MICROENTERPRISE RESULTS 

REPORTING 

ANNUAL REPORT TO CONGRESS, FISCAL YEAR 2006 

JUNE 2007 
The cover photo shows a woman selling vegetables at Arusha Market, Tanzania. 

PHOTO COURTESY OF THE LOUIS BERGER GROUP 
ACRONYMS 

CACEDRF Central American and Caribbean Emergency Disaster Recovery Fund 

CSH/HIV Child Survival and Health/Human Immunodeficiency Virus 

DA Development Assistance 

DCA Development Credit Authority 

ED Enterprise Development 

ESF Economic Support Funds 

FIELD-Support Financial Integration, Economic Leveraging, Broad-Based Dissemination and Support 

 Program 

FSA Freedom Support Act 

FVP Funds Benefiting the Very Poor 

IDFA International Disaster and Famine Assistance 

LC Local currency 

MED Microenterprise Development 

MFI Microfinance Institution 

MRR Microenterprise Results Reporting 

MSED Micro and Small Enterprise Development 

NGO Non-governmental Organization 

PL Public Law 

PVO Private Voluntary Organization 

RDM/A Regional Development Mission/Asia 

SAI/SEED Special Assistance Initiatives includes Support for Eastern European Democracy 

INTRODUCTION

This report fulfills the provision in Section 6 of PL 

108-484, the Microenterprise Results and 

Accountability Act of 2004, that each year, “the 

Administrator of the Agency, acting through the 

Director of the office, shall submit to the appropriate 

congressional committees a report that contains a 

detailed description of the implementation of this title 

for the previous fiscal year.”

The United States Agency for International 

Development (USAID) has been recognized as the 

leader among donors in the field of microenterprise 

development and microfinance for almost three 

decades. USAID provides competitive awards to 

hundreds of diverse partners, ranging from nongovernmental organizations to business associations to 

consulting firms to commercial banks. The Agency 

funds innovations in financial services, enterprise 

development, and enabling environment to strengthen 

the contribution microenterprises can make to poor 

households’ well-being and economic growth.1

Financial services and enterprise development support 

are critical for poor households and businesses, 

 

 

1 Financial services refers to the provision of those financial 

services adapted to the needs of low-income people, especially the 

provision of small loans, the acceptance of small savings deposits 

and simple payments services needed by microentrepreneurs and 

other poor people. The term microfinance is used interchangeably 

with financial services in this report. 

Enterprise development services refers to the many 

interventions that help microenterprises start, survive, and grow, 

including those that help them acquire skills and knowledge, gain 

access to financing and other inputs, and develop the commercial 

relationships with other firms (both micro-scale and larger firms) 

required to integrate into higher-value markets. 

Enabling environment refers to activities that promote 

appropriate laws, policies, regulations, and supervisory and 

administrative practices that expand access to diverse financial 

services for low-income people or improve entrepreneurial 

opportunities and the business environment in which 

microenterprises operate. 

enabling them to respond to new economic 

opportunities, build household assets, or cope with 

emergencies and crises. Improvements to the enabling 

environment allow microentrepreneurs to participate 

in markets, increase their earnings, and realize the 

benefits of international trade. 

The Agency also identifies best practices, develops 

tools, and provides technical assistance for missions 

and implementers to strengthen their programs, and 

coordinates with other donors to promote good 

practices and aid effectiveness in microfinance and 

microenterprise development. 

This report is in response to the reporting 

requirements of PL 108-484. Microenterprise Results 

Reporting (MRR), USAID’s official activity for 

tracking microenterprise obligations and institutional 

results, has prepared Annual Reports on USAID’s 

funding patterns and institutional results since 1996.2

MRR gathered and summarized data obtained from 

USAID missions and implementing partners for the 

production of this Annual Report. 

This report is structured to give readers a clear sense 

of USAID’s implementation of the Microenterprise 

Results and Accountability Act of 2004. The following 

table provides a guide to the reporting requirements 

and the pages of the report on which they are 

addressed:

2 To view Annual Reports from previous years, visit 

www.mrreporting.org. 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 2 
SUMMARY OF REPORTING REQUIREMENTS 

Reporting Requirement Location 

Funding: The number of grants, cooperative agreements, contracts, contributions, or other form of 

assistance provided under section 252 [the section of the law authorizing USAID to provide 

microenterprise assistance], with a listing of: 

Annex A, 

p. 19 

(A) the amount of each grant, cooperative agreement, contract, contribution or other form of assistance; Annex A, 

p. 19 

(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 

Annex A, 

p. 19 

1 

(C) a listing of the number of countries receiving assistance authorized by section 252. Annex A, 

p. 19 

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

mechanisms. 

Annex B, 

p. 28 

3 Development Credit Authority: The name of each country that receives assistance under section 

256 [the section of the law pertaining to the Development Credit Authority and credit instruments] and 

the amount of such assistance. 

Table 2, 

p. 8 

Contracts and Sub-Obligations: 

The level of funding provided through contracts, 

Table 3, 

p. 9 

the level of funding provided through grants, contracts, and cooperative agreements that is estimated to 

be subgranted or subcontracted, as the case may be, to direct service providers, and 

Table 4, 

p. 9 

4 

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

mechanisms. 

p. 10 

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. 

p. 10 

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]. 

Table 5, 

p. 11 

7 The estimated number of the very poor reached with assistance provided under section 252. p. 12 

8 Funds to Assist 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 non-governmental 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. 

Table 6, 

p. 13 

9 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. 

Table 7, 

p. 14 

10 Poverty Assessment Methods: The process of developing and applying poverty assessment 

procedures required under section 254. 

p. 13 

11 Performance Monitoring System: The results of the monitoring system required under section 253 

[see A-D below]. 

p. 15 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 3 
(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. 

Table 8, 

p. 16 

(B) The monitoring system shall include performance indicators to be used in measuring or assessing the 

achievement of the performance goals described in paragraph (1) and the objective of the assistance 

authorized under section 252. 

Table 8, 

p. 16 

(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. 

p. 15 

(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. 

p. 15 

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. 

p. 17 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 4 
EXECUTIVE SUMMARY

The results of the FY 2006 Microenterprise Results 

Reporting (MRR) Annual Report reflect USAID’s 

investments and priorities in microfinance and 

microenterprise development. With more than 300 

implementing partners, the FY 2006 data demonstrate 

the Agency’s commitment to funding a range of 

partners, from private voluntary organizations (PVOs) 

and non-governmental organizations (NGOs) to 

consulting firms and banks. This year’s data show 

strong Agency support for non-profit organizations 

(including NGOs, PVOs, cooperatives, and credit 

unions), which as a group received 65 percent ($141 

million) of the overall obligations in FY 2006. 

Funding to non-profit organizations includes 

obligations provided through the Financial 

Integration, Economic Leveraging, Broad-Based 

Dissemination and Support (FIELD-Support) 

program. FIELD-Support was launched in FY 2005 to 

provide USAID missions with an administratively 

streamlined, cost-effective source for a broad range of 

capabilities and competencies in microenterprise 

development. In FY 2006, USAID provided $64 

million in funding through the FIELD-Support 

program. 

The FY 2006 report also reflects USAID’s continued 

commitment to leveraging its investments in 

microenterprise development. USAID helps 

strengthen the performance of increasingly 

commercial microfinance institutions (MFIs) to allow 

them to attract private investors and grow faster than 

if they relied solely on donor support. USAID also 

reduces some of the risk to private investors and 

lenders by offering partial credit guarantees and other 

enhancements. Through its Office of Development 

Credit, USAID has leveraged $5.2 million in funding 

into $207 million in credit from the private sector for 

institutions serving microfinance clients. 

This year’s Annual Report demonstrates MRR’s 

emphasis on improved methodology and 

measurement, through targeted and more accurate 

data collection strategies. The most significant revision 

this year was the redesign of two results surveys. MRR 

combined and refined two distinct “business 

development services” questionnaires into a single, 

comprehensive “enterprise development” survey that 

provides more accurate results on the number of 

microenterprises assisted and funds benefiting the very 

poor. For enabling environment programs, MRR now 

employs a more concise survey with more specific 

terminology. These questionnaires elicited more 

precise responses from implementing partners and, 

therefore, more accurate results for the FY 2006 

report. In particular, the higher percentages of funds 

benefiting the very poor in FY 2006 may be related to 

the redesigned enterprise development survey. 

This report fulfills the 12 reporting requirements 

included in PL 108-484, the Microenterprise Results 

and Accountability Act of 2004. Key findings from 

USAID’s implementation of reporting requirements 

include: 

1. In FY 2006, USAID provided $216 million in 

funding for microenterprise development 

through 264 new and existing grants, 

cooperative agreements, and contracts in 61 

countries. 

