, of which $66.6 million was 

provided in the form of grants under contract. 

MRR requirement 4 11

12
Merchant Belleus Pierre with mobile phone in Haiti. PHOTO CREDIT: Mercy Corps

The phone display for a LajanCash account used by the pilot VSLAs

PHOTO CREDIT: World Council of Credit Unions

The Carrefour Commune in Port-au-Prince, Haiti is an 

impoverished area with very few services and high crime 

that was severely affected by the 2010 earthquake. Already 

the poorest country in the Western Hemisphere, with 80 

percent of the population living under the poverty line and 54 

percent considered extreme poor, the earthquake killed an 

estimated 230 thousand people and left 1.5 million homeless.

Although about half of Haitians save, nearly five years after 

the earthquake, many families still lack the resources to 

rebuild their homes. USAID has helped introduce Village 

Savings and Loan Associations (VSLAs) throughout Carrefour 

and other communes. Through the VSLAs, members have 

been able to start reconstruction and increase their incomes 

through small business ventures. VSLAs are a particularly 

useful tool for the 15 percent of Haitian women who utilize 

savings to start or grow a business.

However, a major challenge the VSLAs face is that they 

collect cash during meetings, which places members at a 

great risk for being robbed. To address this challenge, USAID 

Haiti’s Integrated Finance for Value Chains and Enterprises 

(HIFIVE) program is piloting the use of mobile wallets for 20 

VSLAs using LajanCash, a mobile money service by HaitiPay/

Banque Nationale de Crédit (BNC). 

By using mobile wallets, members of the VSLAs will be able 

to safely deposit and receive money without worrying about 

theft. Mobile phones used to make transactions are locked 

PROJECT SPOTLIGHT 

Improving Savings through Mobile 

Technology in Haiti

in a safe box, but if they were to be stolen the money would 

still be safe, as the mobile accounts are password protected. 

Beneficiaries also note that the introduction of LajanCash 

to their VSLAshas provided a secure way to access money. 

Members have completed construction projects and have 

been able to put food on the table through the use of savings 

and loans to buy and sell merchandise. 

13
As one of the four pillars to the 2015 QDDR, advancing 

inclusive economic growth remains central to USAID’s 

Mission. Vital to this effort is measuring how the Agency 

is helping the very poor.12 USAID-approved poverty 

measurement tools help provide this evidence by 

providing standardized best practices for implementing 

partners to assess the poverty levels of microenterprise 

beneficiaries. The results can be used to evaluate 

implementing partners’ success in reaching the poor and 

very poor, to compare poverty levels in different areas or 

to track changes in poverty level over time. 

A Poverty Assessment Tool (PAT) measures the 

prevalence of poverty among a population based upon 

twenty-five indicators that best predict poverty levels. 

Each PAT includes country-specific questions, which collect 

information including household member characteristics, 

housing conditions, and ownership of durable assets. In 

FY2014 USAID had 37 approved PATs for assessing the 

poverty level of microenterprise beneficiaries. Each PAT 

is unique to the country for which it was designed, as 

the form poverty takes varies due to local conditions.13

ENDING EXTREME POVERTY

Mary Ngok, 31, a farmer in Bor County receives sorghum, oil, and lentils, South Sudan. PHOTO CREDIT: Catholic Relief Services

No new PATs were developed in FY2014, but USAID 

continued to support the application of existing PATs by 

making available to implementers a wide variety of free 

resources, including country guides, an implementation 

manual, and a help desk.14

In FY2014, twelve USAID implementing partners used 

poverty assessment tools. Of these, 55 percent of 

their funding was programmed for activities focused 

on reaching the very poor. By multiplying the share 

of funds benefiting the very poor by the total number 

of beneficiaries in FY2014 (6,364,554), USAID 

estimates 3,500,505 very poor people benefited from 

microenterprise development assistance in FY2014.15

MRR requirement 8

MRR requirement 6

MRR requirement 7

13

14

15

Very poor is defined as being the poorest 50 percent of populations living 

below the poverty line established by a given country, or those living on less 

than $1.25 per day.

12

14
VICTIMS OF HUMAN TRAFFICKING

Promoting growth that is inclusive of the most vulnerable 

is critical to USAID’s efforts to eliminate extreme poverty. 

Inclusive finance and microenterprise development enable 

the very vulnerable and marginalized to contribute to and 

benefit from economic growth. USAID’s microenterprise 

development assistance supports victims of human 

trafficking, potential victims, and women who are susceptible 

to other forms of exploitation and violence. In FY 2014, 

$16.2 million was reported as targeted towards victims and 

potential victims of human trafficking and women who are 

victims of, or are susceptible to, other forms of exploitation 

and violence.16

This figure represents both indirect and direct beneficiaries. Visit www.

mrrreporting.org for a full list of annexes and information on how 

significant relationships between poverty and race / ethnicity were 

determined. 

