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Samoan Women Entrepreneurs Get a Hand Up From A Celebrated Kiwi Entrepreneur

There is good news on the horizon for the women entrepreneurs of Samoa. South Pacific Business Development Foundation (SPBD) of Samoa has just this week received a ST$1 million soft loan from one of the most celebrated entrepreneurs in New Zealand, Sam Morgan through his charitable vehicle - the Jasmine Charitable Trust. This financing from Sam Morgan to SPBD will enable SPBD to further expand its operations throughout Samoa.

Sam Morgan’s rise to fame and fortune is an inspiring story of an ordinary man making it big by using his entrepreneurial skills. In the early 1990’s the then 23-year old Sam was looking for a second-hand heater for his flat in Wellington. Being computer literate, he searched through the internet for his heater but he couldn’t find one. This became his defining moment which led him to develop an online classified advertisement company called Trade Me. He started with only about $8,000 scraped together from overdrafts, credit cards, and help from his friends and family. The company did have a slow start but due to his persistence, the business gradually picked up and became the most successful online trading company in New Zealand. When John Fairfax Holdings bought his company in 2006 for NZ$700 million, it made Sam Morgan one of the richest persons in New Zealand.

SPBD Foundation, since its inception in the year 2000, has already assisted more than 8,000 women to start and improve their small businesses. SPBD also provides its women entrepreneurs with a savings service and unsecured credit to make basic housing improvements and to ensure proper childhood education and to date has successfully extended over ST$13 million to budding Samoan entrepreneurs. SPBD follows the microfinance model established by Dr. Muhammed Yunus, the Nobel Peace Prize-winning Founder of the Grameen Bank of Bangladesh.

Sam Morgan’s Trade Me and SPBD perform similar functions in that they both succeed by helping small entrepreneurs grow and improve their businesses. According to SPBD Founder, Greg Casagrande, “We have been blessed with very good fortune to find Sam. It’s a beautiful match – Sam and SPBD – an entrepreneur selflessly helping other entrepreneurs.”

SPBD Honors its Business Women of the Year

A couple of weeks ago we held our 5th annual SPBD Business Women of the Year Awards Celebration. It was a great success. Unfortunately the hall that we used to hold the event could only hold 500 people. It was more than full.

This year we expanded the list of awards. We provided awards to six top micro-entrepreneurs, six outstanding centres (villages), and to exceptional centre chiefs, secretaries and savers. I was very pleased with the support that we received from the local business community. The event was sponsored by Westpac Bank and a wide range of prizes were donated by ten other local businesses.

This Year the Misa Telefoni Shield for the Best SPBD Centre was presented to Manunu – a village of 30 SPBD members who all have thriving businesses, perfect rates of repayment, enthusiasm for the program, robust savings and dedication to improving the lives of their families. The photo here is of Aliitasi, the centre chief of Manunu accepting the award, with Samoa's Deputy Prime Minister, Misa Telefoni, and myself at her side.

The six individual business women who won awards at the prize-giving event were:
1. Viole Sasa of Nonoa for her grocery store
2. Ialeni Fanueli of Lufi Lufi for her clothing and frozen food shop
3. Tae Anasapi of Vaimoso for her farm, elei printing and handicraft businesses
4. Oloniu Pusa of Aliesa for her plantation and local store
5. Malo Seoti of Saaga Fou for her general store and
6. Feluani Pa'u of Samatau who runs a business empire comprising six businesses. Her businesses involve fishing, piggery, plantation, a mechanic shop, taxi services and a restaurant.

In my talk to the audience of 500, I expressed my sincere belief that they are all winners and encouraged them all to continue to believe in themselves and to follow their dreams. It was a fantastic day for all.

Rico Munoz Joins SPBD as GM

South Pacific Business Development Foundation of Samoa (SPBD) announced today that Elrico Munoz has joined SPBD as its new general manager replacing outgoing GM Tim Barker.

Elrico comes to SPBD after serving successfully for the past two years as Managing Director of VANWODS Microfinance Inc in the Republic of Vanuatu. Prior to VANWODS, Elrico served as the Operational Director of Center for Community Transformation (CCT) a microfinance institution in the Philippines. Outgoing SPBD GM Tim Barker, who has completed a two year contract with SPBD, will be returning to his home in Melbourne where he will be completing his Masters Degree in the field of international development at RMIT. As GM, Elrico will manage the day to day affairs of SPBD and reports directly to SPBD’s founder and President Greg Casagrande. Casagrande’s comments regarding the new leadership appointments were: “We have some aggressive growth plans over the next couple of years and with Elrico’s leadership, I have every confidence that we will meet them to the great benefit of the underprivileged of Samoa.

I’d also like to take this opportunity to thank Tim Barker for his tireless and excellent efforts over the last two years. Samoa’s Deputy Prime Minister, Hon. Misa Telefoni, in recognition of the important role that SPBD plays to the economic empowerment of underprivleged women in Samoa, held a special dinner in honour of both outgoing GM Tim Barker and incoming GM Elrico Munoz (pictured above).

