LIFE IN ALL ITS FULLNESS - World Vision International Anual Report_2010.pdflife in all its fullness...

LIFE IN ALL ITS FULLNESS FOR RURAL FAMILIES

A Year in Review

AGROINVEST ANNUAL REPORT 2010

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About AgroInvest - Vision and Mission Letter from the Chairman of the Board of Directors

Letter from the Chief Executive Officer2010 Highlights

AgroInvest New Organisational ChartLoans

ClientsWomen Clients

Collection and Recovery Offices in AgroinvestEstimated Market Size and Penetration

Social Impact / Social Programmes “Keep Them At Home” project

Plans for 2010 Map of AgroInvest Offices

Independent Auditor’s Letter 2010 in Figures: Balance Sheet

2010 in Figures: Income StatementAcknowledgements

02 04 05 06 08 10 12 1416 20 212629 3032 34 3536

TABLE OF CONTENTS

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AGROINVEST ANNUAL REPORT 2010 A Year in Review


AgroInvest is a microfinance institution that serves the financial needs of the rural population and micro-enterprises in Montenegro, and provides consultancy services for rural households in Serbia. Microfinance is an especially powerful development tool because it helps to break the cycle of poverty by providing services to the poor who are ineligible for traditional financial services.

In addition to supporting economic development in rural areas, AgroInvest’s social programme seeks to improve health, education and overall living conditions for children in rural areas in which AgroInvest works. AgroInvest operates as a microfinance programme of international relief, development and advocacy organization World Vision. Its operations in Montenegro began in 1999 and two years later, it started in Serbia.

We support the development of rural families because we believe that the family is one of society’s most important units. We aim to improve the economic, spiritual and social stability, and the well-being of rural households by helping them fulfil their personal and business-related needs and plans.

We help children and young people who live in villages to encompass a better and more secure future. We do it by providing support for economic, social and spiritual development in rural areas. Despite the fact that these are the least developed regions in Montenegro and Serbia, we view them as areas that have the biggest strategic potential.

We establish personal contacts with our clients, effectively provide simple and accessible services, and implement development programmes to improve life in rural areas. We take every opportunity to highlight the importance of each of our clients and the communities in which they live. We display commitment, respect, understanding and care for every client, and rural family and recognise not just their needs but also their abilities and potential.

We believe that a strong rural household can cover all its expenses with its income, is able to make a profit, and live in a community whose members have access to education, health services and spiritual development.

VISIONLIFE IN ALL ITS FULLNESS FOR RURAL FAMILIES

MISSIONSERVING AND EMPOWERING RURAL FAMILIES WITH HIGH-QUALITY SERVICES AND SOCIAL PROGRAMMES

ABOUT AGROINVEST

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The English theologian and historian Thomas Fuller appears to be the first person to commit to print the notion that “the darkest hour is just before the dawn”. During the last year, events both in the external and internal environments required the AgroInvest team - by which I mean every employee throughout the organisation - to deal with some of the most difficult circumstances in its proud history. This required everybody to focus on the long term interests of our organisation, despite the short-term challenges. I feel very honoured to have been part of a leadership team that demonstrated such resolve in making difficult - yet necessary - decisions, and proud of our colleagues who supported these decisions by staying loyal to our vision and mission.

The fruits of our collective labour are beginning to show. Although still in need of improvement, performance is beginning to stabilise in Montenegro and AgroInvest is now better placed for further

consolidation to improve its future prospects. Tireless efforts to secure a legal framework for the provision of micro-credit in Serbia have resulted in a draft law that appears on the way to receiving the support of the new government; and, governance and risk management continue to be strengthened with an enhanced internal audit function and implementation of additional monitoring and control procedures.

I am also very proud of AgroInvest’s continued engagement with the community in the area of social programming. I was honoured to be a guest at the recent hand-over ceremony of the vehicle to our partners Amity and Red Cross Kragujevac for the benefit of children with disabilities from the rural areas of Kragujevac, as part of the Keep Them At Home programme, funded by World Vision Austria, the Austrian Development Agency (ADA) and AgroInvest.

Also, AgroInvest’s responsiveness and generosity to staff and community needs after the earthquake in Kraljevo demonstrated our commitment to partnering with the communities we serve, through good times and bad. I am very excited about further planned integrated activities with World Vision that are made possible because of the success of our programmes this year.

I would like to thank you all for everything you have contributed to AgroInvest, and look forward to a brighter forthcoming year as the new dawn begins to break.

