Triple Jump

Impact Report 2016

About Triple Jump Achievements as of June 2016

Triple Jump is an impact-focused fund manager in emerging markets that aims to increase outreach
and positively impact excluded segments of society. Our clients are social investors ranging
from institutional investors, development finance institutions (DFIs), foundations and family
offices, banks and governments. We provide a solid track record of both financial and social Triple Jump Portfolio
returns. Our investees are both financial service providers and funds serving our end-clients,

670 M
which are micro, small and medium enterprises (MSMEs) operating in developing countries.

Assets under management and advisory

Vision and Mission

74
Triple Jump envisions a responsible and inclusive financial sector that will enable people to Countries reached
unlock their potential and improve their quality of life.

We aim to realize this vision by promoting social and economic development for underserved
segments of society in developing countries by providing meaningful investment opportunities
25%
invested in Low Income Countries
and professional fund management and advisory services to investors.

8%
invested in fragile states
Impact Objectives
All investment funds and mandates Triple Jump manages, have the intention to generate a
positive developmental impact. Offering access to finance and contributing to employment
are the main drivers of all our investments. Triple Jump choses to focus on five impact themes:
Microfinance Portfolio Small & Medium Enterprises Portfolio
microfinance, agriculture, housing, sustainable energy and SMEs.

153 14
SME funds and intermediaries financed
Financial service providers (FSPs) financed

160 405
FSPs supported with Technical Assistance SMEs financed
since 2006

12,300
445,986 Number of jobs supported as of
December 2015
Entrepreneurs financed through
Triple Jump funds

16.5 million
Entrepreneurs reached by FSPs in
Triple Jumps portfolio

74%
Women

63%
Rural
Impact Areas And Funds Microfinance Agriculture Housing Sustainable SMEs
Energy
Triple Jump manages five investment funds or mandates that invest in one or more of the Microfinance Agriculture is the Two-thirds of the Increasing production SMEs employ the
impact themes it supports: microfinance, agriculture, housing, sustainable energy and SMEs. allows low income main source of worlds emerging of and access to largest share of
Each fund has a specific development mandate and different risk and return objectives. households, food supply and countries affordable, reliable the population in
With this diverse mix of funds, Triple Jump offers investors tailored opportunities to address including the poor to represents a large population live and sustainable emerging countries.
some of the most fundamental and pressing challenges to development around the globe. improve their quality share of income in substandard energy in emerging They are key to
of life by giving and employment in shelter, affecting countries is creating employment
them economic emerging countries. their health, fundamental to and economic
opportunities, A large number of security, education the economic development but
financial security, the worlds poor and general living development and also to spur innovation
helping smooth are active in and conditions. improving living and deliver basic
consumption and dependent on conditions for the BoP. services to underserved
deal with shocks. agriculture. segments of society.

ASN-Novib ASN-Novib
Microcredit Fund Microcredit Fund
Debt and equity Debt and equity
finance in expanding finance in expanding
and mature financial and mature financial
service providers in service providers in
emerging countries. emerging countries.

Oxfam Novib Fund

Debt finance to high potential and high
impact service providers in developing
countries with a focus on underserved
markets, rural communities and women
borrowers.

MicroBuild Fund
Debt finance and
technical assistance
to develop housing
finance solutions
at financial service
providers.

Triple Jump Innovation Fund

Debt finance to financial intermediaries that offer rural & agricultural finance, operate in difficult countries and/
or offer innovative products and services that have positive impact on living conditions of the poor.

Dutch Good
Growth Fund
Fund of Fund
providing debt and
equity finance to
increase access to
the missing middle
SME sector in
developing countries.

Triple Jump Advisory Services

Capacity building services to financial service providers and the broader financial ecosystem.
Contents
Foreword6

Financial Inclusion and the Sustainable Development Goals8

ESG and Impact at the Core of Our Investment Process 10

Microfinance 18

Agriculture26

Housing28

Sustainable Energy32

Small & Medium Enterprises.36

Triple Jump Advisory Services Developing a Responsible Financial Sector46

Triple Jump Application of the Principles for Investors in Inclusive Finance 51

Supporting Sector Initiatives53

Photo credits: Triple Jump

 Foreword
At Triple Jump, generating both financial and developmental returns for our investors has been
a primary objective since our inception 10 years ago. Triple Jump considers itself a front runner
in the field of ESG and Social Performance Management. We are therefore proud to present
our 3rd Impact Report, which gives you an overview of all our activities in the field of ESG and
Development Impact.

Measuring impact and social performance is part of our corporate DNA and is fundamental in
our investment process. In this report, we present the tools and approaches we have developed
to measure the impact of the investments we make. We explain how we use this information in
our portfolio construction process to optimize overall results.

We have the conviction that access to finance is key to the development of any emerging economy.
This premise is reflected in the Social Development Goals (SDGs). Triple Jump uses access to
finance to generate positive development outcomes in different ways; to improve lives through
microfinance, provide access to education, sustainable and affordable energy, housing and
creating and sustaining jobs with SMEs. Outreach has been one of the key indicators for Triple
Jump since its start. Through our financing we reach out to 16.5 million end-clients and sustain
12.300 jobs.

Measuring impact at end-client level has proven to be a daunting and costly task. The sector
and Triple Jump continue working to becoming better at measuring end-client outcome in a
systematic way. Through our Advisory Services we are contributing to this endeavor by piloting
more cost efficient methodologies.

Triple Jump is one of the founding signatories of the Principles for Investing in Inclusive Finance
(PIIF) and reports annually on its application of the principles. Based on the reporting provided
to the Principles for Investors in Inclusive Finance PIIF, Triple Jump was attributed the overall
score of A for the second year in a row.

Furthermore, Triple Jump contributes to the impact investing sector through its board membership
of the Social Performance Task Force which aims to align the tools of different actors in this
sector to the Universal Standards for Social Performance Management.

We hope you enjoy reading the report.

Mark van Doesburgh and Steven Evers

6 7
 Financial Inclusion and the Sustainable Development Goals
In 2015, the United Nations published its final report on progress on the Millennial Development
Goals (MDGs). The global mobilization behind these goals produced the most successful
anti-poverty movement in history. 1 billion individuals were lifted out of poverty and - for the
first time in history - the number of people living in extreme poverty fell to under 10 percent of
the global population.

Yet, great inequalities still persist worldwide. In the same year, a new set of goals were released
and adopted by countries around the globe the S ustainable Development Goals (SDGs).
The SDGs are comprised of 17 ambitious goals to end poverty, protect the planet and ensure
prosperity over the next 15 years.

Access to finance is a key enabler for many of the SDGs and is the main path through
which Triple Jump funds aim to generate wider development impacts.

Through investments in microfinance and agriculture, we aim to directly
improve the lives of the poor. Microfinance allows low income households,
including the poor, to improve their quality of life by giving them economic
opportunities, financial security, help smooth consumption and deal with
unexpected shocks. Since a large number of the worlds poor are active in and
dependent on agriculture, targeting this sector specifically addresses poverty.
SMEs employ the largest share of the population in emerging countries.
They are key to create direct and indirect employment and economic growth.
SMEs financed through the DGGF fund also spur innovation and increase
access to basic services to underserved segments of society.

Agriculture is the main source of food supply. Triple Jump provides targeted
financing to support the development of financial services for agriculture
which helps farmers increase their production to meet the food needs of a
growing population.

Financial inclusion of women can create gender equality by giving them greater
control over their finances and revenue generating activities. Women represent
74% of all individual borrowers reached by Triple Jumps microfinance portfolio
and is also a specific target group for our SME activities. Reaching out to women
also ensures that the benefits generated are reinvested into the wellbeing of
the household.
The majority of populations in emerging countries live in substandard shelter,
effecting their health, security and general living conditions. Through the
MicroBuild Fund, Triple Jump promotes the development of housing microfinance
to help address the critical development challenge of access to housing.

