Discuss the Various Sources of Finance Available to Small Scale Business and the Effectiveness of Ea Rural Finance Knowledge Management Newsletter December 2007 by typ56032

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									Rural Finance
Knowledge Management Newsletter

                                                                          December 2007, Issue No. 8

    Dear Readers,                               project also aims to provide             Village Savings and Credit

          he Rural Finance Knowledge            technical support on rural               Associations. Over 65 percent
          Management        Partnership         finance to IFAD programmes               of Rwanda’s rural population is
          (KMP) is an initiative of the         and projects. This quarterly             poor and their principal activity
    International Fund for Agricultural         newsletter is one of the media           is farming. Despite having
    Development      (IFAD),     Centre         being developed to provide               the physical capacity and
    Internationale du Développement             experiences and information on           professional skills needed to
    et de Recherche (CIDR), and                 rural finance in a user-friendly         undertake successful economic
    Microsave. KMP undertakes joint             manner to those who do not               activities,  this     population
    action research on rural finance in         have internet connectivity. We           completely lacks investment
    eastern and southern Africa. The            appreciate your comments on              capital. CARE International
                                                how to make this newsletter              in Rwanda is improving this
                                                more responsive to your needs.           situation through its CLASSE-
           Knowledge                            This issue highlights two case
                                                                                         Intambwe methodology, which
                                                                                         involves mobilizing the rural
      ‘The good life is inspired                studies. The first is the Union          poor into savings and credit

       by love and guided by                    Mutuelle d’Epargne et de                 associations and linking them
                                                Crédit des Komor (U-Meck), a             to the vast network of people’s
            knowledge’                          Comorian network of savings              banks that exist in the country.
              Bertrand Russell                  and credit community financial
                                                service providers called MECKs           In this issue, we summarize the
                                                or Mutuelle d’Epargne et de              deliberations of the 2nd World
                                                Crédit des Komor. The MECKs              Congress on Agriculture and
   In this issue                                use provision of rural financial         Rural Finance. The congress
                                                services as the key tool for             was held from 30 October to
  Editorial                            1        mobilizing savings and providing         3 November 2007 in Bangkok,
                                                financing in rural areas in the          Thailand.
  IFAD/UNOPS 2007bRegional
                                                Comoros. The MECKs were
  Implementation Workshop              2
                                                founded in 1996 under the aegis          Please visit our website at
  Union of Savings and Credit                   of IFAD and the Government               www.ruralfinancenetwork.org
  Cooperatives of the Comoros          4        of the Comoros. U-MECK was               and register as a member to
  Extending the Outreach of                     established in August 2003 to            benefit from news and events,
  Rwandan People’s Banks to                     provide technical backstopping           downloadable resources and
  the Rural Poor Through Village                and supervision, as well as to           discussion forums. All past issues
  Savings and Credit Institutions 12            link individual MECKs into a             of this quarterly newsletter are
                                                network so as to spread credit           available on the website.
  2nd World Congress on                         risk and enable economies of
  Agriculture and Rural Finance 18              scale.                                   Best wishes to all our readers
  News                               22                                                  during the holiday season and
                                                The second case study is the             a happy and prosperous 2008.
  Training Opportunities             26         experience of Extending the
                                                Outreach of Rwandan People’s             The RFKM Newsletter Editorial
                                                Banks to the Rural Poor through          Team

The Rural Finance Knowledge Management (RFKM) Newsletter is published quarterly. Readers are requested to send any rural finance
articles, field experiences, workshop, conference and training announcements by email to the RFKM Team for publication. A token of
appreciation will be provided to those readers who take time to write and submit articles to this newsletter.

                           Unops/Ifad 2007 Regional Implementation
                           Workshop Held in Mbabane, swaziland

                                 he annual UNOPS/IFAD Re-       rather defines what is
                                 gional Implementation Work-    needed to create an
                                 shop was held at the Royal     innovation-friendly
                           Swazi Sun Ezulwini Valley, in the    environment and
                           Kingdom of Swaziland. The theme      to support staff
                           of the workshop was Empowering       in achieving

                           Rural Communities to Participate     the expected
                           in Sustainable Markets for Poverty   results.
                                                                                                                     enable the rural poor
                                                                There is no
                                                                                                                     to overcome poverty.
                           The workshop, held from 12–16        universally
                           November 2007, brought together      binding
                                                                                                                         The strategy is
                           over 150 participants from 12 IFAD   definition of
                                                                                                                        incremental, builds
                           borrower countries in East and       innovation.
                                                                                                                    on current efforts and
                           Southern Africa and was officially   Each
                                                                                                                   focuses on elements of
                           opened by Mr. Noah Nkambule,         organization
                                                                                                                   the organization—people,
                           the former Principal Secretary in    must reach a
                                                                                                                    processes, environment
                           the Ministry of Agriculture. The     definition that has the
                                                                                                                    and outcomes—that
                           opening ceremony was also graced     greatest operational value from
                                                                                                        require specific attention in the
                           by the SWADE Chief Executive Of-     its perspective. In the case of
                                                                                                        next three years. To strengthen its
                           ficer, Dr. Lukhele, and Dr. Edward   IFAD, the operational framework
                                                                                                        innovative capabilities and become
                           Heinemann, a representative from     of the Initiative for Mainstreaming
                                                                                                        a better catalyst of pro-poor
                           IFAD. Mr Nkambule said the theme     Innovation defines innovation as ‘a
                                                                                                        innovation, IFAD will focus on four
                           of the workshop was relevant for     process that adds value or solves
                                                                                                        clusters of activities:
                           the development of rural commu-      a problem in new ways’. This
                                                                                                        •	 	 building capacities and
                           nities in the Komati Downstream      strategy retains this definition, and
                                                                                                             understanding the challenges
                           Development Project and Lower        it further specifies that to qualify
                                                                                                             requiring innovation
                           Usuthu Irrigation Project, which     as an innovation, a product, idea
                                                                                                        •	 	 nurturing partnerships and
                           have transformed rural communi-      or approach needs to be new to its
                                                                                                             facilitating an innovation
                           ties from subsistence to commer-     context, useful and cost-effective
                           cial farming.                        in relation to a goal, and able to
                                                                                                        •	 	 embedding rigorous innovation
                                                                ‘stick’ after pilot testing.
                                                                                                             processes and the related risk
                           Ifad and innovation                                                               management into IFAD’s core
                           Among other topics, the workshop     The goal of the strategy is to ensure
                                                                                                             business practices
                           focused on IFAD’s Action Plan        that innovation is systematically
                                                                                                        •	 	 facilitating a more supportive
                           for Improving its Development        and effectively mainstreamed in
                                                                                                             organizational environment for
                           Effectiveness. The Fund’s core       IFAD processes and in its practice
                           processes now devote explicit        in country programmes. Its purpose
                           attention to innovation. The IFAD    is to enhance IFAD’s capacity to
                                                                                                        Implementation will involve the
                           Innovation Strategy does not         work with partners to find and
                                                                                                        entire organization and it will
                           set new objectives for staff but     promote new and better ways to
                                                                                                        take place in the timeframe of the

IFAD Strategic Framework
2007–2010. The Fund will            Union of savings and Credit
establish an Innovation
Services Group, which will          Cooperatives of The Comoros
facilitate its innovation efforts
and advise management on
related matters.

IFAD’s current expenditures
on innovation are estimated
at several million dollars per
year. The strategy will be
implemented to a large extent
by applying these resources
in a more focused and
systematic way.

The strategy will be funded

                                                                                                                 Experience and Knowledge Sharing
through a combination of
mechanisms. These include:
•	 Programme Development
    Financing Facility
    resources to support
    the development and
    implementation of
    innovative projects and
    country programmes                    One of the MECK savings and credit Bank in Comoros Archipelago
•	 grant resources to finance
    innovation experiments
    in the field                    BaCKGRoUnd InfoRMaTIon
•	 the remaining funds

    available from the                   he Comoros archipelago is situated in the Mozambique Channel,
    UK’s complementary                   200 km north-east of Madagascar and 300 km east of Mozambique.
    contribution to the Sixth            It comprises four islands, three of which constitute The Union of the
    Replenishment                   Comoros, which became independent in July 1975. These three islands
•	 supplementary funds as           are Grande Comore (Njazidja), Anjouan (Nzwani) and Mohéli (Mwali).
    they become available.          A fourth island, Mayotte, remained under French administration. The
                                    Comoros is one of the world’s poorest countries with a per capita Gross
While innovating is risky, it       Domestic Product of USD 257. According to the CIA World Factbook,
is important to realize that        the population of the Comoros is 711,417 people (July 2007 estimate).
lack of innovating could also       Agriculture is the most important sector providing employment for 70–80
represent a major risk for the      percent of the population and accounting for 40 percent of the Gross
organization. In addition,          National Product. Remittances and international assistance play an
there are several types of          important role in the economy and represent a significant inflow for the
risk related to this strategy.      country’s balance of payments.
One type pertains to each
untested idea. The strategy         Since 1984, IFAD has funded five rural poverty reduction programmes
introduces a prototype to test      and projects in the Comoros, for a total of USD 16.5 million spread over
promising solutions rigorously      four loans and USD 450,000 in two grants. The rural finance specialist
on a limited scale as the main      visited the Comoros from 2 to 8 December 2007 on the invitation of
instrument to manage such           IFAD’s country programme manager for the Comoros, to familiarize and
risk. Another important type        document the experiences of the Union of Savings and Credit Associations
of risk is related to the change    (Union Mutuelle d’Epargne et de Crédit des Komor—U-MECK)) who are
management dimension of             recipients of one of the IFAD grants of USD 350,000 with co-financing
this strategy.                      from Agence Française de Développement (AFD) of USD 750,0000. To

                                                                                                                       cash crop harvests, which are
                                                                                                                       short-term operations. The financial
                                                                                                                       system has excess liquidity despite
                                                                                                                       the latent demand for financial
                                                                                                                       services. That is explained by, among
                                                                                                                       other things, the perception that
                                                                                                                       investment projects are high-risk
                                                                                                                       and the outlook for company profits
                                                                                                                       rather dim in the current economic
                                                                                                                       and political context.

                                                                                                                       To mitigate poor people’s lack of
                                                                                                                       access to formal financial services,
                                                                                                                       microfinance     institutions  (MFIs)
                                                                                                                       began to emerge in the mid-1990s.
                                                                                                                       These include SANDUK network of
                                   Staff of the U-MECK in Moroni                                                       55 savings banks (Caisses) covering
                                                                                                                       all the islands, and the Mutuelle
Experience and Knowledge Sharing

                                   understand the network we visited         The financial sector in the               d’Épargne et de Crédit des Komor
                                   two MECKs in Mitsamouli and                                                         (MECK), which has 12 savings banks
                                   Moroni.                                                                             on the three islands, but conducts a
                                                                                                                       more dense volume of operations
                                                                             The Comorian financial sector is highly
                                   The objective of the IFAD grant was                                                 than the SANDUK. Founded in
                                                                             concentrated in Moroni and offers very
                                   to support the U-MECK to promote                                                    1993, with the support of the French
                                                                             few services. It comprises:
                                   the institutional sustainability of                                                 Development Agency (AFD), the
                                   the various savings and credit            •	 the Banque pour l’Industrie            purpose of the SANDUK savings
                                   cooperatives (MECKs). The specific            et le Commerce (BIC), which           banks is to provide rural populations
                                   objectives of the grant over the              accounts for over 60 percent of       with access to neighborhood banking
                                   three-year implementation period              savings and loans.                    services (services bancaires de
                                   (2004–2007) were to:                      •	 the Banque de Développement            proximité).
                                   •	 empower the network by                     des Comores serving a limited
                                       building its technical capacity           number of small and medium-           Performance and strengths
                                                                                 sized entrepreneurs because of
                                       so that it can play its role in                                                 of the financial and
                                       supervising, technical back-              the modalities and high cost of
                                                                                 transactions, which are a barrier
                                                                                                                       microfinance sectors
                                       stopping and advocacy
                                   •	 support the sustainability of the          to accessing the service. It does
                                                                                                                       The fact that the Comoros belong to the
                                       network by continuing work                not attract savings, but obtains
                                                                                                                       CFA franc zone is a stabilizing factor
                                       to develop, strengthen and                its funding through loans from
                                                                                                                       for the financial system and offers
                                       implement appropriate financial           foreign institutions.
                                                                                                                       investors some security. The financial
                                       and management procedures,            •	 Caisse Nationale d’Épargne,
                                                                                                                       system’s excess liquidity means that
                                       taking into account the need to           which accounted for 6 percent
                                                                                                                       there is less risk of a restrictive credit
                                       bring the network to long-term            of savings and 4 percent of loans
                                                                                                                       policy, even if one deplores the
                                       financial viability; and                  in 2004.
                                                                                                                       overly prudent stance taken by the
                                   •	 enable the network to put in           •	 two networks of microfinance
                                                                                                                       commercial banks, which hampers
                                       place a financial framework to            institutions (SANDUK —services
                                                                                                                       the growth of credit. The last few years
                                       develop income sources from its           bancaires de proximité or
                                                                                                                       have seen strong growth of activities
                                       own activities on the basis of cost       neighbourhood banking services
                                                                                                                       of the Decentralized Financial
                                       recovery and service charges on           —and MECK).
                                                                                                                       Institution (DFI), marked by increases
                                       member contributions.                                                           in deposits, loans and the number
                                                                             The formal financial sector’s
                                                                                                                       of members. The fact that there is a
                                                                             financial intermediation activities
                                                                                                                       regulatory framework governing the
                                                                             are ineffective and re-inject only a
                                                                                                                       DFIs, which allows the central bank
                                                                             small portion of savings back into
                                                                                                                       to exercise its supervisory powers, is a
                                                                             the economy through loans and
                                                                                                                       positive factor that should contribute
                                                                             productive investments. In fact the
                                                                                                                       to the sustainability of the sector.
                                                                             formal financial institutions mainly
                                                                             finance commercial activities and

