Memorandum to Jesse L. Snyder, mission director on project 632-0214 close out report (credit union league development)

The project was a success, with at least 2/3 of its quantitative and qualitative targets being met. Thanks in part to the training of 1,514 board and committee members throughout the country, the overall administration and management of LCCUL and select CU's have been substantially improved. In addition, 32 operational guidelines were developed, and credit procedures and less restrictive loan policies and appraisals are now in place. Further, LCCUL has increased its staff, achieved the financial self-sufficiency target of 36%, and developed a comprehensive 5-year plan (which includes a break-even strategy) in concert with the CU Development Component of project 6320221. The project also: completed 123 CU audits; developed a weekly radio program promoting savings and CU's; produced and distributed 60,000 pamphlets and brochures on CU membership; improved the supervision of field officers and redirected the latter's efforts from promotion to the provision of TA; and trained over 5,000 farmers in improved agricultural production practices. On the negative side, the target to decrease overall CU loan delinquency to 24% was not met, and only 11 of a targeted 16 new CU's were established. Improvements were more rapid during the 1984-86 period, in which the project gave priority to select CU's (especially those with paid employees) instead of continuing inadequate assistance to all CU's. Also during this period, the project fully implemented recommendations made in project evaluations regarding linkages with LADB (unidentified acronym) and Government of Lesotho entities, bookkeeping and credit assessment training, and field staff supervision. Work was progressing in fulfilling other recommendations, e.g., to install loan control systems and intensify loan collection. Several lessons were learned. (1) The CU's are jealous of their autonomous status. This sense of ownership reflects a grassroots orientation which is the key to the success of these CU's. (2) Institutional development is a slow process and requires a long-term donor commitment. (3) Direct TA by LCCUL's field officers is essential for the continued development of the CU's. (4) The project's provision of substantial financial and technical support to LCCUL enabled the League to retrain its staff and undergo professional and institutional development.