In 2006, INAFI launched a new research study, Social Impact Measurement (SIM) project that is exploring ways of measuring social impact of microfinance interventions. The SIM project, advancing social impact measurement tools intents to raise awareness on achieving social outcomes through microfinance practice. This research outlined INAFI’s contribution to ongoing global studies to define social impact indicators and follow-up efforts in the sector to combine financial performance and social monitoring of poverty dimensions. A key G8 ‘Principle of Microfinance’ states, “Microfinance works best when it measures – and discloses – its performance; both financial and social information”. The SIM project has used participatory methods to pool experiences of ten (10) microfinance practitioners who have experimented measuring social impact of clients over the last decade.
The SIM Pilot Project: Background and Main Aim
INAFI, Oxfam Novib, and Ordina joined forces to create an efficient database system for Social Impact Measurement. INAFI, as a network with more than 320 micro finance institutions worldwide, reaching 25 million people living in poverty, needs a uniform database system to assess social impact and measure performance. Oxfam Novib, an international development NGO based in the Netherlands brokered the contacts between Ordina and INAFI, having supported INAFI since 1993. Ordina, a Netherlands based software company are involved in this project as part of their Corporate Social Responsibility. The partners have signed a MoU that clearly define roles, responsibilities and tasks of each partner during this pilot project.
INAFI SIM presentation forum Techno CGAP (click on thumbnail to view slideshow).