Increasing production of and access to affordable, reliable and sustainable

energy in emerging countries is fundamental to economic development and
the improvement of living conditions for underserved segments of society.
A significant number of financial service providers financed by Triple Jump
facilitate the distribution and financing of clean energy appliances to remote
areas. Through the DGGF fund, we finance a number of innovative SMEs active
in clean energy.

8 9
 ESG and Impact at the Core of Our Investment Process

As an impact investment manager, Triple Jump aims to generate both financial and
developmental returns for its investors. Because the developmental objectives of our investments
are our raison dtre, the assessment and management of ESG and development impact are an
integral part of Triple Jumps investment process. Within every step of our selection process,
special attention is being paid to the impact and ESG aspect of each investment.

Pipeline Development

Fit of the potential investment with key terms of the funds mandate, including target group, product
and services, need for funding (additionality)

Preliminary desk analysis of compliance with minimum requirements on ESG, client protection,
interest rates and sustainability

Due Diligence & Appraisal

On site DD including policy reviews and interviews with management, operational staff,
and end-beneficiaries 1

Ex-ante impact assessment for SME funds

ESG / social performance assessment and scoring

Feedback discussion with investee and design of engagement plan where necessary

ESG / Impact team reviews appraisal for completeness and quality of ESG and impact assessment
and prepares independent advice to investment committee 2

Investment Committee

Investment Committee reviews and discusses ESG and Impact assessment

Investment Committee sets investment conditions and gives investment advice

Where required Investment Committee approves ESG engagement plan

Contracting, Monitoring and Engagement

Conditions and engagement plan are included in legal documentation

Implementation of engagement plan

Ex-post ESG and impact monitoring for SME funds

Update of ESG scoring at each investment renewal

Continuous portfolio level impact monitoring

1
While we work through financial intermediaries, we stay close to our end-beneficiaries by interviewing them during our due
diligence process.

2
Triple Jump has dedicated staff in ESG and development impact who report directly to management. This ensures that the
assessment and review of ESG and development impact remains independent from financial considerations.

10 11
 Social Performance Management

The deliberate management of social performance is essential for FSPs to ensure their mission
is effectively translated into practice and desired results. How well a financial intermediary
has integrated social performance management into its operations is therefore a fundamental
criterion within Triple Jumps investment process. Social performance management is integrated
throughout Triple Jumps investment process, from pre-screening to monitoring and where
necessary our financing is conditioned to some improvements in social performance practices.
The social performance analysis conducted by Triple Jumps investment officers is reviewed
independently by Triple Jumps SPM Manager.

To assess social performance of FSPs, Triple Jump uses its Social Performance Assessment
tool, a scorecard developed together with Oxfam Novib. The scorecard is a tool to analyze the
social mission of the intermediaries (Intent), the processes and systems they have in place to
ensure their operations are aligned with their mission (Implementation) as well as the actual
results they are achieving in terms of outreach to underserved client segments (Results).
The scoring is undertaken at the investment selection stage and updated at loan renewal.
Six dimensions of social performance are assessed.

Client Protection Client Satisfaction Gender

(30%) (10%) (10%)

Appropriate product design Understanding client needs Non-discrimination policies

through market surveys /
Responsible pricing focus groups Women outreach by
client number
Transparency Client dropout rates
Photo credits: Triple Jump Women outreach by
Fair treatment of clients Non-financial services offered portfolio outstanding
Prevention of
over-indebtedness
Outreach Social Performance
Client compliant mechanism (20%) Information (20%)
Impact Management
Privacy of client data Client outreach Integration of SPM
We do not take impact for granted nor do we believe that development impact is the immediate indicators into MIS
Rural outreach
consequence of investing in our focus areas and sectors. We have developed tools and approaches HR Integration of SPM into
to measure ex-ante the impact of potential investments. The outcome guides us to make investment (10%) Outreach to socially strategic planning
selection and portfolio allocation decisions that take impact into consideration. marginalized and/or
Staff salary levels
excluded groups Integration of SPM into
management evaluation
As an impact investor, Triple Jump has set both financial and development objectives.
Staff benefits
Average loan size to GDP
The Triple Jump development key performance indicators are: Integration of SPM into
Staff turnover
Compulsory savings internal audit plan
Outreach the number of micro-entrepreneurs financed requirements
Poverty level assessment
ESG average ESG score of consolidated investment portfolio
Client targeting
Employment number of jobs sustained by our investments into SMEs
Gender percentage of direct beneficiaries that are women
Triple Jump strongly supports the Universal Standards for Social Performance and is in the
process of fully aligning its assessment of SPM with these standards.

Environment, Social and Governance Assessment

Triple Jump has developed approaches and tools that are adapted to the specific area of investments.
Because the target group of microfinance are low income individuals and enterprises that are
vulnerable, the focus is on social performance management and client protection. SMEs on
the other hand, are less vulnerable but due to their larger size can have larger effects on the
environment, employees or local communities. Therefore, the focus for SMEs is on policies and
practices to manage ESG risk.

12 13
 SPM Scores And Portfolio Analysis Client
Protection

100%
This section presents the social performance results of Triple Jumps total portfolio, including
investments in microfinance, housing, agriculture and energy but excluding SMEs. The results 75%

of the SME portfolio are presented separately on page 38. Social

50%
Client
Performance Satisfaction
Information Intent
Outreach and Social Performance Results 25%

Implementation

Latin America Europe & Asia Africa & Total MF

Results
Central Asia Middle East portfolio 1
0% 20% 40% 60% 80% 100%
% capital outstanding 35% 22% 26% 14% Outreach Gender

# institutions financed 58 31 22 39 153

# borrowers reached by 2,187,160 1,366,677 12,000,464 950,553 16,504, 854

the institutions HR

# borrowers financed by 82,488 61,965 224,483 69,676 445,986

TJ funds 2

% borrowers that are 61% 44% 91% 68% 74%

women

% borrowers living in 41% 68% 77% 43% 63% Client Protection Institutions implementation of good client protection
rural areas practices is essential to ensure that the often vulnerable
85% clients of microfinance are not harmed. The appropriateness
# of depositors at the 1,545,327 381,610 3,776,178 1,708,599 7,411,714
average score of products and services, prevention of over-indebtedness,
institutions
responsible and transparent pricing, and the fair and
Average loan size to 2,588 1,368 533 760 887 respectful treatment of clients are the most important
borrowers (EUR) elements we assess within the dimension of client protection.
Average portfolio yield 32% 29% 31% 43% 34.3% 92% of the FSPs we finance have formally endorsed the
SMART Campaign on client protection. Five of them have
Average loan portfolio 18% 9% 40% 35% 23% done so in the past year following our recommendation.
growth in 2015 In some cases, we requested our partner FSPs to improve
Employees 22,152 18,143 33,771 12,532 86,598 the language of their contracts with customers to ensure
full transparency of terms or to change their policies on
SPM score 75% 76% 76% 69% 74%
collateral requirements and seizure. 89% of the FSPs in the
portfolio have a dispute resolution mechanism that ensure
More than two thirds of the institutions in Triple Jumps portfolio score in the range of 61-80% clients can complain safely on the services they received.
which corresponds with having good social performance practices. 26% of the financial
intermediaries score above 80% or Excellent and can be considered best practice institutions
in terms of social performance management. As part of Triple Jumps objective of developing Client Satisfaction 73% of the FSPs in the portfolio conduct client satisfaction
surveys on a regular basis. 34% of FSPs offer comprehensive
an inclusive financial sector we also support institutions that do not yet have good practices.
While these represent a small percentage of the portfolio, we ensure that these financial institutions
60% non-financial services such as financial education or
have the minimum standards in place and are positioned to improve their practice over time. average score advice on agriculture, health or construction. This explains
why the score on this area is the lowest. The majority of our
investees chose to focus on their core activity offering
financial services.
Distribution of Excellent (>80%)

SPM Scores Good (61-80%)

Gender Reaching out to women borrowers is important in order to
Minimum Required (51-60%) ensure that the benefits generated by the loans are reinvested
63% into the wellbeing of the household. Women represent 74%
Insufficient (50%)
average score of all individual borrowers reached. 88% of FSPs have policies
0% 20% 40% 60% 80% 100% in place to ensure that women clients and staff are not
discriminated against.