Weaknesses and constraints                term bring about a sharp reduction      Organizational structure
of the financial and                      in remittances.
microfinance sectors                                                              The annual general meeting is the
                                          Mutuelles d’Epargne et de               supreme organ of the MECK and
•	 Lack	of	market	competition             Crédit des Komor                        a management committee of 7–9
•	 Marked	 dependence	 on	 lines	                                                 people and salaried employees
   of credit from donors and              The community-based financial           run each MECK. The committee
   creditors                              institutions that provide savings and   comprises a board of directors, a
•	 Lack	 of	 monitoring	 credit	 files	   credit or the Mutuelles d-Epargne       credit committee, a loan monitoring
   for certain institutions               de Credit des Komor (MECKs) use         committee, and a training and
•	 Inability	 to	 make	 the	 best	 of	    provision of rural financial services   marketing committee (fig. 1). The
   remittances from Comorians             as the key tool for mobilizing          credit committee analyzes all loan
   living abroad                          savings and providing financing         requests and makes final decision
•	 Low	remuneration	of	savings            in rural areas in the Comoros. The      on granting loans. Large loan
•	 The	 judicial	 system	 does	 not	      MECKs were founded in 1996,             requests are submitted to the board
   provide effective, legitimate          under the aegis of IFAD and the         of directors for final approval. On
   support to the financial sector        Government of the Comoros.              average, one third of management
                                          The U-MECK was established in           committee members are women

                                                                                                                           Experience and Knowledge Sharing
•	 There	 is	 confusion	 between	
   managerial (encadrement) and           August 2003 to provide technical        in MECKs with mixed (male and
   financial roles                        backstopping and supervision, and       female) membership. The manager
•	 Financial	services	products	are	       to link individual MECKs into a         of the MECK is responsible for the
   not tailored to the particular         network so as to spread credit risk     day-to-day decisions; the ultimate
   circumstances        of     certain    and enable economies of scale. The      control of the organization belongs
   activities                             network’s director-general and other    to the general assembly of member-
•	 A	 low	 level	 of	 professionalism	    staff were appointed in April 2004.     owners.
   in DFI management, which
   could prove fatal for certain          MECK institutional structure            Products and services
•	 A	shortage	of	financial	products	      MECKs are organized under rules         Savings. The MECKs offer two savings
   that would permit better risk          and regulations that are fairly         accounts; one is for withdrawable
   management                             uniform wherever they exist. The        savings and the other is a contractual
•	 Interest	 rates	 often	 considered	    MECKs are non-profit organizations      savings. The withdrawable savings
   too high compared to the               that operate as cooperative financial   account does not attract any interest
   profitability of investments           institutions, and are owned and         but the contractual savings account
•	 Microfinance	 institutions	 that	      operated by members. MECKs have         attract an interest of 2.5% per
   only reach a small proportion          an open bond, or community based        annum. The savings interest rate is
   of the population living in rural      MECKs members hail from the             set by the Central Bank of Comoros.
   areas.                                 same community, village or area of      The front offices offer a wide
                                          residence. This is unlike the closed    variety of services including salary
Initiatives are under way to establish    bond or occupational savings and        processing, information (customer
a second commercial bank in the           credit associations (SACCOs) in East    care desks), medical insurance, safe
Comoros. This will add momentum           Africa where members belong to          custody, foreign exchange, money
to economic activities, establish         the same profession, or are engaged     transfers, etc.
competition in financing the              in the same occupation, or work
economy, and contribute positively        in the same company, or grow the        Credit. Both short- and long-term
to poverty reduction. During the          same cash crop like tea, sugarcane,     loans are provided. There are two
International Microfinance Year,          coffee, etc. Thus occupational          short-term loans: the first loan
Comorian DFIs became aware                SACCOs have a more homogenous           product is linked to own deposits
of the dominant role they play in         membership than community-based         that are used as security. This loan
local economic development and            SACCOs. Most of the SACCOs have         has a duration of 3 months with a
in the fight against poverty at the       opened front offices and provide        maximum ceiling of KMF (Comoros
community level. Programmes               banking services to members and a       francs) 300,000. The interest rate is
to support the enhancement of             savings facility to non-members.        a flat rate of 3 percent of the total
professionalism in these DFIs are                                                 amount. The second short-term loan
needed. Changes in the composition                                                is a loan for traditional weddings
of the community of Comorians                                                     (anda). This loan is given for a
living abroad could in the medium                                                 duration of 1 month and must be

                                                                                                                     Remittances. Comoros is best
                                                                                                                     known for political instability and
                                                                                                                     for its spice exports. The Comoros
                                                                                                                     Islands are also among the leading
                                                                                                                     countries in the world in remittances
                                                                                                                     per capita and on its dependency on
                                                                                                                     labor export. In Africa, the Comoros
                                                                                                                     ranks second after Eritrea, on its
                                                                                                                     dependence on remittances. An
                                                                                                                     estimated 20 to 25 percent (150,000
                                                                                                                     to 200,000 people) of people of
                                                                                                                     Comorian origin live abroad; of
                                                                                                                     these between 85,000 and 150,000
                                                                                                                     live in metropolitan France, many
                                                                                                                     with French citizenship. This
                                                                                                                     Diaspora maintains strong ties to
                                                                                                                     the Comoros and remits over KMF
                                                                                                                     16 billion (over USD 36 million)
Experience and Knowledge Sharing

                                                                                                                     annually, in addition to US$ 15–
                                                                                                                     20 million in goods transfers. The
                                   The cashier room in MECK Moroni
                                                                                                                     remittance is approximately 12
                                                                                                                     percent of GDP. There are however
                                   repaid 9 days after the wedding. The      portfolio can be given to a single      vast differences between the islands
                                   maximum ceiling is KMF 5 million          individual. There are no targeted       in remittances received. Over 90
                                   with an interest rate of 3 percent.       loans in the MECKs. Management is       percent of remittances are estimated
                                                                             fully aware that money is fungible.     to go to Ngazidja, which has about
                                   Three types of long-term loans are        Thus, loans are granted for a variety   half the country’s population.
                                   provided—productive, welfare and          of purposes such as healthcare,         Remittances are a major factor in
                                   commercial loans. The productive          funerals and school fees as well as     the differences in living standards
                                   loan is used for income-generating        for production purposes.                between the islands, and raise the
                                   activities. It has a 36-month duration                                            wage levels in Ngazidja.
                                   with a ceiling of KMF 3 million. The      Foreign exchange. The Central
                                   welfare loan is used for medical          Bank of the Comoros has licensed        Remittances primarily finance
                                   expenditures, constructing houses,        members of the U-MECK to provide        consumption whether at the
                                   purchasing vehicles, student foreign      foreign exchange to members             individual, family or collective
                                   travel, or for paying school fees. The    changing euros to Comorian francs.      level. A particularity of Ngazidja is
                                   loan duration is 36 months with a         But the MECKs are prohibited from       the performance of anda, a marriage
                                   12 percent interest rate per annum,       selling euros to the members.           ceremony through which families
                                   and a ceiling of KMF 5 to 8 million
                                   depending on MECKs’ capitalization.         Figure 1. Organizational outline of a MECK in the Comoros
                                   Welfare loans make up over 50
                                   percent of the loan portfolio for most
                                   MECKs.                                                            Annual General Assembly

                                   The dominant product is the
                                   commercial loan where members                       Supervisory
                                   borrow for capital investment.                                         Board of Directors       Credit Committee
                                   The loan term is 1 to 3 years with                                      (7–11 members)           (3–5 members)
                                                                                      (3 members)
                                   a ceiling of KMF 5 to 8 million. It
                                   attracts an interest rate of 12 percent
                                   per annum. Loans from the MECKs
                                   are granted to individuals only;
                                   there are no group loans.                                                (3–5 members)

                                   Loan characteristics are fairly similar
                                   across MECKs. In some MECKs, not
                                   more than 10 percent of the loan                                        Manager and other
                                                                                                             staff (salaried)

acquire and defend their status.
This extravagant ritual costs at least
USD 20,000 (representing 50 times
the amount of the annual per capita
GDP) and has been a major reason
for emigration in the past. The social
pressures to perform it are a major
factor in attracting remittances. The
collective and re-distributive aspects
of the anda, the competitive nature
of Ngazidja society and the ongoing
perception that migrants will return
to their villages also give rise to
important Diaspora contributions
to collective village projects. In the
absence of effective public service
delivery, its role is performed by
village committees and the several

                                                                                                                    Experience and Knowledge Sharing
hundred Diaspora organizations
that sponsor activities on much of
Ngazidja Island. Diaspora-financed
projects, however, often fail to reach Members of the U-MECK attending the Annual General Meeting (AGM)
their objectives because they tend
to be disconnected from the larger information technology investment expected that membership will
institutional context and may not is well targeted, well timed and continue to increase, particularly
benefit from adequate planning or accompanied with complementary among MECKs established in the
expertise in their implementation. investments and actions. That is why past two years. The target group for
They are also generally limited to U-MECK procured a management the grant will be rural poor people
constructing mosques, schools, information system with the support who are members of a MECK. These
health posts, roads, community of a Belgian NGO, AQUADEV, for decentralized financial institutions
centers and other facilities.          the MECKs and soon they will be (DFIs) aim to reach the unbanked
                                       linked through a wide area network population. They have become
Other services                         to ease management. The objectives popular and their market share
                                       of the system include:                continues to grow, indicating that
Other services provided by the         •	 automating	 MECKs’	 business	 they are meeting a real need.
U-MECK to the member MECKs                  processes
include education and training, ICT    •	 facilitating	 timely	 acquisition	 Table 1 shows by (31 December
development as well as research and         of information about business 2007), the U-Meck network
business development services.              activities by U-MECK             membership grew from 24,800
                                       •	 applying	 information	 techno- to 41,000 (a 66 percent increase);
Education and training. Education           logy to redefine business share capital has grown from KMF
and training form an integral part in       processes and relationships in 143.8 million to KMF 279.7 million
promoting the union’s services and          MECKs                            (94 percent increase); total savings
management of the MECKs. The           •	 advising	member	MECKs	about	 mobilized increased from KMF 5.1
union provides various services such        automation processes and million to over KMF 9.5 million (84
as promoting MECKs, educating               procedures                       percent increase); loans disbursed
members, and conducting national       •	 facilitating	acquisition	of	MECK	 grew from KMF 2.5 million to KMF
and regional seminars for delegates,        software by U-MECK members. 3.1 million (20 percent increase).
committee members and all cadres                                             These trends are helped by
of staff.                              MECK performance                      remittances totalling KMF 22 billion
                                                                             from Comorians living abroad. They
Management information system. The network provides financial find their way partly into savings
Information technology drives services through its 12 member and partly into repaying loans taken
business. The biggest question is MECKs, which currently have a out by families.
does information technology pay off? membership of 41,275. Given
The answer is yes, but only when the the MECKs’ rate of growth, it is

                                   Table 1. Performance indicators for the U-MECK from 2004–2007                       Business orientation and
                                   (in KMF, 1 USD = KMF 337.5)                                                         innovation. The network of MECKs
                                                                                                                       lacks sufficient capital though they
                                                                                                                       mobilize savings from members.
                                   Indicators             2004              2005            2006             2007      Most members purchase minimum
                                   Members               24,853             30,233         36,804           41,275     share capital in the MECK to allow
                                   Share                                                                               them to access loans because the
                                   capital          143,803,000     181,063,000      228,983,000      279,688,000      dividends return is low. The under-
                                                                                                                       developed banking infrastructure
                                   Savings        5,122,956,714 6,248,678,745 8,056,144,816         9,531,215,000      in the rural areas creates additional
                                   Credit                                                                              problems for MECKs. Banking
                                   disbursed      2,538,651,173 2,783,066,198 2,809,649,846         3,051,186,000      requires minimum infrastructure
                                                                                                                       such as secure banking premises,
                                                                                                                       minimum capital requirements,
                                   Legal framework for the                   these user-owned institutions but
                                                                                                                       minimum staff requirement such as
                                   MECKs                                     low understanding of financial
                                                                                                                       basic qualifications commensurate
                                                                             management by board members
Experience and Knowledge Sharing

