Maintain Metrics to Ensure Effectiveness – Grameen Foundation’s Camilla Nestor on the SKS IPO
Microfinance Insights brings to you reactions from various industry stakeholders to the SKS IPO, which opened last week, and their view of what it means for the future of microfinance.
Camilla Nestor is Vice President of Microfinance at the Grameen Foundation. Nestor supports the growth of MFIs, as long as it is paired with rigorous metrics and analysis to ensure effectiveness in poor communities. Profit, Nestor says, should never become the primary motive.
Microfinance Insights (Insights): What is your first reaction to the SKS IPO?
Camilla Nestor (Nestor): Grameen Foundation supports tapping the financial markets to raise the money required to grow microfinance to serve the hundreds of millions of poor households in the world. We believe that IPOs and other financial tools can provide much-needed capital for MFIs. That said, when MFIs use IPOs and other such fundraising tools, we firmly believe that the poor borrowers/clients of MFIs should benefit from any wealth that is generated. MFIs should adopt performance metrics that are equally rigorous with respect to financial and social performance measurement and analysis.
Read the rest of the Interview on the MFInsights Website