Petros FloridesBA (HONS), ACMA, CHARTERED FSCI, CIRM, DIP IODCHAIRMAN OF THE BOARD OF DIRECTORS, AGROINVEST

When the time came for me to write this note for our 2010 Annual Report, I looked back at what I had written a year before, with the question: ’and so what happened, did we manage’?

Last year, I committed to continuing our path to recovery, by increasing our efforts in Montenegro, building new partnerships in Serbia, and lobbying for better regulation. I also considered it my duty to move the organisation to embracing change.

Twelve months later, I can evaluate our work and the difficult 2010 that we left behind. 2010 was marked by many tragic events for AgroInvest: a deadly car accident that claimed the life of one of our staff members, for another colleague a terrible illness, a traumatic earthquake near one of our branch offices that shook all of us and a dramatic change in management in Montenegro in

September, to name only a few. And just like an earthquake, AgroInvest and its staff were truly shaken at their roots by these difficult events.

October 2010 was marked by the true start of the new management era in AgroInvest Montenegro, marked by a focus on collection, recovery and professionalization of our work there. After a painful start, we have seen improvements every month. In Serbia, we took a leading role in attracting international and Ministry interest in microfinance in order to draft a comprehensive law that will now require acceptance by a new government in the months to come. We have worked steadily on improving our operations in both countries, in trying to identify more funding for growth in Serbia, and in keeping an eagle eye on our clients, who underpin ‘why we do what we do’.

We have much in store for 2011. We will implement the start of our new business plan by creating the mechanisms to ensure that AgroInvest continues to be client-driven, which means that we will set the stage for increased work in the area of Social Performance Management, ensuring better integration with our social programmes, and a greater focus on our target group. We will pursue the turnaround plan in Montenegro to get AgroInvest back on its feet by the end of 2011. In Serbia we will improve our operations and concretely start working with new partners while looking for ways to expand and strengthen in the field. We will be more actively engaged with VisionFund International, the microfinance subsidiary of World Vision, in policies, procedures and controls, while also leveraging its branding initiative to our two countries. We are putting in place mechanisms to ensure that change is not only accepted but also becomes an inherent part of who we are. And I believe that in 2011 we will be able to show better results and pride again in the two organisations.

One of my CEO colleagues in the region recently loaned me a very good book called ‘How the Mighty Fall’, by Jim Collins. It is full of good advice about how to ensure that organisations do not collapse and become stronger. As Mr Collins rightly points out in his book: “the signature of the truly great versus the merely successful is not the absence of difficulty, but the ability to come back from setbacks, even cataclysmic catastrophes, stronger than before”.

2010 took us straight into the eye of an organisational storm, and we are coming out of it stronger, more skilled and wiser. We believe that the resilience we have built throughout this process will be with us always and will pay off in 2011 and beyond. Here is to a successful and rewarding new year!

Caroline TsilikounasCEO, AGROINVEST

LETTER FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS

LETTER FROM THE CHIEF EXECUTIVE OFFICER

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Biserka Kljaic brings many years of experience in business and management, banking experience in SME lending and eight years of experience in leading and implementing a micro-finance programme in rural areas of Croatia. Ms Kljaic is a certified trainer working in areas of market research, sales and business analysis.

Biserka Kljaic, CHIEF OPERATING OFFICER

SERBIA

COMMON TO SERBIA AND MONTENEGRO

NEW MEMBERS OF OUR TEAM

MONTENEGRO

SOCIAL PROGRAMMES

HIGHLIGHTS OF THE YEAR 2010

• Created a microfinance working group and drafted a law on microfinance together with the Ministry of Finance, EBRD, Oikocredit, USAID, and PRSP team, among others. The team contributed to the identification of a local Ministry champion and numerous background documents and surveys to make a case in support of a microfinance law in Serbia.

• Created a collection and recovery team, improved collection efficiency in Montenegro and monthly delinquency results.

• Restructured HR department and created a number of tools and policies/procedures to increase transparency.

• Developed a plan for greater integration of social programmes and social performance management into AgroInvest’s core lending.

• Formed the Social Performance and Integration Committee (SPI) in May to lead further development of social performance in AgroInvest in order to institutionalise it and at the same time provide greater integration with World Vision social practices.

• Created the unique database for registration of children with disabilities, named “Keep Them At Home”, in coordination with our partners and set as a web application, as part of our “Keep Them At Home” programme.

• Opened Day/Night Care Centre for children with disabilities within our “Keep Them At Home” programme in August 2010.

