Social Performance Management
AMFIU noted an increasing demand, both internationally and locally for the need for MFIs to systematically report on their social mission. AMFIU started educating, sensitizing, promoting and building capacity of the members to be able to capture and report on their social mission.
AMFIU, as a national apex offers a global perspective that is difficult for individual MFIs to achieve but is able to share industry experience, best practices, offer informed technical support and mobilize the resources necessary to develop approaches to SPM.
Broadly, AMFIU as network is not only best suited to promote SPM but also stands to benefit the following by promoting SPM;
- Disseminating local information: AMFIU has a unique and advantaged position as a recognized national apex to share local and regional SP information with technical assistance providers and investors.
- Providing the stakeholders with the necessary information and services. To gain a competitive fundraising advantage, MFIs need to demonstrate that they are not only achieving their financial goals but that they are also achieving the social mission they were set up to achieve. AMFIU is in a position where it can easily provide this kind of information to the stakeholders, investors, donors and the MFIs.
- Supporting pro-microfinance policy: To advocate for a pro-microfinance policy and regulation, there is need to demonstrate the sector’s contribution to the common good. Encouraging members to track, report and discuss social performance outcomes helps the association arm itself with data to support its advocacy work.
- Supporting a balance growth: Promoting social as well as financial performance will breed a healthy growth among the members of the association. MFIs that are only required to manage and report on their financial performance are likely to suffer from a mission drift.
- Reducing Reputational Risk: The microfinance industry has come under increased scrutiny as stakeholders from microfinance clients, to funders and governments demand greater transparency and measurable results that demonstrate the effects of microfinance on the poor. Therefore, it is essential that the microfinance industry is able to legitimately demonstrate their commitment to the social outcomes of their work
To help institutions integrate SPM, AMFIU developed a guide on integrating SPM into institutions
In 2012 the SEEP network produced a case study report about SPM activities in Uganda. The report can be downloaded here