Friend Foundation in the Spotlight

Improving the outreach to indigenous people in the Philippines

An apparent very basic project like lily stalks weaving in a Philippines province, kills two birds with a stone. Water lilies are blocking main waterways and the woven stalks can be sold as handbags or baskets. This is only one example of the flexible Friend Foundations approach to their clients.

The Friend Foundation (Foundation for Rural and Industrial Equipment for National Development, inc.) is leading a special microfinance project for the indigenous people (IPs) of Agusan del Sur province, in Mindanao, since 2009. This project is aiming for improving and increasing the outreach to and development effects for these indigenous people in the harder-to-reach areas. The project has now entered its third year of funding by ICCO.

The Friend Foundation was initiated by the People's Bank of Caraga (PBC) in the late 1970s. As a separate legal organization Friend is carrying out a non-financial services support program for microfinance. Friend offers a range of trainings and seminars to both PBC staff and PBC clients. Business development services are in an initial stage. In addition, Friend has an active role in managing PBC's social performance, e.g. by conducting client satisfaction and client exit surveys. At the end of 2010 about 43.000 people were involved in Friends projects.

Innovative products

Friend demonstrates that it is very well aware of the situation by offering innovative products and services. Besides the lily stalks weaving, other business product services that generate income, are fresh water fish processing, rag door mat making, peanut processing and oil palm leaves weaving. Friend coordinates participation in trade fairs in Agusan del Sur, but also in cities. As a special project for harder-to-reach areas a goat loan dispersal programme has been piloted and seems to be suitable as well. Friend will disperse 20 goats per municipality, 20 Does and 2 Bucks. Each participant will receive a Doe which is at least 8 months old and ready to conceive. The first female offspring of this goat, at age 8 months will be the payment for the goat loan. These goats can be distributed as well to other clients.

The business development services for the income generating projects of the indigenous people groups are a good way of diversifying means of income and contribute to alleviation of poverty. For those harder-to-reach indigenous people, who are extremely vulnerable, the programme is best to be seen as a graduation programme. This is absolutely vital in order to improve their livelihood, and to ensure that those clients can grow into good microfinance clients, albeit perhaps in the longer run.

This description of the Friend Foundations microfinance projects is based on a observational report by Maarten van Schoten on behalf of ICCO, July 2011.