• Raised US$1,450 amongst AgroInvest staff to donate to World Vision Haiti staff members who were impacted by the earthquake.

• Changed reporting of training department directly to operations to increase integration.

• Trained a team of 12 individuals on market research and conducted market research for new product development and client satisfaction.

• Created new domain name for AgroInvest website www.agroinvest.org in 2010 with a goal to provide updated information about AgroInvest’s performance.

• Created legal department.

• Conducted staff care review and followed up with specific one-on-one therapy for some staff members.

• Started restructuring of village councils in AgroInvest Montenegro.

• Introduced free telephone line for clients in order to enable them to have a contact point for complaints and suggestions. The phone line is managed by an independent company to ensure full transparency.

• Developed new delinquency policies and procedures, using the best practices of the microfinance institutions worldwide.

• Conducted fraud file review.

• Changed top management in September and started turn around, out of the delinquency and HR crisis. The delinquency increase was stopped and the branches that were in deepest crisis consolidated their performance.

• Identified a potential partner bank in Serbia, obtained legal compliance and brought negotiations to its final stage.

• Introduced pilot test of new collateral in Serbia and new definition of target group to ensure more down market focus.

• As a social responsible institution, responded quickly to Kraljevo earthquake by renovating five schools, providing psycho-social support to branch staff and visiting all 1,500 branch clients.

• Raised investor funding for capacity building projects for partnerships, market research and regulatory lobbying.

• Succeeded in obtaining direct administration of the administrative ban from partner bank to manage relationship and delinquency in a more efficient way.

• Obtained hedging quotes locally.

• Raised €1 million for Serbia in loans.


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AGROINVEST ORGANISATIONAL CHART

AGROINVEST HOLDING ORGANISATIONAL STRUCTURE

AGROINVEST SERBIA ORGANISATIONAL STRUCTURE

AGROINVEST MONTENEGROORGANISATIONAL STRUCTURE

AgroInvest introduced a number of staff changes in order to smoothly transition during the crisis period, as well as changes to the organisational structure at the end of 2010. AgroInvest is in the process of strengthening the HR department at the holding level, and creating strong Legal and Recovery departments in both Serbia and in Montenegro.

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LOANS

38.67% 32.60%

13.59%11.30%

9.01%

8.27%

8.19%

7.82%

4.46%

14.74%11.82%

7.86%

5.63%

5.03%

3.88%

3.67%3.13%

2.29%

0.89% 1.50%1.43%

0.81%0.76%

0.25%

0.86%0.57%0.44%

0.42%0.10%

AGROINVEST SERBIALOANS USED FOR AGRICULTURE (IN %)DATA AS OF DECEMBER 2010

AGROINVEST MONTENEGROLOANS USED FOR AGRICULTURE (IN %)DATA AS OF DECEMBER 2010

Most of AgroInvest’s clients use loans to start businesses that create new jobs for family members.

The majority (about 80%) of AgroInvest’s portfolio is used in agriculture. The remainder is used in production, services and trade.

Cattle Breeding

Fruit and Vegetables

Piggery

Poultry

Milk Production

Sheep

Crop Production

Egg Farm

Greenhouse

Horticulture

Apiculture

Restaurant

Food Processing

Tourism

Irrigation System

Fish

Milk Production

Cattle Breeding

Greenhouse

Poultry

Fruit and Vegetables

Sheep

Piggery

Egg Farm

Irrigation System

Apiculture

Fish

Holticultur e

Crop Production

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CLIENTS

>> After a few failed attempts to secure a good job he decided to start his own business. He began with a business selling cattle feed, for which he thought there was a market demand in his new area. He soon managed to open a cattle feed store using some of his savings and with help provided by AgroInvest in the form of a small loan.

Milisav, as a successful entrepreneur, had another idea – to open a chicken farm in addition to the store. He hoped to expand his business and generate additional income, which he and his wife and daughter could use to expand their home and create better living conditions for their family. With another loan from AgroInvest, he managed to start a chicken business.

Now, Milisav owns a cattle feed store and a chicken farm with about 1,500 hens. He is very happy and proud of his achievements. He is even more proud because his family gives him great support. The business has brought his family closer together.

“If it wasn’t for my family I would never be able to achieve this by myself”, says Milisav.

Milisav also appreciates all the assistance he received from AgroInvest and he says that people who are not afraid of work can make a good living opening their own businesses.

“If it wasn’t for my family I would never be able to achieve this by myself”, says Milisav.