2. USAID provided $25.1 million in funding 

through central mechanisms in FY 2006. 

3. Through the use of credit guarantees, $5.2 

million in USAID funding has leveraged $207 

million in credit from the private sector for 

institutions serving microfinance clients. 

4. USAID provided $66.1 million in funding 

through contracts to institutions in FY 2006. 

An estimated $60 million of the total 

microenterprise funding in FY 2006 was 

subgranted or subcontracted, with local 

institutions receiving 79 percent of this funding. 

5. In FY 2006, USAID missions reported $24.4 

million in USAID funds were matched by an 

additional $8.4 million from sources outside the 

U.S. Government. 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 5 
6. In FY 2006, 36 percent of funding for financial 

services and 29 percent of funding for 

enterprise development benefited the very 

poor.3 

7. The limitations of the “poverty loan” proxy4

may understate some of the data for the 

percentages of funds benefiting the very poor. 

The phase-in of the poverty assessment 

methods (“poverty tools”) in FY 2007 is 

expected to provide USAID with a better basis 

on which to determine the extent of service to 

very poor clients for the full range of 

microenterprise development activities. 

8. Roughly $14.4 million of USAID’s 

microenterprise funding in FY 2006 assisted 

victims of trafficking in persons and women 

who are particularly vulnerable to other forms 

of exploitation and violence. 

9. In FY 2006, 53 percent of credit clients, 47 

percent of savings clients, and 20 percent of 

enterprise development clients were located in 

countries where a relationship between poverty 

and race or ethnicity has been demonstrated. 

10. USAID started implementing poverty 

assessment methods in October 2006. In FY 

2006, USAID focused on developing and 

certifying country-specific methods and 

providing training on the methods to affected 

partner institutions. The FY 2007 annual report 

will include results from these certified methods 

to measure the share of their clients who are 

very poor. 

11. USAID met or exceeded all of its outreach 

performance goals and indicators for FY 2006, 

 

3 “Very poor” is defined in the Microenterprise Results and 

Accountability Act of 2004 as people living on less than $1/day 

(purchasing power parity) or in the bottom 50 percent of those 

living below their country’s poverty line. 

4 The poverty loan proxy is meant to approximate the poverty 

level of clients. It measures the number of loans that fall below 

certain maximum loan sizes established for each region. 

with the exception of the funds benefiting the 

very poor. 

12. As directed by the Microenterprise Results and 

Accountability Act of 2004, USAID funded its 

Microenterprise Development office in FY 

2006, leveraged investments to meet the 

evolving and diverse needs for microenterprise 

development around the world, and supported 

key central programs designed to promote 

innovation and strengthen the ability of its 

missions and partners to meet the Agency’s 

development objectives. USAID’s investments 

in microenterprise development have stimulated 

a diversity of effective approaches, capable 

partners, strong local service providers, and 

responsive funding mechanisms to meet 

evolving needs for microenterprise 

development around the world. In FY 2006, 

USAID continued to leverage these investments 

to address new development challenges in 

rebuilding and developing countries, reach out 

to poorer and more vulnerable populations, and 

build the capacity of institutions to sustain and 

grow beyond USAID support. 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 6 
REPORTING REQUIREMENT 

1 A-C 

REPORTING REQUIREMENT 2 

CENTRAL MECHANISMS 

USAID provided $25.1 million in funding through 

central mechanisms from USAID/Washington in FY 

2006, as shown below. 

FUNDING 

In FY 2006, USAID provided a total of $216 million 

in microenterprise development assistance through 

264 new and existing agreements. These took the form 

of grants, cooperative agreements, and contracts with 

326 implementing partners in 61 countries. Annex A 

contains a listing of detailed information required by 

Congress, including the name of each country 

receiving assistance, the amount of each award, and 

the name of each institutional recipient. Annex B 

includes information on FY 2006 funding by bureau. 

Table 1 (below) shows the sources of FY 2006 USAID 

funds for microenterprise by appropriation account. 

Central Mechanisms Funding 

Microenterprise Development office $18.1 

million 

Food for Peace Office $2.2 million 

Private Voluntary Cooperation Office $4.7 million 

Women in Development Office $0.1 million 

Total $25.1 

million 

Table 1. Sources of USAID Funds for Microenterprise by Appropriation Account (US$ millions), 

FY 1996-2006 

Fund Name5 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 

DA $72.9 $83.3 $79.9 $74.1 $88.3 $85.3 $80.7 $89.9 $119.8 $131.6 $100.9 

ESF $16.1 $24.5 $33.9 $33.0 $25.2 $27.9 $48.1 $28.4 $17.7 $37.3 $77.6 

FSA $5.4 $20.6 $14.3 $12.8 $30.3 $19.6 $33.4 $41.0 $35.1 $21.0 $18.6 

LC $12.2 $11.8 $12.4 $17.3 $8.8 $13.7 $18.6 $4.8 $10.0 $6.7 $8.9 

SAI/SEED $4.7 $24.8 $4.6 $13.0 $9.2 $7.6 $6.7 $14.5 $13.9 $14.2 $8.5 

CSH/HIV $0.8 $0.5 $0.5 $1.0 $0.6 $0.4 

CACEDRF $3.2 $8.0 

IDFA $0.2 $1.4 

Totals $111.4 $165.0 $145.1 $153.4 $170.6 $154.6 $188.0 $179.6 $197.1 $211.4 $216.0 

 

5 DA – Development Assistance [includes INC (International Narcotics Control), IRRF (Iraq Relief and Reconstruction Fund), ACI (Andean 

Counternarcotics Initiative)] 

ESF – Economic Support Funds 

FSA – Freedom Support Act 

LC – Local currency, from PL 480 (Title II) or balance of payments support 

SAI/SEED – Special Assistance Initiatives includes Support for Eastern European Democracy 

CSH/HIV – Child Survival and Health/Human Immunodeficiency Virus 

CACEDRF – Central American and Caribbean Emergency Disaster Recovery Fund 

IDFA – International Disaster and Famine Assistance 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 7 
MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 8 

 

REPORTING REQUIREMENT 3 

DEVELOPMENT CREDIT AUTHORITY 

Since 1998, USAID’s Office of Development Credit 

has allowed USAID missions to expand the capital 

base for microfinance by providing partial guarantees 

rather than grants. Such guarantees have been used by 

MFIs to finance their growing portfolios and 

encourage mainstream financial institutions, such as 

local commercial banks, to make loans to MFIs. A 

number of missions, such as Uganda, Morocco, 

Georgia, and Peru, have used this vehicle successfully 

to support market leaders and increase funding to the 

sector. 

Table 2 presents the countries that have benefited 

through FY 2006 from the credit assistance made 

available under Development Credit Authority (DCA) 

and Micro and Small Enterprise Development 

(MSED) guarantees managed by the Office of 

Development Credit. The amounts shown under 

“Loan Facility” are the funds available for lending to 

the microfinance sector as a result of partial guarantees 

provided by USAID. Additional guarantees may 

benefit individual enterprises involved in other 

sectoral guarantees, such as agriculture or 

manufacturing. Through the use of credit guarantees, 

$5.2 million in USAID funding has leveraged $207.4 

million in credit from the private sector for institutions 

serving microfinance clients. 

REPORTING REQUIREMENT 4 

USAID uses a variety of assistance mechanisms and 

implementing partners to maximize the effectiveness 

of its microenterprise development efforts around the 

world. The Microenterprise Results and Accountability 

Act of 2004 requires USAID to report on: 

• The level of funding provided through 

contracts; 

• The level of funding that is estimated to be 

subgranted 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.

Table 2. Outstanding USAID Guarantees Related to Microfinance (US$ thousands)6

Region Country Guarantee Subsidy7 Loan Facility 

Kenya $75 $800 

South Africa $76 $8,333 

Africa 

Uganda $842 $17,700 

Asia & Near East Indonesia $1,209 $16,400 

Morocco $312 $20,000 

Europe & Eurasia Georgia $77 $1,500 

Colombia $80 $3,000 

Ecuador $884 $12,400 

Guatemala $116 $5,000 

Honduras $278 $6,000 

Jamaica $244 $8,500 

Latin America & Caribbean 

Peru $575 $16,000 

Centrally Funded Worldwide $421 $91,750 

Total $5,188 $207,380 

 

6 Guarantees include both mission-based DCA guarantees as well as Washington-based MSED guarantees. 

7 DCA subsidy costs vary based on associated factors, including country, lender, borrower, and transaction risk. 
MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 9 

 

CONTRACTS 

Table 3 summarizes the level of microenterprise 

funding in FY 2006 by type of institution and funding 

provided through contracts. Of the total FY 2006 

funding of $216 million, $66.1 million was provided to 

a range of institutions via contracts. The change from 

FY 2005 to FY 2006 in funding through contracts (a 

decrease of $55.5 million) mainly reflects the FY 2006 

commitment of $54 million for a new microfinance 

program in Afghanistan that is funded through a 

cooperative agreement. 