                                                                                                                       with the size of membership.
                                   In June 2004 the government               makes the training ineffective.
                                   approved the legal framework for the                                                Most staff working for the MECKs
                                   MECKs. This framework modified            Default management. The MECKs
                                                                                                                       have grown on the job and the
                                   the Cetnral Bank’s legislation to         are experiencing high default rates.
                                                                                                                       human resources are not adequately
                                   include microfinance operators.           Some of the reasons given for the
                                                                                                                       developed. Staff are poorly trained
                                   While this is a positive step             increasing incidence of default
                                                                                                                       and ill equipped, and some have no
                                   towards expanding the availability        were:
                                                                                                                       basic banking background.
                                   of financial services in remote           •	 	 lack of proper risk management
                                   areas of the islands, the U-MECK               measures such as loan guarantee
                                                                                                                       Regulation     and      supervision.
                                   is expected to supervise individual            and follow-up mechanisms
                                                                                                                       Although the Central Bank has
                                   MECKs to ensure the quality of            •	 	 lack of awareness among
                                                                                                                       delegated regulation and supervision
                                   their financial and management                 shareholders
                                                                                                                       to the U-MECK, sufficient capacity
                                   procedures, protect savings, and          •	 	 MECKs not complying with
                                                                                                                       has not been built to effectively
                                   provide technical training for MECK            loan policies and procedures
                                                                                                                       provide this service to the MECKs.
                                   staff and committee members.                   at every stage in the lending
                                                                                                                       Incentives and sanctions (carrot
                                                                                                                       and stick) should be put in place
                                                                             •	 	 close social ties between MECK
                                   Challenges                                                                          for not meeting the regulations.
                                                                                  officials and borrowers can
                                                                                  sometimes make the officials
                                   Governance.       While      effective                                              Management information system.
                                                                                  tolerant and ineffective in
                                   external regulations and supervision                                                Aquadev, a Belgian NGO, has
                                                                                  collecting loan
                                   are important to the health of the                                                  developed a franchise banking
                                                                             •	 	 poor loan appraisal
                                   financial system, no amount of                                                      system for microfinance institutions
                                                                             •	 	 the Credit Committee members
                                   external oversight can replace                                                      which enables the them to conduct
                                                                                  are volunteers and do not
                                   accountability that stems from                                                      all banking services and real time
                                                                                  have much time devoted to
                                   proper governance and supervision                                                   transactions. U-MECK has procured
                                                                                  recovering loans
                                   by the owners and board of directors.                                               this unified cooperative banking
                                                                             •	 	 absence of a loan insurance
                                   For small, self-regulated institutions                                              system but it is yet to be operative.
                                                                                  fund. It was noted all the MECKs
                                   like MECKs, the importance of                                                       The    management        information
                                                                                  did not have a loan insurance
                                   governance is heightened. Owners                                                    system adopted this user-friendly,
                                                                                  fund and therefore in case of
                                   and directors do not have the                                                       and easy to understand and
                                                                                  death or total incapacitation,
                                   capacity to provide adequate                                                        implement system. This software has
                                                                                  the outstanding loan balance
                                   management        oversight.     Most                                               improved the MECKs management
                                                                                  would be at risk
                                   members of the boards of directors                                                  information system of the MECK
                                                                             •	 	 willful defaulting
                                   have low education levels and lack                                                  and enabled them provide efficient
                                                                             •	 	 clients also attributed default to
                                   the skills and experience to exercise                                               services.
                                                                                  an inadequate grace period
                                   the fiduciary responsibilities of a
                                                                             •	 	 poor economic and weather
                                   financial institution. Supervising
                                                                                  conditions resulting in failure
                                   institutions like U-MECK have
                                                                                  of businesses and crops.
                                   developed training modules for

Impact of MECK

The outputs that were expected from     credit for the first time in their lives   and dedication to follow through
the IFAD grant of USD 350,000           through the MECKs.                         with the plan.
•	 	strengthened	 network	 that	 can	   Injecting credit into these previously     The MECK network is providing
    take on a supervisory role for      underserved markets has had a              rural financial services to a large
    individual MECKs, and estab-        catalytic effect on the level of           and fast growing market in Comoros
    lishing transparent financial       economic activity in communities.          that includes:
    procedures to give credibility      MECKs          report        increased     •	 people	 left	 out	 of	 banking	
    to the overall network              employment in communities both                  services on account of distance
•	 	consolidated	     achievements	     directly with the MECKS as an                   from bank outlets
    providing financial services        employer, and indirectly through           •	 people	who	on	account	of	low	
    to the poorer strata of the         enabling individuals to start                   and uncertain incomes find
    population and financial inter-     businesses and, at times, employ                it impossible to open bank
    mediation in rural areas            others. The major impacts of the                accounts even if the banks
•	 	strengthened	professional	com-      linkage model is on financial                   are located only a few meters
    petencies at individual MECKs       sector level. The development of                away

                                                                                                                             Experience and Knowledge Sharing
    and within the network to put       this linkage model is an excellent         •	 people	 already	 used	 to	
    in place and ensure adherence       example of closing the gap between              banking services in places that
    to standards for sustainable mi-    the formal and the informal sector,             previously had bank branches
    crofinance operations.              as the informal sector (MECKs) is               that have been closed
                                        gradually being integrated with the        •	 people	 returning	 to	 rural	 areas	
Despite the challenges, the U-MECK      formal sector. This is an evolving              who were used to banking
was able to meet these outputs but      process, and it can be expected that            services in towns such as
a lot of work remains to be done        the MECKs will become stronger                  retirees
to ensure it continues to provide       and more sophisticated over time,          •	 people	 who	 by	 the	 nature	 of	
financial services to the target        further closing the gap by bringing             their jobs find themselves in
group. The network should find ways     their members even closer to the                remote rural areas such as
to ensure sustainability through        formal sector. The U-MECK has also              teachers
developing various products and         demonstrated to commercial banks           •	 people	dropped	out	of	banking	
services that the MECKs can pay         that it is possible to reach out to             services because of increased
for and generate income for the         lower-income Comorians on a large               minimum balances required to
U-MECK.                                 scale and in a profitable manner.               maintain bank accounts
                                        The opportunity is there, however,         •	 people	 receiving	 payment	
While no attempt has been made          it calls for a long-term vision,                in terms of cheques such as
to quantify the impact of the           willingness to invest in the market,            pensioners
MECK model, various current and         ability to listen to the market and        •	 people	transferring	money	from	
potential dimensions of improved        adjust the approach as required,                one place to another.
access to finance and more secure
livelihoods can be derived. There
is no doubt that the initiative has
resulted in both improved breadth
and depth in outreach—extending
to rural areas and the poor—and
has contributed to deepening the
outreach of financial services in the
Comoros, and positively affecting
access to finance for many ordinary
Comorians. The number of MECKs
linked (12) in such a short period
and the number of members
reached (40,000), is an important
achievement in terms of the
breadth of depth outreach. Almost
40 percent of members opened
a savings account or applied for        Member of the MECK who has benefited from the credit facility


                                   Central finance facility. Setting up a   and spread their risks. Any risks         establish prudential guidelines
                                   central finance facility will mobilize   aarising will be made good from the       that will improve operational and
                                   funds within the savings and credit      common pool of resources. This is a       governance regulations, supervision
                                   movement. It will also be used to        mutual programme where members            and monitoring. Capacity building
                                   extend credit boundaries of MECKs        share both costs and benefits. The        is needed for the implementing
                                   by creating linkage and mutual           type of covers could include loans,       agencies and national apexes like
                                   interdependence. It will support the     savings, and funeral riders.              U-MECK to enable them enforce
                                   U-MECK through generating extra                                                    these prudential guidelines. Key
                                   income for the union and member          Effective governance and oversight.       areas include liquidity management,
                                   societies. It will accelerate lending    For the user-owned institutions,          loan write-offs, and loan loss
                                   capacity of MECKs through which          effective oversight and governance        provisions.
                                   increased member confidence              are still very weak. One way could
                                   will be realised because of the          be to assist the institutions through     Product development. The MECKs
                                   society’s ability to finance member      technical assistance to establish         have enjoyed consistent support
                                   requirements either individually or      by-laws that establish criteria for       from their members for a long
Experience and Knowledge Sharing

                                   in groups. Finally it can be used        electing directors and clearly define     time. The challenge facing these
                                   to provide a means of centralising       oversight roles for the directors         institutions is product development
                                   investment plans of the entire           and the operational roles of the          to enable them to compete with
                                   cooperative savings and credit           managers. One glaring problem             commercial banks. MECKs face
                                   movement. This will enable the           of these user-owned institutions is       problems in listening to clients’
                                   union to acquire the necessary           that the level of education of the        needs and developing products
                                   investment expertise.                    directors is way lower than that of the   that are demand driven. The
                                                                            professional managers. It is therefore    MECKs still have the traditional
                                   Risk      management        services.    impossible for these directors to         products with little innovation.
                                   Risk management is important             provide effective oversight. We           Product development is required
                                   in financial institutions to give        recommend developing professional         to adopt market rate interest
                                   them mutual protection against           management services through               pricing for savings and credit
                                   loan losses. Risks to individuals        the U-MECK that will provide              products, mobilize savings, update
                                   include death, total and permanent       professional guidance to the board        procedures,      conduct    business
                                   disability and other risks that may      of directors to run the institutions      planning, and strengthen financial
                                   be identified from time to time. In      more effectively. The U-MECK and          reporting and monitoring.
                                   addition, it provides a forum for        the Central Bank of the Comoros
                                   MECKs to cooperate horizontally          will need technical support to            Leverage or external funds. One
                                                                                                                       critical    observation     running
                                                                                                                       throughout the institutions visited
                                                                                                                       is the lack of loanable funds. The
                                                                                                                       MECKs and U-MECK need extra
                                                                                                                       funding to enable them to move
                                                                                                                       to the rural areas and provide rural
                                                                                                                       finance for agriculture and small
                                                                                                                       businesses. Additional sources of
                                                                                                                       funding would reduce interest rates
                                                                                                                       charged and, or, increase the loan
                                                                                                                       size that MECKs disburse. These
                                                                                                                       funds would make it possible for
                                                                                                                       microfinance institutions to expand
                                                                                                                       their outreach to rural areas, and
                                                                                                                       provide larger loans to clients to
                                                                                                                       enable meaningful investments in
                                                                                                                       agriculture and agricultural-based

                                   Members of the U-MECK attending the Annual General Meeting (AGM)

Conclusions and lessons learned

Several lessons can be derived              •	 At the core of the model’s success         villages. Injecting capital into
from the MECKs in the Comoros                  has been the strong market-driven          the community through effective
some of which may be relevant                  approach and a willingness to              provision of credit has a catalytic
to practitioners, others to donors             collaborate with communities               effect that benefits the broader
or government. Many of these are               and existing MECKs. Products are           community as a whole. It also
replicable in other institutions or            also not set from the top–down             helps smooth out the effects of
countries in similar or even different         but are developed on MECK level            seasonality, which often impacts
circumstances.                                 depending on the financing needs           an entire community because of
                                               of the particular community. A             its dependence on one or a few
•	 Willingness and commitment                  truly demand-led approach.                 select commodities.
   from Government of Comoros               •	 U-MECK has also been (and               •	 The provision of a broader set of
   to promote financial services to            still is) a process of learning            financial services is also limited
   the lower income market stands              with the model constantly being            by the capacity and skills of the
   out in this initiative. In particular,      reassessed and improved to better          community. ‘Injecting’ skills into