MRR requirement 10

17

16 MRR requirement 9 18

POVERTY, RACE AND ETHNICITY

Throughout much of the world, social exclusion due to 

race or ethnicity is strongly associated with socioeconomic 

status and economic opportunity. One pathway for socially 

excluded groups to advance their economic well-being is 

through the operation of microenterprises. 

Much of USAID’s microenterprise programming in FY 2014 

worked towards removing the close tie between poverty 

and race/ethnicity.17 In FY 2014, an estimated 69.9 percent 

of beneficiaries of USAID microenterprise development 

activities lived in countries where there was a strong 

relationship between social exclusion due to race or ethnicity 

and poverty.18

Village Savings and Loan Association. Bensonville, Liberia. PHOTO CREDIT: USAID / Nico Parkinson

15
Sylvia Awuni records mobile money transactions in a paper ledger. PHOTO CREDIT: USAID

As the first female mobile money agent in Tongo, Ghana, 

Sylvia Awuni frequently has people waiting outside her 

shop to “cash in” or “cash out” using mobile money. 

Awuni helps Tongo’s residents send and receive money, 

facilitate transfers for small business owners, and assist 

villagers in paying their utility bills—all through her phone. 

By making financial transactions cheaper, more secure 

and transparent, mobile money gives poor families access 

to affordable financial tools that help them lead more 

resilient and productive lives. 

USAID is improving Ghana’s regulatory environment to 

enable the growth of digital financial services. Mobile 

network operators and service providers are connecting 

communities like Tongo to a range of financial services, 

from savings products to pay-as-you-go electricity. While 

PROJECT SPOTLIGHT

Promoting Financial Inclusion through Digital 

Financial Services

nearly 70 percent of the population has never used 

a formal financial service, the rapid growth of mobile 

phones and mobile money is allowing Ghanaians long shut 

out of the formal economy to contribute to and benefit 

from economic growth. 

A recent study conducted by the USAID-funded GSMA 

Connected Women Program shows women are 14 

percent less likely than men to own a mobile phone and 

use it for financial services. This mirrors the gender gap in 

access to finance, where women are 15 percent less likely 

than men to have a bank account. Female mobile money 

agents like Awuni are closing the financial inclusion gender 

gap by providing support to women interested in using 

digital financial services. 

16
FY 2014 PERFORMANCE RESULTS

FY 2014 Goals FY 2014 Results

Number of microenterprise clients who are borrowers 

(Out of 47 Projects)

1,250,000 643,949

% Women 60% 78%

% Rural 40% 77%

Number of microenterprise clients who are savers 

(Out of 36 Projects)

1,750,000 497,449

% Women 60% 89%

% Rural 40% 82%

Total number of microenterprise borrowers and savers 1,750,000 1,141,398

Number of microenterprises supported directly by Partners 

(Out of 106 Projects)

400,000 1,274,575

% Women 40% 33%

% Rural 75% 90%

Total number of microenterprise employees 500,000 6,364,554

Total number of microenterprise beneficiaries2 2,650,000 6,770,361

% USAID microfinance partners that achieved sustainability 

(Out of 17 partners)

50% 88%

% Funds benefiting the very poor 

(representing $123,027,229 FY 2014 funding)3

50% 55%

Number of very poor microenterprise beneficiaries 3,000,000 3,500,505

*Goals are based on programmatic information from the Missions included in the FY 2014 reporting cycle. 19

MRR requirement 11 19

In FY 2014, USAID met many of its performance goals 

for microenterprise promotion, while in a few areas 

the Agency fell short. Trends captured in recent years’ 

Microenterprise Results Reporting reflect the progress 

and evolution of many developing economies and the 

resulting shift in the role for USAID in microenterprise 

development. As a result, many programs that advance 

microenterprises no longer focus exclusively on 

microfinance. Many activities prioritize systems-level 

change, the results of which are not fully captured in 

the reporting requirements (for instance, value-chain 

development is employed within many sectors to benefit 

microentrepreneurs). 

As highlighted in this report, USAID’s microenterprise 

investments are promoting thriving, inclusive markets 

by combining local ownership, private investment, 

innovation, multi-stakeholder partnerships, and mutual 

accountability. Given the complex and dynamic nature of 

poverty, USAID’s effort to end extreme poverty by 2030 

will continue to employ microenterprise development, 

in conjunction with a multitude of other approaches, 

to catalyze inclusive economic growth. As the Agency 

looks forward, USAID will continue to set robust targets 

per the MRAA requirements, and strive to reach more 

microenterprises and improve access to financial services. 

