by the MicroCapital Team -

SPECIAL REPORT: Expanding Rural Finance with Public-private Partnerships in East Africa, Retraining Loan Officers in West Africa

At SAM 2019the session on “Enabling Rural Finance: Multisectoral Collaboration” during last week’s SAM conference, Hedwig Siewertsen of the Africa-based Alliance for a Green Revolution in Africa (AGRA) discussed her work helping the government of Kenya experiment with mechanisms to extend the reach of its limited funding for agriculture. In 2016, the government had USD 7 million to invest in agriculture and was considering acting as a lender to disburse that money to the agricultural sector. Recognizing that the government may be better at market facilitation than managing money, AGRA worked with officials to bring in Barclays Bank of Kenya and the World Bank Group’s International Finance Corporation (IFC) as partners. As a result, the government was able to leverage its USD 7 million to guarantee USD 23 million in lending from Barclays. This enabled 150,000 farmers as well as 300 small and medium-sized enterprises (SMEs) – including producer organizations – to access funding and non-financial assistance, such as help with business planning.

At the same session, Ousmane Thiongane of the Senegalese microfinance institution network U-IMCEC, described his organization’s struggles entering the agriculture sector. Despite agriculture being a risky proposition, the organization’s mission demanded that it serve rural areas. At first, he explained, “our rural agents weren’t well trained” in agriculture and thus the entry into rural areas “was a complete failure.” With agents lacking basic

by the MicroCapital Team -

SPECIAL REPORT: Sébastien Boyé of I&P on Microfinance Institutions Digitalizing for SMEs, Taking on “Aggressive New Actors” in Africa

At SAM 2019last week’s SAM conference, Sébastien Boyé, the Chief Investment Officer of Investisseurs & Partenaires, delivered a keynote address on the future of financial inclusion in Africa. Mr Boyé expressed optimism about Africa’s future because of the continent’s dynamism and entrepreneurial spirit. He cited forecasts that by 2050, 250 million new jobs will be created in Africa as the continent’s GDP overtakes that of the EU. In terms of weaknesses, there is significant volatility, and several countries are getting into trouble with too much public borrowing.

Mr Boyé argues that stakeholders in the financial inclusion sector need to focus on topics such as human resources, academic research and digitalization. When it comes to digitalization, institutions must look to

by the MicroCapital Team -

SPECIAL REPORT: At SAM, Meeting the SDGs by Decreasing Hunger, Increasing Digital Access, Embracing Change to Modernize Microfinance in Africa

On SAM 2019the second day of this week’s SAM conference in Burkina Faso, Mathieu Soglonou of the UN Capital Development Fund commented on several of the UN’s Sustainable Development Goals (SDGs) in a session on the “State of the Inclusive Finance Sector and Its Contributions to Development in Africa.” Despite general progress toward the SDGs, Mr Soglonou noted that there have been setbacks in SDG 2, “Zero Hunger.” The number of people living with hunger has increased by 800 million due to problems such as extreme weather, war, and difficulties with the storage and distribution of agricultural products. Mr Soglonou noted that one challenge in reducing hunger is that lenders tend to

by the MicroCapital Team -

SPECIAL REPORT: Burkinabe PM, Luxembourg Minister Attend SAM Opening Ceremony with Senegalese, BCEAO High Representatives

At SAM 2019the opening ceremony of SAM yesterday, in the presence of Prime Minister Christophe Joseph Marie Dabiré of Burkina Faso, about 900 conference participants had the opportunity to hear commentary from several prominent government officials on the status of financial inclusion in the region. Norbert Toé, Vice Governor of the Banque Centrale des Etats de l’Afrique de l’Ouest (BCEAO), explained that his institution has made financial inclusion a priority, with the goal of increasing to 75 percent the portion of people in West Africa who have access to affordable financial services. He explained that this is motivated by the idea that financial inclusion supports sustainable development, economic growth and several of the UN Sustainable Development Goals, including gender equity, access to jobs, lower inequality and less hunger. Despite challenges in the realm of technology and other arenas, Dr Toé foresees the regulatory changes that BCEAO is now developing will lead to a “safe, resilient and inclusive financial sector.”

