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A programme financed by the European Union and managed by the ACP Secretariat

ACP/EU MICROFINANCE

November 2012

INTRODUCTION

MICROFINANCE IN ACP COUNTRIES

• ACPs : over 800 million people, 80 countries, 3 continents

• 39 Least Developed Countries (LDCs)

• Only one out of five households have proper access to financial services.

EU & ACP MICROFINANCE PROGRAMMES

• Dedicated to microfinance in ACP countries

• European Development Fund

• € 15 million / Programme

• EC Vision

2 A programme financed by the European Union and managed by the ACP Secretariat

UPS & DOWNS OF MICROFINANCE

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- + 21% yearly growth of borrowers from 2003 to 2008

- 2002 : 60 MFIs report in the Mix Market. 2011 : over 1,900

- Expansion of MFIs from microfinance banks to specialised NGOs.

- Specialised rating agencies, Information Service (IS) companies and products.

- New models, new players (communications technologies), new legislation and regulatory frameworks

- Funds flow (international donor community, private investors).

- Growth crisis : bad lending and collection practice, lient over-indebtness, Governement backlash,

- Clients affected by the economic downturn require new types of financial services

- MFIs seek to strengthen their risk management internal controls and implement social performance,

- Regulators and supervisors try to improve their policies and actions.

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EU/ACP MICROFINANCE (I)

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Achievements

• 150% increase in people served by

partner MFIs (over 775,000 clients)

• 40 MFIs strengthened in 50 countries

• 2 start-up MFIs

• Over 500 MFI staff trained

• 53 scholarships awarded for the

Microfinance Boulder Training

• 90 MFIs rated

• 20 MFIs received IT advice

• 11 African countries and Central

Banks received TA on their regulatory

and legal framework

The EU and ACP Group of States implement, in 2005, a dedicated microfinance programme.

Description

• Duration: 2005 – 2010

• Funding: 9th EDF (€ 15 million)

• Objective: capacity building of local

microfinance actors

• Specific objectives:

- Capacity building and strengthening

of MF actors

- Support to ratings and information

systems and stimulate their

improvement

- Enhancing transparency and

efficiency in the MF market


ACP/EU MICROFINANCE (II)

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Duration: 2010 – 2014

Funding: 10th EDF (€ 15 million)

Contribute to poverty alleviation through economic growth

via:

• Pro-poor access to finance,

• Consumer empowerment and capacity building,

• Equitable and efficient local markets

Implementing methods: • Contribution agreements with international organisations (€ 5

million)

• Call for proposals (€ 7.5 million)


PARTNERSHIPS

KfW: MSME investment fund for Sub-Saharan Africa (REGMIFA)

IDB: Carib-Cap programme for the development of microfinance in the Caribbean

UNDP UNCDF: Pacific Financial Inclusion Programme (PFIP) in the Pacific

CGAP: Efficiency and transparency of local markets

ITC ILO: Training of ACP policymakers and practitioners


CALL FOR PROPOSALS (1/5)

Grants to institutions supporting the responsible offer and

delivery of financial services to those still excluded from

main-stream access to proper financial services.

Global objective : to develop inclusive financial systems

adapted to the needs of the poor.

Specific objectives :

• facilitate access to finance for communities excluded from the

formal financial system,

• improve the institutions’ capacity,

• build the financial capability of ACP microfinance clients




- 7 multi-country

actions,

- 10 countries

hosting several

actions.


CARE NETHERLAND: Facilitating access to

finance for communities excluded from the

formal financial system, Sierra Leone

CICM: Financial empowerment of excluded

populations: expanding access to local

mutualist microfinance, Burkina Faso,

Cameroon, Central African Republic (CAR),

Republic of Congo

CONCERN UNIVERSAL: Increased access to

appropriate financial services by smallholders’

food crop farmers and rural

microentrepreneurs, Ghana

COOPEC RESOPP: Capacity building of the

cooperative, adaptation and diversification of

its services to the needs of family farms,

Senegal

ILCUF: Credit union programme against

poverty, Ghana, The Gambia, Sierra Leone,

Liberia

MICROFINANZA: Development of innovative

products financing access to green

technologies, Kenya, Tanzania, Uganda,

Ghana

MICROSAVE CONSULTING: Increasing

access to agricultural finance for farming

households through product development,

Kenya, Uganda, Ethiopia, Ghana, Tanzania

OXUS DEVELOPMENT NETWORK:

Greenfield operations in low penetration

regions of DRC and CAR

PAMIGA: Responsible and sustainable growth

for rural microfinance, Benin, Burkina Faso,

Cameroon, Ethiopia, Kenya, Madagascar,

Mali, Senegal, Tanzania, Togo

STANDARD MICROFINANCE BANK:

Improving the living standards of Fulani

Tribesmen and the underbanked, Nigeria

TRIAS: Sustainable access to microfinance

for family farmers and microentrepreneurs,

Ghana.

