Analytical Overview of the Economic Empowerment Programme: Microfinance

POPI's Economic Empowerment Programme, specifically the Microfinance component, plays a pivotal role in the organization's mission to eradicate poverty and stimulate employment, directly aligning with the objectives of Sustainable Development Goals 1 (No Poverty) and 2 (Zero Hunger). This programme offers a diverse range of loan products meticulously designed to cater to different segments of programme participants, accounting for crop seasonality, and addressing the risks associated with natural disasters.

Microfinance Product Portfolio:

• Buniad: Designed to uplift the extreme poor.
• Jagoron: Providing loan support to those categorized as moderate poor.
• Agrosor: Tailored credit solutions for middle-income borrowers.
• Sufolon: Focused on supporting agricultural development.
• Sahos: Emergency credit facilities.
• Enrich: Supporting Income Generating Activities (IGA), livelihood development, and asset creation.
• Water Credit: Financing for Water, Sanitation, and Hygiene (WASH) projects.
• LIFT: Innovative loans to encourage and support financial and non-financial initiatives.
• PROSAR: Loans aimed at assisting Small and Medium Enterprises (SMEs) to recover from the effects of the COVID-19 pandemic.
• LRLP: Loans designed to support those affected by COVID-19 and address emerging vulnerabilities.
• ABASON: Housing loans for shelter and habitation.
• SDL: Loans for sanitary latrine construction.
• RAISE: Promoting the recovery and advancement of informal sector employment.
• BD WASH: Supporting rural water, sanitation, and hygiene initiatives for human capital development.

Key Performance Highlights in 2022-2023:

• Expansion: POPI has extended its operations to new districts, upzilas, and branches, significantly expanding its coverage. Currently, the organization operates in 174 upzilas across 26 districts, boasting 200 branch offices.
• Membership and Borrowers: The Economic Empowerment Sector Intervention (EES) of POPI comprises approximately 272 thousand members, with 226,610 borrowers actively participating in the programme.
• Financial Inclusivity: The microfinance programme has demonstrated substantial financial inclusivity. The total savings outstanding amount to 6,210 million Taka, while the total disbursed amount is a notable 31,540 million Taka. The outstanding loan amount is reported at 17,040 million Taka.
• Financial Performance: The programme has achieved a net surplus of 490 million Taka, reflecting its financial sustainability and capacity to continue providing vital financial services to underserved communities.

In an analytical context, POPI's Microfinance programme serves as a robust vehicle for poverty alleviation, economic empowerment, and financial inclusion. Its impressive growth, coupled with its diverse range of loan products, underscores its commitment to addressing the multifaceted challenges faced by marginalized communities while contributing significantly to the attainment of critical Sustainable Development Goals. Moreover, its financial performance demonstrates its ability to achieve social impact while maintaining financial sustainability, ultimately serving as a model for effective microfinance initiatives.