The role of artificial intelligence (AI) in integrating the ecological and social transition (EST) within microfinance institutions (MFIS)

In a global context marked by growing environmental and social challenges, African microfinance stands at a strategic crossroads.  Microfinance Institutions (MFIs) affiliated with MAIN (Microfinance African Institutions Network) play a crucial role in advancing the Ecological and Social Transition (EST). This necessitates a shift in the core values and beliefs dominating the microfinance sector, as well as an evolution in practices. Artificial Intelligence (AI) has emerged as a powerful lever to accelerate this transformation, enhancing the impact of MFIs while aligning with the demands of sustainable development. AI addresses some of the most urgent environmental challenges, including climate modeling, ecosystem and resource management, and optimizing energy consumption.

AI as a Catalyst for Integrating EST
Integrating the EST into the practices of MFIs requires an innovative and structured approach. AI provides tools capable of analyzing vast volumes of data, identifying trends, and proposing solutions tailored to the specific needs of vulnerable populations. For example, machine learning algorithms can help assess environmental risks linked to funded projects while identifying investment opportunities in sustainable activities.

Moreover, AI can optimize internal processes at MFIs by automating time-consuming administrative tasks, allowing teams to focus on high-value missions. This includes designing green financial products, guiding clients toward eco-responsible practices, and measuring the social and environmental impact of funded activities.

Concrete Applications for MAIN Network Members

For MFIs within MAIN, adopting AI represents a unique opportunity to position themselves as pioneers of the EST in Africa. Here are some practical applications:

1. Predictive Analysis: Use AI to anticipate client needs for sustainable financing, targeting climate-resilient agricultural projects or circular economy initiatives.
2. Risk Management: Integrate AI models to assess environmental and social risks in loan portfolios, aligning practices with responsible finance principles.
3. Awareness and Education: Develop AI-powered digital platforms to educate clients on EST issues and support their transition to sustainable economic models.
4. Impact Measurement: Implement AI tools to collect, analyze, and visualize data on the social and environmental impact of funded activities, improving transparency and accountability.

A Collective Commitment for the Future
As a catalyst for innovation in microfinance, MAIN plays a key role in facilitating AI adoption among its members. This involves forging strategic partnerships with tech stakeholders, organizing dedicated training programs, and sharing best practices among MFIs.

By integrating AI into their strategies, MAIN-member MFIs can not only enhance their competitiveness but also contribute significantly to achieving the Sustainable Development Goals (SDGs) in Africa. The convergence of microfinance, AI, and the Ecological and Social Transition represents an historic opportunity to build a more inclusive and sustainable future.

Artificial intelligence is not an end in itself but a powerful means to accelerate the shift toward economic models that are more environmentally respectful and socially equitable. AI can deliver significant social, economic, and environmental benefits, serving as a critical supporter in achieving sustainable development and biodiversity protection goals.

For MAIN MFIs, adopting these innovative technologies is essential to amplifying their impact and addressing the 21st-century challenges. 

Together, let’s seize this opportunity to make African microfinance a cornerstone of the Ecological and Social Transition.

What changed for the 70,000 women who took our financial literacy course?

On a hot, sunny day in Turiani, eastern Tanzania, Angelina, Jennifer, and 20 other Maasai women (an African nomadic tribe) proudly lead us through their village to show us 11 goats grazing in a field. Three months ago, they owned no livestock and relied solely on small-scale trading for income. Today, after twelve months, they own 35 goats, which they can sell for a reasonable profit. What changed? They decided to start a business together after completing a financial literacy course.

Financial Literacy: The Missing Link in Women’s Financial Inclusion

If you want a decent income, it’s better not to be a woman. The barriers they face are immense. Not only do women have less access than men to formal credit, property, and mobile phones, but research also shows they have lower levels of financial literacy—a key indicator of financial inclusion.

Yet, in least-developed and developing countries, women micro-entrepreneurs drive economic activity. In Africa, women often serve as primary breadwinners despite poverty and lack of formal education.

BRAC, which has worked closely with African women for over a decade, has always prioritized listening to and learning directly from its clients. It evaluates whether its services have a measurable impact on their lives and explores ways to further strengthen women’s financial resilience. When we ask our clients what they need, their answer is clear: Teach us how to manage our money better.

https://www.findevgateway.org/fr/blog/2025/02/ce-qui-change-pour-les-70-000-femmes-qui-ont-suivi-notre-cours-deducation-financiere

Security crisis in eastern DRC: microfinance institutions facing an unsustainable reality

The provinces of North and South Kivu in the Democratic Republic of Congo (DRC), plagued by armed group occupation, are enduring an unprecedented humanitarian and economic crisis. Microfinance Institutions (MFIs), a financial pillar for vulnerable communities, are bearing the full impact of this instability. This article, based on direct testimonies and on-the-ground analysis, highlights the challenges faced by these key players and calls for collective mobilization to support their resilience and ensure the continuity of their services.