1
Including investments into holdings and funds with multi-regional activities.

2
As a proxy, the number of end-clients reached by FIs is multiplied by the share of their loan portfolio that is financed by
TJ funds.

14 15
 HR FSPs financed by Triple Jump funds employ more than
80,000 people. As part of our analysis, we look at staff tur-
67% nover and compare the level of salaries and type of benefits
average score provided to staff with national sector averages. For sensiti-
ve cases, we study policies on working conditions including
expected working hours and employees rights concerning
overtime pay.

Outreach Through the financing of 153 financial intermediaries,

Triple Jump is reaching out to 16.5 million individual borrowers
71% and financing a total of 445,986 individuals. Of the 16.5 million
average score borrowers served, 74% are women and 63% are in rural
areas where access to standard financial services is more
difficult. The average outstanding loan size to end borrowers
is EUR 887. More than half of FSPs have an average loan
size equivalent to less than 60% of national GDP per capita
suggesting a significant share of the portfolio is dedicated to
lending to poorer clients.

Average loan size / % of FSPs

GDP per capita financed by Triple Jump

< 60% 52%

60% - 120% 24%

> 120% 23%

Social Performance This dimension measures the FSPs ability and the systems
Information it has in place to measure and monitor its progress towards
its social objectives. In general, this is an area where the
63% sector still needs to improve by strengthening their ability
average score to measure client-level outcomes and integrate this information
in product development and strategic planning. 50% of
institutions have indicators related to their social objectives
integrated into their management information systems.
Approximately 30% of FSPs financed use a precise method
to measure the level of poverty of their clients such as a
poverty score card. 48% of FSPs have their management
clearly integrating social performance data in strategic
planning and decision making. While 83% of MFIs have
their board use social per formance results in evaluating
management, 40% do so with a more detailed system that
goes beyond simple outreach figures. For examples of how
Triple Jump encourages better measurement of client
outcome please see the chapter Finding Cost-Effective
Approaches to Monitor Impact on page 46 of this report.

Balanced returns

As part of our social performance assessment, special attention is paid to how FSPs balance
their financial and social objectives. Triple Jump continues to actively participate in the debate
on balanced returns through the sharing of our Interest Traffic Light and Executive Compensation
Questionnaire. All institutions in our portfolio are specifically screened with these tools to ensure
their pricing policy, profitability level and management remuneration are in line with responsible
practices. The Interest Traffic Light can be downloaded at www.interesttrafficlight.org
Photo credits: Opmeer Reports

16 17
 Microfinance
Around 2 billion people do not use formal fi nancial services and 73% of the poor are unbanked.
Yet, the need of the poor for fi nancial services may be even greater than for wealthier segments
of society. Access to fi nancial services can enable important benefi ts such as empowering
women, smoothing consumption and managing risk, increasing productivity, income and
investment in education and health. For low income populations, fi nancial inclusion and
microfi nance are key enablers to building a better life.

This chapter starts with a case study on MicroCred Senegal as an example of how microfi nance
institutions are becoming more sophisticated in the way their serve their clients. We then look at
how some microfi nance institutions go beyond access to fi nance by enabling the poor to access
essential services such as education or water and sanitation. Photo credits: Microcred Senegal

Case: Microcred Senegal Pairing Innovation

With Client-Centricity

Microcred Senegal was created in 2007 by Microcred

Holding. After successfully becoming one of the leading
microfinance institutions in Senegal by 2012, the challenges
to sustaining growth became apparent. Microcreds ambition
was to become a mass market financial service company
and to do so, it had to become more relevant to many more
people in Senegal.

Over the past 3 years, Microcred Senegal and its parent

company embarked in a bold journey to transform the
institution and the way it conducts business by pairing
TJ investee since
innovation and technology with a client-centric approach.
2010
A Client-centric Approach
Fund One of the pillars of Microcreds strategy is its focus on a
deep understanding of, and listening to the customers they
ASN Novib serve. To be able to do this Microcred created a department
Microcredit Fund & dedicated to assessing client needs and testing new products.
The departments staff is separated from daily field operations
Oxfam Novib Fund to give them the time and perspective they need to focus
on product design and customer experience. The institution
Amount outstanding also created a customer service call center that registers
2.3M and analyses complaints, conducts monthly satisfaction
surveys, and maintains regular communication and follow-up
with clients. Instead of building products and finding customers
Investment who will use them, Microcred is now first looking at the
Debt & Equity customer or segment need, and then develops the corresponding
product. Today Microcred offers a broad range of credit,
saving and transaction services to a diverse set of client
segments.

The Agent Network

One of the main learnings from the client feedback process is
that convenience and proximity is paramount to Microcreds
busy clients. To bring its products and services closer to
where clients live and work, the institution developed an
agents network in addition to physical branches and outlets.
The agents are small local shopkeepers that partner with

18 19
 Our customers are at the
heart of our decisions,
and our main goal is to
Microcred to serve its clients. They are equipped with
a biometric recognition device connected to Microcreds
banking system.This mobile technology allows clients to
Microfinance as Delivery Channel for Essential Services to the Poor

Over the past several decades, the development of microfinance has allowed FSPs to reach out
provide them with easy, receive and pay salaries, help relatives through money
to an increasing number of low income households and to deepen their outreach in remote rural
straightforward access transfers, pay for expenses of everyday life or manage
areas. With a high proximity to their clients, FSPs are serving MSMEs that are well embedded in
to financial services loans, savings accounts and insurance. Today, more than
society and community.
and products thanks, 45,000 clients are transacting through MicroCreds 500
in particular, to mobile network agents across Senegal.
As a result, FSPs are in a unique position to deliver services and products to individuals at the
and digital technologies.
bottom of the pyramid and thereby are opening up new solutions to long-standing development
Mobile App for Loan Officers
challenges. More and more we see financial institutions transform the delivery of essential
Arnaud Ventura, With the support of Triple Jump Advisory Services,
services such as education, healthcare, electricity, clean energy, water and sanitation.
Chairman and Founder Microcred is now able to collect and utilize client data in a
For FSPs these new products and services represent a market opportunity that in turn help
of the Microcred Group more comprehensive manner. Through their mobile phones
advance financial inclusion.
loan officers use a newly developed app to access and
communicate real time data such as client account balance,
Fund Focus Triple Jump Innovation Fund
payment history and other key information about customers
One of the objectives of the Triple Jump Innovation Fund is to support FSPs that introduce
all while they are in the field with the client. This leads to a
innovative products and services to their clients. Among the new products or services provided
shift in customer relationship experience: more reactivity,
by financial intermediaries, the most common in the Innovation Funds portfolio are housing
proximity, transparency, and better service delivery.
finance, sustainable energy and agricultural loan products. Other innovative products include
upscaling to SMEs, credit for education, healthcare, sanitation and start-ups.
Over the past 3 years deposits and loan portfolios have
more than doubled. Microcreds investment in client service
is substantial. However, by maintaining continuous
communication with its clients to ensure better products,
Microcred is also developing emotional attachment and a FSPs by type of new products & services Triple Jump Innovation Fund
loyalty that will serve it well in a changing market.