GOOD LIFE ON A CHICKEN FARM

MO

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Seven years ago Milisav Barjaktarovic made the tough decision to relocate from his hometown of ‘Bar’; the largest port on the Montenegrin coast, to Serbia in search of a better life. >>

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>> Eleven years ago, Marija and Darko moved back to the village on her grandfather’s property because in their opinion, living in cities is hard and expensive. They hoped to find happiness in a rural environment. They did.

“We are happy that we moved back to the village. We took our lives back in our own hands. Here in the village, everyone who is not afraid of work can make a good living”, says Marija.

After many years of working for other property owners, Marija and Darko heard of AgroInvest and micro loans. That’s when they decided to try something on their own.

A micro loan was, in their opinion, an opportunity to become independent and make their own living.

Marija’s first loan of 600 Euros was used to fix an old tractor. With an operating tractor, they could do the field work and get wood for the winter. The next year, from Marija’s second loan of 1,000 Euros, they bought additional mechanization for the tractor. Currently, she has a third loan of 1,500 Euros which she used to buy sheep of a special breed.

As an entrepreneur, Marija already has plans for her next business move - to buy goats and to start producing goat cheese. She believes micro loans helped her a lot in developing her agricultural household, and she is very happy for her cooperation with AgroInvest.

At the time when she took her first loan, AgroInvest decided to help her children through the social project ‘Happy Child’ and bought them a heater, some wood for the winter, and hardwood floors. Marija’s children also received Christmas gifts from AgroInvest as part of another social project. This is an example how AgroInvest gives back to the communities and its clients through social projects.

Women, as primary caregivers in a family, are those most likely to use the increased income for the benefit of their children.

A GOOD LIFE IN RURAL AREAS FOR MARIJA AND HER FAMILY

WOMEN CLIENTS

We took our lives back in our hands, says Marija

SER

BIA

Marija Pavlovic, a 38-year-old mother of six children, has managed with her husband Darko to create a small agricultural business after years of struggling with minimal salaries and unsuccessful jobs.

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In this recessionary environment, financial institutions are putting heavy emphasis on risk management, collection and recovery. It is with the same priorities in mind that AgroInvest decided to set up these departments in both countries in 2010, in an effort to professionalize its operations.

The collection office in Montenegro officially started its work in March 2010 as part of the Risk Management Department, at a time when a very large portion of its portfolio lent out in the ‘bubble’ years of 2007 and 2008 was faced with serious delinquency problems. This department was streamlined as part of the main operations by being supervised by the country director in each country. As the collection department was developed, so were robust policies and procedures.

The scope of the collection office includes loans with the highest delinquency so that these officers manage the largest repayment problems in their every day schedule. Thanks to the extreme commitment and special training that they have received (both in house and with the support of investors), they are successfully overcomming all the challenges faced in the field, as shown in Table1 below.

The collection Office in Montenegro has 6 employees managing the portfolio at risk over 60 days. The average client number per officer is 350 and their current portfolio is about 3,000,000 € per office. Repayment efficiency, e.g. percentage of the PAR>181 days that was about to be written off, but is successfully repaid, is over 50 %.

A significant part of the Collection Office’s duties is also identification of loans suspected of fraud and since inception, the focus of the department has been on the North of Montenegro due to the escalation of the delinquent portfolio there. The collection office plans to continue its successful results in 2011 as well, in order to decrease the portfolio at risk and with its endeavour to contribute to the accomplishment of Agroinvest’s vision.

COLLECTION AND RECOVERY OFFICES IN AGROINVESTBackground

In July 2010, two recovery officers were recruited to focus on recovering written off loans and to reduce the inefficient and high costs incurred by subcontracting external lawyers (thus also having little management ability of the work carried out). At the end of 2010, the CEO of the Holding created a complete legal team, and added to the team two new recovery officers, bringing their number to four in Montenegro, and reporting to a recovery manager (himself reporting to the head of the legal department). Please see the organisational chart.

Recovery office

Collection office

IN MONTENEGRO

COLLECTION AND RECOVERY STRUCTURE

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In March 2010, two recovery officers were recruited to focus on recovering written - off loans. As in Montenegro, recovery officers in Serbia also replaced external lawyers and were able to increase the recovery of loans and have greater control of the court cases.

At the end of 2010, after the CEO of the Holding created a complete legal team, the Recovery team in Serbia also recruited a Recovery Manager who reports to the head of the legal department (please see organisational chart) and the achievements of this young office became immediately evident, as shown in Table 3 below.