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GRANTEES & ACTIONS:

RURAL MICROFINANCE

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MICROSAVE

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The Action Increasing access to agricultural finance for farming households through product development Countries of implementation Ghana, Uganda, Tanzania, Kenya, Ethiopia, Zambia.

Target Group - 5-10 MFIs - Farmers (of which 50% women) and/or

people in rural areas who depend on small scale agricultural activities, clients of MFIs.

Final beneficiaries 70,000 people.

Main activities • Implementation of 10 step product development process with MFIs, • Linkage of MFIs to agricultural extension services providers/value chain support, • Development of financial education curriculum; training of trainers of partner MFI staff, • Support to MFIs in identification of risk-mitigating measures, • Editing of publications and presentations.

TRIAS

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The Action Poverty alleviation through sustainable access to microfinance for family farmers and microentrepreneurs in the 3 northern regions of Ghana Countries of implementation Ghana

Target Group - 15 Rural and Community Banks (RCBs) - 2 Farmer Based Organizations (FBOs),

involving microentrepreneurs and family farmers.

Final beneficiaries 156,800 persons (families of the 11,500 microentrepreneurs and 10,900 family farmers)

Main activities • Capacity building of RCBs and FBOs on financial and social performance management,

risk management, market research and product development, • Facilitating linkages between RCBs and FBOs for increase access by the latter to tailor

made microfinance services, • Integral education of clients through adapted Credit with Education methodology.

CONCERN UNIVERSAL

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The Action

Banking for the Poor (BFP) Countries of implementation Ghana

Target Group • 10,000 smallholder farmers, • 5,000 productive poor women engaged

in various microenterprises.

Final beneficiaries 60,000 household members and dependants of primary target groups as financial indirect beneficiaries.

Main activities • Creation and capacity building of community savings and loans groups, • Financial literacy campaigns, • Research and technology adaptation, • Entrepreneurship training and business development service (BDS).

CREDIT UNIONS

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COOPEC-RESOPP (FR)

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L’action

FinRur Pays de mise en oeuvre Sénégal

Cibles Les six coopératives, membres du RESOPP, les groupements de femmes, les associations, les SFD agissant en milieu rural. Bénéficiaires finaux Les agriculteurs, les éleveurs, les micro-entrepreneurs ruraux – et particulièrement les femmes.

Activités principales • Analyser les besoins et la demande et segmenter la clientèle potentielle, • Améliorer les conditions d’accès au crédit, • Réaliser des formations, • Expérimenter le crédit warrantage, • Renforcer les capacités des ressources humaines et les moyens logistiques, • Articuler les services non-financiers des coopératives rurales avec les services financiers

de la COOPEC-RESOPP, • Mettre en place un système d’information et de gestion adapté, • Consolider le dispositif de contrôle interne, • Renforcer la communication externe de la COOPEC-RESOPP.

COOPEC RESOPP (EN)

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The Action

FinRur Countries of implementation Senegal

Target Group • 6 cooperatives, • Members of RESOPP, • Women groups, • Associations, • MFIs working in rural areas.

Final beneficiaries Farmers and rural microentreneurs (especially women).

Main activities • Analyse of the demand and segmentation of potential clients, • Improved conditions of access to credit, • Trainings, • Launch and experience Warrantage credit product, • Capacity building of HR and logistics, • Linking non-financial services of rural cooperatives with financial services of COOPEC-

RESOPP, • Adapted Management Information System (MIS), • Internal control strengthening, • Improved communication of COOPEC-RESOPP.

CICM (FR)

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L’action

Autonomifi Pays de mise en oeuvre Burkina Faso, Niger, Cameroun, République Centrafricaine, République du Congo.

Cible • 8 000 personnes en zone rurale • Centaines de milliers de bénéficiaires des

actions de sensibilisation / information • 305 000 sociétaires mieux servis et

accompagnés • 1 200 salariés et administrateurs

Activités principales • Développement d’un panel de services financiers sur mesure pro poor, • Création et mise en œuvre de programmes de sensibilisation/information et de

formation des ménages pauvres et des TPE informelles et rurales, • Extension du réseau de caisses locales et équipement des caisses par batteries en zones

isolées, • Renforcement ad’hoc des compétences humaines et techniques des IMF par des

activités de formation et le renforcement du système d’information et de gestion.

CICM (EN)

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The Action

Autonomifi Countries of implementation Burkina Faso, Niger, Cameroon, Central African Republic, Republic of Congo.