Housing 38%

Clean & renewable 38%

Agriculture 29%

SMEs 21%

Education 17%

Start-up/youth 13%

Healthcare 13%

Other 17%

0% 10% 20% 30% 40% 50%

20 21
 Case: Laudex Loans for education in Mexico

Laudex is a lending institution based in Mexico which

specializes in higher education. It supports students from
low & middle income households to begin or continue their
studies in private universities. Public universities in Mexico
TJ investee since are few and very selective. Therefore, private universities
2015 are an attractive option for many students. Laudex provides
mid to long-term loans to university students at more than
21 accredited universities nation-wide.
Fund
TJ Innovation Laudex received a loan from the Triple Jump Innovation
Fund in January 2015. Its loan portfolio grew by 32% since
Fund then to reach USD 15,5 M and serving 3,500 students.
More recently, Laudex is expanding its model to other areas
Photo credits: MiCrdito Amount outstanding in education by launching credits for high school and credits
for technical and foreign language studies.
750K
Case: MiCrdito Expanding Services to
Sanitation and Energy Loans Investment
Debt
MiCrdito introduced sanitation and renewable energy
within its product offering to respond to the client need for
access to basic services. This also helps this Nicaraguan
MFI differentiate itself from its many competitors.
By financing the acquisition and set-up of water-efficient
toilets and solar panels to generate electricity, these simple
TJ investee since
but new products have greatly benefited MiCredtos low
2015 income clients with improved hygiene and lower indoor
pollution. Furthermore, the use of solar panels saves these
Fund clients USD 4 per month, which is a healthy amount when
considering the tight budget of this population.
TJ Innovation
Fund Both these market niches are not negligible. According to
the World Bank, there are more than 50.000 families with
sanitation requirements in the areas where MiCrdito operates
Amount outstanding
and 780.000 Nicaraguans do not have energy access in
500K their homes. The MiCrdito sanitation portfolio reaches 318
families, whereas the solar panel product showed strong
growth in 2015 with 482 kits financed in total.
Investment
Debt

22 23
 Interview: Erik Prakken
Achmea Investment Management

Erik Prakken, Portfolio Manager with Achmea Investment
Management, is responsible for monitoring Achmeas
investment in the Triple Jump Innovation Fund. Achmea has a
responsible investment policy in place, as Erik explains:

As an institutional investor, Achmea aims to invest its assets

responsibly and at its own risk, so as to be able to influence
the behaviour of the companies in which we invest, which
we believe is part of responsible financial chain management.

The five cornerstones of our policy are:

1. Exclusions
2. Dialogue (i.e. (enhanced) engagement)
3. Voting at shareholders meetings
4. ESG integration
5. Impact investment

Impact investments are made into funds dedicated to clean

tech, sustainable energy and microfinance. The focus is on
a social responsible impact, without making a concession
to the financial return expectations.

Erik also acts as Advisory Board Member of the Triple Jump

Innovation fund. The Advisory Board has quarterly meetings

where members discuss financial and social performance.

What is your experience with discussions on impact during

meetings?

Discussions are focused on shedding light on the impact of

the fund and enhancing the reporting of impact results to
the investors. Moreover, we brainstorm about the consequences

of the choices made by the fund with regard to its impact.

What is your opinion on the impact results & reporting?

We think the results are encouraging with all outreach

targets reached and an increase in innovative loan products.
The reporting is very comprehensive and we appreciate the
frequency (quarterly progress reports and more detailed
reporting and analysis on an annual basis).

24 25
 Agriculture
Agriculture plays a fundamental role in economic development. Besides being the source of
food supply, it also represents a large share of income and employment in developing countries.
A signifi cant number of the worlds poor, particularly those in rural areas, are active in and
dependent on agriculture. Smallholder farmers are the largest segment by livelihood of those
living on less than $2 a day.
Because of the cyclicality of their agricultural activities, smallholder farmers have to cope with
high income volatility. Financial services are essential tools to help them manage production
and market risk and to smooth consumption, but the services need to be tailored to specifi c
needs.
Consequently, agriculture and smallholder farmers are a particular target group for Triple Jump.
63% of borrowers fi nanced by Triple Jump funds live in rural areas
Oxfam Novib Fund and Innovation Fund have specifi c targets to reach agriculture
and smallholders
30 fi nancial institutions in the Oxfam Novib Fund portfolio offer loan products specifi cally
designed to respond to the needs of the agricultural sector
42% of the end-clients reached by the Innovation Fund are active in agriculture
TJAS supports product development for smallholders. In Burundi, TJAS conducted a
smallholder fi nance study with Oxfam Novib to understand the fi nancial needs of
smallholder farmers. In Rwanda, TJAS supported a review of m-banking products
specifi cally for smallholders. We have also supported agricultural projects in South Sudan.
26
Photo credits: Turame
Case: Supporting Smallholder Farmers
In Burundi
In Burundi, TJAS provided technical assistance to Oxfam
Novib and their agricultural partners. We conducted a
detailed study into the supply and demand for rural finance.
The comprehensive research found that smallholders did
not have the opportunity to build up liquid cash reserves.
They were investing in physical assets, like livestock, which
is not the best form of savings if a crisis hits. Because of
this, the smallholders were not ready or able to take loans
from the formal sector. TJAS recommended working with
the agriculture partners to roll-out a community based
savings model, which would help the smallholders to build
assets and prepare them to enter the formal financial sector
in the future.
As a follow-up to the research, we worked with Turame
Community Finance to help improve their loan product.
The project conducted research specifi cally with Turames
clients and prospective clients, to identify how the product can
be improved to make it more client focused. We redefined
the loan product to make it more accessible for smallholders.
Smallholders have to now form solidarity groups of 5-10
members. Groups this size are easier in rural areas where
the population is more dispersed. As a result, we worked
with the MFI to create cashflow analysis and a loan monitoring
tool. Despite the current instability in Burundi, TJAS is planning
to work with Turame in the coming months to develop linkages
between existing community based savings groups and the MFI.
27
 Housing
Low income family access to housing and access to housing fi nance is a critical development Results as of June 2016
challenge in most countries around the globe. Two-thirds of the worlds emerging countries
populations live in substandard shelter. These families do not have access to formal-sector Total outstanding portfolio
housing options, such as traditional mortgage products or developer-built housing. When they
can they acquire shelter incrementally, building their homes step by step as their families grow and
USD 44M
as their limited fi nances allow.
Families that benefitted from
Housing microfi nance helps address this critical development challenge by empowering people MicroBuild loans
to build better, more durable homes through a combination of capital and housing support services. 54,509
Triple Jump, together with Habitat for Humanity International, is supporting the creation and
development of housing loans at microfinance institutions in order to make more capital available
to households in need of a decent home. Individuals impacted by
MicroBuild Loans
270,000
Average housing microfinance
loan size
USD 1,800
Institutions financed
30
Countries in the portfolio
20
Borrowers in rural areas
70%
Women borrowers
71%
28
Fund Focus The MicroBuild Fund
MicroBuild Fund was jointly established by Habitat for
Humanity International and Triple Jump in 2012. The fund
provides debt capital specifically for housing solutions that
financial intermediaries offer to low-income end-clients.
A unique feature of the fund is that Habitat for Humanity is
funding and rolling out a complementary technical assistance
programme to help these financial intermediaries develop
and improve their housing products, and ultimately, serve
end-clients better.
Low income borrowers use the loans for a variety of
purposes, including the addition of a room, installing proper
flooring, providing water and sanitation products, and
securing land tenure. Housing loans can even be used to
install energy-effi cient appliances. Through the development
of housing support services and construction technical
assistance, fi nancial service providers are able to help far
beyond the loan. This can mean hiring a construction
engineer, linking borrowers with material providers, or
distributing construction guidelines and brochures.
3 main barriers to scaling housing microfinance:
1. the lack of long-term capital
2. insufficient technical capacity to develop adequate
housing products
3. the lack of secure tenure
End client use of loans:
Home Improvement 45%
Small Construction (room or floor) 35%
Full or Formal Construction 14%
Land Purchase or Securing Tenure 6%
29
 Case: Financiera FAMA S.A. Progressive
Home Improvement Loans in Nicaragua

Nicaragua has one of the highest housing deficits in Latin

America. An estimated 78% of households are either
TJ investee since homeless or live in houses of poor quality. Plastic houses,
2003 leaking roofs, dirt floors are just some of the common
problems families face. The resulting unhealthy living
conditions are amplified by high population density in urban
Fund areas and weak infrastructure.
ASN Novib
In early 2014, Financiera FAMA, one of the leading MFIs in
Microcredit Fund & Nicaragua, received its first financing from the MicroBuild
Microbuild Fund Fund to support the expansion of its housing portfolio.
Since then, and after a total of USD 3M of financing and
comprehensive technical assistance, FAMA increased the
Amount outstanding
number of housing loans by 400% in 3 years to 7,800 for an
1.8M outstanding portfolio of USD 9.6M.