As proved successful, both Serbia and Montenegro plan to continue with the activities of their collection and recovery offices in 2011 and the years to come.

In Montenegro, the Recovery team will hire two additional recovery officers in 2011 and that way complete the team with 6 recovery officers supervised by a recovery manager. The recovery team will take over full responsibility of all written off portfolio and all court cases.

In Serbia, the collection team will cover three main regions in Serbia dealing with PAR>90 days in 2011 and the Recovery team will be strengthened by the recruitment of three new recovery officers in 2011 who will (with the Recovery manager) cover the Southeast, Central and Western regions in dealing with the written off portfolio and court cases.

When the Recovery Office in Montenegro was formed, all contracts with external lawyers were cancelled, resulting in significantly decreased costs and greater recovery of written off loans (Table 2). In addition to greater return, Agroinvest accomplished notably improved legal processing.

Recovery office

Future plans

Table 2:

Table 3:

In July 2010 Agroinvest also established a collection office in Serbia by hiring two collection officers who focused on managing the portfolio at risk over 90 days in two branch offices in Central Serbia, Kragujevac and Krusevac. The success of this office was already visible by the end of 2010, when those two branches significantly decreased their PAR over 90 days.

The plan is to expand the area of work of these officers in 2011 with the goal of covering all other branch offices in Central and Western Serbia as well as by recruiting one more collection officer that would gradually cover PAR over 90 days in the branches of the Southeast region. As in Montenegro, the collection office in Serbia is part of the operations and its manager is directly supervised by the Country Director.

Collection office

IN SERBIA

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Even though AgroInvest has a leading position among all microfinance organisations in both countries, market penetration in Serbia is still very low. With bigger investment capacity and more favourable legislation, AgroInvest has a record of significant growth and provides services to a growing number of rural families and communities.

ESTIMATED MARKET SIZE AND PENETRATION

* World Bank 2008** UN Data 2007 *** Market size (number of rural households) calculated as total rural population divided by 3 family members on average (Statistical Office of the Republic of Serbia)**** AgroInvest rule is to provide no more than one loan per household

AgroInvest’s social programmes focus on improving health, education and overall living conditions for children in rural areas in which AgroInvest works.

SOCIAL IMPACTSOCIAL PROGRAMMES

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AgroInvest’s social programme called Happy Child, started in 2004. Since then 819 Happy Child projects were implemented in 18 municipalities and impacted the lives of more than 60,000 children. Projects include the reconstruction of schools, kindergartens, churches and homes; construction of playgrounds; installing personal computers and other equipment for schools; provision of medical supplies and therapeutic equipment for children with disabilities; and covering medical/surgical expenses for children with costly or difficult to treat illnesses. >>

>> Each month AgroInvest branch offices commit up to 2.5% of their revenue for Happy Child projects in their communities. Through their Village Associations, communities contribute about 50% of the cost of each Happy Child project.

In 2010, a total of 39 Happy Child projects were implemented in Montenegro and Serbia impacting the lives of 2,426 children. Total value of all projects in 2010 was 49,024 Euros, of which AgroInvest donated 36,602 Euros. The rest were community contribution and external donations from our partners. Five social projects were directly linked to AgroInvest’s response after the strong earthquake in the city of Kraljevo in Serbia.

HAPPY CHILD

In 2010, a total of 39 happy child projects were implemented in Montenegro and Serbia impacting the lives of 2,426 children.

SOCIAL IMPACT / SOCIAL PROGRAMMES SOCIAL IMPACT / SOCIAL PROGRAMMES

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These five projects were implemented in close consultation with community representatives and construction experts and impacted the lives of more than 400 children.

Thanks to World Vision and AgroInvest, the school in Obrva re-opened its doors for students.

“It was a problem funding the construction works because our school was not a priority compared to other schools in Kraljevo. If it wasn’t for AgroInvest our school would probably never open again”, says school director Zvonko Ljubisavljevic.

“It is amazing how they managed to support the old building with these metal trusses. It looks much steadier than before”, says Srecko, a village teacher who has been teaching in this school for more than 10 years.

Before the school opened its doors again on 22 December 2010, parents and other villagers volunteered in cleaning and painting the classrooms.

In a small village school in Obrva near Kraljevo in central Serbia, several months after a strong earthquake, we again hear voices of happy children playing between classes. The school was seriously damaged in early November 2010 when a strong earthquake followed by a series of smaller quakes struck Kraljevo region leaving two dead and a trail of material damage across the whole region. The damage was so severe that it was just a matter of time before the school walls and roof would collapse.