Table 3. Recipients of USAID Funding for 

Microenterprise, FY 2006 

Institution Type 

Total Level 

of Funding 

(US$ 

millions) 

Funding 

Through 

Contracts 

(US$ 

millions) 

Non-Profits8 $140.5 $11.1 

Consulting Firms $50.4 $44.0 

Other For-Profits9 $9.7 $6.4 

All Other Entities10 $15.4 $4.6 

Total $216.0 $66.1 

In FY 2006, non-profit institutions were direct 

recipients of 65 percent ($140.5 million) of total 

microenterprise funding, and consulting firms were 

direct recipients of 23 percent ($50.4 million). Nonprofit partners include U.S.-based PVOs, local NGOs, 

cooperatives, and credit unions. The increase in 

funding to non-profit institutions over FY 2005 (an 

increase of $63 million) is again driven by the FY 2006 

start-up of a new microfinance program in 

Afghanistan led by a consortium of PVOs.

 

8 Non-Profits include PVOs, NGOs, cooperatives, and credit 

unions. 

9 Other For-Profits include banks, non-bank financial institutions, 

finance companies, and other for-profit institutions. 

10 All Other Entities includes business associations, government 

agencies, research and educational organizations, obligations to 

USAID for microenterprise project management, and institutions 

marked “other.” 

SUB-OBLIGATIONS 

Table 4 reflects the estimated funding provided 

through grants, contracts, and cooperative agreements 

subgranted or subcontracted to direct service 

providers in FY 2006. During FY 2006, additional 

refinements were made to USAID’s MRR system to 

improve accuracy in this reporting requirement. MRR 

data show that nearly $60 million (or 28 percent of 

total funding) was subgranted or subcontracted to 223 

primarily local institutions in FY 2006. In FY 2005, 

$17.5 million (or 8 percent of total funding) was 

subgranted or subcontracted. The increase in reported 

sub-obligations in FY 2006 could be attributed to the 

improved accuracy of the MRR data collection system. 

Funding subrecipients is an important indication of 

USAID’s ability to involve local institutions in the 

Agency’s microenterprise development efforts 

worldwide. Table 4 shows that at least 79 percent of 

subgranted or subcontracted funds were directed to 

local institutions in host countries (including 

cooperatives, credit unions, local NGOs, and nonbank financial institutions). 

Table 4. Reported Sub-Obligations, FY 2006 

Institution Type 

Level of Funding 

for Subgrants and 

Subcontracts 

(US$ millions) 

Consulting Firms $1.7 

Cooperatives $0.4 

Credit Unions $10.5 

Other For-Profits11 $6.9 

NGOs $30.1 

Non-Bank Financial Institutions $6.3 

PVOs $4.0 

Total $59.8 

 

11 Other For-Profits include banks, finance companies, and other 

for-profit institutions. 
COST-EFFECTIVENESS AND 

SUSTAINABILITY 

The Microenterprise Results and Accountability Act of 

2004 calls for an analysis of the comparative costeffectiveness and sustainability of projects carried out 

under the aforementioned mechanisms. Measures of 

cost-effectiveness and sustainability for any given 

project are derived from the specific objectives to be 

achieved by the project, the context in which it 

operates, and the duration of support. Given the 

broad application of microenterprise programs to 

meet development objectives, it is problematic to 

calculate and compare these measures using only the 

results data tracked by MRR. Nevertheless, USAID 

continues to examine the cost-effectiveness and 

sustainability of microenterprise projects in evaluations 

of individual projects. 

USAID has taken steps to meet this reporting 

requirement outside the MRR system by undertaking a 

comparative study of the performance of integrated 

programs that include a substantial microenterprise 

component, which USAID terms “umbrella 

programs.” Published in July 2006, the study looked at 

microfinance umbrella programs that were led by both 

for-profit and non-profit institutions and that were 

funded through a variety of assistance mechanisms, 

including contracts. The objectives of the study were 

to “understand the advantages and disadvantages of 

umbrellas to provide better guidance to Missions on 

whether and when to use umbrellas, and how best to 

design, implement, and manage these programs.” The 

study was conclusive and revealed that, for 

microfinance umbrella programs as well as for other 

USAID programs, the choice of assistance instrument 

is not a factor in determining sustainability. Contracts 

are used to procure services defined by USAID’s 

development objectives, while grants and cooperative 

agreements are used to support existing services 

defined by the institutional mission and objectives of 

USAID’s partners. As USAID moves into new regions 

where there is a need for microenterprise services—

for example, in post-conflict areas—it relies on the 

capacity of institutions already on the ground to 

implement new programs. 

Pursuant to Congress’ interests under this reporting 

requirement, MRR does track the financial and 

operational sustainability12 of microfinance institutions 

supported by USAID. In FY 2006, the majority of 

USAID-supported microfinance institutions were 

considered self-sustaining, with 69 percent having 

reached operational sustainability and 63 percent 

having reached financial sustainability. As USAID 

considers an institution’s sustainability to be related to 

its cost-effectiveness, USAID utilizes a number of 

methods to assist microfinance institutions to become 

self-sustaining. These methods include: 1) emphasizing 

that implementing partners develop concrete plans for 

sustainability, so that their revenues cover all their 

costs; 2) providing funds and technical assistance to 

build strong institutions that can continue serving their 

clients after USAID support ends; 3) identifying best 

practices and business models to achieve sustainability; 

and 4) providing credit guarantees to help 

microfinance institutions access private capital for 

financing future growth.

REPORTING REQUIREMENT 5 

MATCHING ASSISTANCE 

USAID frequently requires that its funds for a 

particular purpose be matched by funds from other 

sources, including the institution itself. In FY 2006, 

USAID missions reported that $24.4 million of 

USAID funds were matched by $8.4 million from 

other sources. Matching funds come from non-U.S. 

Government sources, including private donations, 

multilateral funding, commercial and concessional 

borrowing, savings, and program income. 

 

12 Operational sustainability of an institution refers to the 

institution’s ability to generate sufficient revenue from operations 

to cover all of its operating costs, including loan losses and the 

costs of capital. Financial sustainability of an institution refers to 

the institution’s ability to generate sufficient revenue to cover 

commercial sources at market rates, adjusted for the effects of 

inflation and subsidies. 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 10 
REPORTING REQUIREMENTS 6-7 Poverty loan thresholds were set (in 1995 US$) at: 

• $300 in Asia, the Near East, and Africa; 

FUNDS FOR VERY POOR CLIENTS13

As in previous years, the FY 2006 MRR data uses the • $400 in Latin America and the Caribbean; and 

“poverty loan” proxy to determine the amount of FY 

2006 funds directed to very poor clients. The 

Microenterprise Results and Accountability Act of 

2004 extended the deadline for implementing new 

poverty assessment methods to October 1, 2006. The 

FY 2007 annual report will be the first to include 

results from the new poverty assessment methods. 

(For information on the development of the poverty 

assessment methods, see Reporting Requirement 10.) 

• $1,000 in Europe and Eurasia. 

For microfinance institutions, Funds Benefiting the 

Very Poor (FVP) is based on the percentage of the 

total loan portfolio held in poverty loans. For 

enterprise development institutions, FVP is based on 

the percentage of clients estimated to hold outstanding 

poverty loans from any source. Table 5 shows FVP for 

microfinance and enterprise development programs in 

FY 2006, using the proxy of poverty loan size in 1995 

dollars. (Because policy programs cannot report clientlevel data, they are excluded from Table 5.) In FY 

2006, an estimated 36 percent of funding for financial 

services programming and an estimated 29 percent of 

funding for enterprise development programs directly 

benefited the very poor. Overall, 32 percent of 

relevant USAID funding for microenterprise 

development directly benefited the very poor.

The Microenterprise for Self Reliance Act of 2000, as 

amended, mandates that at least one-half of all USAID 

funding support for microenterprise development 

directly benefit the very poor, and establishes a 

poverty loan proxy for estimating the poverty status of 

clients. The poverty loan proxy measures the number 

of loans that fall below certain maximum loan sizes (or 

“thresholds”) established for each region. 

