European Microfinance Actors Working in Developing Countries

200 Pages·2013·1.14 MB·English

by  European Microfinance Platform

EUROPEAN

MICROFINANCE
ACTORS
WORKING IN
DEVELOPING
COUNTRIES
DIRECTORY,
MAIN TOPICS
AND PRIORITIES
2013

EUROPEAN

MICROFINANCE
ACTORS
WORKING IN
DEVELOPING
COUNTRIES
DIRECTORY,
MAIN TOPICS
AND PRIORITIES
2013

EEuurrooppEEaann MMiiccrrooffiinnaannccEE aaccttoorrss -/ 22001133
FOREWORD
We are very pleased to present you with this related issues. Existing cooperative ventures
update of the ‘Directory of European Actors between e-MFP members have clearly shown the
Working in Microfinance in Developing Countries’. relevance of joining forces and the benefits that
It is the fourth edition of this important document; accrue to microfinance clients as a result. This
earlier versions were published in 2005, 2009 Directory and more broadly the e-MFP, aims to
and 2010. As the European Microfinance Platform facilitate the emergence of such collaboration.
(e-MFP) continues to grow, both in number and
The microfinance industry continues to face
variety of members, it is appropriate to update
volatile and uncertain financial systems and
the Directory at this juncture. We anticipate that
closer scrutiny from policy makers, the press and
future adjustments will be added via our website,
the general public on its impact, while its clients
ensuring accurate and up-to-date information.
operate in unpredictable environments of climate
The primary purpose of this Directory is to change and income and price fluctuations. As the
provide a ‘Who’s Who’ for microfinance. It offers microfinance sector has become highly diverse
practitioners a tool with which they can ascertain in products, players and clients, it has in fact
who is doing what in the microfinance sector, achieved a prominence that few of us would have
where they are doing it, and through what means. envisaged a decade ago. That said, this Directory
Our hope is that it will enhance cooperation and is also produced during a time of reflection on the
coordination, one of e-MFP’s main aims - thus role of microfinance, fair practices, performance
promoting synergy amongst e-MFP members and and financial inclusion. We have clearly seen this
beyond our platform. in the priorities listed by our members in terms of
social impact, interest rates and client protection.
We are also pleased to note that we have welcomed
Moreover, they also came forward with exciting
many new microfinance actors into our network. Of
new directions, such as; linking microfinance to
the 114 full and associate members of e-MFP, 104
environmental sustainability, social business and
provided information for this Directory; 37% NGOs,
fair work, and continuing technological progress to
24% financial institutions, 17% consultants and
facilitate the work of practitioners.
support services, 10% government agencies 5%
researchers and 8% other types of organisations. We invite you all to join e-MFP in taking the current
The diversity and complementary nature of our challenges and their impact on microfinance
membership makes e-MFP a unique platform for head-on. Our ambition is that by joining forces
knowledge sharing and joint collaboration. This and identifying key challenges to be faced such
can have a significant impact for the microfinance as increasing outreach to client groups that
sector. continue to be underserved, we can harness our
commitment to ensure that ever more people
The Directory presents many useful insights;
will have access to affordable and appropriate
many members are active in areas such as rural
financial services. Lastly, we wish to express our
and value chain finance, social impact, client
sincere appreciation to the Blue Rhino team who
protection - indicating opportunities to build on
compiled this Directory.
synergies with others. Collaboration can improve
the efficiency and effectiveness of interventions by
compiling and making available the vast knowledge
that is present among our members. At the same
time, it is also clear that other areas or regions
appear underserved and could be the focus of new
activities, such as in microfinance for the poorest- Cécile Lapenu, e-MFP Acting Chairwoman
of-the-poor, post-conflict development and health- Christoph Pausch, e-MFP Executive Secretary
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EuropEan MicrofinancE actors - 2013
TABLE OF CONTENTS
Foreword ..........................................................................................................................................................................3
Table of contents ...........................................................................................................................................................5
Executive summary .......................................................................................................................................................7
1. Introduction ............................................................................................................................................................13
1.1 Objectives .........................................................................................................................................................13
1.2 Methodology and process .............................................................................................................................13
1.3 Research team .................................................................................................................................................13
2. Introducing the e-MFP members .......................................................................................................................14
2.1 Institutional typology .....................................................................................................................................14
2.2 Countries of incorporation of e-MFP members ........................................................................................16
2.3 Resources .........................................................................................................................................................17
2.4 Networking ......................................................................................................................................................18
3. Regions of intervention ........................................................................................................................................20
3.1 Introduction .....................................................................................................................................................20
3.2 Africa .................................................................................................................................................................21
3.3 Latin America ..................................................................................................................................................24
3.4 Asia ....................................................................................................................................................................25
3.5 Europe ...............................................................................................................................................................27
3.6 Oceania and programmes open to all regions ..........................................................................................29
3.7 Global scores ...................................................................................................................................................30
4. Types of intervention ............................................................................................................................................31
4.1 Introduction .....................................................................................................................................................31
4.2 Investment products and financial assistance .........................................................................................31
4.3 Subsidies in staff time ..................................................................................................................................32
4.4 Expected contributions from interventions ...............................................................................................34
