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2007 AEC - Social Performance Evaluation of the Microfinance Institutions in Mozambique
Historically, microfinance has been successful in reaching the population excluded from the classical financial system. In the 90’s, efforts have been concentrated towards financial and institutional sustainability of the microfinance institutions (MFIs). Tools to evaluate financial performance have been developed, but the social performance was taken for granted. However, nowadays, donors and social investors ask the MFIs to justify the fundings: Who are the clients reached? How to combine social and financial objectives? How to avoid mission drift? Mozambique as a developing country has so many poor people and excluded from the classical financial system. This model is divided in four social dimensions: outreach of the poor and excluded; adaptation of the services and products to the target clients; improvement of social and political capital of the clients; and social responsibility of the MFI. Using the Social Performance Indicators (SPI) model developed by CERISE1 the results show that MFIs in Mozambique are not concerned about Social Performance as a goal. Only two institutions came close to the international standard MFIs average. In conclusion, the MFIs in Mozambique should redefine their strategies in order to attend the huge market of the people which are still excluded from the financial services.