AgroInvest stepped in to provide extensive construction works and made the school building safe again. This was one of five projects AgroInvest implemented to improve education for children in Kraljevo villages at a cost of US$17,820 to date. Dragan Đoković Uča primary school in Obrva village, which accommodates 29 students in grades one to four, was closed for weeks after the earthquake because of the damage.

“A few weeks after the earthquake, since we didn’t have any funds for construction works, and didn’t want children to miss classes, we started using classrooms in another village, miles away”, says school teacher Srecko Gocobija. However, this solution was impractical and required costly transportation every day. It was only a temporary solution so that children would not miss many classes.

Due to their location, schools in small rural communities can easily slip down the priority list for renovations. But for AgroInvest, schools and children in villages were the first priority.

AgroInvest helped to renovate rural schools in three villages and the organisation replaced learning materials and equipment that was damaged in another school. AgroInvest also prepared Christmas packages for 30 vulnerable children and their families, with new winter jackets and shoes for 30 children, and packages with food and hygiene items for the ten most vulnerable families.

“The biggest happiness comes from the fact that these children are really good students and they are all well behaved. Above all, they are good young people”, says director Zvonko Ljubisavljevic.

An old Serbian saying goes, “good always returns with good.” Maybe these children will help others when they grow up, and by doing our very best for these children, will ensure a better future for all of us and for our communities. By leading by example, we can teach our children to continue that legacy.

“We tried to help as many schools as possible. World Vision and AgroInvest basically prioritised construction works that would enable schools to reopen classrooms. However, there are many other things that need to be done, like cleaning, painting, etc”, says Marija Cvetanoski, AgroInvest’s Social Programmes Director.

“I am happy to go to my school again. I love my school”, says nine-year-old Ivan who likes math and drawing.

SUCCESS STORY NEW BEGINNING FOR VILLAGE SCHOOLS AFTER EARTHQUAKE


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KEEP THEM AT HOME

In 2010 AgroInvest continued the “Keep Them At Home“ social programme, which focuses exclusively on children with disabilities and their families that live in remote rural areas where AgroInvest operates. If families receive support and better access to child services, they will be encouraged to keep their children with disabilities at home instead of sending them to institutions where they often receive minimal care and no rehabilitation services.

The “Keep Them At Home” programme is funded by AgroInvest, World Vision Austria, Austrian Development Agency (ADA) and World Vision’s Deinstitutionalistion (DI) Network and implemented by our local partner, NGO “Amity”.In Serbia and in Montenegro, World Vision’s DI Network is working to engage government and communities on behalf of children with disabilities as a prevention mechanism against institutionalisation.

In remote rural areas there is a desperate need for specialised services for children with disabilities, such as day care centres, hospitals, schools, etc. Families with children with disabilities are scattered over large areas, isolated from one another, and are poorly informed on how to treat their children and organise themselves as a community.

Ten-year-old Marko, from Donja Trnava village located some 35 kilometres from Kragujevac, was diagnosed with a full mental disability. Marko is very social, likes to play with his two sisters and often likes to ride on the tractor with his grandfather.

The first concerns regarding his health arose when Marko was two years old. The fact that he didn’t start to talk until then didn’t worry his parents. The first signs of unusual behaviour emerged when he began talking unclearly. Soon after that he stopped talking altogether. He was diagnosed with Autism.

Throughout the years there were many attempts to take Marko to the “Lipovica” institution for children with disabilities in Belgrade, but every time he would show resistance towards that institution. On numerous occasions his parents tried to enrol Marko in preschool but they received a negative response from school officials who said Marko is uncooperative. Lack of money was another obstacle for the family. Three years ago Marko’s parents gave up trying. >>

The “Keep Them At Home” programme started in the Kragujevac municipality in the pilot phase and continues in Kraljevo municipality. Since its inception in 2009, the programme has reached out to 216 families with their 226 children.

Great efforts were made to involve local government in the programme. AgroInvest has pursued sustainability by establishing a Day/Night Care Centre that is now under the City’s jurisdiction.

The Day/Night Care Centre represents a new social service in Serbia and its concept is already recognised as highly beneficial and also replicable by local and national institutions, whose 70 representatives attended its ceremonial opening on 25 August 2010.

Also, in 2010, a unique database for registration of children with disabilities, named “Keep Them At Home” was created in coordination with our partners. The database was set as a web application, and our Mobile Teams are able to enter data and at the same time test it.