17
ADDITIONAL INFORMATION

This report responds to the annual reporting requirements of the Microenterprise Results and Accountability Act of 

2004. To limit the report’s length and reduce costs, supporting data, including all additional annexes beyond Annex A are 

available online at www.mrreporting.org. The website enables users to explore the data, access previous reports, and 

compare information across years. A complete listing of implementing partners receiving microenterprise funding can be 

found here as well. 20

To connect with microenterprise development practitioners, share knowledge, and learn about important industry events, 

please visit the USAID’s inclusive economic growth portal, Microlinks, at http://www.microlinks.org. 21

MRR requirement 12

MRR requirement 12 (See Annex A)

20

21

Farmer ploughs his rice field after the flood subsides, Cambodia. PHOTO CREDIT: Documentation Center of Cambodia / Makara Ouch

18
1 Funding: The number of grants, cooperative agreements, contracts, contributions, or other forms of assistance provided under 

section 252 (the section of the law authorizing USAID to provide microenterprise assistance), with a listing of: A) The amount of 

each grant, cooperative agreement, contract, contribution, or other form of assistance. B) The name of each recipient and each 

developing country with respect to which projects or activities under the grant, cooperative agreement, contract, contribution, or 

other form of assistance were carried out. C) A listing of the number of countries receiving assistance authorized by section 252.

2 Central Mechanisms: The amount of assistance provided under section 252 through central mechanisms.

3 DCA: The name of each country that receives assistance under section 256 (the section of the law pertaining to the DCA and 

credit instruments) and the amount of such assistance.

4 USAID Funding Recipients: The level of funding provided through contracts; the level of funding provided through grants, 

contracts, and cooperative agreements that is estimated to be sub-granted or subcontracted, as the case may be, to direct 

service providers; and an analysis of the comparative cost-effectiveness and sustainability of projects carried out under these 

mechanisms.

5 Matching Assistance: It is the sense of Congress that USAID should include in the report required by section 258 of the Foreign 

Assistance Act of 1961 (as added by section 6 of this Act) a description of all matching assistance (as described in paragraph 1) 

provided for the prior year by recipients of microenterprise development assistance under such title. 

6 Funds for Very Poor Clients: The percentage of assistance furnished under section 252 that was allocated to the very 

poor, based on the data collected using the certified methods required by section 254 (the section of the law outlining the 

requirement for USAID to develop client poverty assessment methods and require their use by awardees by October 2006).

7 Estimated Number of the Very Poor: This number is reached with assistance provided under section 252.

8 Poverty Assessment Methods: The process of developing and applying poverty assessment procedures required under section 254.

9 Funds to Assist Victims of Trafficking and Exploitation: Information on the efforts of the Agency to ensure that recipients of 

U.S. microenterprise and microfinance development assistance work closely with nongovernmental organizations and foreign 

governments to identify and assist victims or potential victims of severe forms of trafficking in persons, and women who are 

victims of or susceptible to other forms of exploitation and violence.

10 Poverty and Race/Ethnicity: An estimate of the percentage of beneficiaries of assistance under this title in countries where a 

strong relationship between poverty and race or ethnicity has been demonstrated.

11 Performance Monitoring System: The results of the monitoring system required under section 253 (see A-D below). A) The 

monitoring system shall include performance goals for the assistance, and express such goals in an objective and quantifiable 

form, to the extent feasible. B) The monitoring system shall include performance indicators to be used in measuring or assessing 

achievement of the performance goals described in paragraph 1, and the objective of the assistance authorized under section 

252. C) The monitoring system provides a basis for recommendations for adjustments to the assistance to enhance the 

sustainability and the impact of the assistance, particularly the impact of such assistance on the very poor, particularly poor 

women. D) The monitoring system adopts the widespread use of proven and effective poverty assessment tools to successfully 

identify the very poor and ensure that they receive adequate access to microenterprise loans, savings, and assistance.

12 Additional Information: Any additional information relating to the provision of assistance authorized by this title, including the 

use of poverty assessment methods required by section 254, or additional information on assistance provided by the United 

States to support microenterprise development under this title or any other provision of law.

ANNEX A: MRAA REPORTING REQUIREMENTS

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U.S. Agency for International Development

1300 Pennsylvania Avenue, NW

Washginton DC 20523

Tel: (202) 712-0000

Fax: (202) 216-3524

www.usaid.gov