What We Do
Micro Economic Development
The Micro Economic Development (MED) Program helps Mongolian families to improve their livelihoods.
The MED program works to bridge the gaps between vulnerable households, banks and community organizations. Whether through small business growth, regular savings, vocational certification or credit access, the MED program helps its beneficiaries to help themselves.
Key Micro-Economic Development activities include -
Business skills training, advice and Self Help networks, financial literacy training, and assisting micro-entrepreneurs to gain access to credit.
SHG members submitting proposals to the ‘Organic Mongolia Program’. Five of the six proposals were accepted, and the SHG members each received a loan of 12.000.000MNT from the Mongolian National Chamber of Commerce and Industry and Xas bank. Some of the eco products which will be produced include dairy products, honey, pickled vegetables and fruit juice.
Creating opportuinities for project beneficiaries to receive wholesale loans from Xac bank.
Micro Economic Development Program
The Micro Economic Development (MED) Program has redeveloped its mission and strategic documents to align itself with the local and national policies in order to increase the accessibility of microfinance and business development services to the individuals and communities in need in 2010.
2010 has been a busy year for the MED team, with the closure of 3 projects and the commencement of 3 new projects.
Poverty Reduction through Innovative Microfinance Empowerment project - Ulaanbaatar (PRIME-UB)
PRIME UB continues the work started by the CUES project to service the growing number of poor in 6 districts of Ulaanbaatar. PRIME UB aims to establish 10 SHGs by the project end date; so far 4 have been established. As at September 2010, loans outstanding for the PRIME UB project total 33 million MNT.
The project’s goals broadly align with the UN Millennium Development Goals agreed upon with the Mongolian Government:
1. Improved financial capability in poor urban households
2. Sustainable microfinance products made available to poor urban households in Ulaanbaatar
3. Improved social environment to benefit poor urban households establishing micro businesses
Financial capability is fostered through training in, amongst other subjects, financial management, consumer education, marketing and accounting. One new aspect of the project will also involve the training of 200 volunteer business and vocational students in skills that they will subsequently pass on to ADRA’s beneficiaries. The students will act as consultants to local micro-entrepreneurs, tailoring advice to each business.
In regards to microfinance products, ADRA will continue to facilitate SHG loans and savings products to beneficiaries by providing assistance in loan application and ongoing business development services. In addition, PRIME is currently working with its partner insurance company and banks to create an affordable and sustainable insurance product to compliment the existing loans and savings products.
PRIME aims to create an environment conducive to sustainable micro economic development with three main activities: Firstly, by engaging sub-district social workers to promote the services of the project and refer new potential beneficiaries to ADRA. Secondly, by involving larger corporate companies for fundraising and the creation of sustainable social enterprises that will benefit the targeted segment of poor households. Finally, by lobbying government agencies to approve of legal status of SHGs so that the lending cycle to borrowers can continue once the PRIME project ends.
Poverty Reduction through Innovative Microfinance Empowerment project - Bayankhongor (PRIME-BH)
PRIME Bayankhongor continues work started in the SHG project. SHGs that were formed in the SHG project are supported to take the next step in forming cooperatives that can operate sustainably and independently of ADRA’s support. As at September 2010, loans outstanding for the PRIME Bayankhongor project total 73 million MNT.
The project’s goals broadly align with the UN Millennium Development Goals agreed upon with the Mongolian Government:
1. Enable institutional sustainability of self-help groups
2. To increase livelihood income of beneficiaries through community participation and improved financial and business skills
3. To improve the microfinance operating environment
A self sufficient external marketing association will be created, and made responsible for providing market research, market linkage, business consulting and other training services to cooperatives. This new organisation will provide institutional support and ensure the continued development of financial and business skills after the PRIME Bayankhongor project ends. Further, several times a year, the cooperatives will organise and run business events, public awareness sessions, and stewardship activities around the needs and issues of their particular region. As of November 2010, ADRA has signed an updated contract with Khan bank for a new suite of cooperative loan products.
