As a complementary service to loans and equity investments, Oikocredit provides capacity building supports to partner organizations. It aims at reinforcing the social and financial performance of the organizations to which loans or equity investments either have been made or are foreseen.
Capacity building (CB) interventions can take many forms: training and coaching (from either a service provider and/or in-house), specialized outsourced consulting services, exchange visits, other activities that strengthen the performance of organizations such as improvement and setting up of systems (MIS, policies, procedures, reporting), facilitating meetings and industry/sector understanding and positioning for our own organization.
CB interventions have to cover one of those areas that we consider important to attain the objectives in our mission:
1. Risk Management
2. Social Performance Management
3. Product Development
4. Market Coverage
5. Agricultural value chain financing (new focus area, a priority in next years)
There are circumstances under which capacity building may be sought when no legally binding relationships have yet to be established (existing loan or investment). The triggering factors are: the clearly identified conditions fulfilled by the prospect and unambiguous expressed intent from its side. Needless to say that capacity building then becomes an integral path to establishing the relationship.