Table 5. Percentage of Funds Benefiting the Very Poor, FY 2006 

Percent of Funding for the Very Poor 

Bureau 

Total Microenterprise 

Funding14

(US$ millions) Financial 

Services 

Enterprise 

Development 

Total 

Portfolio 

Africa $32.4 27% 27% 27% 

Asia & Near East $103.3 38% 33% 36% 

Europe & Eurasia $23.3 4% 14% 12% 

Latin America & 

Caribbean $17.3 46% 32% 37% 

Centrally Funded $15.6 44% 54% 51% 

Total All Bureaus $191.9 36% 29% 32% 

 

13 “Very poor” is defined in the Microenterprise Results and Accountability Act of 2004 as people living on less than $1/day (purchasing power 

parity) or in the bottom 50 percent of those living below their country’s poverty line. 

14 The total of $191.9 million excludes funds for policy, USAID management support, and pending agreements. The calculated percentages 

reflect activities for which there is client data that can be used to determine whether the beneficiaries were very poor. 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 11 
MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 12 

 

The Microenterprise for Self Reliance Act of 2000, as 

amended, set poverty loan values in terms of 1995 

U.S. dollars. If the effect of inflation were taken into 

account, the poverty loan amounts of $300, $400, and 

$1,000 in 1995 U.S. dollars would be valued in 2006 

U.S. dollars at $397, $529, and $1,322, respectively. If 

USAID-supported institutions had reported against 

these inflation-adjusted values, higher numbers of 

loans would have met the legislated benchmark for 

poverty loans. 

Although these figures do not meet the target of 50 

percent of total microenterprise development funds 

directly benefiting very poor clients, these results 

demonstrate an increase over the results recorded in 

FY 2005 for enterprise development programs (29 

percent in FY 2006 compared to 18 percent in FY 

2005) and for the total portfolio (32 percent in FY 

2006 compared to 23 percent in FY 2005). 

The increased FY 2006 FVP may be related to 

improvements made to the results survey for 

enterprise development programs. Several 

modifications to the survey improved the accuracy of 

data collection, in particular indicators on the number 

of microenterprises assisted and the number of very 

poor clients. These changes do not reflect a shift in 

methodology; rather, they increase the likelihood that 

enterprise development practitioners understand and 

report on the established poverty loan proxy. 

Nonetheless, the poverty loan proxy continues to be 

difficult for many enterprise development programs to 

estimate. Many such programs do not track whether 

their clients have poverty loans, particularly if the 

institutions do not offer loans themselves. It has been 

noted in previous annual reports that the poverty loan 

percentages provided by enterprise development 

programs are at best very rough estimates. It is likely 

that the actual numbers are higher than those 

presented, as many enterprise development clients are 

located in rural areas, where the incidence of poverty 

is consistently higher than in urban areas. 

An additional factor may skew results for this 

reporting requirement. Funds for the very poor are 

influenced by the low incidence of extreme poverty in 

the Europe and Eurasia region, where FVP is 4 

percent for financial services and 14 percent for 

enterprise development—by far the lowest of all 

regions. Demand for microenterprise development 

assistance continues to be strong in this region, yet a 

significantly smaller portion of this region’s population 

actually meets the legislated definition of “very poor” 

than that of other regions. For example, Albania’s 

economy is dominated by microenterprises and small 

businesses, yet only 10.4 percent of the population is 

considered very poor based on a nationally established 

poverty line. While funding in the Europe and Eurasia 

region provides positive benefits to microenterprise 

clients, it tends to lower the overall percentage of 

microenterprise funds that benefit the very poor. 

NUMBER OF VERY POOR CLIENTS 

The Microenterprise Results and Accountability Act of 

2004 also directs USAID to report on the estimated 

number of very poor clients. Unlike the currently used 

poverty loan proxy which captures the number of 

poverty loans benefiting the very poor, the new poverty 

assessment methods are intended to capture the 

number of very poor clients reached. Since the new 

poverty assessment methods were launched in 

October 2006, the FY 2006 report continues to report 

on results using the loan proxy for activities supported 

prior to October 2006. Accordingly, it cannot report 

on the number of very poor clients. There is no 

reliable way to translate numbers of poverty loans into 

numbers of very poor clients. 

The phase-in of poverty assessment methods, as 

explained under Reporting Requirement 10 on page 

13, is expected to provide USAID a better basis on 

which to determine the extent of service to very poor 

clients for the full range of microenterprise 

development activities.
REPORTING REQUIREMENT 8 REPORTING REQUIREMENT 9 

FUNDS TO ASSIST VICTIMS OF 

TRAFFICKING AND EXPLOITATION 

POVERTY AND RACE/ETHNICITY 

As mandated by the Microenterprise Results and 

Accountability Act of 2004, USAID is required to 

report “[a]n 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.” MRR requested 

information in FY 2006 from USAID field missions in 

relation to this requirement. Table 7 reports on the 

number of microenterprise clients where missions 

report that a relationship between poverty and race or 

ethnicity has been demonstrated. 

The Microenterprise Results and Accountability Act of 

2004 mandates that USAID request information from 

field missions on their efforts to ensure that recipients 

of USAID microenterprise and microfinance 

development assistance work closely with NGOs and 

foreign governments to identify and assist victims of 

potential or severe forms of trafficking in persons and 

women who are victims of or susceptible to other 

forms of exploitation and violence. Table 6 shows, by 

region, microenterprise funding obligated to 

microenterprise institutions specifically engaged in 

serving these groups. REPORTING REQUIREMENT 10 

Missions that reported funding for institutions serving 

these groups include Sudan in the Africa region, 

Pakistan in the Asia and Near East region, and 

Ukraine in the Europe and Eurasia region. The Office 

of Private Voluntary Cooperation also reported 

funding to 11 institutions for microenterprise activities 

that serve victims of trafficking and exploitation. 

POVERTY ASSESSMENT METHODS 

The Microenterprise Results and Accountability Act of 

2004 also requires this report to address: 

“The process of developing and applying poverty 

assessment procedures required under section 254 [the 

section of the law outlining the requirement for 

USAID to develop client poverty assessment 

measurements and require their use by awardees by 

October 2006].”

Table 6. USAID Microenterprise Funding to Assist Victims of Trafficking and Exploitation, FY 2006 

(US$ millions) 

Region 

Financial Services & Related 

Enabling Environment 

(US$ millions) 

Enterprise Development & Related 

Enabling Environment 

(US$ millions) 

Total 

(US$ 

millions) 

Africa $2.45 $0.02 $2.47 

Asia & Near 

East $4.00 $3.22 $7.22 

Europe & 

Eurasia – $0.32 $0.32 

Centrally 

Funded $4.41 – $4.41 

Total $10.86 $3.56 $14.43 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 13 
Table 7. Estimate of Clients in Countries Where a Relationship Has Been Demonstrated Between Poverty 

and Race or Ethnicity 

Financial Services16 Enterprise 

Development Region Country15

Borrowers Savings 

Clients 

Microenterprises 

Assisted 

Africa Mali – – 469 

 Nigeria 83,762 88,250 10 

 South Africa 307,137 395,572 464 

Asia & Near East Bangladesh – – 3,222 

 India 123,359 – 6,060 

 Nepal – – 12,840 

 Pakistan – – 7,835 

 Philippines – – 2,353 

Europe & Eurasia Albania 10,338 – 1,137 

 Central Asian Republics – – 1,202 

 Georgia 61 – – 

 Kyrgyzstan 37,867 – – 

 Montenegro – – 693 

 Serbia 3,405 87 1,153 

Latin America & 

Caribbean Bolivia 64,160 395,030 – 

 Brazil 11,207 – 125 

 Colombia 48,644 11,364 15,578 

 Ecuador 357,815 715,133 – 

 Guatemala 3,182 3,182 1,598 

 Mexico 1,606,194 1,224,454 – 

 Nicaragua 1,188 – – 

 Panama – – 17 

 Peru 22,467 5,896 1,756 

Centrally Funded PVC – Burundi, Democratic Republic of 1970 

Congo, and Kenya 

Total 2,680,786 2,838,967 58,482

As percent of total microenterprise clients worldwide 53% 47% 20% 

 

15 USAID mission staff reported that a relationship is known to exist in these countries. There may be other countries where such a relationship 

exists but has not been reported to MRR. 

16 Borrowers and Savings Clients may refer to the same individuals in the case of some institutions that offer both services. 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 14 
MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 15 

 

 

The lack of widely applicable, low-cost, easy-to-use 

methods for poverty assessment has made it difficult 

for USAID to determine whether it is meeting targets 

for assistance to the very poor as mandated in the 

Microenterprise for Self-Reliance Act of 2000. 