5. Main areas of intervention...................................................................................................................................37
5.1 Macro level .......................................................................................................................................................38
5.2 Intermediate level ...........................................................................................................................................41
5.3 Micro level ........................................................................................................................................................45
5.4 Other themes ...................................................................................................................................................49
6. Expected returns on investment ........................................................................................................................51
6.1 Financial return ...............................................................................................................................................51
6.2 Social return ....................................................................................................................................................52
7. Conclusions ............................................................................................................................................................55
7.1 e-MFP – a platform in development ...........................................................................................................55
7.2 Microfinance – delivering results ................................................................................................................56
7.3 Microfinance – a widening scope ................................................................................................................56
7.4 Microfinance – providing the right support ...............................................................................................58
7.5 Microfinance – a continued need for cooperation ...................................................................................58
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EuropEan MicrofinancE actors / 2013
Appendix A: Regions of intervention ......................................................................................................................59
Africa .........................................................................................................................................................................59
Latin America ..........................................................................................................................................................59
Asia ............................................................................................................................................................................60
Europe .......................................................................................................................................................................60
Oceania .....................................................................................................................................................................60
Open to all regions .................................................................................................................................................61
Appendix B: Type of intervention ............................................................................................................................62
Equity ........................................................................................................................................................................62
Loans .........................................................................................................................................................................62
Guarantees ...............................................................................................................................................................62
Subsidies in money ................................................................................................................................................63
Subsidies: technical assistance / capacity building, evaluations ................................................................63
Subsidies: research / information dissemination ............................................................................................63
Subsidies: policy advice / development / lobby ...............................................................................................64
Subsidies: networking / (donor) coordination ..................................................................................................64
Appendix C: Areas of intervention ..........................................................................................................................65
Macro ........................................................................................................................................................................65
Intermediate ............................................................................................................................................................68
Mico ...........................................................................................................................................................................72
Other themes ...........................................................................................................................................................77
Appendix D: Organisation entries ...........................................................................................................................79
Member information – Organisation entries .....................................................................................................79
Associate members - individuals ......................................................................................................................193
Appendix E: Type of organisation .........................................................................................................................194
Consultants and support services .....................................................................................................................194
Government / public agencies ...........................................................................................................................194
NGOs .......................................................................................................................................................................194
Researchers ...........................................................................................................................................................194
Financial institutions ...........................................................................................................................................195
Other .......................................................................................................................................................................195
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ExECUTIVE SUMMARY
1. Key information was provided by 91% of the relative terms, NGOs especially have a strong
e-MFP member organisations (104 out of the presence compared to their other peer groups
114 full and associate members) in order to in Africa, Asia and the Americas, while in
compile this Directory. The questionnaires Europe, financial institutions and consultant
they returned were used as the basis for this and support services are very active.
Directory. Where necessary the data were
7. In general, members display a strong preference
complemented with information from their
for a select number of small or mid-sized
websites and other online resources.
countries. This is evident in Latin America
2. Although their share in total membership is where Central American and Andes countries
changing, NGOs continue to be the largest draw substantial support. In Africa, most
group of e-MFP members, followed by attention is focused on various francophone
financial institutions, and consultants and West African countries, several fast growing
support services. Several research institutes countries in Eastern Africa and South Africa.
