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 2015 MICROENTERPRISE RESULTS REPORT

LIST OF ACRONYMS

DCA Development Credit Authority

E3 Bureau for Economic Growth, Education and Environment

FY Fiscal Year

GLAC Grupos Locales de Ahorro y Crédito

MFI Microfinance Institution

MRR Microenterprise Results Reporting

MSME Micro, Small and Medium Enterprise

PCM Office of Private Capital and Microenterprise

USAID U.S. Agency for International Development

ABOUT THE REPORT

The U.S. Agency for International Development (USAID) Fiscal 

Year (FY) 2015 Microenterprise Results Report responds to the 

annual reporting requirements of the Microenterprise Results and 

Accountability Act of 2004 (MRAA). The report was compiled 

by the Office of Private Capital and Microenterprise (PCM) in the 

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

To limit the report’s length and reduce costs, all data is available 

via an interactive, online platform at mrr.usaid.gov. The website 

enables users to explore the data, access previous reports and 

compare information across years.

PROGRAM FOCUS

For more than 35 years USAID has supported microenterprise development around the world. As a result of 

decades of support from USAID and the international donor community, the microfinance industry reached an 

estimated $95.1 billion in 2013. In 2013 and 2014, the annual increase in the number of borrowers was roughly 

10 percent. It now relies much less on donor support. In fact, more than half of the financing provided by 

microfinance institutions (MFIs) now comes from deposits, with much of the remaining from private capital sources.1

Building on the success of the microfinance industry, USAID microenterprise efforts have evolved from focusing 

on microfinance to an approach that places greater emphasis on financial inclusion. This approach is designed 

to: catalyze private capital investment in microfinance institutions and microenterprises; engage a wider set of 

institutions in providing financial services and products; and use digital financial services, such as mobile banking, to 

reach greater numbers of customers at lower cost, especially women, the extreme poor and the most vulnerable. 

Acknowledging that the development and growth of local enterprises is critical to ending extreme poverty and 

that financial inclusion is important to achieving many of the Sustainable Development Goals, USAID incorporates 

microenterprise development into its activities in a number of sectors. 

1 http://www.convergences.org/en/bibliotheque/microfinance-barometer-2015/
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1) Funding: The number of grants, cooperative agreements, 

contracts, contributions, or other form of assistance provided 

under section 252, 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; and 

C) A listing of the number of countries receiving assistance 

authorized by section 252.

In FY 2015, USAID invested $280 million in microenterprise 

activities across 35 countries and 136 projects. The full listing is 

available at mrr.usaid.gov.

2) Central Mechanisms: The amount of assistance provided 

under section 252 through central mechanisms.

USAID no longer supports a fixed central mechanism dedicated 

to microenterprise development because microenterprise 

development has been effectively incorporated in activities 

across many sectors and mechanisms, in both the field and in 

Washington.

3) Development Credit Authority: The name of 

each country that received assistance under section 256 

(Microenterprise Development Credits) and the amount of such 

assistance.

USAID further expands the capital base for microfinance 

through a partial credit guarantee program managed by its Office 

of Development Credit. 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. As 

a result, these guarantees help MFIs to expand their portfolios 

and to provide new products and services to clients that 

would not be served otherwise. In other partnerships, USAID 

guarantees a portion of the portfolio of micro-loans made 

by MFIs, which ultimately helps increase access to credit for 

micro-entrepreneurs. USAID also launched an innovative bond 

securitization guarantee that will provide capital market financing 

to MFIs in 2015. 

USAID’s 114 active microfinance guarantees in FY 2015 have 

the potential to leverage up to $755 million in private sector 

capital. In FY 2015, USAID issued 19 new guarantees with the 

potential to leverage $235 million in private capital in support 

of microenterprises. A list of reported microfinance credit 

guarantees is provided at:

catalog.data.gov/dataset/development-credit-authority-dcaguarantee-utilization-and-claims.

4) USAID 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 costeffectiveness and sustainability of projects carried out under 

these mechanisms.

USAID programs microenterprise assistance through a wide 

array of implementing partners and funding mechanisms. In 

addition, 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. Of the 

$280 million in microenterprise development funding in FY 2015, 

USAID obligated 42 percent ($117 million) through contracts, 

and 58 percent ($163 million) through grants and cooperative 

FY 2015 RESULTS FOR 

THE ANNUAL REPORTING REQUIREMENTS OF THE MRAA
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agreements. Of these funds, 15.8 percent ($44 million) was 

sub-obligated through sub-contracts and 43.7 percent ($122 

million) was sub-obligated through sub-grants and cooperative 

agreements to direct service providers. While the sample of 

partners reporting on operational sustainability in FY 2015 

was small (15 projects), 67 percent report sustainability. As in 

previous years, the choice of assistance instrument was not a 

factor in determining sustainability. 

