Kiva conducts regular, ongoing monitoring of all Lending Partners, but only posts status updates here in response to relevant, major changes at the partner.

April, 16 2020 - COVID-19 Update:

Kiva has been in contact with Vahatra to understand how we can best support their business and borrowers during the ever-evolving COVID-19 pandemic. We continue to prioritize the safety and well-being of all staff, borrowers and their families as this global pandemic continues.

While country-specific responses to the crisis vary, most governments have imposed curfews, travel restrictions, and nation-wide shutdowns. This has caused many economies and businesses to grind to a halt. For Madagascar in particular, the government has declared a state of health emergency. As in many countries, children no longer go to school, gatherings are prohibited and travel is limited. Due to these many restrictions and closures of establishments, businesses, etc. - economic activity is slowing down, thus greatly impacting the activities of our borrowers. In Vahatra's areas of involvement, traders are permitted to only sell during the morning hours. In addition to that, movement to and from the capital Antananarivo is limited causing outlets to be limited and a large part of farmers are forced to sell at a loss. This situation is especially difficult since 75% of the population in Madagascar live below the poverty line (source World Bank). 

As a result, borrowers and Vahatra may experience difficulty making and collecting loan repayments due to the aforementioned restrictions or fallout effects of the virus. Over the coming months, it’s possible that lenders will see a delay in repayments and new loans posted by Vahatra. As an impact-first funder, Kiva is committed to serving our Lending Partners, as in past crises. We are sympathetic to temporary increases in repayment delays and delinquency in order to help Lending Partners and borrower communities recover. 

Kiva is working closely with Vahatra to support them and their borrowers through the COVID-19 crisis. Vahatra is sending regular updates to Kiva, and we'll update Partner Pages as we learn more. 

On behalf of Kiva and Vahatra, we’re grateful for your continued support through this difficult time. 

Partner Description:

Vahatra is a non-profit organization in Madagascar that provides loans to low-income families who earn an average of $1 a day.

Vahatra's lending is focused primarily on supporting clients' new or existing income-generating activities. The organization has also designed loan products to help borrowers pay for school fees, emergency situations, professional training, and to support community-based social groups. Vahatra carefully evaluates each family’s need and economic capacity before issuing a loan in order to tailor a solution for each situation.

A unique lending approach:

Vahatra provides loans to low-income families. Borrowers can take out loans for a range of services including enterprise loans to cover commerce, and social loans to cover professional training and school fees. Additionally, the organization offers health insurance at two branches, provides career development training to young people, and runs a preschool and other family services.
Vahatra offers two customizable microenterprise loan products- a “first loan” and a “subsequent loan.” First loans are capped at $60, while subsequent loans can be as much as $1,400, depending on client capacity and repayment history during previous loan cycles. With Kiva funding, this small organization will be able to provide services to to more families.