It is in this context that, since January 2025, major cities in Kivu, vital economic hubs, have been paralyzed by forced bank closures, systematic looting, and mass population displacement. The growing insecurity has forced banks and MFIs to suspend their operations. The shutdown of certain financial institutions has deprived MFIs of essential liquidity and further isolated rural populations, intensifying their economic vulnerability.

Violence and general fear have led to a drastic slowdown in economic activity, severely reducing financial flows in fragile communities. This situation weakens the financial stability of MFIs and, by extension, the entire network of small entrepreneurs who rely on them.

The effects on MFIs in these provinces are immense. They are suffering heavy financial losses due to insecurity. Looting and population displacement have caused a dramatic spike in unpaid loans, amounting to millions of dollars in losses. Recovery rates have collapsed, as many clients have lost their businesses or been forced to flee, making fund recovery nearly impossible. Additionally, a liquidity crisis has emerged: massive Mobile Money withdrawals far exceed deposits, reflecting growing distrust in the financial system.

Insecurity also affects MFI staff. Loan officers have been assaulted in their homes, while managers have faced attacks and looting. In response, some institutions have evacuated employees to safer areas, while others have shifted to remote work to minimize risks. However, these measures limit operational efficiency and complicate service continuity. MFIs must juggle staff safety and maintaining operations—a balance increasingly difficult to strike.

MFI clients, particularly women entrepreneurs, are severely impacted. Many have seen their businesses destroyed, plunging them into deeper financial insecurity. Numerous clients are defaulting on loans not out of unwillingness but due to the extreme conditions they face. Some have disappeared, lost their lives, or fled to other cities or countries, leaving behind unrecoverable debts—a further blow to the institutions.

To sustain operations within the crisis, MFIs have implemented adaptive strategies. Secure service points have been set up in protected areas, with reduced hours to limit exposure to risks. Digitization of services is accelerating to promote Mobile Money usage and ensure transaction continuity without physical access to branches.

Staff protection measures have also been introduced, including remote work for employees in high-risk zones, early leave, and enhanced safety protocols. However, these solutions remain limited without increased external support. Thus, urgent appeals are being made to the international community for financial guarantees and emergency funds to refinance affected clients and bolster local economic recovery.

The crisis in Kivu has severe local economic repercussions. The lack of access to credit is pushing uncountable families and small entrepreneurs into deeper precarity.  Doubt in the financial system, reflected in mass withdrawals, further jeopardizes MFI viability. Without swift and effective intervention, many of these institutions risk collapse, depriving thousands of families of essential financial services and undermining local economic development efforts.

Addressing this crisis demands urgent action. Partners and support institutions have a critical role to play. To avert sector-wide collapse, mobilizing emergency funds to recapitalize MFIs and sustain essential services is crucial. Strengthened collaboration with donors and international institutions is needed to secure credit portfolio guarantees and ease financial pressure on MFIs. Investment in fintech solutions is also vital to enable MFIs to operate despite insecurity.

Finally, awareness campaigns and capacity-building are essential to train MFIs in extended crisis management and enhance their resilience to security and economic challenges.

Despite the adversity, Kivu’s MFIs demonstrate remarkable resilience. Their survival now depends on coordinated support from governments, international donors, and specialized networks. With the necessary backing, these institutions can continue playing their essential role in the region’s economic and social reconstruction.

Together, let us act to preserve access to inclusive finance in the DRC.

Upcoming events:

• Training on Green Products, May 2025, Lome, Togo
• Training on the facet of EST and Gender, July 2025, Lome, Togo
• Training on Vulnerability Management and Assessment, July y 2025, Kigali, Rwanda

I- Green financing could help Africa mitigate climate change effects

African countries should explore innovative green financing mechanisms to promote a green transition to mitigate the effects of climate change, experts attending the annual UN Economic Commission for Africa’s Conference of Ministers of Finance, Planning and Economic Development (COM2024) in Victoria Falls, Zimbabwe, said last week.

Veronica Jakarasi, Chief Director, Climate and Meteorological Services of Zimbabwe stressed the need to support environment friendly investments like climate smart agriculture to mitigate climate change.
“To attract green financing, Africa needs to have policy and regulatory frameworks with set targets in line with ambitious development,” said Ms. Jakarasi.

