WOCCU’s community-based approach supports the research, discovery and design of innovative financial solutions with our global partners  



WOCCU is using Pay-for-Performance (P4P)-based incentives to catalyze finance in the Haitian housing market through our USAID/Haiti Home Ownership and Mortgage Expansion (HOME) Project. The P4P mechanism has helped to overcome market bottlenecks in access to affordable housing finance and development. In 2017, HOME’s P4P approach enabled the mobilization of US$ 9 million (with total private capital committed of US$ 24.5 million), including owner-led housing microfinance products, developer-led housing infrastructure investments and mortgage products.  

P4P is an approach that provides incentive awards for results achieved. Project sponsors are awarded for achieving specific objectives and changing behavior, thus switching the focus of payment for spending on inputs to pay for results. This incentive structure empowers project sponsors to think creatively about risk mitigation and improvements to human resources and organizational efficiencies.  


Islamic finance 

In Afghanistan, WOCCU took a community-based approach to develop Islamic Investment and Finance Cooperatives (IIFCs) and their apex organization, the IIFC Group, collaborating with these institutions to develop Shariah-compliant financial products and services. Many financial institutions are not compliant with Islamic principles and therefore do not meet the needs of potential Muslim customers.  The cooperative nature of credit unions translates well to Islamic finance, so we were able to work through the network of IIFCs to increase access to financial services by developing and offering Islamic financial products and services. We have developed a technical guide that provides a comprehensive set of standard operating policies and procedures required to establish IIFCs in the developing world. 

WOCCU expanded the cooperative network to 27 IIFCs and 14 branch offices in 14 provinces, including highly insecure locations in the South and East of Afghanistan. IIFC membership increased from 46,865 to 92,456 members despite the poor security environment and disbursed 104,752 loans totaling US$ 71.4 million. IIFC lending created an estimated 157,128 jobs during the life of the project. By the end of the project, 11 of the 34 IIFCs were fully sustainable and capable of covering their operating costs from earned income, while another three were very close to becoming fully sustainable.