presentation microfinance: eu/ acp countries

12
EuropeAid EU/ACP Microfinance Programme II

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A presentation given by the EC at the European Microfinance week 2010

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Page 1: Presentation Microfinance: EU/ ACP countries

EuropeAid

EU/ACP Microfinance Programme II

Page 2: Presentation Microfinance: EU/ ACP countries

EuropeAid

Overview of the EU cooperation in ACP countries

EU/ACP Microfinance Programme presentation

Implementation modalities

Mesuring results

Stefania ZaninelloProgramme ManagerEuropeaid Co-operation OfficeCentralised operations in ACP Countries

EU/ACP Microfinance Programme II

Page 3: Presentation Microfinance: EU/ ACP countries

EuropeAid

• European Development Fund (EDF): main instrument for development cooperation in the ACP States and OCT.

• 10th EDF: 2008-2013 (Revised Cotonou Agreement)

National and Regional EUR 17 766 millionIntra-ACP/Intra-regional EUR 2 700 million Investment Facility EUR 1 500 millionTotal allocation: EUR 22 682 million

• Regional Authorizing Officer: ACP Group of States created in 1975 by the Georgetown agreement, signed initially by 46 ACP States (today 79).

EU/ACP Microfinance Programme IIOverview

Page 4: Presentation Microfinance: EU/ ACP countries

EuropeAid

ACP: Sub-Saharan Africa, Caribbean and Pacific

Page 5: Presentation Microfinance: EU/ ACP countries

EuropeAidEU/ACP Microfinance Programme IIPresentation

• EU/ACP Microfinance Programme II

• It is part of the Intra ACP envelope and programme for Private Sector Development and Trade Related Assistance

• Duration: 2010 – 2014

• Allocation: EUR 15 million

• Objective: contribute to poverty alleviation through economic growth facilitated by the development of inclusive financial systems adapted to the needs the poor in ACP countries.

• Financial System approach:

o Equitable and efficient local marketso Capacity building and consumer empowerement o Pro poor access to finance

Page 6: Presentation Microfinance: EU/ ACP countries

EuropeAidEU/ACP Microfinance Programme IIPresentation

• Equitable and efficient local markets

More efficient financial market infrastructure Better informed ACP policymakers, regulators and supervisors More effective and equitable funding for access to finance in ACP countries

• Capacity Building and Consumer empowerment

Improved financial capability of ACP microfinance clients More transparency of MFIs on their financial and social performance Developed skills of ACP microfinance actors Expanded MFIs institutional capacity to leverage investment and financial access

• Pro-poor access to finance

Innovative delivery models for serving communities excluded from the formal financial system

Access to finance for vulnerable populations, for instance very poor or remote and rural people

Page 7: Presentation Microfinance: EU/ ACP countries

EuropeAidEU/ACP Microfinance Programme IIImplementation modalities

• Collaboration with other donors: Making aid more effective

• Demand driven approach:Call for

proposals

Page 8: Presentation Microfinance: EU/ ACP countries

EuropeAidEU/ACP Microfinance Programme II Making aid more effective

Page 9: Presentation Microfinance: EU/ ACP countries

EuropeAidEU/ACP Microfinance Programme IICall for proposals

Responsible finance for all

Main objective:pro poor access to finance,

capacity building and consumer empowerment

• Total allocation: EUR 7,5 million – 1 Call• Between EUR 250,000 and EUR 1 million• Up to 80% of budget of a project (other 20% co-financed by applicant and partners, no in kind contributions accepted)

Page 10: Presentation Microfinance: EU/ ACP countries

EuropeAidEU/ACP Microfinance Programme IICall for proposals

• Eligible candidates: Retail financial services providers and their associations or networks; Providers of technical and business services to the microfinance sector; Providers of wholesale finance oriented towards pro-poor retail financial institutions

• Requirements for grant recipients: Experience with microfinance operations >3 years - at least 3 similar actions Technical expertise in-house qualified staff dedicated to microfinance

• Main eligible activities and initiatives: Action research, Training, Technical assistance, Advisory services, Capacity Building, Financial education, etc.Pilot project in rural area, innovative solutions and client protection initiativesMulti country, regional, cross border initiatives and South-South cooperationReplicability and dissemination of good practiceComplementarity with other initiatives leverage effect

No funding for capitalisation of loan portfolio, guarantees or equity.

Page 11: Presentation Microfinance: EU/ ACP countries

EuropeAidEU/ACP Microfinance Programme IIMeasuring results

Performance Based Agreementsboth economic and social components

Definition of performance baseline, targets and key indicators based on

Social objectives : - Alleviation of poverty and outreach

- Access to sustainable financial services - Well self managed mechanism

Economic and financial objectives Standard performance indicators cover at least the five core areas:

(1) breadth of outreach(2) depth of outreach(3) portfolio quality

(4) efficiency(5) sustainability

Page 12: Presentation Microfinance: EU/ ACP countries

EuropeAidEU/ACP Microfinance Programme II