Therefore, under the Microenterprise Results and 

Accountability Act of 2004, USAID must develop and 

certify at least two methods for assessing the poverty 

level of its microenterprise clients and require USAIDassisted institutions supporting microenterprises to 

begin implementing the methods by October 1, 2006. 

Methodologists, academic advisors, and practitioners 

collaborated in developing, testing, and certifying two 

poverty assessment methods that could have been 

implemented in time to meet the October 1, 2006 

deadline. However, whereas USAID and its partners 

had hoped that these two methods would help identify 

client poverty status with acceptable accuracy across a 

wide range of countries, this proved not to be the case. 

Results from the testing process stipulated in the Act 

indicated that achieving reasonable accuracy would 

require tailoring methods to specific country 

characteristics. 

During FY 2006, USAID has focused on developing 

and certifying country-specific poverty assessment 

methods and providing training to ensure that affected 

partner organizations can use those methods to gather 

the required information. Using data from the most 

recent MRR annual report (FY 2005), the Agency 

prioritized countries with the largest USAIDsupported microenterprise development programs for 

development of poverty assessment methods. This 

priority list was further refined by the availability of 

recent household survey data, which allow methods to 

be developed relatively quickly. 17 For countries with a 

poverty assessment method certified by June 30, 2007, 

USAID will require that all organizations receiving at 

least $100,000 in USAID microenterprise support in 

FY 2007 implement the method and report results in 

17 Developing methods for countries where such data are not 

already available requires that USAID gather the data itself, a very 

time-consuming and expensive process. 

the FY 2007 MRR data collection. USAID has 

certified poverty assessment methods for 12 countries: 

Albania, Bangladesh, Ghana, Guatemala, India, 

Jamaica, Kazakhstan, Madagascar, Peru, Tajikistan, 

Uganda, and Vietnam. USAID expects to certify 

poverty assessment methods for at least five additional 

countries by the end of June 2007. 

To ensure effective implementation of the poverty 

assessment methods, USAID sponsored four training 

sessions for staff from partner institutions: one in 

Washington, DC, for U.S.-based organizations and 

networks, plus regional sessions in Uganda, Peru, and 

Cambodia. Participants received intensive hands-on 

training in all aspects of using the methods and 

produced implementation plans for their institutions. 

A Help Desk also provides ongoing assistance to 

institutions implementing the methods. 

USAID will continue to work in partnership with 

researchers and the practitioner community to develop 

and/or certify country-specific poverty assessment 

methods for all other countries in which USAID 

operates microenterprise programs. For more 

information about the process of developing, testing 

and certifying the methods, go to 

www.povertytools.org. 

REPORTING REQUIREMENT 11 

PERFORMANCE MONITORING SYSTEM 

Several provisions of the Microenterprise Results and 

Accountability Act of 2004 address performance 

monitoring. These provisions read as follows: 

1. “The monitoring system shall include 

performance goals for the assistance and 

express such goals in an objective and 

quantifiable form, to the extent feasible.” 

2. “The monitoring system shall include 

performance indicators to be used in 

measuring or assessing the achievement of the 

performance goals described in paragraph (1) 

and the objective of the assistance authorized 
under section 252 [of the Foreign Assistance 

Act of 1961, as amended].” 

3. “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.” 

4. “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.” 

As a basis for the performance monitoring system, 

USAID set the outreach performance goals and 

indicators for FY 2006 that appear in Table 8. 

On a worldwide basis, USAID and its implementing 

partners substantially met or exceeded nearly all 

performance goals. Performance was particularly 

strong with respect to the number of microfinance 

and enterprise development clients served. 

Performance goals were also surpassed for clients of 

enterprise development activities. In prior years, the 

enterprise development survey required institutions to 

provide data on the number of “microentrepreneur 

clients.” This terminology elicited differing 

interpretations, with some institutions providing the 

number of businesses and others providing the 

number of individuals involved in their projects. To 

eliminate this confusion in the FY 2006 survey, MRR 

broke this indicator into two separate questions: first, 

the number of microenterprises assisted, and second, 

the number of employees of those microenterprises. 

Accordingly, USAID can report that it reached 

289,566 microenterprises and 1.4 million employees of 

those microenterprises in FY 2006. USAID expects to 

further refine these new indicators in FY 2007 to 

ensure even more accurate data collection. 

For microfinance activities, USAID exceeded its goals 

for percent of women clients, rural clients, and 

financially sustainable MFIs. USAID also met its goal 

for percentage of women clients and percentage of 

rural clients for enterprise development activities. 

Table 8. Performance Goals and Results FY 2006 

 FY 2006 Results FY 2006 Goal 

Microfinance Clients 

Borrowers 5.05 million 4 million 

Savers 6.04 million 5 million 

Women Clients 64% 60% 

Rural Clients 53% 40% 

Funds Benefiting the Very Poor 36% 50% 

Financially Sustainable MFIs 63% 50% 

Enterprise Development Clients 

Microenterprises Assisted 289,566 250,000 

Employees of Microenterprises Assisted 1.4 million 750,000 

Women Clients 36% 30% 

Rural Clients 76% 75% 

Funds Benefiting the Very Poor 29% 50% 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 16 
For the percentage of funds benefiting the very poor, 

USAID did not meet the goal of 50 percent, as 

established by the Microenterprise for Self-Reliance 

Act of 2000, as amended. With the phase-in of the 

poverty assessment methods, as explained in the 

section for Reporting Requirement 10, USAID 

expects to have a better basis on which to determine 

the extent of service to very poor clients for the full 

range of microenterprise development activities. This 

in turn will provide a better basis for setting realistic 

performance goals and identifying opportunities to 

prescribe specific actions to improve performance. 

REPORTING REQUIREMENT 12 

ADDITIONAL INFORMATION 

As directed by the Microenterprise Results 

Accountability Act of 2004, USAID funded its 

Microenterprise Development office in FY 2006, 

leveraged investments to meet the evolving and 

diverse needs for microenterprise development around 

the world, and supported key central programs 

designed to promote innovation and strengthen the 

ability of its missions and partners to meet the 

Agency’s development objectives. 

LEVERAGING INVESTMENTS IN 

MICROENTERPRISE DEVELOPMENT 

USAID’s investments in microenterprise development 

have stimulated a diversity of effective approaches, 

capable partners, strong local service providers, and 

responsive funding mechanisms to meet evolving 

needs for microenterprise development around the 

world. In FY 2006, USAID continued to leverage 

these investments to address new development 

challenges, reach out to poorer and more vulnerable 

populations, and build the capacity of institutions to 

sustain and grow beyond USAID support. 

A growing priority for USAID is addressing the 

complex needs of populations living in areas affected 

by conflict. Microenterprise development can help 

stabilize their livelihoods, protect and build assets, and 

effectively transition from subsistence to more 

prosperous economic opportunities. As conflict has 

gravely depleted the resources and capacity in some of 

these rebuilding and developing countries, USAID has 

infused substantial funds to invest in building up new 

institutions, linkages, systems, and policies to support 

microenterprises. A notable example in FY 2006 is $54 

million for PVOs and local institutions to strengthen 

and expand the microfinance sector in Afghanistan. 

In other areas, USAID is working to reach more 

women as well as poorer and more vulnerable 

populations with its microenterprise development 

assistance. USAID is committed to helping these 

groups survive and thrive in today’s globalized 

economy by expanding their access to the tools, 

resources, skills, and opportunities to do so. Often 

USAID works with existing institutions and partners 

to better understand the needs of these households 

and offer more suitable products, services, and 

delivery channels. USAID also develops and 

implements strategies to empower and integrate these 

marginalized populations into the mainstream 

economy. 

To maximize Agency investments, USAID has also 

prioritized linking private sources of capital and other 

funding to partners employing effective 

microenterprise development strategies. For example, 

USAID leveraged $5.2 million of its funds to make 

available $207.4 million from commercial banks during 

FY 2006 to independently finance microfinance 

institutions around the world. Through other 

mechanisms, such as USAID’s Global Development 

Alliance, USAID has also promoted partnerships with 

private corporations to leverage corporate social 

responsibility efforts and to invest in upgrading the 

operations of microenterprises to become valuable 

corporate partners. A notable example is USAID’s 

partnership with Chevron in Angola, which launched 

the Agricultural Development and Finance Program in 

FY 2006 to integrate rural microenterprises into 

growing markets. 