Target Group • 8,000 people in rural area, • Hundred thousands beneficiaries of the

awareness raising campaigns, • 305,000 members/clients better served • 1,200 staff and managers

Main activities • Creation of a panel of proo-poor financial services, • Creation and implementation of an awareness raising/communication campaigns and

trainings to poor households and informal/rural microentreprises • Expansion of the network of local branches and equipment of branches located in

remote areas, • Capacity building of MFI staff through training and improvement of the MIS.

ILCUF

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The Action

West Africa Credit Union Programme Against Poverty Countries of implementation

Ghana, the Gambia, Sierra Leone and Liberia

Target Group • Women, youth, students, farmers, • CUs / Community based organisations, • CU network and local NGO partner staffs. Final beneficiaries • Direct: 731,000 • Indirect: 3.65 million

Main activities • Operate regional Hub, • Develop sustainable Apexes, • Expand Credit Unions into rural areas, • Link Credit Unions to Value Chains.

FRONTIER MARKETS

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STANDARD MICROFINANCE BANK

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The Action

Improving the living standards of Fulani Tribesmen and the underbanked of Adamawa state through enhanced access to finance. Countries of implementation Nigeria

Target Group • Semi pastoral and agrarian Fulani tribes, • Members of other communities, • Players in the agricultural value chain, • Dairy farmers and fish farmers • Small and microentreprises.

Final beneficiaries 50,000 individuals.

Main activities • Training of staff, VSLAs members(900), Village Agents ; mobilisation of communities • Financial education of VSL clients • Market research to understand VSL clients’ needs; New products development;

Orientation of banks and MFIs on VSL operating model.

CARE NEDERLAND

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The Action Community Microfinance Expansion Initiative (COME IN) Countries of implementation Republic of Sierra Leone

Target Group 22,500 people (70% women), without access to any financial service, not able to save individually, unable to respond to emergency, food insecure and living in remote areas, often involved in subsistence farming or selling their labour.

Final beneficiaries Family members of 22,500 Village Savings and Loan (VSL) Clients = 135,000 persons approximately.

Main activities • Developing 10 full service outlets, having outreach teams in all these centres and

providing microfinance activities from these outlets. • Developing new products and re-engineering existing products to meet customer

needs, training staff on these and beneficiaries on financial literacy and entrepreneurship.

OXUS DEVELOPMENT NETWORK

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The Action Support the sustainable development of microfinance services to the vulnerable poor Countries of implementation Democratic Republic of Congo (DRC) and Central African Republic (CAR)

Target Group • Working poor excluded from the

financial system in DRC and CAR • Selected MFIs in DRC and CAR. Final beneficiaries Over 53,086 individuals (DRC: 5.9 children/woman; CAR: 4.7 children/woman).

Main activities • Development of mobile banking services, innovative products such as micro savings or

micro insurance and microloans adapted to the needs of the poor. • Investment in capacity building of local workforce. • Development & implementation of an open source MIS, available to all MFIs. • Market research to understand borrower needs. • Development of innovative partnerships with NGO’s and banks. • Provision of financial and business training courses to the working poor.

ENVIRONMENT

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MICROFINANZA

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The Action New financial products for a sustainable development Countries of implementation Three countries to be selected in Eastern Africa, Western Africa, Southern Africa and Central Africa

Target Group • MFIs staff (members of AFRACA / AMFI) • Stakeholders involved during project • Clients and end-users sensitized on new

financial opportunities Final beneficiaries 15/20 MFIs, staff of the selected MFIs (60 to 100 staff members), local providers and stakeholders, clients and end-users (10,000 people), their families.

Main activities • Comprehensive assessment of AFRACA and AMFI member’s products • Design and conduct awareness workshops • Market Research on innovative products • Selection of 15/20 MFIs from AFRACA and AMFI networks • Training and TA on the design and implementation of appropriate products • TA to technological providers • Provision of financial resources • Awareness and sensitization of clients, end users and potential clients.

PAMIGA

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The Action

Responsible and Sustainable Growth for Rural Microfinance Countries of implementation

10 SSA countries: Benin, Burkina Faso, Cameroon, Ethiopia, Kenya, Madagascar, Mali, Senegal, Tanzania and Togo

Target Group Staff, managers and directors of 15 Rural Financial Intermediaries reaching 500,000 clients.

Final beneficiaries

1 million rural households (500,000 additional clients): small farmers, women, youth, migrants.

Main activities • Perform feasibility study for mergers and transformation, • Develop business plans for new entity, • Assist in selecting providers, negotiating conditions, monitoring the implementation, • Develop financial products using the technology solutions, • Perform market survey to identify needs in rural water projects, and propose products, • Identify engineer to assess the feasibility and costs of water projects, • Provide financial education for clients.

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