MICROCAPITAL BRIEF: ADA to Promote Financial Inclusion in Niger via Improved Product Design, Supervision, Funding Framework

Appui au Développement Autonome (ADA), an NGO based in Luxembourg that supports microfinance institutions (MFIs) in low- and middle-income countries, recently entered into a contract with Luxembourg’s Directorate of Development Cooperation and Humanitarian Affairs with the goal of creating jobs and otherwise reducing poverty in Niger by increasing access to financial services. With a budget of EUR 15 million (USD 16 million) through 2026, ADA will carry out the program in partnership with LuxDev, an agency of Luxembourg’s government dedicated to promoting international development. The effort is part of a larger LuxDev effort in Niger that has a total budget of EUR 145 million (USD 156 million).

In particular, ADA will render technical assistance in regards to: (1) restructuring troubled MFIs and strengthening those that have been more successful; (2) improving the government’s supervisory capacity; (3) aiding the government in implementing a new funding facility for the sector; (4) helping MFIs design loan products specific to various needs – such as those of women, youth and agricultural firms – as well as loans with specific purposes – such as housing and potable water; and (5) helping MFIs develop non-credit services, including digital microinsurance and online marketplaces.

Founded in 1994, ADA aims to reduce poverty by investing in and otherwise supporting MFIs in the Americas, Asia and Africa. As of December 2020, ADA managed loans totaling EUR 26.5 million (USD 28.6 million) outstanding to 51 institutions in 24 nations. During that year, the NGO administered technical assistance to 130 financial services providers. ADA’s financial information for 2021 is not available as of this writing.

By Hasnat Aslam, Research Associate

Sources and Additional Resources

ADA press release
https://www.ada-microfinance.org/en/blog-news-ada/ada-helps-broaden-access-financial-services-niger

ADA homepage
https://www.ada-microfinance.org/

Lux-Development homepage
https://luxdev.lu/

Directorate of Development Cooperation and Humanitarian Affairs homepage
https://cooperation.gouvernement.lu/

ADA Activity Report 2020
https://www.ada-microfinance.org/en/our-resources/media-center/ada-activity-report-2020

Previous MicroCapital story on ADA
https://www.microcapital.org/microcapital-brief-adas-ssnup-incofins-agtaf-supporting-mobile-app-from-sohan-lal-commodity-management-slcm-of-india-easing-farmers-buyers-assessment-of-seed/

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