Casagrande on the World Vision Report

I was honored to be interviewed on the World Vision Report in February. The interview played on radio stations across the US and can still be heard at this link: http://www.worldvision.org/worldvision/radio.nsf/stable/wvradiostory_020407_casagrande

SPBD Fifth Annual Businesswomen of the Year Awards held on December 1, 2006

South Pacific Business Development held its fifth annual Businesswomen of the Year Awards in December 2006. These awards honor the years seven best centers, center chiefs, center secretaries, business women and three best savers.

SPBD upgrades the Micro-Savings Program

In July we introduced a number of small changes to SPBD's savings program in order to provide further incentive to members to make regular savings. These incentives include a small loan bonus for each set of ten consecutive weekly deposits, a bonus interest rate for savings balances maintained over ST$400 held for more than six month and a one off village savings competition held in August. These changes followed a survey made of 200 women who used the savings account since it was introduced in 2004 to ascertain how our members are motivated to save.

As part of the modifications, we have retrained all village centers on the benefits of saving, including how savings increases their financial security, and helps them to build a more substantial asset base. This dialogue is part of SPBD's broader goal of increasing our member's financial literacy. There have already been some encouraging signs of increased deposit activity since July and we are monitoring this closely.

Fikreth Shuaib from The Foundation For Development Cooperation visits SPBD in June 2006.

In June 2006, Fikreth Shuaib from the Foundation For Development Cooperation www.fdc.org.au of Brisbane, Australia visited SPBD for one week.

SPBD is one of the partners in an AUSAID funded study or remittances in four Asian Pacific countries and was selected to represent Samoa. The other partners are ANZ Bank Fiji Ltd, Bank Rakyat Indonesia, Microfinance Council of Philippines and Tulay Say Pag-Unlad Inc Development Corporation also of the Philippines.

The study is being undertaken by RMIT University Melbourne and The Foundation For Development Cooperation. As part of the study, Fikreth supervised volunteers from the National University of Samoa to interview 150 members of the SPBD program about their remittance experiences.

Remittances from expatriate family members are an important part of the Pacific economy and SPBD was pleased to be a part of this important survey. SPBD is now investigating implementing a remittance product to be rolled out in 2007.

Fikreth is pictured here at the Utulaelae center along with Nabuoki Matsui from the JICA office in Apia.

Andrea Berrini, founder of CreSud visits SPBD in May 2006

Andrea Berrini, the founder and managing director of CreSud www.cresud.it, a Milan, Italy based socially responsible investment fund providing microfinance funding, undertook a 3 day visit to SPBD in Samoa in late May.

During his visit, Andrea spent time in our office to observe our systems and procedures as well as get to know our staff. He visited a number of our centers both in Apia and in rural areas on the south coast of Upolu. He also took the opportunity to meet with James Lowrey, Senior Relationship Manager, Westpac Bank Samoa Ltd and Leota Laki Lamositele-Sio from the ADB Small Business Project to discuss the small business sector in Samoa.

Following his visit CreSud have approved a new three year EUR 50,000 loan.

Andrea is pictured with Center Manager Mayvian Popese and the women of the Faatoia center.

Oikocredit provides a five year EUR 200,000 loan to SPBD

We are very pleased to announce the finalisation of a new five year EUR 200,000 loan provided by Oikocredit Ecumenical Development Co-operative Society, UA with the first tranche disbursed on May 18th.

We would like to thank the efforts of Gunter Janson, Guillermo Salcedo Jimenez,Cesar Maita, Bob Bragar and Bob Barlow for their efforts and assistance in putting this new loan together.

Gail McCormack visits SPBD in May 2006

Gail McCormack, the wife of US Ambassador to New Zealand and Samoa William McCormack, took a few hours out of her busy three day visit to Samoa to visit some of the women of SPBD on May 16.

Ms. McCormack's day with SPBD consisted of visits to SPBD village groups in three locations close to Apia: Moataa, Letogo and Vailele.

In the village of Moataa, Ms. McCormack met with six of the members of one of SPBD's founding village groups. The women discussed the various businesses which they conducted such as sewing, shop keeping, plantation, and fishing. The Center Chief Fetauai also gave Ms. McCormack a detailed description of three projects with which women from the center are involved – the UNDP sponsored mangrove preservation project, the building of a women's center and a program for youth employment.

In the visit to Letogo center, Ms. McCormack was able to observe the women conduct their weekly center repayment meeting. Whilst this was done, Gail was also given a demonstration of Samoa bingo. This is a unique means by which many centers raise funds to pay the group and center guarantees.

In the center of Vailele C, the members were ready with examples of their business and Gail was treated to a full presentation given by the women of the centre. Items shown included fine mats, Samoan handicrafts, elei printing, Samoan Cocoa, Banana Chips, and fishing equipment. On her way back to Apia, Gail stopped off at the lawn mowing business of one of the centers members, Ipu Afele. With her loans from SPBD she has renovated a shed which houses the business and purchased two weed-eaters. She explained that SPBD has helped her expand her business and set it up separately from her house.