USAID also leverages its investments through its 

state-of-the-art microenterprise knowledge 

management program and Web site, 

www.microLINKS.org, which connects practitioners 

with each other and with the latest learning in 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 17 
microenterprise development. This facilitates 

collaboration and peer assistance to identify promising 

innovations, refine and disseminate lessons learned 

and best practices, and adapt them for application in 

the field. Through a sophisticated, award-winning 

program of facilitated learning networks, virtual 

conferences and communities of practice, audio 

interviews with leading experts, and in-person 

seminars enhanced by virtual access, the Agency 

brings its technical leadership to bear on 

microenterprise activities well beyond those that it 

directly supports. 

KEY CENTRAL PROGRAMS 

In FY 2006, USAID’s microenterprise specialists 

provided on-site assistance to field programs and 

missions including those in Afghanistan, Angola, 

Armenia, Bolivia, Brazil, Cambodia, Ghana, Haiti, 

Indonesia, Jordan/Iraq, Madagascar, Malawi, Mexico, 

Morocco, Nigeria, Pakistan, Peru, Philippines, South 

Africa, Thailand, and Uganda. Combined with 

extensive virtual assistance to other countries, this 

centralized technical assistance serves to ensure the 

Agency’s microenterprise development strategies and 

programs are effective and in accordance with the 

Microenterprise Results and Accountability Act of 

2004. 

Launched during FY 2005, the Financial Integration, 

Economic Leveraging, Broad-Based Dissemination 

and Support (FIELD-Support) program provides 

missions with a streamlined, cost-effective source for a 

broad range of capabilities and competencies in 

microenterprise development. FIELD-Support is led 

by a consortium of PVOs and is authorized to receive 

up to $353 million from USAID missions and offices 

over a period of five years. In FY 2006, USAID 

provided $64 million through FIELD-Support to 

launch new activities in Afghanistan and West 

Bank/Gaza, the Microenterprise Development office, 

and the Office of Natural Resources Management. 

These new programs are valued at $101 million (or 29 

percent of the funding ceiling) over the course of the 

new activities. 

In FY 2006, USAID awarded the latest round of 

competitive grants designed to push the frontier of 

innovation in microfinance and enterprise 

development, demonstrate effective approaches to 

microenterprise development, and share the 

innovations with the broader microenterprise industry. 

The microfinance awards are pursuing strategies for 

reaching and retaining underserved populations in 

Malawi, Mexico, Morocco, Pakistan, and Peru. The 

new microfinance programs aim to reach nearly 

250,000 clients in challenging rural areas, in a postdisaster reconstruction zone, and among underserved 

youth. The enterprise development awards are 

applying approaches to integrate poor households into 

productive value chains in India, Madagascar, and the 

Philippines. The new enterprise development 

programs plan to reach about 20,000 rural 

microenterprises in the banana, horticulture, and 

tourism sectors. Recipients of these new grants will 

also participate in learning networks to further 

stimulate innovations, codify good practices, and distill 

lessons learned that can be applied by USAID and its 

partners in future microenterprise development 

efforts.

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 18 
ANNEX A: INSTITUTIONS WITH 

AMOUNTS OF FY 2006 FUNDING BY 

BUREAU (US$ THOUSANDS)

The information in Annex A was generated from the MRR database and is current as of June 2007. 

MRR is a live system that can be updated by missions and institutions at any time. 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 19 
ANNEX A: INSTITUTIONS WITH AMOUNTS OF FY 2006 FUNDING BY 

BUREAU (US$ THOUSANDS)

MISSION INSTITUTION FUNCTION OBLIGATION 

AMOUNT 

AFRICA BUREAU 

Angola Cooperative League of the United States ED $350 

 Total Angola $350 

DR Congo International Institute of Tropical Agriculture ED $100 

 Agreement Pending ED $118 

 Agreement Pending ED $170 

 Agreement Pending ED $91 

 Total DR Congo $479 

Ethiopia REST Relief Society of Tigray ED $1,309 

 Chemonics International, Inc. ED $1,200 

 Catholic Relief Services ED $962 

 CARE ED $665 

 Save the Children/UK ED $1,170 

 CHF International ED $356 

 World Vision Inc./East Africa ED $232 

 Save the Children ED $111 

 Food for the Hungry International ED $724 

 Total Ethiopia $6,730 

Ghana ADRA Adventist Relief Agency ED $111 

 Opportunities Industrialization Centers International ED $399 

 TechnoServe ED $1,734 

 Total Ghana $2,244 

Guinea ICRAF ED $600 

 Total Guinea $600 

Kenya Emerging Markets Group ED $450 

 Kenya Institute for Public Policy Research and Analysis MED POLICY $104 

 DAI/Kenya (dba Kenya Microfinance Capacity Building) FINANCIAL POLICY $575 

 Government of Kenya ED $772 

 Emerging Markets Group ED $738 

 Total Kenya $2,639 

Liberia AGRHA Action for Greater Harvest ED $175 

 Academy for Educational Development ED $20 

 Total Liberia $195 

Madagascar Agreement Pending ED $200 

 Total Madagascar $200 

Malawi Land O'Lakes, Inc. ED $68 

 National Smallholder Farmers' Association of Malawi ED $165 

 Chemonics International, Inc. FINANCIAL POLICY $375 

 Chemonics International, Inc. FINANCE $375 

 Development Alternatives, Inc. ED $600 

 Total Malawi $1,583 

Mali Chemonics International, Inc. FINANCE $250 

 Planet Rating FINANCE $100 

 Chemonics International, Inc. ED $1,074 

 Total Mali $1,424 

Mozambique CARE ED $100 

 NovoBanco ED $406 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 20 
MISSION INSTITUTION OBLIGATION 

AMOUNT FUNCTION 

 Opportunity International ED $461 

 Africare ED $100 

 TechnoServe, Inc. ED $300 

 DAP II World Vision ED $100 

 Total Mozambique $1,467 

Nigeria Chemonics International, Inc. FINANCE $1,772 

 OIC International FINANCE $994 

 Chemonics International, Inc. FINANCE $1,793 

 Fidelity Bank Plc FINANCE $266 

 Associates in Rural Development ED $1,781 

 Total Nigeria $6,606 

Senegal International Resources Group ED $672 

 International Resources Group MED POLICY $600 

 Microenterprise Support ED $400 

 Total Senegal $1,672 

Sierra Leone American Refugee Committee ED $53 

 Total Sierra Leone $53 

South Africa Volunteers for Economic Growth Alliance-IESC SAAGA ED $350 

 Abt Associates ED $165 

 Total South Africa $515 

Sudan Chemonics International, Inc. FINANCE $2,450 

 Total Sudan $2,450 

Tanzania Appropriate Technologies for Enterprise Creation ED $50 

 Development Alternatives, Inc. ED $825 

 TechnoServe, Inc. ED $515 

 Enterprise Works ED $450 

 Agreement Pending ED $296 

 Total Tanzania $2,136 

Uganda Rural SPEED Chemonics FINANCE $2,500 

 Fisheries Investment for Sustainable Harvest ED $50 

 ACDI/VOCA ED $362 

 Agricultural Productivity Enhancement Program ED $1,250 

 Land O' Lakes ED $500 

 Total Uganda $4,662 

Zambia Cooperative League of the USA - Production, Finance 

and Technology 

ED $400 

 Development Alternatives, Inc. ED $200 

 Total Zambia $600 

 Total Africa $36,605 

 

ASIA & NEAR EAST BUREAU 

Afghanistan Academy for Educational Development FINANCE $6,370 

 Academy for Educational Development FINANCE $37 

 Academy for Educational Development FINANCE $20,000 

 Academy for Educational Development FINANCE $28,091 

 Total Afghanistan $54,498 

Bangladesh International Resources Group ED $53 

 

Winrock International (Management of Aquatic 

Ecosystem through Community Husbandry) 

FINANCE $295 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 21 
MISSION INSTITUTION OBLIGATION 

AMOUNT FUNCTION 

 

Winrock International (Management of Aquatic 

Ecosystem through Community Husbandry) 

ED $49 

 Total Bangladesh $397 

Cambodia Development Alternatives, Inc. FINANCE $1,727 

 Total Cambodia $1,727 

East Timor Development Alternatives, Inc. ED $500 

 Development Alternatives, Inc. FINANCE $590 

 Development Alternatives, Inc. ED $148 

 Development Alternatives, Inc. MED POLICY $250 

 Development Alternatives, Inc. FINANCE $250 

 Total East Timor $1,738 

Egypt Chemonics International, Inc. FINANCIAL POLICY $1,000 

 Chemonics International, Inc. FINANCE $4,352 

 

The Egyptian Foundation for Lending, Empowering, 

Advancing & Developing Project (LEAD) 

