Social Impact Assessment of Microfinance Programmes - weman

Table 5.2: Number of Employees and Borrowers per staff
Year No. of Employees Borrowers per staff
2002 3 64.0
2003 3 94.3
2004 12 69.7
2005 32 98.0
2006 45 97.7
5.1.5.2 Competition and Expansion Strategy
Akhuwat has shown rapid growth since 2003. In the last year alone it has opened five
new branches and expanded its client base by 4,000 clients. The organization has been
able to mobilize higher donations as people have learnt about its programme and
appreciate the nobility with which it is being run. It is based on Islamic values and
appeals to the religious minded.
The Board is responsible for reviewing the performance of the organization and in
deciding how to expand the outreach. However, growth is linked with the credit pool and
the amount of donations received is unpredictable. The growth plan for the current year
FY 2006-07 was to disburse 10,000 individual loans and open branches in eight new
cities. While the growth plan for the next year is to double the numbers achieved in this
year.
For expansion into other cities, Akhuwat is looking for partner organizations. The
partnership can vary from just providing funds to Akhuwat to run the operations, to
Akhuwat training the staff and setting up the branch and leaving the operations to the
partner organization. Ideally, Dr. Saqib envisages the future as one where Akhuwat
would play the role of an apex organization using its credit pool as equity to assist partner
organizations and help them run operations in cities outside Lahore. In this scenario,
Akhuwat can provide financial and technical support to its partners. For Dr. Saqib,
success is not confined to sustainability figures it also entails how widely the model is
replicated, and how effectively and efficiently the poor are served. ‘Numbers overwhelm
but saving the life of one person is akin to save entire mankind. While doing so, one must
also observe the limits set by Allah Almighty’. This is what Dr. Saqib and other Board
Members firmly believe. Currently, Akhuwat is in discussion with organizations in
Peshawar, Multan, Gujrat and Jhelum.
However, Dr. Saqib feels that their primary responsibility is to work in the areas of
Lahore, where he and other board members live. People of other areas should work in
their own locales. They do not feel pressure to grow as they are dependent on resources
donated by civil society. For Akhuwat, this work is a long term ongoing process.
Akhuwat management feels that they are not in competition with other MFIs because
they have a different model and they do not charge interest, nor do they take funds from
the same sources as other MFIs. Furthermore, the market is still quite open, so Akhuwat
does not feel threatened by competition from commercial players.
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