In total, the Ms. McCormack spent about three hours with SPBD and managed to see quite a bit. We're very proud of members who participated that day in the professionalism and organization that they demonstrated to our distinguished visitor

SPBD Reaches the Ten Million Tala Disbursement Milestone

On May 5, SPBD announced the disbursement of a ST$3,050 tala loan to Mrs. Tuilagi Tapu of Moataa Village bringing its total accumulated loan disbursements since its creation in January 2000 to over ST$10,000,000 talas (about US$3.6M).

“We are proud to disburse this new loan to Mrs. Tapu, one of the twenty self-employed business women in Moataa Village served by SPBD. This is her seventh loan with SPBD which places her in an elite group of women in our program who have demonstrated consistent creditworthiness over many years. She has used all her loans to develop and grow her store in Moataa. This has included buying stock, a freezer and making improvements to it. As her store has grown, so has her income.” said Tim Barker, SPBD General Manager.

“The SPBD program has been very useful and important to me and our center. It has helped with the development of my family over the time I have been a member. It has provided opportunities for assistance for things like home improvement and school fees which previously were not available. ” said Mrs. Tapu.

“Mrs. Tapu is a member of one of SPBD’s founding village centers at Moataa village. With assistance of SPBDs finance and the support of her fellow center members, she has been able to grow her business and provide for her familys needs. Her store not only sells household goods bought from wholesalers but also goods made by other SPBD members in her center including pork buns, German buns and locally grown vegetables. Mrs Tapu also sells pancakes at the local primary school every morning. The total value of the seven loans which she has borrowed from SPBD comes to ST$12,100” said Luapene Lefau, SPBD Finance Manager.

SPBD is Featured on NBC's Nightly News with Bryan Williams
SPBD is "Making A Difference One Loan at a Time"

The NBC nightly news team travelled to Samoa in February 2006 and shot footage of SPBD in action for three days.

The resulting video was featured on the NBC Nightly News with Bryan Williams and was seen by 11 million Americans on Tuesday evening April 11 2006. You can view the video on line at:

SPBD on NBC Nightly News

There is a related news article regarding SPBD at:
SPBD news article on MSNBC

If you like the video and the article, please forward them on to friends.

You can also always find the video by Googling either: "nbc samoa" or "nbc Casagrande". The story is under the "Making a Difference" category and is entitled: "Making a Difference One Loan at a Time."

Casagrande Continues Global Travels Promoting Microfinance and Best Practices

Over the past several months, in addition to my work with SPBD and the UN-IYM I have been fortunate to speak to groups all over the world about microfinance.

In September I provided a key note speech at an event hosted by the UN Association of Australia. I also participated in three panel sessions and discussed items such as a blue print for starting a microfinance institution (MFI) from scratch, overcoming obstacles to ramping up microfinance outreach in the Pacific region and challenges to the commercialization of MF globally. I am still working with others to help create an APEX Fund for investment in microfinance institutions in the Pacific Islands and to launch Microfinance Pasifika – a regional network to up-skill the local industry.

Also in September, I was honored to be invited by former US President Bill Clinton to attend the inaugural Clinton Global Initiative (www.clintonglobalinitiative.org). The CGI will be an annual forum for tackling four major global issues. I was invited primarily for my knowledge in the "global poverty eradication" initiative. I was quite pleased to see that >50% of the discussion in this area centered on providing meaningful economic opportunity to the poor. That is the purvey of microfinance, and is a much more effective strategy towards eradicating poverty than traditional hand-out programs, which unfortunately often actually undermine local capacities.

In November in New York and Chicago, I met with SPBD-USA supporters and enjoyed discussing SPBD and the future of the Microfinance industry. Thanks to all for coming and generously supporting.

In December I had the pleasure of speaking at the Forum for North-South Alliance in Marseille, France, where I discussed best practices for microfinance institutions as well as roles for private sector involvement in the sector.

In addition to these activities I am regularly meeting with and consulting to new players in the MF field… new MFI's, a range of financial institutions interested in the field (both downscaling commercial banks and banks interested in capital market participation with quality microfinance organizations), national governments interested in developing policy and national initiatives, as well as other players including specialized technology providers and potential distribution networks. Imagine – a chain of a pharmacies in poor neighborhoods throughout Mexico that wants to begin distributing MF services to the poor through its stores. It's real - and it has a pair of dynamic leaders to make the service a reality. It is in deed a very dynamic industry.

SPBD Continues to Close Financing Arrangements to Enable Expansion

In the past four months, since I have last written, we have closed several financings.

1) ANZ Bank in Samoa has provided SPBD with an additional ST$100,000 in financing taking their total financing to SPBD upto ST$500,000. Thanks Mandy and Andrew!

2) Deutsche Bank has provided SPBD with an additional US$25,000 in financing taking their total financing upto US$115,000. Thanks Asad and Vivian!

3) Fund the Future, HSBC and Westpac have worked together to provide an additional ST$45,000 of financing. A big thanks there goes to Andrew and Peter Robb founders of Fund the Future who initiated this funding.