                                                                                                                                 Experience and Knowledge Sharing
   the role of IFAD, AFD and other             meet the needs of MECKs and                the community through training
   partners played a key role in               their members while improving              and support benefits members
   supporting U-MECK to target the             performance and efficiencies.              of the institution as well as the
   lower income market.                        It will be a good idea for the             broader community directly
•	 A major requirement of the                  U-MECK to organize exchange                through     improved       financial
   MECK model was the ability to               visits to other countries with             services, but also indirectly
   make a large upfront investment             similar initiatives for knowledge          through increased capacity in
   and a long-term vision with the             sharing.                                   the community as a whole. In
   willingness to see this through.         •	 It is interesting to note that, apart      this sense, it serves to empower
   The challenge for many financial            from few technical experts to              communities to take better care
   institutions and donors is not              the U-MECK level and initial               of themselves.
   so much to obtain the required              training by external experts            •	 Success has a snowball effect and
   capital to invest in such a                 in member-based institutions,              as communities learn about the
   programme, but to spend it in               implementation has been done               success of MECKs, they become
   the most appropriate manner.                by local Comorians working with            more open to engage in a similar
   U-MECK has demonstrated that a              local institutions and groups.             process.
   relatively small capital investment         This reflects a predominantly           •	 The U-MECK is a classical
   in the actual MECKs (such as                indigenous approach with no                example of how formal and
   equipment and strong rooms) is              high-cost expatriate salaries              informal sectors can be linked,
   necessary to get the MECKs up and           to be carried by microfinance              despite     various     challenges,
   running in a professional manner.           institutions for long-term imple-          resulting in closer integration of
   More importantly, however, is the           mentation.                                 the formal and informal sector
   much larger investment that has          •	 The      legal    and     regulatory       to the benefit of all parties. The
   to be made to build the capacity            framework was not ideal at the             success they have achieved will
   of management and MECK staff,               time when the MECK initiative              hopefully also act as catalyst to
   and to develop an understanding             was launched. However, a                   inspire other institutions to follow
   of the approach and its benefits            regulatory framework has been              suit.
   among members and in the                    developed that recognize the
   broader community.                          existence in law of both MECKs          U-MECK partners
•	 The support provided by other               and U-MECK and is working
   players, such as Aquadev, in                around the other shortcomings           The U-MECK is supported by
   the investing market in building            by, for example, implementing a         various partners: the International
   capacity of MECKs has also played           strict set of reporting criteria and    Fund for Agricultural Development
   a key role in preparing the market          controls.                               (IFAD), the French Development
   place. This linkage model therefore      •	 The volume of credit of a               Agency, Aquadev–an international
   also demonstrates the benefits              community is limited by the             NGO, Projet AMIE (Appui aux
   and synergies of introducing                ability to mobilise savings—a big       Micro-Entreprise), and GIE Maison
   complementary initiatives.                  limitation in poor, remote rural        des Epices.

                                   Extending the Outreach of People’s Banks to the
                                   Rural poor through Village savings and Credit
                                   Associations in Rwanda
                                   C. Aeschliman, F.Mrekezi and J.P Ndoshoboye

                                                                                                                      Rwanda’s policymakers agreed
                                   Introduction                                                                       that microfinance constituted an
                                                                                                                      important part of the country’s
                                   Over 65 percent of Rwanda’s rural population is poor and its principal
                                                                                                                      poverty reduction and economic
                                   activity is farming. Despite having the physical capacity and even the
                                                                                                                      development strategies and set up
                                   professional skills needed to undertake successful economic activities,
                                                                                                                      microfinance institutions (MFIs).
                                   this population completely lacks investment capital. In Rwanda, CARE
                                   International is improving this situation through its CLASSE-Intambwe
                                                                                                                      Their creation derives from the fact
                                   methodology, which involves mobilizing the rural poor into savings and
                                                                                                                      that Rwanda is a poor country, and
                                   credit associations and linking them to the vast network of people’s banks
Experience and Knowledge Sharing

                                                                                                                      poverty is more prevalent in the rural
                                   that exist in the country. Although the aspect of ‘linking’ is quite young,
                                                                                                                      areas, and the majority of Rwandans
                                   only beginning in late 2003, initial results are encouraging.
                                                                                                                      have low incomes and do not have
                                                                                                                      access to the formal financial system.
                                   Today, all the 1,000 CARE-supported savings and credit associations
                                                                                                                      However, a problem of lack of
                                   have savings accounts in the people’s bank, and many group members
                                                                                                                      professionalism in existing financial
                                   have opened individual accounts, thus bringing many into the financial
                                                                                                                      and microfinance institutions and
                                   mainstream. This abridged article explains the origins, mechanics and
                                                                                                                      inadequate supervision increases
                                   outcomes of this unique relationship.
                                                                                                                      their risk of failure and loss of
                                                                                                                      customers’ deposits.
                                   The setting                              Key players in the financial
                                                                                                                      In an attempt to improve operations
                                                                                                                      of MFIs, the Banque National du
                                   The Republic of Rwanda is a small,
                                                                                                                      Rwanda issued directives on the
                                   impoverished and land-locked             Rwanda’s financial system is made
                                                                                                                      microfinance sector, which were
                                   highland country in eastern Africa.      up of the Central Bank (Banque
                                                                                                                      welcomed by all stakeholders.
                                   It is surrounded by the Democratic       Nationale du Rwanda, BNR), six
                                                                                                                      However, the new regulations—
                                   Republic of Congo, Burundi,              commercial banks, a network of 149
                                                                                                                      perhaps too hastily prepared—
                                   Tanzania and Uganda. Its total area      people’s banks (banques populaires,
                                                                                                                      created major difficulties for small
                                   is 26,338 km2, of which 1390 km2 is      essentially credit unions), an
                                                                                                                      MFIs, such as the requirement to
                                   water bodies.                            unknown number of rival networks
                                                                                                                      pay USD 9300 into a frozen account
                                                                            of savings and credit cooperatives
                                                                                                                      when applying for registration; the
                                   The average altitude is 2750 m. Its      (COOPECs) and other multilateral
                                                                                                                      difficult format (for barely literate
                                   main crops include beans, bananas        financial institutions, and a large
                                                                                                                      people) and timeframe required for
                                   and tea. Its population in 2003 was      number (perhaps thousands) of small
                                                                                                                      submitting reports; and prudential
                                   estimated to be 8,128,553 people         savings and credit associations,
                                                                                                                      ratios that are difficult to achieve
                                   with a population density of 321         essentially village banks with links to
                                                                                                                      (for example, the ‘creditworthiness’
                                   people/km2, one of Africa’s highest.     the people’s banks, COOPECs and
                                                                                                                      ratio that requires all MFIs must
                                   The prevalence of HIV and AIDS           sponsoring organizations like CARE.
                                                                                                                      have equity capital equivalent to
                                   increased substantially from 1.3         This article explains the link between
                                                                                                                      a minimum of 10 percent of their
                                   percent in rural areas in 1986 to 10.8   the savings and credit associations
                                   percent at present, partly because       and the people’s banks.
                                   of the genocide, the most profound
                                                                                                                      By May 2005, 206 MFIs had
                                   national event in the country.           National microfinance                     submitted applications to the
                                                                            policies and strategies                   Banking Supervision Department
                                   In Rwanda, the people speak
                                                                                                                      for registration. These included 148
                                   Kinyarwanda, French, English and         After the war, banking activities         people’s banks and 58 other MFIs,
                                   Kiswahili at varying levels.             were    reorganized  in   1995.           of which around 40 are part of

the Rwanda Microfinance Forum,            Ngali. The financial link, which         It turned out that the majority
whose principal mission is to lobby       aims to allow the rural population       of the members of CLASSE-
for and build the capacity of its         to access financial services,            Intambwe associations wanted
member institutions. Of the total         launches a dynamic development           larger loans than their internal
206 institutions, 112 people’s banks      process in rural areas by enabling       sources could provide. To resolve
and 9 other institutions have been        revitalization of the farming sector,    this problem, CARE Rwanda
approved. Other institutions have         and freeing up and monetizing            made supplementary credit funds
yet to request approval from the          rural areas.                             available to support these small
Banque National du Rwanda. These                                                   entrepreneurs. These funds were
are often hard to detect and set up       Consequently, it opens up various        entrusted to the various districts
spontaneously without feasibility         economic opportunities within and        in the project area, in compliance
studies or market surveys, lack           beyond the farming sector that rural     with national regulations in force at
effective management and control          people can take advantage of. In         the time, which stipulated that any
tools, lack supervisory and technical     this context, CARE Rwanda in its         intervention in a rural area had to
support systems, and hence have           economic security programme tries        be channeled through community
a high risk of failure and often          to help households whose members         development funds managed by the
disappear just as suddenly as they        belong to associations that are          districts.
appeared.                                 excluded from the formal financial

                                                                                                                           Experience and Knowledge Sharing
                                          system, to have easy and lasting         An evaluation carried out at the end
Motivation for creating                   access to rural financial services.      of the pilot phase of the CLASSE-
linkages                                                                           Intambwe project concluded that
                                          Linking people’s banks                   the funds had not been properly
Over 65 percent of Rwanda’s               and savings and credit                   managed by the community
rural population is poor and              associations                             development funds and that the
their principal activity is farming.                                               target had not been achieved,
However, their farms do not produce       CARE Rwanda has for several              despite the partnership that was
sufficient food for even for family       years been developing its CLASSE-        set up for this purpose with the
needs. The main reasons for such          Intambwe savings and loan                Épargne sans Frontières (Savings
insufficiency are the vagaries of the     methodology as part of its poverty-      without Borders) Network (RESAFI),
weather, the ongoing subdivision of       reduction efforts among rural            which provided external lending
land into smaller and smaller units       households in Rwanda. CLASSE-            services. The balance remaining
because of population pressure, soil      Intambwe is an appropriate response      at the end of the project was used
degradation, non-use of agricultural      for mobilizing and structuring           to strengthen the so-called ‘inter-
inputs, and ineffective supervisory       grassroots communities in a unified      groupings’, that is, regional, inter-
and advisory structures for rural         effort to fight poverty.                 group coordinating bodies formed
producers and rural institutions.                                                  by a number of CLASSE-Intambwe
Despite having the physical capacity      This approach focuses on:                member associations in a locality.
and even the professional skills          •	 the economic security of the
needed to undertake successful                most marginalised households         Despite its limitations, and the
economic activities, this population      •	 HIV and AIDS and its                  errors noted during implementation
completely lacks investment capital.          consequences                         of the pilot phase, the revised
                                          •	 access to basic education for         CLASSE-Intambwe         methodology
Until recently, no financial or               the most marginalised sectors.       has some advantage for Rwanda
microfinance institutions reached                                                  with regard to mobilizing local
the poor, for several reasons. The        CARE Rwanda has organized                savings and structuring of grassroots
poor cannot provide material and          target households into self-help         communities.      This     advantage
financial guarantees and in some          groups called savings and credit         warranted its being chosen as the
cases are illiterate and therefore        associations (SCAs) or simply kitties,   preferred financial link between the
unable to write their projects and        and helps them to start depositing       people’s banks (represented by the
plans, or even fill in loan application   weekly savings into an internal          Union of People’s Banks in Rwanda)
forms. The MFIs in this sector are        loan      fund.    CLASSE-Intambwe       and the SCAs, and facilitated by
mainly those with a social mission        enables kitty members affiliated to      CARE Rwanda within its framework
that devote time to mobilize, train       it to accumulate savings and have        of the Expanding Competitive
and educate their customers, such         regular access to funding from their     Client-Oriented         Microfinance
as CARE Rwanda in the provinces           kitties to develop income-generating     (ECOCOMF) project and CLASSE-
of Umutara, Byumba and Kigali-            activities.                              Intambwe.