5) Matching Assistance: It is the sense of Congress that 

the report required by section 258 of the Foreign Assistance 

Act of 1961 (as added by section 6 of this Act) should include 

a description of all matching assistance provided for the prior 

year by recipients of microenterprise development assistance 

under such title. Matched assistance is assistance from nonUnited States Government sources, including private donations, 

multilateral funding, commercial and concessional borrowing, 

savings, and program income.

The Development Credit Authority projects have the potential 

to leverage up to $235 million in credit from commercial 

lenders in FY 2015. $5 million in microenterprise assistance 

was matched by other donors. In addition, 20 USAID projects 

reported supporting microenterprise enabling environment 

development which helps enable microfinance institutions to 

accept deposits. Although a precise figure is unavailable, the 

Microfinance Barometer 2015 found that 55 percent of MFI’s 

funding now comes from deposits — an inexpensive form of 

capital. USAID has played an important role in this trend which 

results in ongoing matching assistance. Donor dollars from 

decades past for microcredit loans continue to be re-circulated 

to benefit the poor and extreme poor. 

6) Percentage of Very Poor: 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.

USAID estimates that $18,163,327 or 29 percent of funding 

supported the very poor. This is calculated by determining 

the percent of very poor assisted out of 21 projects reporting 

a Poverty Assessment Tool (PAT) or Progress out of Poverty 

Index (PPI) and applying this percentage to total funding for FY 

2015.

7) Number of Very Poor: The estimated number of the very 

poor reached with assistance provided under section 252.

USAID estimates assistance reached 3,376,783 very poor 

beneficiaries. 

8) Poverty Assessment Methods: The process of 

developing and applying poverty assessment procedures 

required under section 254.

USAID continues to support poverty assessment tools 

for 37 countries, as well as country guides, resources, an 

implementation manual, and a help desk for implementing 

partners to assess success in reaching the poor and the very 

poor, to compare poverty levels in different areas, or to track 

changes in poverty levels over time. “Very poor” is defined as 

being the poorest 50 percent of populations living below the 

poverty line by a given country, or those living on less than $1.25 

per day.

9) Victims of Trafficking and Exploitation: Information on 

the efforts of the Agency to ensure that recipients of United 

States microenterprise and microfinance development assistance 

work closely with nongovernmental organizations and foreign 

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

are victims or susceptible to other forms of exploitation and 

violence.

Financial inclusion and microenterprise development enable the 

most vulnerable and marginalized to contribute to and benefit 

from economic growth and stability. USAID’s microenterprise 

development has long supported victims of human trafficking, 

potential victims, and women who are susceptible to other 

forms of exploitation and violence. Such efforts span many 

sectors and activities. For example, Village Savings and Loan 

Associations programs not only help those that lack access to 

formal financial services save and borrow, they often incorporate 

training in literacy, numeracy, community action, gender-based 

violence and trafficking. USAID’s Countering Trafficking in 

Persons in Ukraine project has conducted 13 microenterprise 

development trainings for 268 victims of trafficking from 16 

oblasts. It has also provided 161 grants to victims of trafficking 

who started 94 microenterprises in agriculture and retail trade.

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.

Throughout much of the world, social exclusion due to race or 

ethnicity is strongly associated with socioeconomic status and 

economic opportunity. One pathway to advance economic wellbeing is through microenterprise. In FY 2015, an estimated 23 

percent of beneficiaries of USAID microenterprise development 

activities lived in countries where there is a strong relationship 

between social exclusion due to race or ethnicity and poverty, 

including in Guatemala, Haiti, Burma, Pakistan, Afghanistan, 

Angola, Kenya, Uganda, South Sudan, and Nigeria. In Guatemala 

for example, USAID has provided support to subsistence 

farmers who survived the violent civil war so they could form a 

thriving micro-enterprise which grows, sorts and packages string 

beans for export.

11) Performance Monitoring System: The results of the 

monitoring system required under section 253: 

A) The monitoring system shall include performance goals for 

the assistance and expresses 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 the achievement of 

the performance goals described in paragraph (a) and the 

objectives 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; 

and 

D) The monitoring system adopts the widespread use of proven 

and effective poverty assessment tools to successfully identify 

the very poor and ensure they receive adequate access to 

microenterprise loans, savings, and assistance.

See TABLE 1, page 5.

12) Additional Information: Any additional information 

relating to the provision of assistance authorized by this title, 

including the use of additional information on assistance 

provided by the United States to support microenterprise 

development under this title or any other provision of law.

