2017 Annual ReportEnding Extreme Povertytoday, tomorrow, and the day after that

A Message from our CEO

Open a newspaper, or more likely the news app on your smartphone, and it becomes quite apparent. Our world is filled with suffering and despair: wars, refugees, floods, famines, and children dying from preventable diseases. What I see—and experience—every day is just the opposite: personal incomes rising, women working in trades and marketplaces, children learning in schools, and families receiving basic health services. I see hope replacing despair. Hope fostering ambition. Ambition growing opportunities, which then make that hope a reality. Why am I so optimistic? Consider:

• In 1990, 36 percent of the world’s people were living in extreme poverty; by 2017, that percentage has plummeted to 9; and
• In 1990, children under age 5 around the world were dying at a rate of 87 per 100,000; by 2017, that number has dwindled to 39.*

The world is getting better, and Opportunity International is making signifi cant contributions toward its improvement. This year alone we served 5.5 million loan clients, 5.9 million savings clients, and 591,000 children across 22 developing countries.

Opportunity’s clients inspire my optimism. Last year, while visiting Ghana, I met Linda. I learned that a few years earlier, she had been selling loaves of bread on the street from a basket on her head. Linda received an investment loan from Opportunity. Today, she owns a factory producing thousands of loaves every day. Not only does Linda earn a steady income, but so do her employees, as well as other women to whom she sells wholesale.

Linda challenged me to balance a board stacked with bread on my head. I couldn’t even stand up! I quickly decided to leave the heavy lifting to the experts. People like Linda testify to the success of Opportunity’s model of empowering others to develop marketable skills, work hard, and fulfi ll their dreams. Your support is not just the swipe of a credit card—it is a life transaction.

Over the past two years, you’ve likely heard me say that we at Opportunity are committed to working to end extreme poverty. Thanks to your support, we look to a future where everyone on the planet goes to bed with a full stomach and wakes up to a day fi lled with opportunities. It is an audacious goal, but Linda and countless others like her demonstrate that the end of extreme poverty is not only possible, it is within reach in our lifetimes.

Today, let’s celebrate. And tomorrow, let’s continue our good work serving families around the world. For we know from Philippians 1:6 that “He who began a good work in you will carry it on to completion.”

With good tidings of great joy,

Atul Tandon
Chief Executive Officer

*Source: 2018 Goalkeepers Data Report, Bill & Melinda Gates Foundation

Dear Friends and Partners of Opportunity International,

When the Global Board was created in 2014, one of our key promises to you was to make wise investment decisions. No sooner did we make that promise than it was tested. Our banks in Africa—originally established to fill a vast gulf in financial inclusion—were reaching a critical mass. We found ourselves at a crossroads asking: If we maintain sole ownership of our banks in Africa, given the associated costs and risks, are we most effectively marching toward our vision of helping people achieve a life free from poverty?

I am humbled by the company I keep on our Global Board. Their vast experience, intelligence and commitment to those living in poverty is second to none. Together we, with Management, analyzed our history and learnings in Africa and across Latin America, Asia and Eastern Europe. We evaluated our delivery models around the world, ranging from non-owned partners to minorityand majority-owned institutions. We calibrated for trends in poverty reduction, economic growth, financial inclusion and the financial technology sector. We contemplated models, partnerships and strategies that would catalyze our impact.

Our overwhelming conclusion was that our focus should not be on exclusively operating banks; it should be on providing services that help people transform their lives and move out of poverty— using whatever delivery model is most effective in that region. The reality is that continuing to be majority owners and principal managers of banks in Africa, an increasingly regulated environment with growing capital requirements, would inevitably pull us away from our mission rather than draw us closer.

As pioneering bankers in Africa, we created new markets, new services, new competitors and new products. We provided 39 million clients with access to financial services that they could not otherwise receive. You, our loyal supporters, have been invaluable in shaping the very landscape to which we must now respond. The Board and Management concluded that by standing still, we would lose the chance to vastly increase our client reach while simultaneously putting the organization at financial risk. At the end of 2015, we agreed to transfer majority ownership positions in our African banks to expert institutions that are better equipped to own and manage them, thus shifting our role to become strategic microfinance investors with minority equity positions and board involvement within those institutions.