                                   The choice of the financial linkage              worldwide in rural finance, and      People’s banks and financial
                                   between the people’s banks and the               it preferred to create its own       links with sCas
                                   SCAs was thus motivated by several               network of MFIs to provide
                                   considerations including:                        financial services. However,
                                                                                                                         Eleven people’s banks have financial
                                   •	 the CLASSE-Intambwe metho-                    Regulation 06/2002, lack of
                                                                                                                         links with SCAs via intergrouping.
                                       dology turned out to be a                    project funding and practical
                                                                                                                         Of these people’s banks, six are
                                       suitable, effective and efficient            considerations of long-term
                                                                                                                         in the provinces of Byumba and
                                       tool in rural areas in Rwanda                sustainability made it reconsider
                                                                                                                         Kigali-Ngali (and operate within the
                                       to mobilize local savings and                the alternative of partnering with
                                                                                                                         ECOCOMF project), and five are
                                       social cohesion, the two pivotal             existing financial institutions,
                                                                                                                         in Umutara Province in under the
                                       factors on which the link is                 that is, the people’s banks.
                                                                                                                         CLASSE- Intambwe project (table
                                       built.                                  •	   the network of people’s banks
                                   •	 the Banque National du                        broadly covers the entire country
                                       Rwanda’s Regulation 06/2002                  and has viable infrastructure        Structure, management and
                                       forbids persons it has not                   even in the rural areas. It          operations
                                       approved from carrying out                   inspires confidence regarding
                                       savings and credit activities.               the risk of theft, and above         Management of the financial linkage
                                       This regulation has enabled                  all the professional financial       is governed by a memorandum
Experience and Knowledge Sharing

                                       the bypassing of district                    control exercised by the Union       of understanding (MoU) between
                                       authorities that initially proved            of People’s Banks in Rwanda          CARE International Rwanda and the
                                       incompetent to deal with                     constitutes     an      additional   Union of People’s Banks in Rwanda.
                                       financial management, and                    guarantee of confidence to the       This MoU defines the responsibilities
                                       permitted the population to                  public.                              of each party involved (fig. 1).
                                       turn to people’s banks, which
                                       are much more professionally
                                       managed.       CARE       Rwanda
                                       has considerable experience

                                                                           Period                                                                  No. of
                                                                           with                                                                    SCAs
                                                            Banque         CARE                                                           No.      receiving
                                    Province   District     populaire      (months)     Project              Inter-groupements            SCAs     loans
                                    Byumba     Kinihira     Kinihira       5            Expanding            IMAKIKI                      152      28
                                               Kisaro       Buyoga         5            competitive          IMAKIKI                      156      39
                                               Ngarama      Ngarama        5            client-oriented      CECANGAHU                    126      16
                                               Humure       Muhura         5            services in          CACANGAHU                    102      35
                                    Kigali-    Rulindo      Rulindo        5            Rural Rwanda         GOBOKABAVANDIMWE             130      24
                                    Ngali      Buliza       Buliza         5            (ECOCOMF: 15         GOBOKABAVANDIMWE             49       15
                                                                                        June 2003 –15 June
                                    Umutara    Kahi         Kabarore       17           Strengthening new    IABIK                        12       12
                                               Gabiro       Karangazi      17           community            IMPUDUGA                     12       6
                                               Muvumba      Rukomo         17                                ISANGANO                     9        8
                                               Muvumba                                                       DUKATAZE                     8        8
                                               Kabare       Nyagatare      3            Community            URUKINDO                     28       2
                                                            Matimba        3            Learning and         URUMULI                      42       3
                                               Kahi         Kabarore       3            Action for Saving    TWISUNGANE                   17       8
                                                                                        Stimulation and
                                                                           3            Enhancement          UMUNYINYA                    26       2
                                                                           3            (CLASSE-             TWIZIGAME                    27       1
                                               Bugaragara   Matimba        3            INTAMBWE             UMUHUZA                      20       6
                                                                           3            methodology)         URUGERO                      23       3
                                                                           3                                 TUBEHAMWE                    32       2
                                               Umugu        Nyagatare      3                                 ISANGANO RY’UMUGI            35       8
                                               w’Umutara                                                     W’UMUTARA
                                    Total                   11 BPs                                           19 intergroup bodies         1,006    226
                                   Source: CARE/Rwanda

                                                                         The responsibilities of each partner
                                                                         in the linkage are summarized as

                                                                         CaRE Rwanda
                                                                         •	   Make available credit funds
                                                                              amounting to approximately
                                                                              USD 90,000 to participating
                                                                              people’s banks on behalf of
                                                                              associations brought together
                                                                              in their respective intergroup
                                                                              bodies. Such funds are
                                                                              divided among six people’s
                                                                              banks that are partners in the
                                                                              project. The portion allocated
                                                                              to each bank is paid into an
                                                                              account entitled CARE Credit
                                                                              Fund, which will be opened

                                                                                                                Experience and Knowledge Sharing
                                                                              in each people’s bank.
                                                                         •	   Provide technical training in
                                                                              accordance with the requests
                                                                              and training needs of savings
                                                                              and cooperative associations
                                                                              and intergroup partners.
                                                                         •	   Train     UBPR     technicians
Responsibilities                                                              and partner people’s banks
1. CARE provides Union of People’s Banks in Rwanda (UPBR) with                in the CLASSE-Intambwe
    a revolving credit fund entitled CARE Credit Fund.                        methodology.
2. UBPR manages the CARE Credit Fund.                                    •	   Work in close collaboration
3. UBPR exercises financial control over the CARE Credit Fund at              with intergroup bodies to
    the people’s banks level                                                  ensure that they comply with
4. CARE supports the intergroup bodies through training                       their contractual obligations,
5. The people’s banks provide financial reports on the credit fund            especially in monitoring and
    to UBPR                                                                   recovering loans granted to
6. The savings and cooperatives association opens a term deposit              member associations.
    account in its peoples ’ bank.                                       •	   Assure that this agreement
7. The savings and cooperatives association submits a loan                    is ratified by participating
    application to its intergroup body.                                       intergroup bodies.
8. The intergroup body analyses the savings and cooperatives
    association loan application.                                        Intergroup bodies
9. The intergroup body submits approved loan dossiers to the             •	   Analyse, sign and forward
    people’s bank.                                                            project and loan applications
10. CARE organizes, structures and trains the savings and cooperatives        drawn up by SCAs to people’s
    association.                                                              banks for consideration.
11. The people’s bank grants the loan from the CARE Credit Fund to       •	   Monitor use of loans granted
    the savings and cooperatives association.                                 by people’s banks to SCAs,
12. The savings and cooperatives association repay their loans to the         ensuring that the proceeds
    people’s banks                                                            are used for their declared
13. The people’s bank grant 30% of interest received on the CARE              purposes and that repayment
    Credit Fund to the intergroup body.                                       schedules are respected.
                                                                         •	   On behalf of the people’s
                                                                              banks, ensure recovery of
                                                                              loans granted to member
                                                                              SCAs within the scope of the

                                   •	   Promptly        submit    regular    •	 Pay	 commissions	 to	 the	                   of the SCA requesting a loan.
                                        monthly reports to CARE                 intergroup bodies in accordance              The maximum amount of a loan
                                        regarding all microproject              with the terms laid down in the              is determined in accordance
                                        activities.                             agreement.                                   with the policies of the people’s
                                   •	   Evaluate and examine the                                                             banks. For project partner SCAs,
                                        progress made by SCAs, and           CARE–UBPR loan policy                           the maximum amount is set at
                                        develop      mechanisms      and     The intention is that the CARE                  USD930 for the first loan.
                                        activities to strengthen them.       Credit Fund made available to the          •	   must constitute a mandatory
                                   •	   Submit monthly reports to            people’s banks will be gradually                term deposit that matures on the
                                        women’s councils and district        replaced by the people’s banks                  same date as the loan obtained
                                        authorities (CDCs and social         own funds at a level of 50 percent              from the people’s bank. The
                                        affairs departments) on the          by the end of the first year, and               interest accrued on the term
                                        state of progress of activities      100 percent after the second                    deposit is paid on maturity and
                                        (for information purposes).          year, but only if an evaluation                 may be capitalized. All or part
                                                                             so recommends and all parties                   of the deposit may, if necessary,
                                   Union of people’s Banks in                concerned agree. If need be, the                be used to cover unpaid loans
                                   Rwanda                                    funds may be transferred to other               after due diligence. Such deposit
                                   •	   Monitor the management of            districts to recreate the same                  is seized 15 days after formal
Experience and Knowledge Sharing

                                        CARE credit funds by people’s        arrangements. Members of SCAs                   notice if a satisfactory response
                                        banks.                               may also become members of                      is not forthcoming.
                                   •	   Supply CARE with a summary           a partner people’s bank, on an
                                        of the quarterly reports on loans    associative or individual basis.           When the loan is repaid in full,
                                        granted and loan repayment                                                      the savings plus accrued interest is
                                        status to associations by people’s   The sums borrowed must serve               returned to the SCA, which decides
                                        banks within the framework of        to strengthen and/or develop the           how it will be used. Loan conditions
                                        the project.                         SCA’s economic activities. The             are the same as those applied by the
                                   •	   Assure that this agreement is        activity should be profitable, have        people’s banks.
                                        ratified by each people’s bank.      a distribution and sales market, and       •	 The	 maximum	 repayment	
                                                                             generate sufficient revenue to pay              period is 12 months, with the
                                   people’s banks                            back the principal and interest. Loan           possibility of a grace period
                                   •	 Open	 term	 deposit	 accounts	         eligibility conditions are those applied        depending on the nature of the
                                      in the name of each borrower           by people’s banks. SCAs targeted by             project to be financed.
                                      SCA.                                   the ECOCOMF project should:                •	 Accrued	 interest	 is	 paid	 with	
                                   •	 Analyse	 and	 decide	 on	 SCAs'	       •	 be members of an operational                 each loan installment.
                                      loan applications within the                intergroup body and a CARE            •	 The	 interest	 rate	 on	 loans	
                                      scope of this agreement within              partner. This entails adopting the         corresponds to the current
                                      15 days of receiving them from              ROSCA system in accordance                 people’s bank rate.
                                      the intergroup bodies.                      with the CLASSE-Intambwe
                                   •	 Prepare	and	sign	loan	contracts	            model and being up to date            Remuneration of intergroup
                                      with SCAs.                                  with subscriptions                    body deposits
                                   •	 Release	loans	for	the	contracts	       •	 be active corporate members of          Each     intergroup     body     must
                                      signed.                                     the people’s banks                    also open a deposit account at
                                   •	 Monitor	 debtors	 and	 regularly	      •	 give proof of impeccable ethical        the partner people’s bank. For
                                      inform intergroup bodies about              standards, notably respecting         provision of technical assistance
                                      upcoming due dates (at least                previous commitments and              services (preliminary analysis of
                                      one week in advance) and                    have no history of unpaid             loan applications, monitoring of
                                      overdue accounts. To this effect,           loans; be made up of at least         associations and loan recovery),
                                      the bank will prepare a report              seven persons aged 18 years or        intergroup bodies will receive 30
                                      to be sent monthly to integroup             more                                  percent of the interest paid on loans
                                      bodies, the UBPR and to CARE           •	 be governed by current                  granted to member associations,
                                      Rwanda.                                     Rwandan legislation                   whatever the source of the funds
                                   •	 Introduce	    effective	    loan	      •	 present an economically viable          used to finance the loan might be.
                                      monitoring     and     recovery             project                               A statement of the commission
                                      methods to the intergroup              •	 provide a jointly and severally         must be drawn up monthly and
                                      bodies to improve their dealings            binding guarantee signed by all       communicated to the intergrouping,
                                      with partner SCAs.                          members, without exception,           CARE and UBPR at the same time

as the other reports. Commission is    northeastern Rwanda. With the size        The linkage’s overall effect on bank
paid on each loan repayment.           of groups reportedly being between        membership, savings, loan and asset
                                       20 and 30 members. This means that        growth, as well as bank profitability,
Results and impact                     between 20,000 and 30,000 rural           etc., is not clear, as shown in the
CARE Rwanda has worked hard            poor have been mobilized by the           statistical summary (see following
to organize SCAs and intergroup        three CARE projects. In principal,        page) of the three banks whose
coordinating bodies in the three       all groups now have savings               linkage operations with SCAs were
provinces where the CLASSE-            accounts in their respective people’s     researched.
Intambwe methodology is being          banks, and many group members
used. In fact, as shown in the table   have opened personal, individual          Yet, if the banks can eventually serve
1, over 1000 SCAs         supported    accounts, thus bringing many into         a majority of the 20,000 to 30,000
by 19 intergroup bodies exist in       the formal financial banking.             and more new SCA members, and
                                                                                 bring large numbers of them into
                                                                                 the mainstream as individual bank
                                                                                 members, then the methodology
                                                                                 will have succeeded.

                                                                                 Less than a quarter of the SCAs

                                                                                                                          Experience and Knowledge Sharing
                                                                                 have received loans so far, but
                                                                                 repayment has been 100 percent
                                                                                 for these. Based on the sample of
                                                                                 three people’s banks, it appears the
                                                                                 CLASSE-Inhambwe methodology is
                                                                                 having a positive effect on the banks’
                                                                                 overall repayment rates, as shown in
                                                                                 figure 2. Table 2 shows the status of
                                                                                 loans granted to SCAs with CARE’s
                                                                                 Credit Fund a little more than a year
                                                                                 into the programme.