4) Westpac Bank has provided SPBD with an additional ST$140,000 in financing, leveraging the DB funds as collateral. Taking Westpac's total financing to SPBD upto ST$440,000. Thanks Steve and James!

5) And finally, to everybody who has supported SPBD-USA in the US and in New Zealand, which has provided SPBD with another US$50,000 in financing in 2005 and over US$270,000 since 2001.

The United Nations International Year of Microcredit – 2005 (UN-IYM) Draws to a Close

As many of you are aware, I have had the great honor of serving on the UN-IYM 2005 www.yearofmicrocredit.org Advisors Group for the past twelve months.

The UN-IYM officially drew to a close in November at the UN Headquarters in New York with the "International Forum to Build Inclusive Financial Sectors". The event drew a wide range of expert voices in the field of microfinance as well as some celebrities who have decided to add their voice to support microfinance as a leading tool for poverty eradication. I was pleased to see people like Richard Branson, Walter Cronkite, Jennifer Lopez and Tim Robbins, adding their name to the list of supporters of the movement.

Summaries of the various panel discussions and a recap of the Forum can be found at:

http://www.yearofmicrocredit.org/pages/getinvolved/getinvolved_forum2005.asp#recap

With the year of microfinance drawing to a close, we on the Advisors Group have issued a statement to the UN of which I am particularly proud. The paper can be accessed on line at:
http://www.yearofmicrocredit.org/docs/Advisors_Group_UN_IYOM_8Nov2005.pdf
It's only eight pages and does and excellent job at laying out many of the major issues in the emerging microfinance industry.

Finally, here is one of my thoughts with regard to the UN-IYM's theme of "Building Inclusive Financial Sectors."

One hundred years ago, the only people with access to a full range of financial services were the ultra wealthy – the Rockefellers, DuPont's, Carnegies, etc. Today, in the developed world, financial services are broadly available to nearly everyone. Most of us recognize the value of these services. Life is a whole lot easier with a checking account, a savings account, an investment fund, insurance products and credit products - like home mortgages and credit cards.

Well… it turns out that the very poor can also benefit from access to basic financial services. Saving money in a bank is far superior to putting in under a mat -- it earns interest and it is safe from theft and rats which may literally eat it – as happens in Samoa!. Getting a loan for a small income generating project, can mean the difference between a life of unrealized dreams, and a life of energetic pursuit of life improving opportunities. I see these contrasts daily in Samoa and they are equally valid throughout the 3rd world. It's really common sense that poor persons can benefit when they are provided with increased opportunity.

The great innovation of microfinance practitioners (like SPBD) has been that the poor are in fact bankable. Until very recently, commercial banks, with their standard assessments of risk, based on income and assets, have excluded the poor from the formal financial system. It has been up to the emerging microfinance industry to prove that the poor are credit worthy and to now integrate their clients and their institutions into the formal financial system. This is a process that will unfold over the next decade. It will be a period of great transformation for the financial services industry, especially in the 3rd world, and will hopefully be a time of unprecedented opportunity for those who still struggle in poverty. And that final point needs to be underlined -- as the microfinance sector becomes more intertwined with the traditional formal financial sector, it is absolutely imperative that the guiding vision of reaching the poorest of the poor and providing them with meaningful opportunity not be lost.

Casagrande Travels Globally Extolling the Virtues of Micro-Enterprise Development

Over the last four months I have set an all time personal travel record. It has been a great pleasure. I have spoken to student groups (Kennedy School of Government, University of Chicago Graduate School of Business, Kellogg, Colgate University, Wardlaw-Hartridge School), government entities (in Samoa, NZ, France and the UK), met with finance industry leaders (London, The Netherlands, NY, Chicago, Las Vegas, Denver, Singapore) and participated in MF industry conferences around the world.

My ongoing themes are:
1. Poverty is an enduring major global problem.
2. Past efforts have been largely ineffective.
3. The key to solving poverty is to empower the poor to solve their own problems.
4. Micro-Enterprise Development/ Microfinance (MED/MF) provides that empowerment.
5. MED/MF delivery organizations (such as SPBD) can be commercially operated.
6. MED/MF outreach efforts can be scaled to reach hundreds of millions of poor families by building linkages with the formal capital markets.
7. For the first time in human history, we now have the ability to eradicate poverty, by harnessing the power of financial markets, and well run microfinance organizations.

To me, that is exciting stuff. And I have had the great pleasure to share that message with groups all around the world. I look forward to continuing the dialogue that I have begun with many of you and to taking this vision and turning it into a reality.

Kellogg Corps Comes to the AID of SPBD Foundation

SPBD Foundation has been blessed in the past with numerous world class volunteers. This summer is no exception. Two students from the Kellogg School of Management at Northwestern Univesity, Andre Do Valle and Ricardo Cilloniz, have come to work for SPBD via the Kellogg Corps program this summer.

Ricardo and Andre are working on completing SPBD's Finance Manual and our internal controls and audit mechanisms. While SPBD foundation is a not-for-profit charitable organization, we are for all intents and purposes a bank for the poor. And as such, we require the same stringent internal controls and processes that any formally regulated financial institution may have. While SPBD's processes are already good, Andre and Ricardo will help us take them to the next level of being "best-in-class."

