Micro finance field has considerably advanced in Pakistan and Sindh Agricultural and Forestry Workers Coordination Organization (Safwco) is keeping pace with the scale of growth in the rural areas of Sindh. From a small poultry raising project for 20 rural women, Safwco’s clientele has grown to 10,548 women and 10,735 men with disbursements of Rs. 261,145,000 (US$  3,130,860) and Rs. 342,490,000  (US$ 4,106,102 ) in 2008 and 2009 respectively. Despite the difficult international financial climate, Safwco is set to meet this year’s target of lending Rs. 342.49 (US$ 4.11) Million  to 21,283  clients. Safwco’s loans at an average of Rs.9,109 helps rural poor to strengthen their income earning activities and to move from a loosely structured one person initiative to an enterprise development program. Since sector inception, Safwco has demonstrated credibility and capacity to operate at scale, and built up infrastructure and human resources to move towards sustainability.

In 2008 and 2009, with continuing support from PPAF, SAFWCO was able to continue scaling up its on-lending program and carry on with the Social Safety Net piloting. Safwco was able to maintain its gender ratio of 50% Female and 50% Male, to lend for diverse purposes including for on-farm activities, and grow steadily at the rate of 24.3% (CGAR at 3 Years Trailing) clients per year. Safwco’s client retention in 2009 was 49%. Safwco’s growth strategy concentrates on deepening the impacts and intensifying client outreach within the present target area till at least 70% of the potential market is served. The new consolidation branch network strategy, piloted in 2007 and 2008, needs now to be extended to other areas.

The successful case studies from the Social Safety Net for Targeting Ultra Poors piloting has shown that poor women were able to use transferred assets for income generation and improve their economic and social status. There is a pressing demand from the poor, especially those not given assets in the first phase and the success of the piloting calls for spreading the program to other areas of Sindh.

In 2008 and 2009, Safwco has registered SAFCO Support Foundation – the micro finance wing of Safwco as a separate entity under the Companies Act Section 42 Ordinance, and is in the process of transferring assets and handing them over to the new board. The micro finance management and accounts had already been separated since 2005. In 2007, Safwco also made a separate Strategic Plan for the CED Sector as well as Operation Manual and Human Resources Policies. CED Sector is moving steadily towards realization of the targets set in the Strategic Plan. The ACTED and Planet Finance institutional support helped Safwco to gain international market exposure and understand key issues related to accessing international investments to help meet the supply side requirements. The experience has helped bring out the gaps in Safwco structure and operation that needs to be filled and the program should be rated before venturing into attracting international investments. At the heart of the investment acquisition strategy is the need to prepare Safwco for equity building, with a clear exit strategy for the investors.