A church-backed microfinance institution has increased its field investments by one third, reaching out to poor people often excluded by the commercial banking sector. This comes at a time when financial markets have been battered by the global economic downturn.

[1]"In 2008 Oikocredit's microfinance partners reached 15 million households, both in remote rural and in urban areas," the Amersfoort-based group said in a 6 February statement.

Oikocredit was set up as the Ecumenical Development Cooperative Society in 1975 by the Geneva-based World Council of Churches to offer a socially-just means of investment. It is now described as one of the world's largest private financiers of the microfinance sector.

"In microfinance alone we invested 287 million euros (US$372 million) in small, medium and large microfinance institutions," Oikocredit noted, reporting on its 2008 performance. It said its total field investments had attained 365 million euros (US$473 million), an increase of 32 percent.

"Our partners continue to support entrepreneurs, enabling them to build a better life for themselves, their families and community. The social performance of our project partners is key to this success," Oikocredit noted.

The microfinance institution received a boost in February when the Evangelical Church in Germany (EKD), the country's biggest Protestant grouping, announced plans to increase cooperation, including an agreement to provide Oikocredit with a credit line of up to 5 million euros (US$6.4 million).

EKD finance officer Thomas Begrich described Oikocredit as a partner, "that provides grassroots and sustainable support for the economies of developing countries".

Oikocredit says Africa has a special place in its long-term development strategy. In 2008, the institution increased investments in Africa to 52 million euros (US$67 million), an increase of 5 million euros compared to 2007. It is exploring opportunities to expand financing activities in Africa, with a possible focus on Mozambique and Nigeria.

The agency says its capital comes from about 500 churches and church-related organisations, and about 30 000 individuals grouped in support associations. Investors receive an annual dividend of about 2 percent.

For information about how to invest now in Oikocredit in the UK, please contact Patrick Hynes at Oikocredit, PO Box 809 Garstang, Preston, PR3 1TU. Tel: 01995 602806 Email: phynesAToikocreditDOTorg Web: www.oikocredit.org.uk [2]

[With acknowledgements to ENI. Ecumenical News International [3] is jointly sponsored by the World Council of Churches, the Lutheran World Federation, the World Alliance of Reformed Churches, and the Conference of European Churches.]