Investment As part of the financing from MicroBuild, Habitat for

Humanitys consulting team with deep knowledge of
Debt housing finance provided technical assistance to FAMA.
It started with in-depth market research and feasibility
studies to redesign the housing product and was followed by
workshops and training to develop the expertise of FAMAs
sales force in construction. The new product was piloted at
two branches and then rolled-out nationwide.

FAMAs progressive home improvement loans allow families

to improve their housing overtime. FAMAs loan officers help
clients in developing an investment plan for the improvement
of their house and provide them with recommendations on
construction and material selection. This process is
supported by several tools developed specifically for the
home improvement loan products and provided to the
clients by FAMA:
A home improvement plan that outlines the clients
desires for improvement and establishes priorities;
A budget format that helps determine materials,
quantities and costs of the improvements;
A cost reference table that gives reference prices for
standard building materials and activities;
A technical brochure that provides guidelines for the
most common home improvements and general safety
tips.

FAMAs clients perceive these services as highly valuable.

With the help of FAMAs construction advice, families are
able to set-up a viable plan for home improvements. They
are also able to optimize the use of the loans to acquire
more and better quality construction material.

For FAMA its housing product is a complete success.

The housing support services it offers is a clear competitive
advantage and contributes to satisfied customers and good
portfolio quality.

30 31
 Sustainable Energy
As of today, about 1.2 billion people are not connected to the electrical grid. Moreover, in many
emerging market countries, grid-connected residents and businesses suffer from unstable
electrical power supply. Yet energy provision is a basic condition for most residential services
such as lighting, cooking, and using appliances, as well as for communication and information
purposes. Energy is also a prerequisite for the development of competitive SMEs and
accordingly regarded as a pre-conditional service for local and regional development.

Sustainable energy, most prominent in the form of energy conversation and more recently in
cost-competitive and climate friendly renewable energy, is characterized by high positive local
development in decentralized rural and semi-urban areas, predictability of costs compared to
fuel-dependent resources and positive climate effects. Photo credits: SolarNow

Increasing production of and access to affordable, reliable and sustainable energy in emerging
countries is fundamental to the economic development and improvement of living conditions for
Case: SolarNow High Quality Solar
underserved segments of society. Solutions for Rural Uganda

SolarNow offers a range of high quality solar home systems

and electrical appliances that are designed to fit the
needs of rural households and entrepreneurs in Uganda.
SolarNows philosophy is to promote affordability by offering
products that can be expanded based on a clients need
and income. The systems range from 50 to 5,000 watts and
are highly modular, allowing customers to easily upgrade
TJ investee since
their systems to increase their power capacity over time.
2015 The company offers a wide range of electrical appliances,
including high quality LED lights, televisions, fridges and
Fund water pumps.

DGGF By extending appropriate credit to their customers for up to

(through Novastar) 24 months, SolarNow makes solar accessible and affordable
for rural, low-income households and businesses.
Benefits range from improved lighting, access to refrigerated
Amount outstanding medicines and vaccines which improve health outcomes,
USD 1.8M increased yields for farmers, as well as greater access to
communications and entertainment products and services.
Through its network of 36 branches, SolarNow is also able
Investment
to support entrepreneurs who use the solar systems for
Equity productive use, creating jobs within remote rural communities.

Solar systems installed SolarNow is one of the highly innovative portfolio companies
in DGGF investee Novastar East Africa Fund. Novastars
12,000 early stage equity investment in SolarNow has allowed the
company to expand its branch network, invest in R&D and
BoP beneficiaries impacted raise more debt capital.
100,000

Employees
300

32 33
 Photo credits: Asian Credit Fund

Case: Asian Credit Fund Energy E ciency

Loans in Kazakhstan

Asian Credit Fund (ACF) is a medium-size MFI that specializes

in group lending to rural households in southern and
northeastern parts of Kazakhstan. It received a loan from
Triple Jump Innovation Fund for its strong rural presence
but also for the provision of an innovative loan product
that is unique among MFIs in Kazakhstan. The Residential
Energy Efficiency Lending Loans provide homeowners in
rural areas with the funds necessary for energy-efficient
renovation and construction work. The loans can be used
TJ investee since
for improving insulation, installing energy-efficient heating
2014 systems or acquiring renewable energy systems. Developed
with the support of USAID, the loan product includes
Fund consultations and advice by ACF loan officers on energy
efficiency.
TJ Innovation Fund
As of July 2016, energy efficiency loans were extended to
Amount outstanding (06/16) 258 clients. Based on the study conducted by ACF, the
loans reduced carbon emissions by more than 420 tons
900K since its launch. By stimulating investment in energy
efficiency technologies and projects, ACF helps client save
Investment on energy costs and reduce greenhouse gas emissions.
Debt