The PPSEAWA Visit SPBD Foundation in the Field and Leave Impressed

Two weeks ago the Pan Pacific South East Asia Women's Association (PPSEAWA) held an International Workshop in Samoa. SPBD is proud that Viopapa Anandale, a member of our Advisory Board, is the International President of PPSEAWA. The workshop brought dozens of women leaders from across the region to Samoa for a three day event to discuss women development issues. One of the consensed highlights of the workshop was a field visit to several of SPBD's micro-entrepreneurs at work on their businesses in their rural villages. Tim Barker, SBPD's General Manasger, was one of the featured speakers at the event and he concluded his remarks with the following observation:

"At SPBD I see our job as working for the hopes, dreams and obstacles of our members. We should not tell them what these things are. They tell us. We need to listen and try and do what the rules of our program can do to help. We don't give them "solutions" or tell them we have "solutions". They find these themselves. We don't improve their lives. They improve their lives themselves. All we do is provide a program they can use to help them do this."

Those are words well said. SPBD is in the business of helping the poor find their own solutions to poverty. Those are the solutions which make a deep impact and keep a family out of poverty – permanently.

Casagrande to Keynote at Australian International Year of Microcredit Event

The UN Association of Australia is hosting a major two-day conference in Melbourne, August 29-30, entitled "Towards an End to Global Poverty: Empowering Communities and Individuals through Financial Inclusion". I am honored to be one of the keynote speakers at the event, along with such luminaries as John Hatch, the founder of FINCA.

I will also be participating in three panel sessions and look forward to discussing items such as a blue print for staring an MFI from scratch, overcoming obstacles to ramping up microfinance outreach in the Pacific region and challenges to the commercialization of MF globally. The goals of the conference are to:

• Increase awareness and understanding of microfinance as an effective tool for the alleviation of poverty;
• Promote inclusive financial systems and support sustainable access to financial services; and
• Encourage corporate sector involvement in microfinance.

You can find out more about the conference at: www.icms.com.au/microcredit2005

Tim Barker Joins SPBD Foundation as General Manager

I am pleased to announce the appointment of Tim Barker as our new General Manager. Tim has joined us from ANZ Bank in Australia where he served for 19 years in their Melbourne and Jakarta, Indonesia operations. As GM, Tim will be assuming day-to-day control of the SPBD operations. Tim is replacing Minh-Huy Lai who has served SPBD Foundation admirably during his 2+ years with SPBD. Minh, I am pleased to report, has moved onto the position of General Manager of Planet Rating in Paris, France. We all wish Minh well in his new assignment and welcome Tim on board.

Two New Funding Deals Closed

I am pleased to announce that SPBD Foundation has recently closed two more significant new funding deals.

Planet Finance of France planetfinance.com will be providing SPBD with an unsecured US$50,000 loan. This is SPBD's 3rd round of financing from Planet Finance. Thanks Arnaud!

CreSud S.p.A. of Italy cresud.it will also be providing SPBD with an unsecured US$50,000 loan. This is our first deal with CRESUD and we look forward to growing this relationship with Cresud over time. Thanks Pier Carlo!

General Manager Minh-Huy Lai Leaves SPBD

SPBD General Manager Minh-Huy Lai will leave his position effective on February 25th, 2004 after two fruitful years at SPBD. His successor has been recruited and will take position as soon as the work visa process is completed. The Transition Plan has been initiated since October 2004 to ensure smooth and orderly transition at SPBD.

Rabobank Foundation of the Netherlands Supports SPBD

We are very pleased to announce that the Rabobank Foundation of the Netherlands www.rabobankfoundation.nl has indicated that it will provide SPBD with 50,000 euro of long term financing.

The Rabobank Foundation is part of the co-operative banking institution Rabobank group www.rabobank.com which speicalizes in co-operative banking, institution building for co-ops, microfinance, micro-insurance and micro-leasing. I am delighted to welcome Rabobank into our network of outstanding donors and financers and look forward to growing this commercial relationship with Rabobank over the next several years.

Harvard's Kennedy School of Government Selects SPBD to Build Microfinance Case Study

I am very honoured to announce SPBD's selection by Harvard University as the subject of an upcoming research case study to be conducted in January 2005.

This research project will be conducted by a team of MPA/MBA students (Regina Galang and Susie Margolin) of Harvard University's Kennedy School of Government under the supervision of Associate Professor of Public Policy Guy Stuart. The resulting case study will be used in Kennedy's graduate-level classes starting later this year.

The case study will document the differentiating success factors of SPBD and explore themes and subject matters such as leadership, management transparency, financial strategy and the importance of MIS (management information systems) and sustainability. The research project will also explore the challenges of microfinance institutions operating in island states, cultural issues, model replication and venture philanthropy.

"SPBD has been working very hard over the years amid some tough conditions. We are pleased that our efforts are recognized by Harvard University and trust that the case study will provide insights to its students on how SPBD became a recognized leader in the provision of microfinance services in Samoa and the South Pacific", said SPBD General Manager Minh-Huy Lai.