FINANCE $9,811 

 Total Egypt $15,163 

India ACDI/VOCA ED $610 

 Total India $610 

Indonesia Booz Allen Hamilton FINANCIAL POLICY $373 

 Development Alternatives, Inc./SENADA FINANCIAL POLICY $671 

 Development Alternatives, Inc./AMARTA ED $450 

 The Asia Foundation MED POLICY $250 

 Total Indonesia $1,744 

Iraq Al Bashair Center FINANCE $250 

 Al Aman FINANCE $250 

 CHF/ASCI FINANCE $2,908 

 ACDI/VOCA FINANCE $3,998 

 Relief International FINANCE $3,600 

 Al Inma FINANCE $250 

 Total Iraq $11,256 

Jordan Achievement of Market-Friendly Initiatives and Results 

Program 

ED $332 

 Total Jordan $332 

Lebanon CHF/Association for Rural Development FINANCE $200 

 Ameen s.a.l. FINANCE $250 

 Total Lebanon $450 

Mongolia Gobi Initiative -Phase II Mercy Corps and PACT Inc. ED $2,508 

 CHF International ED $714 

 Total Mongolia $3,222 

Nepal International Development Enterprises ED $500 

 Save the Children ED $1,488 

 Total Nepal $1,988 

Pakistan KB Khushhalibank FINANCE $2,000 

 Pakistan Poverty Alleviation Fund FINANCE $2,400 

 SAS Shorebank International Ltd FINANCE $2,000 

 Total Pakistan $6,400 

Philippines Chemonics International, Inc. FINANCE $490 

 WOCCU/Credit Union Empowerment & Strengthen FINANCE $800 

 Total Philippines $1,290 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 22 
MISSION INSTITUTION OBLIGATION 

AMOUNT FUNCTION 

RDM/A Winrock International FINANCE $100 

 The Bridge Fund FINANCE $200 

 Total RDM/A $300 

West Bank /Gaza Academy for Educational Development FINANCE $4,700 

 Total West Bank/Gaza $4,700 

 Total Asia & Near East $105,815 

 

EUROPE & EURASIA BUREAU 

Albania Chemonics Inc/Small Business Credit Assistance Project ED $500 

 Development Alternatives, Inc. ED $500 

 Total Albania $1,000 

Armenia Development Alternatives, Inc. ED $73 

 Total Armenia $73 

Azerbaijan ACDI/VOCA FINANCE $1,800 

 International Rescue Committee ED $345 

 Pragma Corporation ED $1,700 

 Total Azerbaijan $3,845 

Belarus Citizens Network for Foreign Affairs ED $60 

 Eurasia Foundation ED $67 

 Total Belarus $127 

Bulgaria Agreement Pending FINANCE $100 

 Microenterprise Support FINANCE $100 

 Total Bulgaria $200 

Central Asian Republics Winrock International ED $40 

 Central Asian Microfinance Alliance FINANCE $95 

 Development Alternatives, Inc. ED $23 

 Total Central Asian Republics $158 

Croatia Development Alternatives, Inc. ED $1,056 

 Total Croatia $1,056 

Europe & Eurasia Bureau Segura IP3 Partners LLC FINANCIAL POLICY $60 

 Segura IP3 Partners LLC FINANCIAL POLICY $100 

 Total Europe & Eurasia Bureau $160 

Georgia ACDI/VOCA MED POLICY $91 

 International Executive Service Corps MED POLICY $32 

 International Executive Service Corps ED $160 

 ACDI/VOCA ED $680 

 International Executive Service Corps FINANCIAL POLICY $80 

 International Executive Service Corps FINANCE $64 

 CHF International ED $770 

 Constanta Foundation FINANCE $77 

 Total Georgia $1,954 

Kazakhstan Kazakhstan Small Business Development Project ED $260 

 Central Asian Microfinance Alliance FINANCE $151 

 The Pragma Corporation ED $85 

 The Pragma Corporation/BEI MED POLICY $229 

 Total Kazakhstan $725 

Kosovo Kosovo Cluster and Business Support ED $700 

 Total Kosovo $700 

Kyrgyzstan Micro and Small Finance Facility FINANCE $520 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 23 
MISSION INSTITUTION OBLIGATION 

AMOUNT FUNCTION 

 Winrock International ED $30 

 

The Pragma Corporation/Enterprise Development 

Project ED $60 

 Land Reform/KG Chemonics International, Inc. MED POLICY $32 

 Development Alternatives, Inc. ED $392 

 Winrock International ED $44 

 Development Alternatives, Inc. ED $351 

 The Pragma Corporation /BEI MED POLICY $230 

 International Fertilizer Development Center ED $1,002 

 Central Asian Microfinance Alliance FINANCE $900 

 Total Kyrgyzstan $3,561 

Moldova The Pragma Corporation FINANCIAL POLICY $163 

 The Pragma Corporation FINANCIAL POLICY $39 

 Abt Associates MED POLICY $175 

 Abt Associates MED POLICY $25 

 Total Moldova $401 

Montenegro Booz Allen Hamilton ED $199 

 CHF International ED $1,600 

 International Relief and Development ED $936 

 Total Montenegro $2,735 

Russia Development Alternatives, Inc. FINANCE $1,149 

 ACDI/VOCA FINANCE $720 

 Total Russia $1,869 

Serbia ACDI/VOCA ED $1,244 

 International Relief and Development, Inc ED $184 

 ADF America ED $376 

 Mercy Corps International ED $640 

 CHF International ED $245 

 Total Serbia $2,689 

Tajikistan MSFF EBRD Micro and Small Finance Facility FINANCE $100 

 Central Asian Microfinance Alliance FINANCE $650 

 Winrock International ED $112 

 The Pragma Corporation /BEI MED POLICY $165 

 Development Alternatives, Inc. ED $161 

 Total Tajikistan $1,188 

Turkmenistan The Pragma Corporation ED $20 

 Total Turkmenistan $20 

Ukraine BIZPRO Development Alternatives, Inc. MED POLICY $46 

 AMP-Land O' Lakes ED $936 

 BIZPRO Development Alternatives, Inc. ED $38 

 Eurasia Foundation ED $60 

 Eurasia Foundation ED $320 

 The Pragma Corporation/Access to Credit Initiative FINANCIAL POLICY $273 

 Financial Markets International, Inc FINANCIAL POLICY $95 

 Financial Markets International, Inc MED POLICY $95 

 Abt Associates MED POLICY $170 

 Chemonics International, Inc.-LED MED POLICY $24 

 Center for Ukrainian Reform Education MED POLICY $246 

 Chemonics International, Inc.-LED MED POLICY $921 

 Chemonics International, Inc.-LED FINANCIAL POLICY $24 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 24 
MISSION INSTITUTION OBLIGATION 

AMOUNT FUNCTION 

 Agreement Pending ED $50 

 Total Ukraine $3,299 

Uzbekistan The Pragma Corporation MED POLICY $24 

 WOCCU FINANCE $1,389 

 Total Uzbekistan $1,413 

 Total Europe & Eurasia $27,173 

 

LATIN AMERICA & CARIBBEAN BUREAU 

Bolivia WOCCU FINANCE $114 

 WOCCU FINANCIAL POLICY $650 

 Total Bolivia $764 

Brazil Fundacao Centro Estudos Comercio Exterior FINANCE $200 

 Fundacao Centro Estudos Comercio Exterior ED $400 

 Fundacao Centro Estudos Comercio Exterior MED POLICY $215 

 Development Alternatives, Inc ED $225 

 Total Brazil $1,040 

Colombia International Office of Migration FINANCE $419 

 Panamerican Development Foundation ED $1,028 

 International Office of Migration FINANCE $20 

 ACDI/VOCA ED $2,000 

 Associates in Rural Development, Inc. FINANCIAL POLICY $530 

 Associates in Rural Development, Inc. ED $1,821 

 Total Colombia $5,818 

Caribbean Regional 

Program 

North-South Institute Inc ED $453 

 Total Caribbean Regional Program $453 

Guatemala Share ED $556 

 Save the Children ED $644 

 CRS ED $157 

 Total Guatemala $1,357 

Guyana Carana Corporation FINANCE $10 

 Carana Corporation FINANCIAL POLICY $120 

 Carana Corporation ED $78 

 Carana Corporation MED POLICY $145 

 Total Guyana $353 

Haiti Development Alternatives, Inc./HAP FINANCE $200 

 Development Alternatives, Inc./MSME FINANCE $2,563 

 Aid to Artisans ED $250 

 Total Haiti $3,013 

Jamaica Chemonics International, Inc. ED $610 

 PA Consulting ED $50 

 Total Jamaica $660 

Mexico Acceso al Financimiento Rural para la Microempresa FINANCIAL POLICY $256 

 Caja Popular Mexicana FINANCE $450 

 Acceso al Financimiento Rural para la Microempresa FINANCE $1,025 

 Microenterprise Support FINANCIAL POLICY $64 

 Microenterprise Support FINANCE $255 

 Total Mexico $2,050 

Nicaragua CRS FINANCE $691 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 25 
MISSION INSTITUTION OBLIGATION 