Table 2. People’s banks–SCA loan summary, 31/09/05 (1USD=537 Rwanda French Francs

People’s             No. of        No. of           Total Guarantee                Capital             Outstanding
bank                  SCAs          loans        amount (25% block             reimbursed                  balance
                                                 granted    savings)
Buliza                   53             23       12,341       3,085                 5,354                     6,987
Humure                  130             36       16,386       4,096                 6,268                    10,117
Kabarore                 82             36       22,847       5,712                 5,874                    16,973
Karangazi                12             10         9,310      2,327                 4,120                     5,190
Kinihira                148             28       19,877       4,969                 9,046                    10,831
Kisaro                  186             33       16,046       4,012                 4,016                    12,030
Matimba                  70             27       19,923       4,981                 4,216                    15,707
Ngarama                  97             31       19,023       4,756                 6,845                    12,178
Nyagatare                35             17         7,727      1,932                 3,116                     4,612
Rukomo                   15             11       10,241       2,560                 4,427                     5,814
Rulindo                 153             28       17,180       4,295                 7,153                    10,027
Total                   981            280      170,901      42,725                60,434                   110,467

World Congress on Agriculture and Rural Finance

                                                  2nd WoRLd ConGREss on aGRICULTURE
                                                  and RURaL fInanCE HELd In BanGKoK
                                                  InTRodUCTIon                         This congress was organized by         Orchid Sheraton for Asian and
                                                                                       APRACA in conjunction with the         African delegates. The CD for this
                                                  Miriam Cherogony, the KMP Rural      following rural agricultural and       dialogue is available on the website
                                                  Finance Specialist, attended the     credit associations: Near East North   www.ruralfinancenetwork.org
                                                  2nd World Congress on Agricultural   Africa Regional Agricultural Credit
                                                  and Rural Finance on behalf of       Association     (NENARACA),      the   The Congress and the International
                                                  the Regional Economist, Mr. Dan      African Regional Agricultural Credit   Exhibition and Technical Fair was
                                                  Vadnjal. Ms Cherogony is grateful    Association (AFRACA), the Latin        officially opened by Her Royal
                                                  for the opportunity to attend and    AmericanAssociation of Development     Highness Princess Maha Chakri
                                                  share experiences during the         Financial Institutions (ALIDA) and     Sirindhorn. This was followed by
                                                  congress.                            the International Confederation of     the keynote speech by the Minister
                                                                                       Agricultural Credit (ICIDA).           of Finance, Thailand. Mr.René
                                                  The congress was held from 30                                               Carron, the Chairman of the CICA
                                                  October to 3 November 2007 in        This was a follow-up of the First      and Credit Agricole of France, a
                                                  Bangkok, Thailand and the theme      World Congress that was held in        leading agricultural bank, gave
                                                  was The Contribution of the          Addis Ababa, Ethiopia in 2006 and      the opening remarks. In addition,
                                                  Agricultural and Rural Economies     hosted by AFRACA. On 30th October      an inspirational message from the
                                                  to Sustainable and Equitable         2007 prior to the world congress a     King of Thailand on ‘Sufficiency
                                                  Development. It was hosted by        FinPowerForum on Rural Financial       economy’ was presented by Dr.
                                                  the Asia and Pacific Regional        Innovations and Best Practices         Sumet Tantivejkul, who is a member
                                                  Agricultural Credit Association      and the Asia-Africa Dialogue (A-A      and Secretary General of The
                                                  (APRACA).                            Dialogue) was held at the Royal        Chaipattana Foundation.

                                       representative.                         The keynote speech: ‘Grassroots
                                       Speakers: Mr. Roberto Smith,            financial empowerment and the
                                       President, Banco Nordeste do            implications of fair share of benefits
                                       Brazil ALIDE, a representative from     and responsibilities at grassroots
                                       NENARACA;                               level’.
                                       Case study: ‘Successful bank-           Speakers:       Mr.       Thiraphong
                                       financed food sufficiency project at    Tangthirasunan, President, BAAC,
                                       grass roots level’, by Mr. Zheng Hui,   APRACA on ‘Empowering Rural
                                       President, Agricultural Development     Economy’;
                                       Bank of China from APRACA               Case study: ‘Successful bank-
                                                                               financed women empowerment
                                       Discussion     and      conclusions.    project at grassroots level’ a
                                       The implications for food self-         representative       of     AFRACA,

                                                                                                                        World Congress on Agriculture and Rural Finance
                                       sufficiency are that there is need      Agricultural and Credit Bank of
                                       for proper regulatory frameworks        Burkina (BACB).
                                       that take care of environmental
                                       concerns and provide transparent        Discussion      and     conclusions.
                                       information on lands suitable for       Innovations should expand the
                                       biofuel production. There is need       financial frontier through
                                       to avoid distortion of markets for      •	 	products	 such	 as	 savings,	
                                       farmers, investors, consumers               remittance transfers and micro-
                                       There is need to invest in new              insurance.
                                       technologies (efficient irrigation,     •	 	technologies	 to	 reduce	 costs	
                                       energy saving, new varieties), and          and risks of supplying services
                                       to invest in agricultural research          and information technology
                                       and development of a social safety          (Palm Pilots, ATMs, point of sale
                                       net is needed for those who will be         devices, debit and credit cards,
                                       affected by higher food prices.             cell phones).
                                                                               •	 	expanding	the	financial	frontier	
                                       Session II ‘A fair share of benefits        through links such as banks
After the opening ceremony             and responsibilities at grass roots         with small MFIs and banks/MFIs
participants were treated to Thail     level’.                                     with insurance companies.
hospitality with a tour of the Grand   Chair: Mr. Bashir Albasir, Director     In conclusion microfinance reaches
Palace and the Temple of the           General of The Agricultural Bank,       many poor people but misses
Emerald Buddha. During the tour        Tripoli, Libya and Chairman of          the very poor, disadvantaged and
the participants appreciated the       NENARACA                                marginal groups. Innovations in
rich cultural history of Thailand,     Moderator: Dr. Rommel Acevedo,          products, technologies, and linkages
its Kings and the Thai religion,       Secretary General of ALIDE.             are pushing out the financial
Buddhism. The current King who
celebrated his 80th birthday on the
5th December 2007 is the 9th King
of Thailand. The Grand Palace and
Temple is a sacred site for the Thai
people. Participants who wished to
enter the grounds were requested to
wear appropriate clothing.

Session I ‘Food sufficiency:
addressing population and food
sourcing issues’.
Chair: Mr. Leonce Kone, Chair of
Moderator: Dr. M. Mustafa, the
Secretary General of NENARACA.
Keynote address: ‘Implications
of Food Sufficiency for Rural          Her Royal Highness Princess Maha Chakri Sirindhorn performs the official
Financial Institutions’ The UN-FAO     opening

                                                                                                                                    implemented by the private sector
                                                                                                                                    and mutual insurance societies.

                                                                                                                                    Session IV ‘Bringing technology
                                                                                                                                    closer to grassroot communities’.
                                                                                                                                    Chair: Dr. Nicola Angelucci,
                                                                                                                                    President, Banco Multi sectorial de
                                                                                                                                    Inversions and President, ALIDE
                                                                                                                                    Moderator: Mr. Jean Luc Perron,
                                                                                                                                    Executive       Vice-President       of
                                                                                                                                    Credit Agricole from CICA. The
                                                                                                                                    keynote speech was ‘Bridging
World Congress on Agriculture and Rural Finance

                                                                                                                                    the Technology Divide’ by the
                                                                                                                                    World Bank representative. Under
                                                                                                                                    the ‘Implications of Bridging the
                                                  Her Royal Princess visits the IFAD stand.                                         Technology Divide for Rural
                                                                                                                                    Financial Institutions’ there were two
                                                                                                                                    speakers; Mr. Duke Osam-Duodu,
                                                  frontier by lowering financial costs      coach local human resource and
                                                                                                                                    Deputy Managing Director, ARB
                                                  and risks. There is still need to seek    communities.
                                                                                                                                    Apex Bank, Ghana of AFRACA and
                                                  affordable interest rates
                                                                                                                                    a representative from CICA. The
                                                                                            To take advantage of the changing
                                                                                                                                    case study was on ‘Successful Bank-
                                                  Session III ‘Present-day climate and      business environment it is mandatory
                                                                                                                                    Financed Technology Empowering
                                                  environmental realities’                  to implement risk- management
                                                                                                                                    Project at Grass Roots Level’ by Mr.
                                                  Chair: Dr. Thomas Elhaut, Director,       practices    especially     insurance
                                                                                                                                    Chianda, Head of Retail Banking at
                                                  IFAD                                      schemes. Agricultural insurance
                                                                                                                                    The Cooperative Bank of Kenya from
                                                  Moderator: Ms. Mbita Mary Nandazi,        is a basic instrument used by the
                                                  Secretary General, AFRACA.                agricultural markets in developed
                                                  Keynote speech: ‘Gross national           countries such as the US. This issue
                                                                                                                                    Discussion and conclusions. Under
                                                  happiness’       by       Bhutan,     a   has become increasingly important
                                                                                                                                    bridging the digital divide the great-
                                                  representative of APRACA.                 in Latin American countries (Brazil,
                                                                                                                                    est challenge is legal and regulatory
                                                  Address: ‘Implications of climate         Argentina, Chile, Peru, Guatemala,
                                                                                                                                    framework, banking regulations
                                                  and environmental changes for             Honduras, and El Salvador). Mexico
                                                                                                                                    and communications, appropri-
                                                  rural financial institutions’ by the      is the most advanced developer
                                                                                                                                    ate communications, security and
                                                  representative      of     NENARACA       of agricultural insurance in Latin
                                                                                                                                    know your client (KYC) issues, in-
                                                  and Mr. Rodrigo Sanchez Mujica,           America. All successful agricultural
                                                                                                                                    formation policies and access for
                                                  Director General, Fideicomisos            insurance models have been those
                                                  Instituidos en Relación con la
                                                  Agricultura (FIRA), Banco de
                                                  México of ALIDE.
                                                  Case study: ‘Successful bank-
                                                  financed renewal energy project at
                                                  grassroots level’ by the representative
                                                  from CICA.

                                                  Discussion and conclusions.
                                                  Access to operational satellite
                                                  resource should be made easier,
                                                  faster, cheaper. It should be more
                                                  sustainable and transferable to local
                                                  actors. For financial institutions
                                                  and rural communities there is
                                                  need identify relevant partners,
                                                  negotiate deals with providers,
                                                  ensure procurement, installation
                                                  and management, takes operational          Participants to the World Congress tour the Grand Palace and the
                                                  responsibility and training and            Temple of the Emerald Buddha

non-bank. Technologies are not        equipment for viewing films, slides            tain sustainable and equitable de-
an end in themselves. They are        and other e-materials. It was highly           velopment.
only tools to: achieve customer       appreciated if the products reflect the   •	   It	 recognized	 the	 importance	 of	
satisfaction, increase outreach,      customs, traditions, culture, ethnicity        the Millennium Development
become and stay profitable and        of each region, and are produced by            Goals.
need to be managed accordingly.       the rural clients themselves. Products    •	   It	recognized	that	majority	of	poor	
                                      were put on sale on November 2nd               people live in rural areas and that
Session V ‘Public–private partner-    2007, toward the end of the World              agricultural and rural finance was
ship at grassroots level’.            Congress. As some institutions had             a tool to finance the farming sys-
Chair: Dr. Do Tat Ngoc, Vice-         links with their respective countries’         tems.
Chairman, APRACA                      embassies, trader’s exporters, they       •	   There	 is	 need	 for	 public–private	
Moderator: Dr. Mario Masini,          were contacted for this purpose.               partnerships for significant im-
Secretary General of CICA.                                                           pact.

                                                                                                                                World Congress on Agriculture and Rural Finance
Keynote speech: ‘Public–private       Bangkok Declaration                       •	   There	 was	 support	 for	 polices	 and	
sector partnership at grassroots                                                     strategies based on positive values.
level’ by Dr. Mechai Viravaidya,      At the end of the Congress, partici- •	        It	 recognized	 the	 critical	 role	 of	
Chairman of Population and            pants came up with the Congress                rural banks as pillars of rural fi-
Community Development Asso-           declaration.                                   nance and development.
cia-tion. Under the ‘Implications     •	 The	declaration	in	part	affirms	the	 •	     Strategic	 partnerships	 among	
of Private Sector Involvement for        significant contribution of agricul-        banks, NGOs and cooperatives
Rural Financial Institutions’            tural and rural economies to at-            must be established.
Speakers: Mr. Sulaiman Arif Ar-
ianto, Managing Director, Bank
Rakyat Indonesia representing          annoUnCEMEnTs
APRACA and a representative             MICRosaVE TRaInInG                       the participants with new, practical
from NENARACA.                          Greetings from MicroSave!                knowledge and tools to apply in
Case study: ‘Successful bank-                                                    their institution.
financed public–private sector          Mentioned below is a list of
project at grassroots level’ by Mr.     trainings that MicroSave is going        Lotika Massey
Fernando Peña, General Manager,         to organize which also includes          Knowledge Management Assistant
Banco de Desarrollo Rural (BAN-         a comprehensive training –               MicroSave
RURAL), Guatemala of ALIDE.             AMI in July 2008. The Applied            B-52, Kapoorthala Crossing,
Discussion and conclusions.             Microfinance Institute (AMI) offers      Mahanagar Extension, Mahanagar,
Public–private partnership (PPP)        7 courses of which participants can      Lucknow-226006, UP, India.
describes a government service or       pick minimum 3 and maximum               Phone: +91-522-2335734,
private business venture (APRACA)       4 courses. AMI is for middle and         Fax: +91-552-4063773
and host Bank for Agriculture and       senior-level managers of Indian          Mobile: +91 9956 298353
Agricultural Cooperatives (BAAC)        microfinance institutions and            www.MicroSave.org
invited institutional participation     consultants/trainers, and equips
in the International Exhibition and
Technical Fair, which was held                 Course             Venue               Dates              To Enrol …
in conjunction with the Second           Individual Lending    Lucknow,         February 28th-          Open for all
World Congress on Agricultural            for Credit Officers     India           March 1st
and Rural Finance, held at the Roy-      Individual Lending    Lucknow,          March 3rd-5th          Open for all
al Thai Navy Convention Hall in         for Credit Managers       India
Bangkok, Thailand on 31 October
                                                Applied        Lucknow,         March 10th-20th        For MicroSave
to 2 November 2007. Institutions
                                             Microfinance         India                                  ARPs only
were requested to bring to Bang-
                                        Institute for Budding
kok for display agricultural and
SME products, including demon-
                                         Financial Reporting Hyderabad,           March 20th          Open - Mark the
stration of machinery and equip-
                                                for MFIs          India                                   dates
ment used in agriculture and agri-
cultural finance books, brochures,        Internal Audit and Hyderabad,         April 23rd-25th        Open for all
and other printed multimedia ma-                Controls          India
terials on rural finance and on the           The Applied     Jaipur, India      July 14-25th         Open - Mark the
world congress topics. The fair in-          Microfinance                                                 dates!
cludes computers and projection             Institute – India

