The lead article in this issue of New Horizons is on ECLOF Kenya’s implementation of an effective group lending methodology.

An external global evaluation of ECLOF last year, discovered that, in one of the countries examined, high risk lending to micro entrepreneurs called for the development of approaches and methods that are efficient, cost effective and sustainable. Several weaknesses with the group methodology were identified. The survey revealed that 37.5% of the total clients sampled had had problems with their groups. A lack of commitment was the source of around half of the problems, while a third concerned the failure of group members to repay loans. Other problems related to the failure by group members to pay their membership fees. A major difficulty was also that a majority of groups had not been able to implement successfully the concept of collective responsibility for loan repayment.

Much research literature exists on group lending and its advantages and disadvantages. Regional workshops have discussed these findings and they were also considered during the development of ECLOF’s global policies and guidelines. The global policy guidelines state that it is the preferred policy to make services available to groups as part of the strategy for building sustainable communities. “Lending to groups, rather than individuals, gives members the opportunity to experience a sense of community...and learn about solidarity and sharing in a practical way.” Every NEC has a responsibility to develop the appropriate strategy and procedures to realise this. The case study from ECLOF Kenya in this issue is similar to others that have been developed by other national ECLOF committees within their own context.

In this issue we also share a follow up story on how ECLOF Ecuador has worked with others interested in promoting rural financial services, and devised new ways of responding to the needs of its clients in a very difficult environment. The NEC did not give in to the temptation of blaming external factors and doing very little, as has happened in some cases. We salute ECLOF Ecuador for its tenacity and ability to devise appropriate strategies in a very short time.

In two historical events on 22 and 23 November at the Ecumenical Centre in Geneva, ECLOF and Oikocredit board and staff got together. The ECLOF board dinner was given in honour of the 25th anniversary of its sister institution, Oikocredit, and then we held a joint seminar. The two ecumenical organisations discussed closer co-operation and agreed to set up a joint working group to examine how this might happen.

We are pleased to announce the production of a promotional ECLOF video. The video Fair Credit introduces ECLOF clients who explain how ECLOF services have affected their lives and the communities in which they live. The video also includes a clear and concise animated illustration of ECLOF’s global and local structures, and how these relate to each other. We hope Fair Credit will prove useful to the ECLOF network and friends. It is available from the ECLOF secretariat in English, Spanish, French and German.

Grace and peace to all our readers.