34 35
 Small & Medium
Enterprises
Small and medium enterprises (SMEs) form a crucial part of the economies of developing
countries and are the biggest contributor of employment. Limited access to finance for these
SMEs is commonly seen as their main barrier to growth. This is particularly the case for SMEs
in the so-called missing middle, which are enterprises that are too big for microfinance but that
are too small or too risky for regular banks or private equity firms. The lack of capital for the
missing middle is a significant economic development issue, as the very SMEs that are critical
for job creation, are stuck with funding their growth from their own internal resources.
While with microfinance the aim is to improve mostly directly the lives of low income people
and their families, by investing in SMEs we seek to have a broader impact on economic
development, employment generation and innovation.
SME provide 66% of the jobs in emerging countries. More than half of formal SMEs do not have
access to loans.
36
The Dutch Good Growth Fund
DGGF is a EUR 270 million Fund of Fund initiative, funded by the Dutch Ministry of Foreign
Affairs, to address the finance gap that exists for SMEs in emerging markets. DGGF supports
the development of pioneering funds and other financial intermediaries to provide debt, equity
or mezzanine financing to local SMEs. In doing so, it is a first mover in building financial
infrastructure in underserved markets and supports innovative new financing mechanisms.
Young, female entrepreneurs and entrepreneurs in fragile states are groups that encounter
higher barriers to capital. They are also the ones through which the impact on the local
economy can be the highest. As a consequence, these are target groups that are given
priority by DGGF. The fund comes with a Seed Capital and Business Development facility
that can support early stage initiatives, knowledge studies and technical assistance.
ESG and Impact approach
Assessing the fit of each potential fund investment with the DGGF mandate is an integral part
of the investment process. The DGGF Impact Monitor has been developed to visualize the
expected and realized impact results of each investment. The DGGF Impact Monitor looks at
the following main criteria:
Target groups: the fund outreach to young, women and entrepreneurs in fragile states.
Economic impact: the number of jobs created and sustained, growth in SME revenues,
knowledge transfer to SMEs.
Additionality: the extent to which the intermediary funds and the SMEs they target are
lacking access to funding as well as the innovativeness of their services or business model.
Catalyzing effects: the extent to which the DGGF catalyzes other investments into the
missing middle and demonstrates the viability of investing into underserved markets.
In addition to showing a strong development impact, DGGF investees must comply with good
tax governance, must not be market distorting, and have to comply with high environment,
social and governance standards. For ESG funds are assessed on the systems they have in
place to manage the risk on human and labor rights, environment, corruption and consumer
protection. Where needed, DGGF designs a plan and provides technical support for investees
to increase their standards on ESG.
37
 Results to date
DGGF started investing less than 2 years ago and the impact results we can measure is based
on a small number of investments already deployed. However, we can report the following
impact results from our investee portfolio:
405
SMEs financed as of June 2016
17
Countries reached as ofJune 2016
3,713
Total jobs created as of December 2015
12,318
Total jobs supported as of December 2015
Current portfolio
As of June 2016, DGGF total commitments amount to USD 97 million in 14 investments.
These investments include funds that invest in fragile states and important sectors in
sustainable development. They range from established fund managers with pioneering new
approaches, to promising local fund managers seeking international support, and financial
institutions with dedicated SME products. Here we present a few of the current committed
investments:
Dolma Impact Fund I is the first international private equity fund focused purely on SMEs
in Nepal. The DGGF investment allows Dolma to reach out to more SMEs and hire crucial
resources.
Grofin Jordan extends long-term debt financing to small businesses in Jordan which need
more risk capital and more value add services than traditional banks can provide, while
being too small to get financing from private equity funds. GroFin is expected to reach out
to a significant number of SMEs and to generate above average employment growth.
Credo is a Georgian microfinance organization and a market leader in rural lending in
Georgia. The DGGF loan allows Credo to roll-out its new SME product by financing an SME
portfolio in the more risky sectors such as agriculture and tourism through an innovative
risk-sharing model.
Kinyeti Venture Capital provides risk capital on commercial terms to SMEs in the fragile
state of South Sudan. As such, it works in a country which is generally considered as
uninvestable by most private and public financiers. In addition to refinancing capital,
DGGF will provide technical assistance to support Kinyeti and its SME investees.
38
TJ investee since
2016
Fund
DGGF
Amount outstanding
USD 5M
Investment
Equity
The Oasis Africa Fund
centrainly could not have
happened if DGGF did not
stand by us after another
key investor unfortunately
fell off. Our acceptance by
other investors was
certainly bolstered by
DGGF support.
fund. Firstly, the suitability of Ghana for fund domiciliation
Matthew Boadu Adjei,
CEO Oasis Capital
was drafted in line with market standards for international
considering a large investment which will grow the fund
Case: DGGF Helps Set Up The Oasis
Africa Fund
Matthew Boadu Adjei grew up in Kumasi in the central part
of Ghana. In his school days he used to spend his vacation
at his fathers cocoa farm in the western part of the country
but did not want to join the family business on completion of
his secondary education. He attended instead the University
of Ghana where he studied banking and finance. Already
during the beginning of his career in finance he started
making small scale private investments. After a 15 year
career with different local financial institutions, Matthew
began pursuing a long held ambition to set up his own
investment operation and started Oasis Capital in 2009.
With investments from a small number of Dutch private
investors and the Ghanaian government, Oasis launched
a small pilot fund to finance SMEs in Ghana.
SMEs in West Africa are severely underfinanced and since
Oasis inception, Matthew had the long term goal to expand
activities outside Ghana. The DGGF team first met with
Matthew and his team in 2014. Based on its experience,
DGGF believed that Oasis had the capacity to grow and
attract more institutional capital from international investors
in a fund that would be able to operate sustainably but
this required Oasis to bring its operations to higher standards.
In 2015 DGGF became the first institutional investor to
commit to investing in the newly created Oasis Africa Fund
(OAF). In addition to committing critically needed funding,
DGGF took an active role in helping Oasis structure the
was investigated, specifically with regards to adequate
investor protection. Secondly, the funds legal documentation
investors. Lastly, in order to strengthen the funds ESG
capability, DGGF provided support and training of the fund
management team. DGGFs cornerstone commitment has
already borne its first fruits as another investor is currently
further towards its target size of USD 50m.
OAF will invest in SMEs in Ghana and Cte dIvoire and
potentially other countries in the West Africa region.
The fund will help the growth of at least 10 SMEs, creating
and supporting more than 2,500 jobs in total. Most of those
jobs are expected to go to youth. Beyond general economic
development, the fund will support on essential services
sectors such as education, health and housing which is
expected to generate direct positive impact on the quality
of life of the local population.
39
 The Seed Capital And Business Development Program Of DGGF

The Seed Capital and Business Development (SC&BD) program focuses on furthering the
DGGF impact, both in terms of direct impact on local SMEs as well as on the broader SME
finance sector.

Photo credits: Sanergy
Case: Sanergy
2.5 billion people lack access to hygienic sanitation.
Inadequate and unhygienic sanitation is the second largest
cause of disease in the world. It leads to contaminated
waterways and food supply, as well as infections like
diarrhea. In Kenyas slums sanitation solutions are not
only unhygienic and undignified, but also cause immense
environmental damage. 4 million tons of fecal matter from
Kenyas slums are discharged into waterways and fields
TJ investee since every year.
2015
Sanergy is one of the SME investments from DGGF investee
Novastar Ventures East Africa Fund. Sanergy is a franchisor
Fund
of small-scale high-quality sanitation centers in Kenyas
DGGF urban slums that provide the raw materials for a range of
(through Novastar) high-margin products including organic fertilizer, insect-
based animal feed and energy.
Through the provision of seed capital and technical assistance we enable early stage SME
finance initiatives to serve their first client SMEs and build a track record. By focusing on
those initiatives that are too young, small or risky for other investors, we contribute to the pi-
loting, testing and validating of pioneering financiers addressing underserved SME markets.
We contribute to expanding and improving the services offered to local SMEs by DGGF
investees through technical assistance and business development support. For instance, we
enabled Kinyeti Venture Capital, an investment company based in South Sudan, to provide
pre-investment business development support (including preparing business plans and
financial audits) to local SMEs that have a compelling business case but are not investment
ready, as well as post-investment support to investees via accounting tools and financial
training.
We also contribute to a better understanding of how to address the missing middle through
developing value-adding and practical knowledge products. By shortening the learning
curve at industry level, we aim to spur innovative thinking from fund managers and investors
so they champion finance products to serve the missing middle entrepreneurs more
efficiently. SC&BD has notably commissioned the publication New Perspectives on
Financing Small Cap SMEs in Emerging Markets: The Case of Mezzanine Finance.
In order to improve the chances of success of local entrepreneurs in particular young
entrepreneurs in migration prone areas we collaborate with local incubators and
accelerators on testing and exploring more scalable and sustainable models.

Amount outstanding Sanergy locally manufactures low-cost, high-quality

USD 2M sanitation facilities known as Fresh Life Toilets and then
franchises them to local residents who purchase and
operate the hygienic sanitation facilities. Sanergy provides
Investment its franchise partners with training, access to financing,
Equity ongoing operational and marketing support, and a daily
waste collection service. Sanergy then converts waste into
useful end-products such as organic fertilizer, insect-based
animal feed, and renewable energy.

The following is a snapshot of the impact generated by

Sanergy as of August 2016:
803 jobs created Sanergy team is 90% Kenyan and
60% reside in the communities it serves
$1,876 annual average income of Sanergys franchise partners
750 active Fresh Life Toilets
37,532 people use Sanergys toilets daily
81 tons of human waste removed from the slums each
week and safely treated

40 41
 Photo credits: PharmAccess

Case: Piloting New Ways To Finance SMEs

In The Health Sector

SC&BD is supporting the pilot Africa Health Infrastructure

Fund (AHIF), initiated by PharmAccess. AHIF is a unique
debt provider dedicated to addressing a critical gap in
facilitating access to finance for African SMEs operating
in the health sector.

