The sustainability of an MFI is largely dependent upon its ability to combine its financial profitability and social impact. This means that financial performance and social performance are two closely linked objectives for MFIs.
Financial performance is measured by analysing an MFI’s accounts and calculating profitability ratios. These ratios highlight the MFI’s strengths and weaknesses and enable it to take corrective measures in order to improve its profitability and competitiveness. Knowing and understanding your financial situation is the key to maintaining a sustainable business model.
Social performance is at the very heart of an MFI’s raison d’être and its assessment is becoming increasingly important for the actors in the sector. Universal standards and indicators for social performance which enable MFIs to calculate and therefore demonstrate the importance of the social impact generated by their activities have been developed at the international level.
Financial and social performance in microinsurance
Organizations that offer microinsurance products will find below the Microfact tool and training specifically designed to calculate the financial and social performance of microinsurers.
Our training courses in financial and social performance are organised in Africa, Asia and Latin America.
Microinsurance: a Microfact training to interpret ratios and analyze financial trends in microinsurance (pre-requisite: organizations must have at least 2 years of microinsurance experience).
In French-speaking Africa, the CGAP has developed a course on the financial analysis of MFIs, as well as a course on the basic principles of accounting for beginners in finance (in French only).
Learn how to interpret financial ratios thanks to the SIMFI training tool, an interactive training course which teaches you how to take the correct decisions by following good management practices through a simulation tool.
We offer an SPI4 evaluation supported by an approved ADA auditor who will ensure the quality of the evaluation process. We can also perform an “audit +”, which includes the provision of support for the implementation of the recommendations to improve your social performance.
Our technical assistance is always configured to meet with your needs, so don’t hesitate to