Zahra Iyane Thiam, the Senegalese Minister of Microfinance, Social Economy and Solidarity, described how access to finance affects so many aspects of people’s lives. In addition to helping with access to education and health, it allows entrepreneurs to create wealth, which promotes stability. Ms Thiam expressed concern, however, that

by the MicroCapital Team -

SPECIAL REPORT: Grand Duchess Maria Teresa of Luxembourg on SAM, the Pan-African Conference on Financial Inclusion

This interview is part of a sponsored series on SAM (the French acronym for African Microfinance Week), a major conference dedicated to financial inclusion in Africa. The next SAM will take place October 21-25, 2019, in Ouagadougou, Burkina Faso!

MicroCapital:SAM 2019 Your Highness has stated that microfinance “awakens the creative forces…enabling the poorest to regain their dignity and to bring about solutions for their own needs.” Is this why Your Highness is so involved in microfinance?

Grand Duchess Maria Teresa (pictured below): I would like to quote Professor Muhammad Yunus, who said that “Microcredit is, above all, a tool that unlocks human dreams and helps even the poorest and most unfortunate people on this planet achieve dignity, respect, and meaning in their lives.”

I have been involved in microfinance ever since I met Professor Yunus, because, through him, I discovered the importance of trusting the poorest of the poor, without conditions. By that I mean trusting in their honesty, in their creativity, in their capacity for hard work, and in their demand for dignity. It is important to push back against the idea that you are only trustworthy if you are backed up by finance, if you have collateral to put on the table. I would almost go so far as to say

by the MicroCapital Team -

MICROFINANCE EVENT: SAM (Semaine Africaine de la Microfinance / African Microfinance Week); October 21 – 25, 2019; Ouagadougou, Burkina Faso

The SAM 2019fourth SAM (Semaine Africaine de la Microfinance) includes five full days of trainings, conference sessions, an investors’ fair, an innovators’ village and research presentations, all on the theme “Pathways Towards Impact: African Inclusive Finance for the Sustainable Development Goals.” The training presenters are ADA, Amarante Consulting, Arendt, Banca Etica, BNP Paribas, BRS, Caritas Africa, Food and Agriculture Organization, Graine, Grameen Crédit Agricole Foundation, the Microinsurance Network, MicroSave Consulting, Pamiga,

by the MicroCapital Team -

SPECIAL REPORT: Al-Fal Boosts Rural, Interest-free, Value Chain Microfinance in Sudan via SAM, the Pan-African Conference on Financial Inclusion

Two years ago, SAM 2019Elkhidir Elamin Mohammed (pictured below), the managing director of Al-Fal Microfinance, was the only attendee from Sudan at the SAM conference in Addis Ababa. Because Al-Fal lends in compliance with Islamic law, Mr Elkhidir was keen to network with others on the topic of interest-free lending. As a result of meeting Dr Mebrahtu Meles, Ethiopia’s Minister of Industry, Mr Elkhidir connected with

by the MicroCapital Team -

SPECIAL REPORT: SAM Facilitates Long-term Relationship Between Agora Microfinance Zambia, Triple Jump

Team members of Triple Jump, an SAM 2019impact-focused asset manager with offices in the Netherlands and Kenya, and Agora Microfinance Zambia (AMZ), a microfinance institution dedicated to serving low-income, rural households in Zambia, met for the first time at the Investors’ Fair at the 2017 SAM conference in Addis Ababa, Ethiopia. During a speed-dating session, Triple Jump found AMZ to be an interesting prospect because of its

by the MicroCapital Team -

SPECIAL REPORT: BNP Paribas to Prep MFIs to Win Over Investors at SAM

BNP Paribas is SAM 2019celebrating the 30th anniversary of its microfinance activity this year. The bank’s contribution to the sector has evolved greatly over this time, as has the microfinance ecosystem itself. While the need for financial inclusion continues to be critical, BNP Paribas is proud of its track record of support for MFIs. After 30 years, the bank continues to finance more than 30 MFIs directly, with close to EUR 300 million (USD 340 million) deployed.