Read more: https://www.un.org/africarenewal/magazine/march-2024/green-financing-could-help-africa-mitigate-climate-change-effects

II- New members

The board of directors which met on May 30, 2024 in ordinary session admitted 4 new institutions as members of the MAIN network. These are: COOPEC TOGO PORT in Togo, WAKILI SA in Guinea Conakry, Caisse Baitoul Maal (CBM) in Burkina Faso and the Solidarity Fund for Education Workers (FSTE) in Burundi. The MAIN board of directors as well as the Executive Management welcome the new members to the pan-African network and hope to continue with them capacity building actions for responsible, social and ethical inclusive finance.

III- Exam Results for the Professional Diploma in Microfinance: Customer Relationship Manager & Branch Manager

Following the launch of this first wave of training with three professional associations (APSFD Senegal, ANIMF & APROCEC of the DRC), the participants sit for exams on December 6 & 7, 2023. In total ninety-four (94) participants wrote for the professional branch manager while thirty-seven (37) participants wrote for the professional customer relationship manager course.

The Delivery Jury took place on February 27, 2024 and the results were announced to the professional associations on February 29, 2024. For the professional branch manager program, out of 94 registered, 70 were declared admitted, i.e. a success rate of 74.46%. Regarding the professional customer relationship program, out of 37 registered, 31 were declared admitted, representing a success rate of 83.78%. Overall, we note that the results are very satisfactory. The beginning of the training for the 2024 session is planned for July.

IV- Signature of the MAIN & INES Rugengeri agreement and launch of the new master’s program

On May 9, 2024, the chairman of MAIN and the Vice Chancellor (VC) of Ines Ruhengeri signed the memorandum of understanding between the two institutions. This signing ceremony took place within the university in front of the teaching staff and administrative staff of the university. This collaboration aims to set up a master’s program in microfinance for English-speaking members of MAIN. For the VC of the university, everything will be done for the success of this program. As for the chairman of MAIN, he was delighted with the welcome and the arrangements made for the effectiveness of this signing of the convention. He urged the English-speaking members to benefit massively from this program and recommended that the university should take this program very seriously for its the notoriety even beyond Rwandan borders. It is in the quest for excellence and diversification of technical partners that this program was created.

This master’s degree in Microfinance is designed to develop and strengthen the skills of financial inclusion stakeholders for more efficient and healthy management of their institution. This two-year hybrid program (face-to-face and online program) will allow MFI executives to equip themselves with innovative tools for good management of a microfinance institution. Registrations for the first class have started and the beginning of the academic year is scheduled for August 2024.

V- Call for applications to host SAM 2025

In partnership with the Luxembourgish Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade (MFA) and the MAIN network (Microfinance African Institutions Network) based in Togo, ADA (Appui au développement autonome) is launching a call for applications for host countries for the next edition of the African Inclusive Finance Week (SAM) in October 2025.

For more info click on the folowing link : https://www.ada-microfinance.org/en/sam/call-applications-host-sam-2025

VI- 5th Edition of the Microfinance Graduation Ceremony

In partnership with Microfinance African Institutions Network (MAIN) and the Ecole Supérieure de la Banque (Esbanque), the Professional Association of Microfinance of Senegal organized two professional certificate training sessions in “Customer Relationship Manager” and “Branch Manager” in year 2023.

Thus, following the training and the announcement of the exam results for obtaining the certificate of “Customer Relationship Manager” and “Branch Manager,” the professional association of microfinance institutions of Senegal organized the 5th edition of the graduation ceremony for the 68 recipients from the two 2023 cohorts. Indeed, this event constitutes a significant moment of symbiosis and sharing between authorities, professionals of the industry and their families to pay tribute to the pioneers (both men and women) who embody the values of the Microfinance sector in Senegal.

In this regard, the Board of Directors of APSFD-Senegal, through this activity, sought to honor the efforts and commitments of two pioneers in the sector, namely Mr. Boubacar BA and Mrs. Ndeye Sophie DIAW, for their contribution to the promotion of Microfinance in Senegal and the influence of the professional association. This edition, which also honors the 8th Customer Relationship Manager cohort and the 5th Branch Manager cohort of 2023, was sponsored by the National Microfinance Fund and presided over by the Minister of Microfinance and the Social and Solidarity Economy.