Because of lack of collateral, perceived risk and a poor

understanding of the specificities of the health sector,
banks in Africa often do not serve SMEs in the health
sector. AHIF works with local financial partners to provide
flexible debt solutions combined with tailor-made
technical assistance, to enable healthcare companies to
serve more customers better, with an emphasis on those
currently underserved.

Over the past twelve months, the initiative has fostered

co-investments with local banks, catalyzing additional
resources and educating traditional financiers towards
serving the health sector. With a constant focus on innovation,
the pilot has ventured into invoice financing for pharmaceutical
suppliers in Kenya, allowing pharmacies and clinics to overcome
the bottlenecks of short-term financing. A receivable financing
product using national health insurance claims for clinics in
Ghana has also been successfully tested. AHIFs loan portfolio
currently extends from Kenya and Tanzania, to Ghana,
Nigeria and Liberia.

42 43

Why did the Dutch Ministry of Foreign Affairs choose Triple Jump as a consortium partner to
implement DGGF Track 2?

We clearly needed a partner that is not afraid of getting its hands dirty as we knew from the
start the mandate was very challenging. Triple Jump has been operating with considerable
success in many of the countries we wanted to target. In addition, Triple Jump has extensive
experience with reaching smaller entrepreneurs through financial intermediaries.

The understanding Triple Jump has regarding the objectives of the Fund allows them to be both
flexible and entrepreneurial in their approach. This mandate requires both toughing it out on the
ground and dealing with the high standards for investing needed to spur inclusive economic
growth. Triple Jump is able to deal with both aspects well.

Interview with Selwyn Moons, Deputy Director of the Sustainable

Economic Development Department, Dutch Ministry of Foreign Affairs

DGGF has been in existence for 2 years now. What can you say at this stage about the first two
years of implementation of DGGF Track 2?

The results have been encouraging. What I particularly like is that the fund has managed to
reach out to many different countries, including some quite challenging ones, rather swiftly.
I am also content with the way Triple Jump has managed to embed our subsequent request to

focus on migration, in their investment strategy.

Can you explain where DGGF fits within the development cooperation strategy of the Dutch
From a programmatic angle, we like the way Triple Jump has picked up on the mezzanine finance
Ministry of Foreign Affairs?
theme. We feel providers of mezzanine finance products attend SMEs at the heart of the missing
middle and would like to see this instrument exported to new countries and markets where not
DGGF is an essential component of our new agenda for economic development. It is a flagship
currently offered.
initiative that demonstrates the symbiosis of our aid and trade policy by combining long term
investment capital with business development services. Because we are after lasting impact,
We are also very pleased that Triple Jump has been successful in channeling through their
we see financial sustainability is one of the key components of this policy instrument.
investments to young and female entrepreneurs. It is an inspiration to see that the fund really gets
economic activity going with their investments, like for example for the female jewelry makers in
DGGF is the only instrument that aims specifically to help develop the small and medium enterprises
the Nairobi slums.
in low and medium income countries. Before we initiated the fund, we made a thorough market
analysis, and, taking into account the role other financiers (including DFIs) play, we came to
the conclusion that the Ministry of Foreign Affairs could have the most impact with an intervention
aimed at the missing middle. There was and is a huge financing gap for small and medium
sized enterprises in developing countries. And supporting small and medium enterprises in
frontier markets has high development relevance as it directly contributes to job creation and
knowledge transfers to the companies that most need it. For DGGF, our focus herein lies particularly
on young and female entrepreneurs.

What do you see as the special role of DGGF within the range of international initiatives that
finance the missing middle?

The role of DGGF is to start where other funders stop. This can for instance be seen in the
higher risk tolerance the fund displays, flanked by its seed capital component. Also, DGGF is
set up to finance smaller but promising initiatives that may initially require more handholding
and technical assistance, a combination rather unique looking at the current market offering.

Notwithstanding the above, it remains DGGFs role to try to convince other investors to accept
the higher perceived risk and join in the projects we support.

44 45
 Triple Jump Advisory
Areas of technical assistance have included helping financial institutions:
Develop appropriate products and services that meet the needs of their clients

Services
Strengthen board oversight and risk management
Improve IT systems and the use of data

Developing a Responsible
Effectively measure the outcome and impact of their work

Financial Sector
A couple of recent examples:
The mission of TJAS is to contribute to developing inclusive financial markets that are not
only solid and inclusive, but that are also inherently social. TJAS supports Triple Jump
investment funds by providing capacity building services to portfolio companies and the
broader financial ecosystem.
Since 2006, TJAS has served over 160 financial institutions in 29 countries.
TJAS assisted RMCR Mali with market research regarding options for delivering mobile mo-
ney and facilitating the arrangement of an agent relationship with Orange, a mobile network
operator. Oxfam Novib Fund and Innovation Fund have specific targets to reach agriculture
and smallholders.
TJAS supported SEF South Africa to better identify issues with their MIS, and provided
capacity building to improve the project management of MIS upgrades and bug fixes.
In Zimbabwe, TJAS worked with UNTU to get them on the Risk Management Initiative in
Microfinance (RIM) graduation pathway, and supported the development of an appropriate
risk management framework, which was approved by the board, that they could implement
effectively.
In Burundi, TJAS developed an approach to link village savings and loan associations
(VSLAs) to the financial sector, and thereby contribute to furthering the finance frontier.
In Nicaragua, TJAS supported Fundeser in developing and rolling out its strategy to mobilize
deposits (savings).
TJAS also supported Fundenuse in developing its expansion strategy into the central and
pacific region of Nicaragua.
In Bolivia, TJAS supported the development and implementation of an advanced credit risk
management tool for Cidre.

46 47
 Finding Cost-Effective Approaches to Monitor Impact
Over the years, the TJAS projects have graduated to more strategic pilots that aim to test out
new concepts and approaches. A good example is our practice area of impact monitoring.
Randomized Controlled Trials (RCTs) have been applied successfully in the microfinance sector
and taught valuable lessons. 1. Impact can be measured and attributed to financial services.
2. Positive impact should not be taken for granted.
The diversity of the microfinance market the myriad of products and market segments
makes it hard to draw general applicable conclusions. Moreover, more agile and cost-effective
approaches are needed that can be embedded into the business and product cycle of the MFI
to allow the MFI to tune its product offering to different target groups in the most impactful
way. Over the last years, TJAS has built up a portfolio of projects to test out different promising
approaches.
1. Use existing databases In Latin America, we developed and implemented a project with
three leading MFIs (Genesis Empresarial, Fundacion Paraguaya and IDEPRO) for which we
scrutinized existing databases to assess changes in the livelihoods of end-clients.
The findings are encouraging and clearly indicate there is a wealth of data that is unused.
Linking databases and building analytical capabilities can help to unlock this data. More
information is found on the Triple Jump website.
2. Alternative impact methodology Together with Oxfam Novib, we developed and
implemented pilots with Vision Fund Ghana and Attadamoune Morocco to assess impact
by using lean technology (mobile apps) and an alternative statistical methodology to control
costs. The approach worked well and yielded good insights in both cases. The reports are
published on our website.
3. Voice of the Client We supported the implementation of the Hivos/Mix initiative in Peru.
Local agents directly interview end-clients of MFIs to verify to what extent MFIs are adhering
to the SMART principles. More info can be found on page 50.
Managing the Risk of Overindebtedness
with MIMOSA 2.0
In 2015 Triple Jump, together with a group of other social
investors, supported the development of MIMOSA. The
MIMOSA project is an effort to fill an important gap in the
sector by establishing a standard framework for measuring
credit saturation. In doing so, it gives market participants
financial institutions, investors, and regulators a tool
that can guide important planning decisions to avoid
excessive saturation and overindebtedness, while
highlighting countries and regions that remain underserved.
MIMOSA calculates a countrys level of credit saturation by
measuring both the level of credit penetration and its
estimated capacity through a comprehensive model derived
by observing a large number of markets over a period of
time. Measures are accurate and directly comparable
between different countries as well as between regions
within a country. To date six country reports have been
published including reports on some of the most critical
countries for financial inclusion.
Triple Jump welcomes the new MIMOSA 2.0 and looks
forward to support its expansion to more markets. This is a
major contribution to financial sector development, building
more stable markets and preventing overindebtedness.
You can download the MIMOSA white paper at:
www.mimosaindex.org

Although the approaches are fundamentally different, they all aim to capture the end client
perspective on how they are served and how that effects their life. All three projects were
successful in achieving its project goals.