SPBD Deepens Partnership with Key Commercial Banks

I am very pleased to announce that our partners at the Deutsche Bank Community Development Fund, ANZ Bank Samoa and Westpac Bank Samoa have each decided to DOUBLE their levels of commercial financing with SPBD. Our commercial banking relationship with all three institutions is now just over a year old and is now about US$300,000 in total. Their support of SPBD, and demonstrated confidence in our operations, has allowed us to considerably expand our outreach to the poor in Samoa while moving us steadily closer to full financial self-sufficiency.

I'd like to extend a personal thanks to Asad Mahmood at DB, Steve Baker at Westpac Bank and Mandy Simpson at ANZ Bank. This commercial relationship is benefiting all four of our organizations while simultaneously helping out thousands of now inspired micro-entrepreneurs throughout Samoa. To me, that is sustainable development at its best and throughly captures the meaning of building inclusive financial sectors that we speak of at the UN. (eg. a NY Bank working with Samoan Banks working with a Samoan microfinance organization(SBPD), working with micro-entrepreneurs in a sustainable profitable manner for all parties).

Samoa Deputy Prime Minister Praised SPBD's Community Role

In his letter dated 1st November 2004, Misa Telefoni - Samoa's Deputy Prime Minister and Minister of Finance - commended SPBD on its community economic development role. "I believe that your services have had tremendous positive impact on our people and contribute to their increased quality of life", Misa said. "The Government of Samoa and I strongly support SPBD and we support all endeavors to obtain assistance to provide you with greater resources", Misa concluded.

Casagrande on the Airwaves

Over the last two months I have appeared on the highly rated Linda Clark "Nine to Noon" morning radio show, the NZ "Breakfast Show" with Paul Henry and on the UN Calling Asia show with Lena Yacoumopoulou. You can still hear the UN Calling Asia show online at: www.un.org.radio Scroll down the right hand side and click on "archives" under the heading "UN Calling Asia." Then click on the November 19th show. If you'd like to hear the other shows, please let me know and I'd be happy to send to you a digital version.

SPBD-USA Events Across America Support the Work of SPBD

During the month of November I traversed America and attended five formal SPBD fund-raising events and several other SPBD related corporate and academic functions including sessions with students from Kellogg, Kennedy School of Government and Harvard Business School. I'd like to especially thank Allyson Lippert, Jim Young, Jerry Casagrande, Regina Galang, Yeng Felipe, Jorge Torres and Bhakti Mirchandi for their help in organizing these events in San Francisco, Chicago, New York, Washington DC and Boston.

Through these events we have raised considerable awareness about microfinance, best practices in the industry and our work in Samoa. Because of events like these, SPBD has been able to raise over US$70,000 this year alone from hundreds of small individual donors to support our efforts in Samoa. Because of our near-no-overhead cost structure in the US, nearly every cent that is raised in the US has found its way to our micro-entrepreneurs in Samoa. Many well known brand name overseas aid organizations consider delivering 75% of funds raised to a recipient country to be good. SPBD-USA delivers over 98% of our funds directly to our micro-entrepreneurs. SPBD donors know about and care about making wise charitable investment decisions.

SPBD to Host Five US Fund-Raising Events in November

If you're in the neighborhood of any of our events, come on by to see and hear more about what we're doing.

1. San Francisco
When: Sunday, November 7th, 3:00 – 5:00PM (pre-dinner)
Where: 2145 Filbert Street (between Fillmore and Webester), San Francisco
Host: Allyson Lippert
RSVP: Allyson Lippert (lippert.allyson@bcg.com) or by phone 415.732.8084


2. Chicago/ Evanston
When: Tuesday November 9th, 7:30 – 9:30 PM (post-dinner)
Where: 2607 Colfax Ave, Evanston, IL, 60201
Host: Jim & Karen Young
RSVP James.Young@gs.com or by phone 312-925-2278


3. New York
When: Thursday, November 11th, 6:30 – 8:30PM (pre-dinner)
Where: The Torch Club at New York University
18 Waverly Place (between Mercer & Green Streets)
Greenwich Village, New York City
Host: Greg Casagrande
RSVP: gregcas@ihug.co.nz


4. Boston/ Brookline
When: Saturday, November 13th, 8:30 – 10:30 PM (post – dinner)
Where: 94 Walnut Place Brookline, MA
Host: Regina Galang, Yeng Felipe
RSVP: yeng_felipe@ksg05.harvard.edu or by phone 617.851.1805 or
regina_galang@ksg05.harvard.edu or 415.465.4004


5. Washington, DC/ Alexandria
When: Tuesday, November 16th, 7:30 – 9:30 PM (post-dinner)
Where: 3102 Circle Hill Road, Alexandria, VA
Host: Jerry & Tara Casagrande
RSVP: jcasagrande@verizon.net or by phone 703-519-8325

SPBD Launched An Innovative Micro-Savings Program

Following positive pilot-test results and consultations with the Central Bank of Samoa, SPBD launched a new micro-savings program to its entire membership last October 7th, 2004. This program was designed based on initial collaboration with UNDP and in partnership with Westpac Bank. SPBD Board Members Nigel Burr and Viopapa Annandale and Westpac Bank Manager James Lowrey witnessed the successful official launch at Mataifi Village together with media representatives from Samoa Broadcasting Corporation, SamoaObserver and Radio Polynesia.