For additional information, see mrr.usaid.gov.
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TABLE 1: Performance Goals and Results Estimates, FY 2015 

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Given the current diversity and evolution of microenterprise programming, not all projects report on each element. In addition to these categories, 20 

projects reported supporting microenterprise enabling environment, 25 micro-insurance, 25 catalyzing private investment for microenterprise, 11 digital 

and mobile finance, and 29 Village Savings and Loan Associations.

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The substantial increase is due to the inclusion of more activities which include a microenterprise component, but are part of larger programs, such as in 

health, environment, alternative livelihoods, and agriculture — 89 of the projects reporting included microenterprises participating in value chain activities.

FY 2015 Goals FY 2015 Results

Number of microenterprise clients who are borrowers (Out of 15 Projects)2 1,250,000 614,202

% Women 60% 58%

% Rural 40% 81%

Number of microenterprise clients who are savers (Out of 24 Projects ) 1,750,000 5,717,703

% Women 60% 61%

% Rural 40% 62%

Total number of microenterprise borrowers and savers 1,750,000 5,986,845

Number of microenterprises supported directly by Partners (Out of 89 Projects) 400,000 1,356,357

% Women 40% 44%

% Rural 75% 94%

Total number of microenterprise employees 500,000 5,657,2353

Total number of microenterprise beneficiaries 2,650,000 11,644,080

% USAID microfinance partners that achieved sustainability (Out of 15 Projects) 50% 67%

% Funds benefiting the very poor (representing $18,163,327 FY2015 funding) 50% 29%

Estimated number of very poor reached 1,325,000 3,376,783
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Community banking fosters entrepreneurship in 

Colombia: Doña Orfelia Amaya, 60, was no stranger to 

economic challenges. As the owner of a small grocery store 

in the small village of La Paulina, in Northern Colombia, Doña 

Orfelia barely made enough to support her family when her 

husband suffered a stroke that left him incapacitated and her as 

the sole “bread winner.” Looking for new opportunities to get 

by, Doña Orfelia joined the local savings and loan group (GLAC 

for its Spanish acronym) — a USAID-supported communitybanking program to stimulate savings and small loans in areas 

lacking formal financial services, but expanded to also spur small 

business creation and empower women across conflict-affected 

municipalities.

As a result of USAID support, this community-banking model 

includes a network of nearly 2,000 savings and loan groups with 

more than 27,000 participants — 70 percent of them women 

like Doña Orfelia — who have collectively saved more than $2.4 

million. 

In addition, USAID facilitated partnerships between interested 

GLACs and various national and international businesses to 

leverage the GLAC network to sell and distribute previously 

unavailable products and services to marginalized communities. 

MovilWay, the largest e-payment service provider in the region, 

was among the first to partner with the savings and loan groups 

in conflict-affected municipalities.

Through this program of savings and loan groups, business 

development support, networks and partnerships with larger 

firms and supply chains, Doña Orfelia’s income has grown 560 

percent. “Thanks to the [program] I’ve been able to increase 

my income, support my family, and provide a new service for the 

rest of the community.”

Opening Armenia’s capital markets to microfinance 

institutions: USAID, through a bond guarantee, has launched 

an important and pioneering project to provide $2 million in 

capital market funding to five Armenian micro-lending financial 

institutions (MFIs) through the securitization of the 5-15 percent 

of their respective loan portfolios. The microfinance loan 

securitization offers a new financial product for Armenian capital 

markets and opens up a new funding source for participating 

MFIs, which regularly work with small businesses and low income 

borrowers. While MFIs have growing track records, raising 

funds is still a challenge, as not all MFIs can mobilize deposits like 

banks and often have trouble borrowing from local banks due to 

perceived competition. The investment mobilized through this 

guarantee could support 800 to17,000 new loans in agriculture 

and other rural, microenterprises.

Aggregating clean energy projects for investment at 

scale in Africa: African businesses typically cannot rely on 

national power grids and instead generate their own power using 

diesel fuel. This is an expensive and polluting option, but most 

micro and small enterprises cannot finance the conversion to 

renewable energy. At the same time, private capital investors 

lack a standardized platform to invest in these projects at scale.

USAID is partnering with CrossBoundary Energy to address 

these challenges. For the first time in Africa, CrossBoundary 

has instituted an “energy as service” model whereby African 

businesses can pay for the energy they use as a regular business 

expense, without having to save the capital necessary or borrow 

to purchase a new system. In this way, CrossBoundary is 

enabling African businesses to afford clean and reliable solar 

energy systems which can respond to their energy needs as their 

businesses grow, as well as allowing them to use their capital 

and credit lines to develop new products and services and hire 

additional employees.

This partnership is expected to have a significant demonstration 

effect, both for businesses in Africa and investors who want to 

invest in medium-scale renewable energy installations.

EXAMPLES OF HOW USAID IS MAKING A DIFFERENCE