Codecs

ducing poverty by mobilizing private investment capital to finance micro-businesses of poor families throughout the country. CODECS gears its entrepreneurial results to attract investments that will yield jobs, sustain micro-businesses and improve human lives
Codec envisions a new Haiti where no one is abused, poor, illiterate or marginalized; where members of communities have full and equal participation in the processes that ensure their health, well-being and economic independence; and where everyone has the freedom to define the scope of their life, their future and strive to achieve their full potential. Codec vision is to, ‘Aspire to be a financially self-sustaining MFI that empowers the low-income and vulnerable groups particularly women in Haiti’. Our Approach

Solidarity group is Codec’s primary lending method that creates an opportunity for the poor to obtain credit. members form lending groups comprised of 7 to 16 members. A leader is selected but the entire group acts as a guarantor for every member’s loan. These loan-and-savings circles provide an efficient and cost-effective delivery of financial services. Loan repayment rates in micro credit institutions are extremely high. biweekly meetings ensure loans are tracked and repaid. These meetings also serve as training sessions in business management or other topics such as health care, HIV/AIDS education. Ultimately, CODEC members improve their entrepreneurial skills, incomes, and businesses. Jobs are created for the community such that families and the entire community benefit. With more income, households can more easily afford school fees, provide improved nutrition, and adequate health care. They begin lifting themselves out of poverty meanwhile fueling their community’s economy. As members repay their loans, they become eligible for larger loans. Eventually, enterprising members with a good repayment record are allowed to form smaller solidarity groups and receive more sizable loans. CODEC offers a wide variety of micro loans that include agriculture, retail, services, mini mortgage and manufacturing loans. Each of these categories represents a variety of businesses and business needs. From farmers to tailors to hair-dressers to all members. By providing loans, savings, and other basic financial services to the poor, CODEC helps stimulate the breakdown of the poverty cycle. Small amounts of money are available because the poor don’t have large assets to borrow against. Traditional banks are designed to help people who already have these financial assets. There are a few banks who provide microfinance products but the majority do not, as microfinance activities are expensive and small loans yield small interest rates. Therefore, banks tend to shy away from microfinance lending in Haiti’s rural areas. There are three kinds of costs that Codec has to cover when it makes a micro loan – the cost of the money it lends, the cost of loan defaults, and the transaction cost. These costs are the same on a small loan and a large loan. However, by working with dedicated members, we become profitable. The dedication and determination of clients eager to improve their living standards generally indicates a very low rate of defaults. We're constantly looking at ways to maximize the potential of the national production sole base to take Haiti off poverty. CODECS provides training to its member, provides them with Collaterals when needed look for syndicate financing for their project and at times participates as equity partner

Areas of intervention

Literacy and education
Housing/
Water and sanitation
Environment/sustainable growth
Women and economic development
Energy and new technology
Emergency response and protection of civilians
Organization and capacity building
Health/
Food security/aquaculture
Insurance health/life ect.