Upcoming Events

1. Training on emotional intelligence: development factor for MFIs, Cotonou, Benin, July 2024
2. Training on the digitalization of agricultural value chains, Lomé Togo, August 2024
3. Master’s program in microfinance for French speakers, UCAC August 2024
4. Master’s program in microfinance for English speakers, Ines Ruhengeri, August 2024

MAIN publication on “Green Products” (Only in French)

MAIN is pleased to announce the publication of the very first Green Products manual dedicated to MFIs in Africa entitled “Approaches and methodologies for the design and marketing of ecological financial products and services by microfinance institutions”

This manual lays the way for positive change in climate and inclusive finance in Africa. It gives microfinance institutions concrete guidelines to develop green products that actively integrate strengthening the sustainability and resilience of vulnerable communities. This will help address issues such as energy deficit and declining soil yields in the critical situation caused by climate change and loss of biodiversity, which hamper social and economic development and heavily affect poor households and micro-enterprises in urban and rural areas.

This pioneering manual was developed by compiling lessons learned and experiences from over 15 years of developing and piloting green products in Africa and around the world. Designed as part of the Green Index 3.0 of the European Microfinance Platform’s Climate Smart Finance Action Group, this book provides a valuable resource for African financial institutions seeking to develop and grow their portfolio of green products and to support the transition to a more sustainable economy through rural communities.

It’s time to get involved and help reduce climate vulnerability, improve community income stability and foster a healthier relationship with our ecosystems! If you would like to get this this book, please contact main@mainetwork.org

Reopening of the certified course in Microfinance for loan officer and branch manager

As part of the agreement signed between MAIN and Ecole Supérieure de Banque, MAIN has resumed microfinance certified courses. In 2023, three professional associations, namely APSFD of Senegal, APROCEC and ANIMF of the DRC, took part in this first session of training.

Participants in training room

The “Loan officer” training aims to develop their general and specific knowledge for rigorous and professional exercise of their profession. The branch Manager Training dedicated to Managers aims to develop their skills in branch management, organization techniques and also to develop skills in human resources management using methods and tools of communication and management by taking into account the behavioral dimension linked to this profession.

Following delivery of the courses on the different training modules, the exams took place respectively on December 6 and 7, 2023 in the different countries. A total of one hundred and thirty-four (134) participants took part in the exams marking the end of the various training courses. Out of the total participants, thirty-seven (37) applied for the professional certified course on “Loan officer” and ninety-seven (97) for the professional certified course on “branch manager”.

Photo of participants in the examination room

Overall, the courses and exams went very well, as demonstrated by some participants.

For this reopening of the different training courses, MAIN has introduced a transversal course on the Ecological and Social Transition (EST). In a context where the entire world is bearing the brunt of the effects of climate change, financial inclusion players are not remaining on the sidelines of this development. The ecological and social transition is gaining importance and becoming a subject of major concern. The World Bank has stressed that climate disruption could reduce agricultural production, particularly in regions of the world that already suffer from food insecurity.

Many countries have intensified their efforts to reduce Greenhouse Gas emissions, promote renewable energies and fight climate change. The effects of climate change have become increasingly visible and have prompted governments to undertake mitigation efforts. These developments have led to an acceleration of the ecological and social transition in the world.

The program will continue in 2024 with other professional associations.

Development of a training module on gender and the Ecological and Social Transition (EST)

As part of the project “Inclusive finance in Africa facing the challenges of ecological and social transition: challenges and capacity building of African actors through an innovative and adapted training offer” MAIN has developed a training module on gender and ecological and social transition. Currently, the approach to ecological transition and that of gender with a view to achieving gender equality, can be considered as transversal components, to be taken into account in all policies, programs and projects, as well as the functioning of organizations. These two approaches reinforce each other and can enable developments towards greater social justice, while offering new possibilities for economic activities.

Most development institutions and donors consider taking into account gender and the ecological and climate transition as prerequisites for all projects. It is in this dynamic that this module was born. This “Gender and ecological and social transition” training module aims to explain what the gender perspective consists of (which can also be defined as an “integrated approach to equality between women and men”) and how to apply it to the ecological and social transition, placed in the context of environmental issues and the fight against global warming. This module is intended for all financial inclusion stakeholders who would like to understand the link between EST, gender and microfinance. It is divided into several sequences as follows:

Sequence #1

What is the concept of gender? What is the gender approach?

Sequence #2

Gender analysis and methodological tools

Sequence #3

The gender approach in the field of ecological and social transition

Sequence #4

Gender, microfinance and ecological and social transition

Sequence #5

Stakeholders, debates and news around gender issues & ecological and social transition

Following the development of this training material, MAIN organized between October and November 2023, a series of three webinars. The various sessions saw strong participation from members and non-members. We can conclude from this series of webinars that the theme interests members and that the deployment from 2024 will meet with strong support from them.