To create a world without poverty, LIP does following two main activities;
1. Create a Microfinance fund
There are more than 10,000 microfinance institutions (MFI) in the world but it is not enough to provide a financial service to all. Even for now, many MFIs needs more funds from outside to offer loans and saving service. To support local MFIs, LIP collects a fund from investors, mainly Japanese, and loans the fund to MFIs in developing countries.
Features of our fund
LIP conducts field research and negotiates a contract with local partners to set a fund. We want to make sure that our fund lead to poverty reduction through our due diligence.
When we choose our partner, we focused on three criteria;
The organization has mission to provide equal opportunity and poverty reduction
keep financial strength has healthy organizational governance
After investment, LIP reports properly to investors in terms of financial and social perspective.
LIP created the first microfinance fund, known as “Cambodia ONE”, in Japan, 2009. Through monitoring the fund, we definitely felt effect on poverty reduction. While all of our staff are in Japan, LIP can take an active role on solving social issues in developing countries through investing a fund to local microfinance institutions. We continue supporting our partner organizations through an investment fund, instead of donation.
2. Advocacy about Microfinance
Recently the word of Microfinace spread out but the process or effect of Microfinance is not correctly understood in Japan. It is our role to increase level of awareness. As part of the effort, we hold “Microfinance Forum” every year and, occasional seminar and events. Also, LIP puts effort to disseminate message about microfinance through social media.