We are celebrating this landmark in several parts of the world, and it quickly became obvious that the SAM would be the best event to partner with in showcasing our activities in Africa.

During our long history, we often have been disappointed to

by the MicroCapital Team -

SPECIAL REPORT: MFIs in Mali, Burkina Faso Adopt Microfact for Performance Evaluation, Decision-making After Presentation at SAM

Two NGOs, SAM 2019ADA of Luxembourg and BRS of Belgium, presented their Microfact toolkit at the SAMs in Dakar and Addis Ababa, reaching many MFI leaders representing both MFIs and various membership associations. As a result, several of these organiza­tions hosted trainings on the use of the free toolkit, which includes “moni­toring and financial performance analysis” tools used by about 1,000 organizations. Two of these tools are MFI Factsheet, which is used for monitoring the past financial and social performance of MFIs, and Microvision, which creates five-year projections for business planning. Microfact trainings are offered by about 60 certified individuals around the world.

As a result of meeting Basile Kouagou N’Dah, a certified Microfact trainer, at SAM, the Association Professionnelle des Systèmes Financiers Décentralisés du Mali hosted a training on Microfact in November 2017. It was so successful that

by Jolene Khor -

SPECIAL REPORT: SAM (African Microfinance Week); October 21 – 25, 2019, Ouagadougou, Burkina Faso

The fourth biennial SAM (from the French translation of African Microfinance Week, Semaine Africaine de la Microfinance) will address themes including agricultural finance, financial technology (fintech), youth employment, and small and medium-sized enterprise development. In addition to providing practitioners and investors with a venue for exchanging ideas, the event includes conference presentations, an Investors’ fair, an Innovators’ fair and

by the MicroCapital Team -

SPECIAL REPORT: 18 Months After SAM, Better (Digital) Services for 200k Kenyans via Musoni, Association for Micro-finance Institutions (AMFI) of Kenya

Caroline SAM 2019Karanja, the CEO of Kenya’s Association for Micro-finance Institutions (AMFI), recently told MicroCapital that, “The SAM conference in Addis gave us a platform to meet with new partners with whom we have created a steady working relationship since.” AMFI’s membership of 51 includes microbanks, credit institutions and other actors in the country’s microfinance sector. One of the organizations that Ms Karanja learned about at SAM was Musoni Services, which offers

by the MicroCapital Team -

SPECIAL REPORT: HPS Poised to Digitize Network of MFIs in Benin After Participation in SAM Innovation Fair, Successful Rollout to 3 Network Members

During SAM 2019the “Innovation Fair” of the most recent SAM, Mohamed Asri of Morocco-based payment solutions provider HPS spoke about his firm’s microfinance strategy, including its suite of PowerCARD tools. Mr Asri called SAM “a great opportunity for us to meet dozens of MFIs in Africa and present to them our activity and our products.” These meetings led to HPS signing a memorandum of understanding with Consortium Alafia, a network of 44 MFIs in Benin. To date, three Alafia members have tested PowerCARD Microfinance, which offers pay-as-you-go pricing to manage functions such as client transactions, internal finances, services provided via agents, Shariah-compliant products, field staff using mobile devices and

by the MicroCapital Team -

SPECIAL REPORT: Microfinance Institutions in Africa Boost Social Performance with Connections Made at SAM

Nadège SPTF Training at SAM 2017Djatty, the assistant director of FIDRA, an MFI in Côte d’Ivoire, attended the most recent SAM in Addis Ababa, Ethiopia. While there, she was one of about 100 people at the full-day training on the Universal Standards for Social Performance Management, which was delivered by Amelia Greenberg and Katie Hoffmann of the Social Performance Task Force (SPTF). After the training, Ms Djatty told Ms Greenberg that the “training had caused her to think more deeply about who they were excluding as clients because the products are not quite right for their needs and how they might adapt their products to be more inclusive.”