                                                 The Kenya Women Finance Trust            at 211% and return on assets of
       nEWs                                      (KWFT) officially launched Kinga         3.61%.
                                                 Ya Jamii, a last-expense insurance       Founded in 1992, Incofin is a
       Kenya Women’s Finance                     product. Its primary purpose is to       Belgium-based         microfinance
       Trust begins the converting               enable KWFT’s clients and their          investment fund. According to
       into a commercial bank                    families to offset funeral expenses.     MIX data from year end 2005,
                                                 KWFT is a Kenyan microfinance            its investment mix is 56% loans,
       The conversion follows the footsteps      institution (MFI) based in Nairobi,      43% equity, and 1% guarantees.
       of K-Rep Bank and Equity Bank,            Kenya that provides financial and        As well, Incofin is 50% invested in
       former Kenyan microfinance institu-       non-financial services to women          Latin America and 40% in Africa,
       tions that were transformed into com-     in business. Founded in 1982, it is      with 10% in Western Europe. Its
       mercial banks in 1999 and 2004,           led by Dr. Jennifer Riria, CEO and       assets, at year end 2005, were
       respectively. According to CEO Dr.        Mwangi Githaiga, CFO. KWFT               $5.6 million, of which $4.5 million
       Jennifer Riria, the Kenya Women’s         offers capital and consumer loans        was allocated to microfinance
       Finance Trust (KWFT) hopes to be-         for groups of borrowers, or Kiwas,       investments.
       come a ‘one-stop-shop’ financial          with a repayment schedule of nine        Matthew Robson, MicroCapital
       institution that will offer savings ac-   to twelve months. According to year      Writer
       counts, in addition to loans.             end 2006 data from the Microfinance
                                                 Information eXchange (MIX), KWFT
       Ms. Mary Iskerderian, President           has 85,555 active borrowers and          Uganda’s Troubled savings
       and CEO of Women’s World                  a total loan portfolio of USD 32.7       and Credit Cooperatives
       Banking (WWB), KWFT’s primary             million. In addition, it has assets of   to be audited by the
       international         microfinance        USD 52.1 million, a debt to equity       Association of Microfinance
       network, is on a four-day visit in        ratio of 273 percent and return on
                                                                                          Institutions of Uganda), a
       Kenya to speak with key officials of      assets (ROA) of 4.37 percent. Its
                                                 primary network is Women’s World         Trade Association
       Ministry of Finance and the Central
       Bank of Kenya (CBK) regarding the         Banking (WWB), an international
                                                 microfinance network. It received a      The Association of Microfinance
       formation of the new bank.
                                                 grade of B+ in MicroRate’s February      Institutions of Uganda (AMFIU),

                                                 2007 evaluation.                         a trade association, is to audit the
       KWFT is a Kenyan microfinance
                                                                                          Savings and Credit Cooperatives
       institution (MFI) based in Nairobi,
                                                 By Mary Fu, Research Assistant           (SACCOs) in the country, in light of
       Kenya that provides financial and
                                                                                          the recent financial scandals that
       non-financial services for women
                                                                                          have dented the public’s faith in
       in business. Founded in 1982, it
                                                                                          these microfinance organisations.
       is led by Dr. Jennifer Riria, CEO         Microfinance Institution
       and Mwangi Githaiga, CFO. KWFT            Kenya Women Finance                      The AMFIU was established in 1996
       offers capital and consumer loans         Trust Receives $600,000                  with the aim of stimulating private
       for groups of borrowers, or Kiwas,        Line of Credit from Incofin              sector development, facilitating
       with a repayment schedule of
                                                                                          capacity building, and ensuring
       nine to twelve months. According          Another deal coming to us this           that Uganda participates fully in
       to year end 2006 data from the            month courtesy of the CGAP-MIX           the global microfinance industry.
       Microfinance Information eXchange         Capital Markets MCM Newsletter,          It provides lobbying, consumer
       (MIX), KWFT has 85,555 active             the Kenya Women Finance Trust            education and information analysis
       borrowers and a total loan portfolio      (KWFT) received a $600,000 line          services.
       of USD 32.7 million. In addition, it      of credit from Incofin. KWFT is a
       has assets of USD 52.1 million, a         microfinance institution based in        During the recent launch of their
       debt to equity ratio of 273 percent       Nairobi, Kenya, and was founded          transparency programme and
       and return on assets (ROA) of 4.37        in 1982. It provides loans to women      consumer code of practice, the
       percent. Its primary network is           by forming groups of borrowers,          AMFIU said that they hoped to
       Women’s World Banking (WWB),              or Kiwas, which promote loan             improve SACCO bad governance
       an international microfinance             repayment. According to year end         by training more managers and
       network. It received a grade of           2005 data from the Microfinance          getting involved in the auditing of
       B+ in MicroRate’s February 2007           Information eXchange (MIX),              microfinance firms.
       evaluation.                               KWFT has 62,790 borrowers and
                                                 a total loan portfolio of $20.1          The necessity of such a programme
       By MRY Fu, Research Assistant             million. In addition, it has assets      has been evident in the last
                                                 of $33.1 million, debt to equity

few months, as a number of            subsidiaries in Uganda, Tanzania       with the private sector or under
firms have been investigated by       and Rwanda by August 2008. The         contract. In other types (notably the
the police and shut down, as          bank believes this expansion will      Private Finance Initiative), capital
reported by MicroCapital. Public      allow it to compete against the        investment is made by the private
disenchantment has been seen          dominant players in the region:        sector on the strength of a contract
in theater performances where         multinationals such as Barclays        with government to provide
SACCOs have been satirised.           and Standard Chartered, as well as     agreed      services.   Government
                                      local Kenya Commercial Bank. Mr.       contributions to a PPP may also
SACCOs are known for being            Mwangi stated that he is confident     be in kind (notably the transfer of
insufficiently supervised, so the     that the expansion will allow the      existing assets).Typically, a private
AMFIU’s decision to get involved      bank to double its customer base       sector consortium forms a special
will be seen as a step in the         over the next five years.              company called a ‘special purpose
right direction. SACCOs are not                                              vehicle‘ (SPV) to build and maintain
regulated by the Bank of Uganda,      Helios EB is a limited partnership     the asset. The consortium is usually
unlike banks and microfinance         managed by Helios Investors, LP        made up of a building contractor,
institutions (MFIs). They only have   and advised by Helios Investment       a maintenance company and a
to be registered with the Registrar   Partners, LLP. Helios Investment       bank lender. It is the SPV that signs
of Savings and Credit Cooperative     Partners is an investment firm         the contract with the government
Societies, which has limited staff    making private equity investments      and with subcontractors to build
capacity and expertise, and yet       in sub-Saharan Africa. Its primary     the facility and then maintain it.
they can take deposits from their     focus is in West Africa, with a
members to lend-on to other           secondary focus on Central and
members of the scheme.                Southern Africa. It specializes in     Closing Ceremony - The Closing
                                      large buyout or growth investments,    session included the Summary
The World Council of Credit           as well as new business formations     of Proceeding by Mr. Benedicto
Unions (WOCCU), a worldwide           where there is clear potential for     S. Bayaua, Secretary General
development agency supporting         achieving meaningful scale in the      of APRACA. The reading of the
credit unions, is working with        medium term.                           2nd World Congress Bangkok
the Ugandan government to                                                    Declaration by Dr. Mario Masini,

prepare all Ugandan SACCOs for        A fund such as Helios EB is            Secretary General, CICA and the
government supervision, as well       set up to invest in a number           Closing Statements from Mr.René
as to develop the credit union        of companies on behalf of its          Carron, Chairman, CICA and
legislation and regulation that are   partners for a limited period of       Mr. Thiraphong Tangthirasunan,
currently lacking.                    time - typically 10 years. Upon the    Chairman, APRACA.
Amy Rennison, MicroCapital            termination of this period the fund
writer                                is harvested and the money shared      Field Visits - In addition to the
                                      among the investors. Among the         plenary discussions, field trips
                                      notable investors in Helios EB         were organized to Bangsai Arts
                                      are investment firms owned by          and Crafts Center, Ayutthaya ;
Equity Bank of Kenya                  the US government - including          an orchid farm of BAAC’s client
to Expand Microfinance                the Overseas Private Investment        farmer, Nakhon Pathom; Khao Hin
Services to Uganda,                   Corporation, the UK government         Son Royal Development Study
Tanzania and Rwanda                   - including the CDC Group, the         Centre, Chachoengsao; and to
                                      World Bank - International Finance     Hui Sai Royal Development Study
Backed by Investment from
                                      Corporation, as well as funds          Centre Petchaburi. On the 4th -6th
Helios EB                             owned by American billionaire          November 2007 a field visit was
                                      George Soros.                          organized to Chiangrai in Northern
Dr James Mwangi, CEO of Kenya-        Equity Bank was originally founded     Thailand Golden Triangle and a
based Equity Bank, recently           in 1984 in centralre which is funded   brief two-hour seminar on the Thai
announced that the bank will          and operated through a partnership     economy was presented by former
use the proceeds from the sale        of government and one or more          Deputy Prime Minister and former
of 25 percent ownership (valued       private sector companies. These        Bank of Thailand Governor, MR
at KES 11 billion or USD 175.7        schemes are sometimes referred to      Pridiyathorn Devakula.
million) of the bank to investment    as PPP or P3. In some types of PPP,
group Helios EB to expand its         the government uses tax revenue        The International Fair/Exhibition
operations to other countries in      to provide capital for investment,     - The Asia-Pacific Rural and Agri-
East Africa. The bank plans to open   with operations run jointly            cultural Credit Associationre which

       is funded and operated through a
       partnership of government and one          Community-Managed
       or more private sector companies.
       These schemes are sometimes re-            Microfinance: A new and
       ferred to as PPP or P3. In some types
       of PPP, the government uses tax rev-       sustainable approach to
       enue to provide capital for invest-
       ment, with operations run jointly          microfinance for the poor
       with the private sector or under
       contract. In other types (notably the
                                                  A course for practitioners
       Private Finance Initiative), capital in-
       vestment is made by the private sec-       Pietermaritzburg, South Africa, 23-28 June 2008
       tor on the strength of a contract with
       government to provide agreed ser-          SaveAct of Pietermaritzburg       background and emerging
       vices. Government contributions to a
                                                  in South Africa and VSL As-       issues
       PPP may also be in kind (notably the
       transfer of existing assets).Typically,    sociates Ltd. are offering a •	Field	visits	to	SaveAct	
       a private sector consortium forms a        5-day course in the history,      Village Savings and Loan
       special company called a ‘special          principles, practice and im-      groups. These are groups
       purpose vehicle‘ (SPV) to build and        plementation of Community-        implementing the VSL
       maintain the asset. The consortium is
                                                  managed Microfinance. It is       CMMF model
       usually made up of a building con-
       tractor, a maintenance company and         based substantially on the •	Practice	sessions	
       a bank lender. It is the SPV that signs    Southern New Hampshire            illustrating the VS&L
       the contract with the government           course of the same name and       methodology used by
       and with subcontractors to build           taught by the same facilitator.   CARE, CRS and Plan
       the facility and then maintain it.
                                                                                    International. All current
                                                  The course will be taught in      training materials will be
                                                  English by Hugh Allen of VSL      used