“Keep Them At Home” is the only project in Serbia entirely focused on children with disabilities and their families who live in rural areas.

SUCCESS STORY A CHANCE FOR MARKO’S EDUCATION


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YOUTH BIBLE CURRICULUM Through our spiritual development programme called Youth Bible Curriculum (YBC), AgroInvest in Serbia supports the church in developing a curriculum to reach out to the new generation and its parents about the Orthodox Christian faith. This is a religious education programme for children aged 7 to 14 that live in rural areas and is implemented in partnership with the Serbian Orthodox Church.

In 2010 the third YBC book was translated and printed in the Serbian language. This project directly impacted 12,000 primary school children across Serbia. Books were produced by the Serbian Orthodox Church and World Vision through AgroInvest, in partnership with Gospel Light Worldwide. These books will be a valuable supplement to basic learning materials for theology classes in Serbian primary schools, specifically in rural areas where AgroInvest operates.

Here, the “Keep Them At Home” project mobile team stepped in to provide funds for transportation and Marko’s grandfather agreed to drive him to the day-care centre on a daily basis.

Marko is now enrolled in school for the first time thanks to the “Keep Them At Home” project. He interacts with other children and is starting to explore the world around him.

“There is a chance for Marko’s health to improve and a possibility for his independence. The key is in education”, says Dr Ljubisa Milojevic, a mobile team member. “Now that we enabled him to have access to adequate education, we will continue monitoring Marko’s status and try to modify our services if needed”.

>> When the “Keep Them At Home”project mobile team met Marko, they knew that his quality of life would improve with rehabilitation and access to education. As the best solution, the mobile team suggested that Marko be enrolled in the day-care centre for children with disabilities within the primary school “Vukasin Markovic” in Kragujevac. In the day-care centre, besides constant interaction with other children, Marko would receive assistance from a child psychologist and a speech therapist.

The family however lives 35 kilometres from Kragujevac and they are not able to take Marko to the day-care centre on a daily basis. Marko cannot travel in public transportation because he cannot cope with overcrowded spaces. Still, driving Marko to the centre in an old family car would be too costly because fuel costs out-weigh their income. Marko’s parents knew that his chance for recovery is in daily interaction with other children, which would happen in the day-care centre, but they simply couldn’t afford it.

PLANS FOR 2011

MONTENEGRO

SERBIA

SERBIA AND MONTENEGRO

• Finalise turn around and break even by end 2011• Re-brand AgroInvest Montenegro• Increase efficiency, given smaller outstanding portfolio and review distribution channels• Re-design some loan products and resume growth in disbursements

• Start new bank partnership• Pursue regulatory framework lobbying• Pursue growth and identify future funding for growth• Design new agricultural loan products• Start implementing business plan• Select MIS as part of regional VisionFund International initiative

• Strengthen HR and finance departments• Strengthen communication externally and internally• Pursue social performance management and social programmes and integrate them further into AgroInvest’s work• Pursue greater integration with World Vision and VisionFund International • Enhance change management process and client-driven organisational culture

SOCIAL IMPACT / SOCIAL PROGRAMMES

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MONTENEGRO

PODGORICA 1 Cetinjski put bb (zgrada Milic) 81000 Podgorica, Montenegro tel. +382 20 291 090mob. +382 67 227 739, 227 745fax. +382 20 291 091

PODGORICA 2 27 marta G7 S13 81000 Podgorica, Montenegro tel. +382 20 643 520 fax. +382 20 643 521

PLJEVLJA Prijepoljska bb 89000 Pljevlja, Montenegro tel. +382 52 300 116 fax. +382 52 300 117

BERANE Polimska 1 87000 Berane, Montenegro tel. +382 51 230 290fax. +382 51 230 291

BAR Jovana Tomasevica E5, (zgrada Crnotravca) 85000 Bar, Montenegro tel. +382 30 315 995fax. +382 30 315 995

MOJKOVAC / Sub Office Serdara Janka Vukotića bb 84205 Mojkovac, Montenegro tel. +382 50 472 352

ROZAJE / Sub Office 30. septembar br.5 843010 Rozaje, Montenegro tel. +382 51 271 670

BIJELO POLJE Voja Ljesnjaka bb 84000 Bijelo Polje, Montenegro tel. +382 50 430 356, 430 176, 430 177mob. +382 67 20 20 26fax. +382 50 430 356

ULCINJ / Sub Office Bulevar Gjergj Kastrioti Skenderbeu b.b.Poslovni centar Lika, poslovni prostor br.16, 85360 Ulcinj, Montenegro