Opportunity’s Global Board is united, personally committed and even more so— grateful—to be brought together for “such a time as this.” Since joining with our first partner, MyBucks, we are already serving many of our clients faster, at a lower cost and more efficiently. We are buoyed by the early wins that are proving our theory of change can be strengthened as it is refined.

So we pray, we pivot, we proceed. Our work is flourishing in Latin America and Asia, a new frontier is upon us in Africa, and we are looking ahead toward a world in which all people have the opportunity to achieve a life filled with dignity, hope and purpose.

With many blessings,

Notes to Financials

Opportunity International raises funds from many sources and uses them to provide loans, training, and support services to its clients so they can build sustainable livelihoods. We make grants, loans, and equity investments to our Implementing Members in 22 countries, which carry out these services. A portion of these funds is also used for fundraising and G&A activities.

The Consolidated Statement of Activities includes charitable revenue and expenses, as well as the consolidated results of the commercial banks where Opportunity is the majority owner. Charitable support increased by 9% for the year while total revenue, including banking revenue, increased 12%. Program expenses increased by 8%, most notably in growing development programs such as Education Finance.

The Consolidated Statement of Financial Position includes the charitable assets and liabilities, as well as the assets and liabilities of the majority-owned banks. Certain reclassifications have been made to 2016 financial statements to conform to the 2017 presentation.

Opportunity International’s consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles and independently audited by KPMG LLP. The full audit report of Opportunity International may be viewed at opportunity.org/documents

View The Full Financials

U.S. Board of Directors

*as of June 30, 2018

Corporations, Foundations and Churches

Philanthropic groups and companies who provide financial support to further the Opportunity mission

Ambassadors Council

Individual contributors who are using their leadership and business skills to champion our cause, while also contributing significant financial support to help bring about life transformation across the globe

Board of Governors

A community of philanthropic individuals who generously invest in the organization to help end extreme poverty

Partners

Without our supporters and partners, millions of people would not receive life-changing services from Opportunity each year. Our relationships are paramount to innovating solutions that change how—and how fast—people can work their way out of poverty. We are forever indebted to those who partner with us and our clients through their companies, foundations, churches, and personal giving.

Caterpillar Foundation

For more than 24 years, we have partnered with the Caterpillar Foundation to serve people living in poverty in the most rural, remote areas around the world. Today, the results of this enduring collaboration are evident—farmers improve crop yields, entrepreneurs expand their businesses, and women provide for their families and send their children to school.

Credit Suisse

Today, nearly 1.4 children in Latin America, Africa, and Asia can now access education thanks to Credit Suisse’s support of Opportunity’s EduFinance program. School proprietors use School Improvement Loans to expand and improve classrooms, and parents use School Fee Loans to send their children to school, even when their income is unsteady.

Heart of cabi Foundation

Through partnerships with Opportunity, cabi conitnued to empower over 3,000 women worldwide in 2017. Their efforts through The Heart of cabi Foundation's "Make a Change" round-up program and "W.E. are cabi" program, a one-for-one program where cabi funds a loan in the name of each new cabi Stylist, help women unlock their potential for a better future.

The Mastercard Foundation

Mastercard Foundation and Opportunity partnered for a fourth year to provide broader and more convenient financial access to over 1.4 million people in Ghana, Uganda, Malawi, Rwanda, and Tanzania since 2013. Together, we are facilitating mobile banking, improving food security by investing in smallholder farmers, and increasing access to quality education through education finance tools.

MetLife Foundation

MetLife Foundation and Opportunity partnered to provide financial services and training to rural farmers and entrepreneurs in northern Jiangsu Province, China. By supporting small and medium enterprises, we helped create job opportunities for some of the most disadvantaged communities in China. The program has created more than 23,000 much-needed jobs in rural areas.