and government agencies are also part of the In Asia, investments by members centre on
network. Membership has both increased Caucasus, Central Asia and several Southeast
and diversified since the 2010 Directory, Asian countries, such as the Philippines and
with a particular rise in the number of Cambodia. In Europe, although investments
financial institutions and several new types are still concentrated in the former Yugoslav
of consultancy and support services such as republics and the Balkans, there is a decrease
technology providers and an increase in the in the numbers of e-MFP members active
number of rating, accounting and law firms. when compared to the 2010 Directory. We are
happy to inform that there is now also a focus
3. Most e-MFP members are incorporated in
on a substantial number of countries which
Northern Europe, with more than 50% located
were still “white spots” (where there is little
in Luxembourg, The Netherlands, France and
or no microfinance activity) in 2010: Bhutan,
Belgium. Many members are also based in
Myanmar, Trinidad & Tobago, Liberia, the
Germany, Italy, Switzerland and the UK.
Central African Republic, Sao Tome & Principe,
4. e-MFP membership is very diverse in terms of Mauritius, Botswana, and Reunion.
resources. More than half of e-MFP members
8. Calculated in number of members per
employ fewer than 50 staff members, while
inhabitant, attention is fairly evenly distributed
one third employ more than 200. For more than
across Africa, Oceania and Latin America,
half of the organisations, especially the smaller
while Asia receives relatively less attention. The
ones, most of their resources are dedicated to
most prominent countries in this comparison
microfinance activities.
are Montenegro and Kosovo in Europe; Cape
5. Networking, either providing a platform Verde, Comoros, Benin, Togo and Senegal in
for networking, being part of networks, or Africa; Nicaragua, El Salvador, Honduras and
supporting networks is a vital aspect of the Bolivia in Latin America; and Mongolia and
activities for many e-MFP members. Currently, Timor Leste in Asia. Larger states, notably
26 organisations have their own network. Brazil, Mexico, Russia, Nigeria, India, Pakistan
Additionally, many members are also active in and China, receive relatively less attention.
various networks, on average 3.2 memberships
9. There is a correlation between member interest
per organisation.
and countries’ poverty and development levels
6. 70% of the respondents are active in Africa, as indicated by their Human Development
followed by Asia, Latin America, and Europe, Index ranking. However, this relationship is not
where 45% of all members are active. In straightforward, as more for-profit institutions
addition, many members have programmes have joined e-MFP and invest in countries
that are open to all continents. Although be they rich or poor, where good returns on
Africa remains the continent where the highest investment are achieved. Examples include
share of members is active, this share has Ghana, Kenya, Egypt and South Africa in
decreased compared to the 2010 Directory. In Africa; and Argentina, Mexico and Costa Rica
contrast, there is an increase in the number of in Latin America. At the same time, pragmatic
organisations focusing on Europe, as well as, considerations such as handling capacity on
Oceania. NGOs make up the majority of active the ground and historical or cultural patterns of
members in all continents, except Oceania. In affiliation also play a role.
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EEuurrooppEEaann MMiiccrrooffiinnaannccEE aaccttoorrss // 22001133
10. European actors employ a range of intervention microfinance was included for the first time as
types to achieve their aims. Almost half a topic, with 24% of total respondents being
of e-MFP members work with investment active, mostly NGOs.
products, the majority of which are loans and
14. On the micro level the concentration in
equity. Subsidies in money and guarantees
specific areas of intervention is less strong.
also remain an important intervention type. In
The main intervention areas of e-MFP
comparison to the 2010 Directory, equity is
members are financial product development,
becoming relatively more important. However,
MFI operations, performance, and strategic
in general the percentage of members offering
planning. Graduation of MFIs, and, ratings and
investment products is lower than in 2010,
external audits are areas of intervention which
which could be due to the high number of
are mentioned by fewer members. Particularly
consultancy and support services in e-MFP.
management information systems are less
Subsidies in staff time also showed a decrease,
often mentioned by the e-MFP members
most likely because of the inclusion of more
in comparison to the 2010 survey. Energy
for-profits in the platform. These subsidies in
products were included for the first time.
staff time are often provided in the form of
31% of e-MFP members engage with energy
technical assistance and capacity building.
products.
Funding available for these interventions shows
a large range. 15. In addition to these three levels, impact,
and, evaluation studies, as well as, academic
11. e-MFP members aim to make different
research, are core areas of intervention for
contributions with their interventions, either
some members while for others, such studies
towards MFI portfolios, to the organisation of
support programme activities by providing the
the MFI they invest in, or to client satisfaction.
information necessary for their investment
The majority of contributions were aimed at
strategies. e-MFP members engage more in
investments in MFI organisation, with specific
both academic research as well as in impact
contributions such as the organisation’s
and performance studies.
operation, and the development of appropriate
systems and products. Within client 16. Members expect different returns from their
satisfaction, support to social performance investments, which were grouped in terms of
and financial literacy were considered most financial returns, either on equity or on interest,
important. Next to this, direct additions to loan or in social returns. Social returns focused on
capital also continue to be an important aim for two areas: sector deepening, where members
members, especially of financial institutions. showed a specific focus on farmers and women;
and social embedding of microfinance, where
12. Interventions of e-MFP members are
education and community work were frequently
focused on different levels. On the macro
mentioned as a desired return.
level, members focus especially on capacity
building for national microfinance sectors, 17. The European microfinance contribution is
supporting networks and associations, client developing in two main directions: in depth
protection, and strengthening the microfinance and in breadth. In breadth, more organisations,
support sector. Particularly strengthening the both commercial and non-profit, are entering
microfinance support sector, client protection additional areas of intervention at different
and interest rates & rate caps increased strongly levels and take on more diverse issues
compared to 2010. within these areas. This diversity indicates
comprehensive investment and support
13. On the intermediate level, several focus areas
strategies. At the same time, e-MFP members
are distinguished. e-MFP members give most
are striving to deepen the sector by piloting
attention to social impact and rural finance.
innovative new products and delivery methods,
In particular, attention to social impact and
linking microfinance with other development
youth has greatly increased compared to the
goals, as well as, putting efforts into research
2010 Directory. In addition to this, value chain
and impact evaluation studies. Moreover, there
development and gender remain important
seems to be an increased focus on social
while business development services activities
impact, both from non-profit and commercial
increased. Less attention is focused on working
organisations. e-MFP has an important role
with issues relating to health and HIV/Aids.
to play in both developments: to improve
Other difficult-to-serve populations, such as
coordination in an increasingly broad industry,
the ultra-poor or youth, mostly receive attention
and to facilitate innovative collaboration and
from NGOs. However, it is interesting to note
learning.
that for youth, there has been a marked increase
in activities compared to 2010. Environmental
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