Ms Greenberg also met several leaders of institutions that subsequently applied for co-funding from the SPTF-run Responsible Microfinance Facility to help them “put clients at the center of every decision.” Among these were Arsène

by the MicroCapital Team -

SPECIAL REPORT: SAM (African Microfinance Week) Scheduled for October 21-25, 2019, in Ouagadougou, Burkina Faso

Luxembourgish NGO ADA recently announced that the next SAM (Semaine Africaine de la Microfinance) will be held in Ouagadougou, Burkina Faso, from October 21 to 25, 2019. The themes for this fourth SAM include Agricultural Finance; Macro-Level Alignment with the UN Sustainable Development Goals; Digital Finance and Fintech; Cash Transfers; Gender Inequality; and Small & Medium Enterprise Development and Youth Employment. In addition to the conference sessions on October 22 and October 23, there will be an Investor’s Fair, an Innovator’s Fair, “Research Meets Africa” discussions and 20 free

by the MicroCapital Team -

SPECIAL REPORT: RCPB of Burkina Faso Improves Youth Training, Links with Solar Provider at SAM

Réseau à la Faîtière des Caisses Populaires du Burkina, a savings and credit cooperative with 180 locations in Burkina Faso, has sent several staff members to all three SAM conferences. In SONDO AzaratouDakar in 2015, they made contact with a provider of solar light kits that hold a charge for four days. RCPB now lends to women to purchase these kits, which can have a wide range of benefits, such as increased student study time and reduced indoor air pollution from burning kerosene.

Azaratou Sondo-Nignan (pictured), the deputy director of RCPB, was part of a delegation that presented at SAM on the institution’s youth loans. In addition to sharing its expertise with other organizations, the delegation brought back ideas that helped improve the training that RCPB’s young borrowers receive in support of their loans.

RCPB staff also heard from a representative of a firm in Niger that offers a system to control irrigation canals remotely. Ms Sondo feels this would

by the MicroCapital Team -

SPECIAL REPORT: Introduction at SAM Leads to Investment in ID Ghana by Grameen Credit Agricole Foundation

Philippe Philippe GUICHANDUTGuichandut (pictured), the Head of Inclusive Finance Development at the Grameen Credit Agricole Foundation, has been at all three SAMs. The majority of the foundation’s 76 partners are in sub-Saharan Africa, and Mr Guichandut has found that “SAM is the best place to meet our existing and potential partners.” He adds, “Around the SAM, we always take the opportunity to gather our partners, [which] is the best way to have exchanges of experience among our partners and give them the opportunity to attend some training sessions either organized by ourselves or the SAM.” Leading and attending workshops at SAM has been key for Mr Guichandut’s team “to share our own experience and promote themes that are relevant for us, especially in the fields of agri-microinsurance and

by the MicroCapital Team -

SPECIAL REPORT: Using SAM to Align Financing Needs, Social Impact in Mozambique

When Francisco Cuamba, Microbanco ConfiancaFrancisco Cuamba, the Finance Director of Mozambique’s Microbanco Confianca (pictured at left), came to Luxem­bourg for European Microfinance Week in November, he was very pleased to win a free registration to the 2019 SAM, which will be held in late October in Ouagadougou, Burkina Faso. Reflecting on the 2017 SAM in Ethiopia, he said, “My participation in SAM was an extremely important opportunity to meet different organizations from all over the world to share different experiences and meet some investors to which to present my organi­zation…. The type of investors we sign should be social investors that are not only concerned with the profitability of the investment, but also our extensive involvement in the development of