AMOUNT FUNCTION 

 ADRA FINANCE $617 

 Project Concern International FINANCE $447 

 Total Nicaragua $1,756 

Panama Academy for Educational Development MED POLICY $500 

 Total Panama $500 

Peru Chemonics International, Inc. ED $160 

 Chemonics International, Inc. ED $1,200 

 CARITAS FINANCE $570 

 Chemonics International, Inc. ED $570 

 Nathan Associates MED POLICY $1,000 

 Total Peru $3,500 

 Total Latin America & Caribbean $21,263 

CENTRAL FUNDING 

Food for Peace Adventist Development and Relief Agency FINANCE $397 

 Adventist Development and Relief Agency FINANCE $170 

 CARE/CPI FINANCE $108 

 Adventist Development and Relief Agency ED $170 

 CGAP/PRISMA FINANCE $664 

 Adventist Development and Relief Agency ED $397 

 CARE International FINANCE $281 

 Total Food for Peace $2,186 

Microenterprise 

Development Office 

Agreement Pending ED $100 

 Development Alternatives, Inc. FINANCE $675 

 

IRIS Center for Institutional Reform and the Informal 

Sector FINANCIAL POLICY $741 

 FINCA International FINANCE $575 

 The QED Group, LLC MED POLICY $1,674 

 Microenterprise Development office FINANCIAL POLICY $2,354 

 ACDI/VOCA ED $500 

 SEEP Network FINANCIAL POLICY $741 

 World Resources Institute MED POLICY $165 

 Academy for Educational Development FINANCIAL POLICY $1,443 

 ACDI/VOCA ED $525 

 The Louis Berger Group, Inc. ED $550 

 Academy for Educational Development FINANCE $1,443 

 World Council of Credit Unions, Inc FINANCE $500 

 Opportunity International FINANCE $525 

 Academy for Educational Development ED $1,443 

 Strategic Development Cooperation Asia ED $250 

 Save the Children FINANCE $307 

 Chemonics International, Inc. FINANCE $450 

 Conservation International ED $748 

 Shorebank International Ltd. FINANCE $568 

 Development Alternatives, Inc. ED $100 

 Weidemann Associates MED POLICY $1,745 

 Total Microenterprise Development $18,122 

Office of Private The Mountain Institute FINANCE $85 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 26 
MISSION INSTITUTION OBLIGATION 

AMOUNT FUNCTION 

Voluntary Cooperation 

 Pan American Development Foundation FINANCE $325 

 CHF International ED $285 

 National Cooperative Business Association FINANCE $319 

 Land O'Lakes FINANCE $181 

 World Relief FINANCE $750 

 Freedom from Hunger FINANCE $176 

 International Development Enterprises FINANCE $226 

 Americas Assoc of Coops/Mutual Insurance Society FINANCE $710 

 Institute for Transportation and Development Policy FINANCE $287 

 WOCCU FINANCE $750 

 ACDI/VOCA FINANCE $256 

 SEEP Network FINANCIAL POLICY $349 

 Total Private Voluntary Cooperation $4,699 

Women in Development dTS Development & Training Services MED POLICY $25 

 dTS Development & Training Services MED POLICY $35 

 dTS Development & Training Services MED POLICY $31 

 Total Women in Development $91 

 Total Central Funding $25,098 

 

 TOTAL FY 2006 FUNDING $215,954 

 

* MED Policy= Enterprise Development Policy 

* Central Funding awards fund activities worldwide 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 27 
ANNEX B: MICROENTERPRISE 

FUNDING BY USAID BUREAU, 

FY 2006 (US$ THOUSANDS)

The information in Annex B was generated from the MRR database and is current as of June 2007. 

MRR is a live system that can be updated by missions and institutions at any time. 

MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 28 
MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 29 

ANNEX B: MICROENTERPRISE FUNDING BY USAID BUREAU, FY 2006 

(US$ THOUSANDS) 

MISSION FINANCE FINANCIAL 

POLICY 

ENTERPRISE 

DEVELOPMENT

ENTERPRISE 

DEVELOPMENT 

POLICY 

TOTAL 

AFRICA BUREAU 

Angola $350 $350 

DR Congo $479 $479 

Ethiopia $6,730 $6,730 

Ghana $2,244 $2,244 

Guinea $600 $600 

Kenya $575 $1,960 $104 $2,639 

Liberia $195 $195 

Madagascar $200 $200 

Malawi $375 $375 $833 $1,583 

Mali $350 $1,074 $1,424 

Mozambique $1,467 $1,467 

Nigeria $6,606 $6,606 

Senegal $1,072 $600 $1,672 

Sierra Leone $53 $53 

South Africa $515 $515 

Sudan $2,450 $2,450 

Tanzania $2,136 $2,136 

Uganda $2,500 $2,162 $4,662 

Zambia $600 $600 

Total Africa $12,281 $950 $22,670 $704 $36,605 

ASIA & NEAR EAST BUREAU 

Afghanistan $54,498 $54,498 

Bangladesh $295 $102 $397 

Cambodia $1,727 $1,727 

East Timor $840 $648 $250 $1,738 

Egypt $14,163 $1,000 $15,163 

India $610 $610 

Indonesia $1,044 $450 $250 $1,744 

Iraq $11,256 $11,256 

Jordan $332 $332 

Lebanon $450 $450 

Mongolia $3,222 $3,222 

Nepal $1,988 $1,988 

Pakistan $6,400 $6,400 

Philippines $1,290 $1,290 

RDM/A $300 $300 

West Bank/Gaza $4,700 $4,700 

Total Asia & Near East $95,918 $2,044 $7,353 $500 $105,815 

EUROPE & EURASIA BUREAU 

Albania $1,000 $1,000 

Armenia $73 $73 

Azerbaijan $1,800 $2,045 $3,845 

Belarus $127 $127 

Bulgaria $200 $200 
MICROENTERPRISE RESULTS REPORTING: ANNUAL REPORT TO CONGRESS FISCAL YEAR 2006 30 

MISSION FINANCE FINANCIAL 

POLICY 

ENTERPRISE 

DEVELOPMENT

ENTERPRISE 

DEVELOPMENT 

POLICY 

TOTAL 

Central Asian Republics $95 $63 $158 

Croatia $1,056 $1,056 

EE Bureau $160 $160 

Georgia $141 $80 $1,610 $123 $1,954 

Kazakhstan $151 $344 $229 $725 

Kosovo $700 $700 

Kyrgyzstan $1,420 $1,879 $262 $3,561 

Moldova $201 $200 $401 

Montenegro $2,735 $2,735 

Russia $1,869 $1,869 

Serbia $2,689 $2,689 

Tajikistan $750 $273 $165 $1,188 

Turkmenistan $20 $20 

Ukraine $392 $1,404 $1,503 $3,299 

Uzbekistan $1,389 $24 $1,413 

Total Europe & Eurasia $7,815 $834 $16,018 $2,506 $27,173 

LATIN AMERICA & CARIBBEAN BUREAU 

Bolivia $114 $650 $764 

Brazil $200 $625 $215 $1,040 

Colombia $439 $530 $4,849 $5,818 

Caribbean Regional Program $453 $453 

Guatemala $1,357 $1,357 

Guyana $10 $120 $78 $145 $353 

Haiti $2,763 $250 $3,013 

Jamaica $660 $660 

Mexico $1,730 $320 $2,050 

Nicaragua $1,756 $1,756 

Panama $500 $500 

Peru $570 $1,930 $1,000 $3,500 

Total Latin America & 

Caribbean 

$7,581 $1,620 $10,202 $1,860 $21,263 

CENTRAL FUNDING 

Food for Peace $1,620 $567 $2,187 

Microenterprise 

 Development Office 

$5,043 $5,279 $4,216 $3,584 $18,122 

Office of Private Voluntary 

 Cooperation 

$4,699 $4,699 

Women in Development $91 $91 

Total Central Funding $11,361 $5,279 $4,783 $3,675 $25,098 

TOTAL $134,957 $10,726 $61,025 $9,245 $215,954 
 
 
U.S. Agency for International Development 

1300 Pennsylvania Avenue, NW 

Washington, DC 20523 

Tel: (202) 712-0000 

Fax: (202) 216-3524 

www.usaid.gov