Under this new program, SPBD acts a savings promotion and collection agent. We pool together savings collected from members and deposit them into a single Westpac Bank account. This in-village service will allow members to save economically (i.e. starting from ST$10 and no account fees) and conveniently (i.e. SPBD collects savings at the villages) and safely (i.e. deposits held at Westpac Bank). We expect at least 50% of our members to join the saving program within the next 6 months.

SPBD Reached the 5 Million Tala Disbursement Milestone

SPBD announced the disbursement of a $1,250 tala loan to Mrs. Timaia V. Nifo of Samatau Village bringing its total accumulated loan disbursements since its creation in January 2000 to over $5,000,000 talas.

"We are pleased to disburse this new loan to Mrs. Nifo, one of the 22 low-income women in Samatau Village that SPBD is currently serving. She started a small bakery business with our first small business loan of $750 talas last year. She now comes to borrow her second $1,250 tala loan to build a new shed for her copra business ("fale popo"). She will also use a portion of this loan to buy some car parts for her old truck which will be used to transport coconuts from the plantation to the shed", said Sina Mualia, SPBD Relationship Manager.

"I thank SPBD for giving me unsecured loans! With SPBD money, I invested in different projects to generate income and keep all my family busy. I also employ two workers for the copra business. I make more money now and I even opened a savings account with a commercial bank in Apia! ", said Mrs. Nifo.

The United Nations International Year of Microcredit – 2005 Kicks off in New York

The UN-IYM 2005 kicked off in New York with a gala celebration on the evening of November 17th and a full complement of speeches and round table sessions at the United Nations on the 18th. The goal for the year of microcredit www.yearofmicrocredit.org includes raising awareness globally about the prominent role microcredit can play in eliminating poverty on a massive scale and helping to build inclusive financial sectors.

As one of the advisors for the year, I think that one of the great assets of this industry is the enormous amounts of goodwill and enthusiasm that surround it. We need to continue to inspire our supporters and others and to channel this energy towards achieving significantly greater levels of outreach to the poor. I believe that the only type of organizations that are capable of achieving massive levels of outreach to the poor globally are financially self-sufficient microfinance institutions. These organizations need to be run as world class providers of financial services and need to be commercially viable so that they can independently raise funds from commercial sources as SPBD increasingly does. By making microfinance services universally available, billions of poor will be given the opportunity to take charge of their future. That achievement would single-handedly radically change the world as we know in a very positive way for everyone.

US Government Backs SPBD Foundation's Poverty Reduction Efforts in Samoa

US Ambassador to Samoa, Charles J. Swindells, announced a US$10,000 grant to SPBD Foundation on August 10th at a meeting with Sina Mualia, SPBD's Relationship Manager. This grant funding is to serve to recruit and train more underprivledged women for SPBD's business development program.

This grant is the first award from the new U.S. small grants program the Ambassador announced during his visit to Samoa last August. "I am pleased to provide this support to SPBD in for its poverty alleviation work. I understand that SPBD has a good track record in Samoa and trust that this funding will go to help the neediest. The United States is a strong supporter of microfinance worldwide, and we are pleased to support microfinance activities in the Pacific through SPBD", said the Ambassador.

SPBD Benefits Greatly From Three New Volunteers

SPBD has been blessed to receive the services of three outstanding volunteers this Northern summer. Yeng Felip and Jose Torres have joined us from the Kennedy School of Government at Harvard University and Rod Reagan a former insurance executive has taken a leave from the US Department of Agriculture to lend a helping hand at SPBD.

We have put all three to hard work and have benefitted greatly. Yeng worked on a project to help SPBD prepare for an upcoming operational audit, Jose has helped to launch a savings program for SPBD members and Rod is helping SPBD to install its new MIS system - Loan Performaer.

This is Rod's 2nd "tour of duty" at SPBD. He originally volunteered with SPBD via the Peace Corps shortly after he retired as CFO of a San Francisco insurance firm. Rod helped layout many of our original financial procedures and processes.

Yeng also wrote an article of her experience volunteering with SPBD entitled "Bulls and Bears to Pancakes and Taro - Two Ends of the Financial Spectrum" which was published by the Cambridge MADVC and contrasts her ten years of experience at Merrill Lynch with those at SPBD. I think many of you will find it intersting. Please see details at: www.microfinancenetwork.org/YengFelipeStory.php

Yeng, Jose and Rod have all selflessly done great things for SPBD and in turn for the poor of Samoa. Thanks a ton to each of you!

SPBD Called "Samoa's Own Grameen Bank"

SPBD Foundation was recently featured in the August 2004 issue of Islands Business under the headline "Samoa's Own Grameen Bank - A New Lease of Life for the Poor". Islands Business, based out of Fiji, is generally regarded as one of the regions leading business publications.