Cisco

Cisco and Opportunity are working together to design and test digital tools for people in the most remote corners of the world. By connecting people living in poverty to these important resources, we are driving global financial inclusion. In 2017, these innovative digital financial tools helped us reach 6.3 million people, support over one million jobs, and empower clients to work their way out of poverty.

ExxonMobil Foundation

ExxonMobil Foundation and Opportunity are working together to bring sustainable economic opportunities to female farmers in Mozambique. Through this partnership, women farmers have been connected to vital agricultural tools and tailored training on agricultural best practices and financial management.

USAID / FINTRAC

As a partner of the USAID-funded "Feed the Future Partnering for Innovation" program, we are expanding rural financing, savings, and mobile banking. We are also providing training on good agriculture practices to smallholder farmers in Malawi and Mozambique, resulting in increased crop yields and incomes. Together, we are creating commercial opportunities for scaling financial services to the unbanked.

Gifts in Kind

Opportunity's Client Impact in 2017

All numbers reflect the aggregate of Opportunity International’s network of Implementing Members as of December 31, 2017. Year-over-year percentages were calculated using restated 2016 outreach numbers that only include active savings clients. 

Opportunity's Support Members raise funds in:

Australia, Canada, Germany, United Kingdom, and the United States

In 2017, Opportunity served clients in 22 countries:

Creating Opportunities for Small Business Owners

Powering communities and spurring economic growth always starts by equipping local entrepreneurs with the financial tools and training to sustain and grow their businesses. Eighty-nine percent of our clients are women who are working hard to serve their children and families by taking out business loans, contributing to savings accounts, and becoming financially fluent through our training.

Meera Singh India

Meera's community is nestled among the narrow alleys of Delhi. Winding through the pathways, you see women working long hours, selling small items and fabrics in the streets, with the hope of just putting food on their families' tables. For years, Meera was just like her neighbors: she worked hard, but her tailoring business was too small to provide a steady income. However, she had a bigger vision—one that would eventually influence her whole neighborhood. Meera began working with Opportunity and started investing in her small business for the first time. She purchased additional sewing machines and began hiring her neighbors to work with her. Now, Meera employs 50 additional women from her community—women who can now use their earnings to successfully support their own children and families.

Gaining Insight

It was refreshing to see Opportunity’s commitment to excellence and the way they leverage local resources for maximum impact. They are addressing personal needs through microloans and small businesses, but it goes beyond that. When they help improve businesses, it leads to increased opportunities for the whole community. Improving the community infrastructure—whether spiritual (church), physical (yucca processing plant) or educational (school and hotel)—will impact families for generations to come.

Rebekah Gladson and Paul Cooley, 2016 Insight Trip to Nicaragua

Did you know?

Our pilot program in Malawi called “Women in Business: Peer-2-Peer Mentorship” matched 1,000 Trust Group clients with local entrepreneurs to share best practices and enable reciprocal learning as they work to take their businesses to the next level. 

Get inspired by our entrepreneurial clients

Creating Opportunities for Children

Education Finance scaled in 2016, reaching nearly 2 million children since the program’s start and doubling—or even tripling—the number of loans in some regions. We increased our emphasis on education quality by launching a professional development program where peer groups of school owners and staff learn best-practice teaching methods, curriculums, and classroom management skills in Ghana, Uganda, and Rwanda.

Nueva Esperanza SchoolColombia

When Carmen Julie looked around her community 20 years ago, she saw families struggling with hunger, violence, and poverty. She only had one word to describe her neighborhood: "hard." She watched as children from difficult homes got caught in the crossfire with nowhere to go and no way to change their situations. So, she decided to do something about it. She started the Nueva Esperanza ("New Hope") School in her home and began investing in children by teaching them. With dreams of serving more students, she used a loan and training from Opportunity to build classrooms, hire teachers, and improve her facilities. Now, she employs 18 people and Nueva Esperanza serves 172 children in grades K-8. And Carmen Julie says she is just getting started.