NIKSIC Vuka Micunovica 3183000 Niksic, Montenegro tel. +382 40 220 009, 220 017fax. +382 40 212 942

HERCEG NOVI Zemunska 36 85340 Herceg Novi, Montenegro tel. +382 31 345 540,tel. +382 31 345 542

BUDVA Rozino bb (zgrada Maxija) 86000 Budva, Montenegro tel. +382 33 403 512tel. +382 33 403 513mob. +382 67 212 050

SERBIA

BELGRADE Pazinska 16 11000 Belgrade, Serbia tel. +381 11 397 28 28tel. +381 11 397 66 45fax. +381 11 397 07 81

NIS Kopitareva 19 18000 Nis, Serbia tel. +381 18 519 200, 292 893mob. +381 63 670 126 fax. +381 18 519 201

KRAGUJEVAC 27 Marta 4 34000 Kragujevac, Serbia tel. +381 34 338 335mob. +381 63 670 432 fax. +381 34 501 334

JAGODINA Teslina 6 35000 Jagodina, Serbia tel. +381 35 885 32 70 fax. +381 35 885 32 67

CACAKKneza Milosa 4132 000 Cacak, Serbiatel: +381 32 344 008fax: +381 32 344 108

BLACE / Sub Office Vuka Karadžića 1, 18420 Blace, Serbiatel. +381 27/371 734

LESKOVAC Babickog odreda 2/6 16000 Leskovac, Serbia tel. +381 16 214 815fax. +381 16 214 815

KRUSEVAC Kosanciceva 19 37000 Krusevac, Serbia tel. +381 37 427 566mob. +381 63 670 411 fax. +381 37 445 310

VALJEVO Vojvode Misica 59 14000 Valjevo, Serbia tel. +381 14 229 298tel. +381 14 291 075fax. +381 14 229 298

KRALJEVO Vojvode Stepe 74 36000 Kraljevo, Serbia tel. +381 36 393 733tel. +381 36 393 818 fax. +381 36 393 801

VRANJE Cara Dusana 4017500 Vranje, Serbia tel. +381 17 405 058tel. +381 17 405 059 fax. +381 17 420 455

PIROT Srpskih vladara 227 18300 Pirot, Serbia tel. +381 10 320 972mob. +381 63 670 470fax. +381 10 313 019

NOVI PAZAR Veljka Vlahovica 22, 36300 Novi Pazar, Serbia tel. +381 20 386 285fax. +381 20 386 286

UZICE Slanuska 11 31000 Uzice, Serbia tel. +381 31 500 136tel. +381 31 500 536mob. +381 63 670 433 fax. +381 31 516 655

PRIJEPOLJE Branka Radicevica 10 31300 Prijepolje, Serbia tel. /fax. +381 33 715 700 tel. /fax. +381 33 710 136

ZAJECAR Njegoseva 4 19000 Zajecar, Serbia tel.+381 19 428 842mob. +381 63 670 471fax. +381 19 428 842

AGROINVEST OFFICES IN MONTENEGRO AND SERBIA

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INDEPENDENT AUDITOR’S REPORT

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2010. IN FIGURES*BALANCE SHEET

OPERATING EFFICIENCY

2010. IN FIGURES*INCOME STATEMENT

*Note: All amounts are in €.

*Note: All amounts are in €.


ACKNOWLEDGEMENTS

AgroInvest expresses sincere thanks to its partners for continuing to support efforts to create a better life in the rural areas of Serbia and of Montenegro to:

• WVI - World Vision International• VFI - VisionFund International• GCMC - Global Commercial Microfinance Consortium LTD• Symbiotics SA Information Consulting & Services• Blueorchard Loans for Development SA• PBB - Privredna banka Beograd• OIKO Credit, Ecumenical Development Cooperative Society• Incofin - CPP - INCOFIN c.v.s.o.• Developing World Markets - DWM Assets Management LLC• Deutsche Bank• CORDAID

• EFSE - European Fund for Southeast Europe• KFW Germany - Kreditanstalt fur Wiederaufbau• CKB - Crnogorska komercijalna banka• MicroVest - MicroVest Capital Management LLC • Triple Jump B.V.• NGO Amity• Embassy of the Federal Republic of Germany, Belgrade• World Vision Deinstitutionalisation Network• World Vision Austria• ADA - Austrian Development Agency

www.agroinvest.orghttp://serbia-montenegro.worldvision.org

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