The article was based on an interview between Samisoni Pareti and I when we met in Apia in July. In the article, I responded to Samisoni's questions regarding our mission, operations and challenges. Samisoni also met with Samoa's Deputy Prime Minister, Misa Telefoni, who commended SPBD's work and its positive impact on Samoa's economy.

If you'd like a copy of the article, please let me know and I'll be happy to send one out.

British High Commission Awarded SPBD A Grant of ST$15,000

SPBD is pleased to receive a grant of ST$15,000 from the British High Commission to New Zealand in support of its microfinance activities. This grant is provided on the behalf of Britain's international development agency - DFID. (July 15, 2004)

SPBD President Elected to PlaNet Finance's Board of Directors

I was recently very honoured to be elected to join the Board of Directors of Paris-based PlaNet Finance. PlaNet Finance is one of the leading microfinance platforms that promotes and supports the growth of the microfinance industry globally. PlaNet Finance specifically provides funding, rating, training and technical services to promising micro finance institutions (such as SPBD!) globally and places a special emphasis on using information technology to help leverage microcredit activities. The election was conducted during PlaNet Finance's Annual General Meeting this past June 22, 2004.

You can learn more about PlaNet Finance online at www.planetfinance.org.

I look forward to working with the PlaNet Finance team and am hopeful that I will be able to make some contribution to advancing thier excellent work.

Sina Mualia Joined as SPBD Relationship Manager

SPBD is happy to announce the appointment of Sina Mualia as its Relationship Manager reporting to the General Manager. Sina will manage SPBD's lending operations. She came to us from Samoa's Ministry of Industry, Trade and Labor where she held several positions on the WTO and Investment Promotion Departments.

SPBD President Appointed to UN Advisory Group

I was very honoured recently to be invtied by Mr. Mark Malloch Brown, Managing Director of the United Nations Capital Development Fund (UNCDF) and Chair of the Coordinating Committee for International Year of Microcredit 2005 (UN-IYM 2005), to join the Advisors Group for UN-IYM 2005.

I am joining a group of 15 recognized leaders in the fields of microfinance, banking, and economic and financial sector development representing all regions of the globe. Broadly speaking, the goal of UN-IYM 2005 is twofold: 1) to greatly raise awareness of microfinance as a leading tool in the ongoing global battle against poverty and 2)to help build inclusive financial sectors worldwide.

"Building inclusive financial sectors" may not mean much to a lot of readers, but who remembers my talk at the Asia Pacific Microcredit Summit in Dhaka in February regarding the importance of getting commerical banks and commercial institiutions more directly and sustainably involved in the world of microcredit? The concept is to create patnerships that are profitable to the traditional financial/commercial sector organizations, well run microfinance institutions (such as SPBD) and ultimately the microentrepreneurs themesleves. When we devise partnership that are beneficially to all invovled, all the way down to the micro-entrepreneur in a 3rd world country rural village, we will have gone a long ways to eradicating poverty as we know it from the planet. To me that is exciting stuff, and that is why I am pleased to put my efforts into promoting the aims of the UN-IYM 2005.

I am very much looking forward to this assignment You can find out more about the UN-IYM-2005 at this link: www.uncdf.org/english/microfinance/year/

A great book to read – The Mystery of Capital – by Hernando de Soto

Recently during a trip to Paris for Board meetings with PlaNet Finance (www.planetfinance.org) I found myself in a beautiful park in Paris totally absorbed by a great economics book (is that an oxymoron?), The Mystery of Capital by Hernando de Soto. De Soto tackles the subject of : "Why capitalism triumphs in the West and fails everywhere else" with command. In a very straight forward manner he covers the history of the creation of capital formation processes in America and the West and how these processes (such as formal legal property systems) have enabled the vast majority of their citizens to actively participate in the formal economic systems of the West. He discusses how the rest of the world has still not developed these capital formation processes and how as a result 2/3 of the world's population has become disconnected from the formal economy and as a result languishes economically.

As someone who has spent a considerable amount of time in the 3rd world, I can very much appreciate his examples of how 3rd world businesses are at best crippled because they are not fully integrated into well functioning formal capital markets.

Anybody interested in economic development, the history of capitalism, or solutions to some of the world's most intractable problems will get something positive out of this book. You can visit Hernando de Soto's compelling web site at www.ild.org.pe and also order the book from there. Enjoy the reading!

YOU Can Host an SPBD Fund Raising Event

SPBD has been blessed over the last several years with the generous support of many individual donors. Many of these donors first learned of SPBD at a SPBD fundraising event.

Now, YOU too can host an SPBD fundraising event. Events can be a small home based party with some drinks and nibbles. I will give an informal talk and bring along some photos and hand-outs. Younger audiences sometimes prefer to have more of a party atmosphere. Rotary clubs and church groups are also terrific fund raising venues. I am very happy to work with any of our donors to create a fundraising event tailored to their audience.

If you are interested in hosting an event, please let me know. I travel an awful lot (US, Europe, NZ)and am happy to stop off for any SPBD event.