Berendina shows the way in successful microfinance programmes
Many NGOS and state agencies (public/private) conduct seminars, workshops, etc and bring out proposals and recommendations to be implemented for the benefit of the poor and the destitute. Some of these organizations have chosen microfinance as a way forward to serve the poor better and successfully, with usual funding from outside. But there is apparent wastage of such funds as there is no mechanism in place to gauge whether the desired objectives are achieved and there would normally be no feed-back process.
One NGO however, Berendina Stichting which runs as a private sector corporate entity actively involved in microfinance for the poor, has a mechanism in place to assess, monitor and periodically tabulate as to how many poor have been dragged out of poverty.
The organisation last week celebrated its 25 anniversary in Sri Lanka with L.W.M. Piet, Ambassador for Netherlands in Sri Lanka as Chief Guest.
Berendina came to existence when in 1987 late Ms Berendina Borst from the Netherlands along with a Sri Lankan English teacher – Ms Eva Mudalige, commenced a small programme of assisting the poor in Yatiyantota. Ms Berendina channelled her wealth to charity
The group now consists of two agencies, Berendina Development Services (Gte) Ltd (BDS) established in 2005 and Berendina Microfinance Institute (Gte) Ltd established in 2007.
BDS works on a long term poverty reduction approach in selected geographical areas. It focuses mainly on income poverty but also focuses on other aspects of poverty like health, sanitation, housing and even access to education of poor children.
Dulan de Silva, Chairman, Berendina said that today they serve Kegalle district, Nuwara-eliya, parts of Anuradhapura, Trincomalee and Kandy and is the largest local NGO working in over 40 plantations. He said that Berendina has provided over 60,000 small loans averaging less than Rs. 26,000 to a value of Rs.1.7 billion at an interest rate of 11% to 12% flat rate which is the lowest, an effective rate to borrowers by any NGO or private agency for micro finance.
Berendina operates with an annual budget of Rs 1 billion. He said that they have been considered the best in microfinance and other agencies pay Rs 1,500 to study their work and visit the field to acquaint with their ground level operations.
He said that they provide loans to plantation workers through company-managed co-operatives and loans have been provided to build toilets and for the construction of houses and house repairs etc.
The inauguration was fol- lowed by a half-day workshop and a discussion ensued. It was discussed that though NGOS successfully are involved in microfinance in pushing the poor, up the ladder, the government is still slow to recognize the NGOS as capable. It was pointed out that still these organizations who deal with microfinance for the poor are allowed to operate only in three districts.
To enlighten the strength and capabilities of these organizations, it was pointed out that such NGOS in Bangladesh now work with US$ 100 billion. Mr de Silva pointed out that the government wants the private companies to do microfinance.
During the workshop session, two presentations were made – one by Dr Nishan de Mel, Director, Verite Research on ‘Development Sector and Private Sector Partnerships for Livelihoods and the other by Saliya Ranasinghe, Regional Manager Asia, Frankfurt School of Finance and Management on ‘Berendina Microfinance: Learning’.