Since we aim to complement existing solid approaches (like RCTs) with an approach within
reach of MFIs, we have assessed the results with the perspective that the approach can be
easily embedded in the business cycle. As such, it should be easily tailored to an MFI business
(flexible), and be agile, efficient, easy to implement and reliable (see table below).

Moving forward, we will continue to support MFIs in better utilizing existing data through a lean
data management approach, strengthening data analytics and reporting capabilities to allow
MFIs to continuously improve its service offering and contribute to positive impact.
Efficient

Reliable
Flexible

Agile

Easy

Using Existing Data ++ + ++ +/- +/-

Alternative Methodology +/- +/- +/- - ++
Voice of Client - + + ++ +

48 49
 Case: Listening to the Voice of the Client
in Peru
In 2015 Triple Jump supported Voice of the Client, a joint
initiative developed by Hivos and MIX to strengthen the
application of the Smart Campaigns Client Protection
Principles in the microfinance sector and ensure that
financial services are tailored to meet client needs.
This initiative leverages mobile technology for microfinance
institutions to proactively reach out to clients to uncover
potential issues effecting their level of satisfaction with the
products and services offered. The analysis is based on
data collected via interactive voice responses, call centers
and face-to-face interviews.
In Peru, the analysis was conducted on almost 3,800 clients
across four MFIs and calls attention to some of the
following findings:
72% of respondents were aware of their loans interest
rates before accepting the loan, with the remainder
either not knowing (13%) or not remembering it (15%);
Respectively, 3% and 1% of the total sample reported
having experienced some form of intimidation or
mistreatment by their loan officer;
40% responded being aware of the availability of a
complaint mechanism while the remaining 60% either
do not know or do not recall whether a complaint
mechanism was available.
By regularly tracking how clients perceive the customer
service they receive, financial service providers can
leverage this information to redesign their products and
services to better meet client needs and preferences and,
more broadly, improve their impact on the population they
aim to serve.
50
Triple Jump Application of the Principles for Investors in Inclusive Finance
The Principles for Investors in Inclusive Finance (PIIF) is a framework and global initiative to
improve the inclusive finance industry and support investors who have chosen to make the
industry more responsible, and consequently, more sustainable. It is housed within the United
Nations supported Principles for Responsible Investment (PRI) initiative.
Triple Jump is one of the founding signatories of the PIIF and reports annually on its application
of the principles. Based on the 2015 reporting provided to the PIIF, Triple Jump was attributed
the overall score of A, compared to a median score of B for its peer group composed of 43 direct
investors in inclusive fi nance. Below is an overview of Triple Jumps application of each principle.
The full transparency report can be found at: www.unpri.org/signatory-directory
Principle 1 RANGE OF SERVICES
Actively support retail providers to innovate and expand the range of fi nancial services available to
low income people in order to help them reduce their vulnerability, build assets,
manage cash-fl ow, and increase incomes.
Through a range of diverse funds with specific mandates Triple Jump is able to Triple Jump
promote access to finance to a wide range of underserved entrepreneurs, from score B
poor self-employed to SMEs.
(Median score B)
The MicroBuild Fund, the Innovation Fund and the Dutch Good Growth Fund
have a specific mandate to further the frontier of financial inclusion by promoting
innovation.
Triple Jump Advisory Services provides technical assistance to support
institutions in better understanding the various needs of their clients and in
developing innovative products.
Principle 2 CLIENT PROTECTION
Believe that client protection is crucial for low income clients.
Integrate client protection in investment policies and practices.
Triple Jump endorsed the SMART campaign. Triple Jump
score B
Triple Jump promotes the SMART Campaign and the Client Protection Principles
to our partner financial institutions. Our loan agreements include the requirement (Median score B)
for our investees to endorse the principles.
Each institution we finance is assessed against all seven principles.
Principle 3 FAIR TREATMENT
Treat investees fairly with appropriate fi nancing that meets demand,
clear and balanced contracts, and fair processes for resolving disputes.
40% of our debt portfolio is in investees local currency. Triple Jump
score B
Triple Jump is a signatory of the Lenders Guidelines for Setting Covenants in
Support of Responsible Microfinance. (Median score B)
Triple Jumps internal policies promote transparent, fair and reasonable terms
and conditions.
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 Principle 4 RESPONSIBLE INVESTMENT
Includes environmental, social and corporate governance (ESG) issues
in investment policies and reporting.
Triple Jump developed detailed tools and processes to systematically assess
ESG at investees.
Supporting Sector Initiatives
Triple Jump is an active member of a range of sector-level initiatives and networks.
These partnerships contribute to increase the impact of financial inclusion through exchanges
Triple Jump and the harmonization of best practices in social performance management and impact investing.
score A

By sharing the interest traffic light and executive compensation questionnaire,
(Median score B)
Triple Jump assists in developing appropriate references for corporate
governance issues.
Triple Jump takes an active role in the Board of our equity investment.
Our loan agreements include clauses that require compliance with the local
environmental laws.
Our Policy Book and Code of Ethics include an anti-money laundering policy,
a Know Your Client procedure, a conflict of interest policy and a complaints
procedure.
Social Performance Task Force and the Universal Standards for Social Performance
Triple Jump actively participates in the Investors Working Group of the SPTF. Within this
initiative, Triple Jump plays a leading role in furthering the debate on balanced returns by
promoting and sharing its approach to assess the responsible level of interest rates and
profitability at financial intermediaries. It is also active in promoting better use of client data to
monitor and report on impact. Since June 2016, Triple Jumps Social Performance and Impact
Manager is the co-chair of the Investor Working Group and a member of the SPTF board.
Triple Jump supports the use of the Universal Standards for Social Performance which have
been developed through sector-wide consultations led by SPTF. Triple Jump is currently piloting
SPI4 Alinus a new scorecard to assess social performance and aligned to the Universal Standards,
with the aim to adopt this tool in the near future.

Furthermore Triple Jump is a member of:

Principle 5 TRANSPARENCY
Actively promote transparency in all aspects. Aspen Network of Development Entrepreneurs (ANDE)

Triple Jumps mission and objectives are communicated on our website. Triple Jump
European Microfinance Platform (e-MFP)
score A+ Global Impact Investing Network (GIIN)
We report on our funds performance and development impact in our
annual report. (Median score B) Netherlands Platform for Inclusive Finance (NPM)
Triple Jump promotes transparency in pricing and terms to our investees.

Principle 6 BALANCED RETURNS

Strive for a balanced, long-term social and financial risk-adjusted return that recognizes
the interests of clients, retail providers, and investors.

Social performance assessment is integrated into our investment decisions Triple Jump
and portfolio management. score A+

Triple Jump staff incentives are based on achievements against both financial (Median score C)
and social objectives.

Triple Jump contributes to sector level effort in improving outcome / impact

management.

Principle 7 STANDARDS
Collaborate to set harmonized investor standards that support
the further development of inclusive finance.

Triple Jump actively participates in working groups under the umbrella of the Triple Jump
Social Performance Task Force to promote further harmonization among score A+
investors in social performance management practices.
(Median score D)
Triple Jump also participates in the PIIF, the Financial Inclusion Equity Council,
the European Microfinance Platform and the GIIN.

Triple Jump supports and promotes the use of the Universal Standards for
Social Performance.

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 Photo credits: Opmeer Reports

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 Head Office
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