       Mr. Mwangi attributes the bank’s           Associates. There are 14 plac- •	Management	Information	
       recent success to its departure from       es available on the course.       Systems for CMMF:
       traditional banking practices in Ken-
                                                                                    entry-level and advanced
       ya. Whereas most financial institu-
       tions would deem ordinary Kenyans          Course Description:               versions
       too big a credit risk to serve, Equity                                     •	Approaches	to	programme	
       Bank has built a reputation serving        The Community-managed             design
       precisely these populations. The           Microfinance (CMMF) course •	Implementation	planning	
       bank’s practices have earned it in-
                                                  exposes participants to best      at all levels
       ternational acclaim, including an
       award of excellence at the recent          practice by the leading
       G8 summit and favorable rankings           practitioner organisations      Course Objectives:
       on the United Nations Develop-             that are promoting savings-     The objectives of this course
       ment Fund list: third-best microfi-        based community-managed           are for participants to:
       nance institution in the world and
                                                  microfinance. The course        •	To	understand	the	basic	
       best microfinance bank in Africa.
       Mr. Mwangi stated that this recogni-       covers 6 key areas:               rationale for CMMF and to
       tion by international leaders, as well                                       understand what type of
       as the popularity of the bank among        •	General	introduction,	          target group most benefits
       Kenyans, are the primary factors that        covering principles             from the system
       led the bank to its decision to ex-
                                                    and emerging best             •	To	gain	familiarity	with	
       pand regionally.
                                                    practice; why CMMF?;            the training approach and
                                                    the scale and extent of         tools and make informed
                                                    practitioner programmes;        choices about which
                                                    methodological                  system or combination

  of systems best suits their     international                 Formation Process-Vinod
  clients and staff             •	Implementation	planning	      Parmeshwar
•	To	be	able	to	track	and	        and timeline development    The New Microfinance - Kim
  measure programme             •	Budgeting                     Wilson
  performance                                                 To link or not to link – Allen
•	To	be	able	to	design	and	     Materials provided            Village Savings and Loan
  cost a CMMF programme                                         Associations - Small
                                Reading hand-out:               Enterprise Development
Course topics                   VS&L Programme Guide:         Village Savings and Loan
                                 Hugh Allen, VSL Associates     Associations - Small
Day 1:                          Community-managed Loan          Enterprise Development
•	Distinctions	between	          Funds: Which ones work?      VSL Programme Guide 3.01
  CMMF and other MF              Jessica Murray and Richard   Saving for Change Group
  methodologies                  Rosenberg. CGAP                Formation Guide
•	Global	experience	in	                                       Saving for Change Pictorial
  CMMF                          CD ROM Resources to be          Guide
•	Emerging	issues	in	CMMF       provided to participants:
Day 2:                        Documents:                      VSL MIS 1.16
•	Visit	to	SaveAct	VSL	       CARE Malawi VS&L Impact         VSL MIS 2.05

                                                                                                Training Opportunities
  Associations                  Evaluation                    VSL MIS Aggregator 1.04
                              CARE Zimbabwe VS&L
Day 3: Practice in CMMF         Impact Evaluation             Costs and how to register
  Daily savings techniques    VS&L Programme Evaluation
•	Operation	of	a	Social	        in Zanzibar                   Registration:
  (insurance) Fund            CARE’s Village-based Savings    Participants must register by
•	Savings/share	purchase        and Credit Programme -        downloading an application
•	Loan	disbursement	and	        Journal of Microfinance       form at www.SaveAct.org.
  repayment                   Community Managed Loan          za and emailing it to gail@
•	Fund	distribution/dividend	   Funds - Which Ones Work       spottedowl.co.za.
  payments                      - Rich Rosenberg
                              Debt and Vulnerability in       Costs:
Day 4:                          NW Bangladesh – CARE          The course will cost $1,300,
•	Management	Information	     Member-owned Financial          including accommodation
  Systems: concepts,            Institutions - Rhyne-Ashe     and must be paid in full in
  operation and analysis        Debate                        advance.
•	Monitoring	and	evaluation:	 Self-help Groups as Financial
  emerging practice and         Intermediaries in India -     Venue and accommodation
  results                       Ajay Tankha                   The course will be held in
                              SPM Guide Uganda - Anne         Pietermaritzburg, South
Day 5:                          Ritchie                       Africa
•	Design	approaches	and	      SPM Guide Zimbabwe –
  tools                         CARE                          Air transport
                              Isiqalo – An enterprise         Those arriving by air to
Day 6:                          training guide for South      Pietermaritzburg will be met
•	Emerging	programme	           Africa based on SPM -         at the airport if their arrival
  strategies: beyond            SaveAct                       time is sent in advance.
  the local, towards the      Spontaneous Group

                         Microfinanças Gerida pela Comunidade: Uma
                         abordagem nova e sustentável de microfinanças
                         para os pobres
                         Um curso para profissionais em Português Nampula, Moçambique, 23-27 de Junho de 200

                         CARE Moçambique, A Ophavela em Nampula e a                             grupos de Empréstimo e
                         VSL	Associates	Ltd.	Estão	oferecendo	um	curso	de	6	                    Poupanças da Ophavela.
                         dias relacionados com a história, principios, práticas e               Estes	grupos	estão	
                         implementação	de	Microfinaças	Gerido	pela	Comunidade.	                 implementando o modelo
                         É substancialmente baseado no curso de Southern New                    de MFGC da VSL
                         Hampshire com o mesmo nome e ensinado pelos mesmos                •	   Sessões	de	prática	
                         facilitadores.                                                         ilustrando a metodologia
                                                                                                da VS&L usada pela CARE,
                         O curso será ensinado em Português por Gabrielle Athmer da             CRS e Plan International.
                         VSL Associates. Existem 24 lugares disponiveis para este curso.        Todos os materiais de
                                                                                                formação	actual	serão	
Training Opportunities

                                                                                           •	   Sessões	de	prática	
                                                                                                envolvendo os
                                                                                                procedimentos e técnicas
                                                                                                usadas nas poupanças,
                                                                                                empréstimo e partilha de
                                                                                           •	   Sistemas	de	Gestão	de	
                                                                                                Informação	de	MFGC:	
                                                                                                nível de lançamento e
                                                                                                versões avançadas
                                                                                           •	   Abordagens	de	desenho	
                                                                                                do programa e orçamentos

                                                                                           Objectivos do Curso:
                                                                                         O objectivo deste curso é
                                                                                         para os participantes:
                                                                                         •	 Entenderem	a	razão	básica	
                                                          áreas principais:                 de MFGC e de perceberem
                         Descrição do Curso:              •	 Introdução	geral,	cobrindo	    que tipo de grupo alvo
                         O curso de Microfinanças            os princípios e melhores       mais se beneficia do
                         Geridas pela Comunidade             práticas emergentes; a         sistema
                         irá expor aos participantes as      balança	e	a	extenção	       •	 Ganhar	familiaridade	
                         melhores práticas liderando         dos programas dos              com a abordagem de
                         as organizações profissionais       profissionais; fundo           formação	e	ferramentas	e	
                         que promovem as poupanças           metodológico e assuntos        fazer escolhas informadas
                         de microfinanças geridas pela       emergentes                     acerca de que sistema de
                         comunidade. O curso cobre 6      •	 Visitas	de	campo	aos	          combinação	melhor	se	

                                 Informação:	conceitos,	     Recursos de CD ROM a serem
                                 operação	e	análise	         providos aos participantes:
                              •	 Monitoria	e	avaliação:	
                                 práticas emergentes e       Documentos:
                                 resultados                  Avaliação	de	Impacto	da	
                                                                VS&L da CARE Malawi
                              Dia 5:                         Avaliação	de	Impacto	da	
                              •	 Abordagem	de	desenho	e	        VS&L da CARE Zimbabwe
                                 ferramentas                 Avaliação	do	Programa	VS&L	
                                                                em Zanzibar
   adequa aos clientes e ao
                              Dia 6:                         Programa de Crédito e
                              •	 Estratégias	de	programas	      Poupança baseada
•	 Ser	capaz	de	localizar	e	
                                 emergentes: para além          na CARE – Diário de
   medir o desempenho do
                                 das	locais,	em	direcção	as	    Microfinanças
                                 internacionais              Fundos de Empréstimo
•	 Ser	capaz	de	desenhar	os	
                              •	 Planeamento	de	                Geridos pela Comunidade
   custos do programa de
                                 implementação	e	               – Quais é que funcionam -
                                 desenvolvimento da linha       Rich Rosenberg
Tópicos do curso                 de tempo                    Divida e Vulnerabilidade em
                              •	 Orçamento                      NW Bangladesh – CARE

                                                                                             Training Opportunities
Dia 1:                                                       Instituições Financeiras
                              Materiais providênciados          pertencentes aos Membros
•	 Distinções	entre	as	MFGC	
   e outras metodologias de                                     – Debate de Rhyne-Ashe
                              Manuais para leitura:          Grupos de Auto Ajuda como
                              Directrizes do Programa           Intermediários Financeiros
•	 Experiência	global	em	
                              da VS&L: Hugh Allen, VSL          na India - Ajay Tankha
                              Associates                     Directrizes de SPM em
•	 Assuntos	emergentes	
                              Fundos de Empréstimos             Uganda - Anne Ritchie
   relacionados com MFGC
                              Geridos pela Comunidade:       Directrizes de SPM em
                              Quais é que funcionam?            Zimbabwe – CARE
Dia 2:
                              Jessica Murray e Richard       Processo	de	Formação	de	
•	 Visitas	as	Associações	da	
                              Rosenberg. CGAP                   Grupos Espontaneos
   Ophavela VSL
                                                                -Vinod Parmeshwar
Dia 3: Práticas de MFGC:
•	 Técnicas	de	poupanças	
•	 Operação	do	Fundo	
   Social (seguros)
•	 Poupanças/compra	de	
•	 Desembolso	de	
   Empréstimos e pagamento
•	 Distribuição	de	fundos/
   pagamentos dividendos

Dia 4:
•	 Sistema	de	Gestão	de	

                         As Novas Microfinanças -        do aeroporto para o local            development;
                            Kim Wilson                   do workshop pode ser              •	 develop	a	critical	analysis	
                         Ligar	ou	não	ligar	–	Allen      organizado.                          of the broader issues and
                         Poupanças Rurais e                                                   environment in which
                            Associações de                                                    microfinance initiatives
                            Empréstimo –                 Certificate in                       are based;
                            Desenvolvimento de
                            Pequenas Empresas
                                                         Community-                        •	 better	analyze	and	adapt	
                                                                                              current sound practices
                         Poupanças Rurais e              Based                                from international
                            Associações de                                                    experience to their own
                            Empréstimo –                 MicroFinance                         context.
                            Desenvolvimento de
                            Pequenas Empresas            This three-week certificate       The certificate focuses on
                         Directrizes do Programa da      course in Community-              introducing participants to
Training Opportunities

                            VSL 3.01                     Based MicroFinance will           skills and strategies in the
                         Poupança e Directrizes para     be offered from 8 to 26           leadership and management
                            Formação	de	Grupo	de	        September 2008, at St.            of sustainable, microfinance
                            Mudança                      Francis Xavier University         organizations or initiatives.
                         Directrizes Pictóricas de       Campus in Antigonish, Nova        The language of instruction
                            Mudanças nas Poupanças       Scotia, Canada. Working           is English. The target
                                                         with development leaders          audience is mid- to senior-
                         Software:                       from all over the world, this     level individuals working in
                         VSL MIS 1.16                    one of a kind program allows      the development field. The
                         VSL MIS 2.03                    participants to:                  Coady International Institute
                         VSL MIS Aggregator 1.04                                           will be offering the course.
                         Registro                        •	 strengthen	skills	
                                                            in microfinance                Contact
                         Registro:                          programming, financial         Janet MacDonald
                         Os	participantes	deverão	          analysis, monitoring,          Email jamacdon@stfx.ca
                         fazer o registro através da        strategic planning,            Fax : +1 902 8673907
                         Sra. Michelle Carter usando o      problem solving,               Tel : +1 902 8673953
                         seguinte endereço electronico      comparative analysis and       Location : Antigonish, Nova
                         mcarter@care.org.mz até 15         scenario building;             Scotia, Canada
                         de Maio de 2008                 •	 identify	current	innovative	   Course cost : Canadian
                         Haverão	custos	para	cobrir	        strategies in the leadership   dollars 3,000. This includes
                         o alojamento e o curso deve        and management                 tuition, room and board.
                         ser pago na totalidade e           of a microfinance              Full and partial bursaries
                         adiantado.                         organization in the            are available to qualifying
                                                            areas of governance,           participants. Special efforts
                         O workshop será em                 financial management,          are made to enable women
                         Nampula (o local será depois       staff development, client      to take part.
                         anunciado). O Transporte           analysis and product


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