Gaining Insight

I had the privilege of seeing how Opportunity is creating meaningful impact on the education infrastructure in Africa through its loans to education entrepreneurs. These leaders are utilizing their loans to build better buildings, add critical student transportation to increase enrollment, create safe housing for teachers, and improve the quality not only of the children’s education, but also of their daily lives.

Michele Honomichl, 2016 Insight Trip to Uganda

Did you know?

In 2016, we expanded our education program to India, piloting our School Fee Loan services and disbursing more than 34,000 new loans valued at $10+ million. Next, we’ll be rolling out a new School Improvement Loan product. 

Read about how microfinance can help fix the global education crisis

Creating Opportunities for Famers

Last year, our Agriculture Finance program actively served more than 100,000 farmers through $14 million in loans, financial training, and customized support from experts who specialize in one of 42 product lines like dairy or cocoa. Nearly 9 out of 10 loan clients were either women who are providing for their families or youth apprentice farmers who are learning best practices so they can one day start their own farms.

Ned EdisonMalawi

With a loan from Opportunity, Ned went from a small-scale farmer to an agriculture expert. He used his loan to build a large irrigation system for his farm in Malawi, unlocking his own innovative capabilities and setting him on a path to success. He began growing sweet potatoes and soon started experimenting with ways to expand his new crop. Before long, he was attracting attention from international potato companies and serving as an expert voice on how to improve sweet potato yields and varieties. Now, Ned employs 40 farmers on seven acres. He has invented a new sprinkler system and unique planting arrangements that are already being implemented by 15 other farmers in his community.

Gaining Insight

I saw a co-op of one thousand maize farmers and I was struck by the clarity of their vision and how they were totally united in their goal to build their farms and their community. They had the energy and the work ethic—they just needed a partner. Opportunity bridged that gap by providing the tools they needed to get off and running. Their hearts were joyful and their hands were calloused…they’re building their own futures.

Johnny Musso, 2016 Insight Trip to Uganda and Rwanda

Did you know?

Our new research on women farmers in Ghana and Mozambique, funded by the British Government’s Department for International Development (DFID), revealed that 78 percent of female clients have become empowered decision makers as a result of their partnership with Opportunity.

Read a summary of our research on gender and agriculture

Creating Opportunities through Digital Services

Financial inclusion has become increasingly connected to digital inclusion, a reality that guided our enhanced digital strategy in 2016. By year-end, we had harnessed the power of technology to arm 500,000 clients in Africa and 3.3 million in Asia with access to financial services, such as using their bank accounts through their mobile phones. These clients are empowered to take advantage of such technologies with supplemental training that targets underserved groups like women and low-literacy clients—the ones who need our services the most.

Betha ChilosaTanzania

Before working with Opportunity, Betha struggled to access the materials she needed to cultivate her 12-acre rice farm. It was expensive to travel to her suppliers, and she never had enough money to purchase all of the materials she needed. But with tailored tools and technology from Opportunity, the whole process is now seamless. Betha receives her seed and fertilizer directly and then pays for them at harvest, once she has sold her crops. She also makes loan payments from her cell phone, which means she doesn't lose precious daylight hours on the farm trekking to the bank. Because of these changes, Betha now produces 50 percent more rice each harvest, which has enabled her to build a new home for her children.

Gaining Insight

Change is in the air. Our clients have progressed beyond just needing loans. They now need access to technology, information, and more. Opportunity is key in bringing resources, knowledge, and people together. I see the new transformation centers being flexible and sensitive to our clients’ needs. I am excited for our clients!

Linda Weberg Lair, 2016 Insight Trip to Uganda

Did you know?

We use digital technology as a way to train our clients on more than just banking, so they can break free from poverty faster. For example, we can contact rural clients via their cell phones and quickly arm them with valuable nonfinancial information on topics like healthcare, good farm practices, and community activities.

Read how we’re using voice-based communications to educate and empower young females in Asia.

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