ECHO FROM OUR TRAINING IN THE DRC ON HRM IN THE ERA OF ARTIFICIAL INTELLIGENCE

From September to October 2024, MAIN, in collaboration with APROCEC and ANIMF, organized a series of three-day training courses in three cities (Kinshasa, Goma & Bukavu) in the Democratic Republic of Congo (DRC) on the theme: ‘Human Resources Management in the era of artificial intelligence”. The training aimed to provide knowledge on the structuring of HRM (Human Resources Management), as a field of activity and a function in its own right in MFIs, and to identify the challenges in the era of Artificial Intelligence (AI). During the various sessions, participants were introduced to the tools, methods and technics of human resources management before and in the era of artificial intelligence relevant to HRM, good practices for managing the digital transition, and the skills needed to support their MFI teams in the face of change.

This initiative offered microfinance players in the DRC the opportunity to strengthen their skills in human resources management.

The first session took place in Kinshasa from September 25-27, 2024 and brought together 31 participants from 24 microfinance institutions.

The second session took place in Goma from October 23 to 25, 2024 and brought together 24 participants from 16 institutions.

The third session took place in Bukavu from October 28 to 30, 2024 and brought together 15 participants from 6 institutions.

Whether in Kinshasa, Goma or Bukavu, the participants had very rich discussions and left very satisfied with this training.

The diversity of the participants was a unique opportunity for intense experiences sharing between practitioners.

During the three days of training, different themes related to HRM were addressed. The training revolved around three main axes, namely: Understanding human resources management (Definition, Actors and Activities), leadership and change management, the issues and challenges of HRM in the era of artificial intelligence. Concrete case studies allowed participants to better understand theoretical concepts and how these concepts can be applied within their institution. From one area to another, each group brings new ideas and varied perspectives to the problem.

At the end of the training, the participants highlighted the quality of the training content, the commitment of the trainers and the relevance of the examples given during the session. MAIN is pleased to have enabled 70 professionals from the DRC to strengthen their skills in HRM.

Testimony from one participant

I am KAMBALE SIKULIVALERE Yoyo, the Administrative and Legal Officer of Coopec Bonne Moisson in Goma, one of the participants in the training on: “Human Resources Management in the era of artificial intelligence”, organized by MAIN in collaboration with APROCEC and AMNIF from October 23 to 25, 2024 in Goma.

First of all, I would like to sincerely thank the organizers of the training. The training was very interesting in the sense that good human resources management is based on the implementation of clear tools, the implementation of clear human resources management manuals. Human resources must be well planned, staff careers must be well managed, staff must be well evaluated, staff must be well motivated, interviews and employee skills assessments must be well organized, and human resources management must be well managed. At our level already for the 2025-2027 business plan, not only have we planned the revision of the existing human resources management manual, but also the implementation of a certain number of tools on human resources management especially with human resources software.

As a recommendations to the MAIN network, it will be necessary for future training that MAIN considers an approach on the monitoring of training already followed to reassure itself of the implementation of these organized trainings.

ECHO FROM A MAIN MEMBER: MUTUELLE ASJD

Launch of Talento, its new digital service

The  “Mutuelle d’Appui et de Soutien aux Jeunes pour le Développement” (Mutuelle ASJD) of Togo has taken a new step in the field of digital financial services . On Friday, September 13, 2024, it officially launched ” Talento “, a mobile money solution accessible via phone, without Internet connexion needed. This new service aims to facilitate access for microfinance members to a wide range of digital banking services.

With Talento, customers can now check their balance, access their account statements, make deposits and withdrawals, repay loans, simulate new loan applications, track the progress of their current loans and pay their bills, all via Flooz and TMoney platforms.

ASJD initiative responds to a growing need for financial inclusion, particularly in rural and semi-urban areas where access to traditional banking services remains limited.

The general manager of Mutuelle ASJD noted that this project began in 2022 and that measures have been taken to guarantee the transactions’ security.

“No ASJD agent will ask you to send money to your account before benefiting from a service. This is an important measure to protect our customers from frequent scams in the mobile money sector,” he said.

Talento service stands out for its ease of use and its many advantages. It not only reduces travel costs associated with the need to physically go to the counters, but also saves valuable time.

“With Mutuelle ASJD, your account is really in your pocket. I invite you to try this service,” encouraged the general manager, praising the accessibility of the system.

A mutual client, Mr. Songhay, testified to the benefits of this innovation: “Currently, if you are sick with poverty and suffering, go to microfinance. And the microfinance that I know best is Mutuelle ASJD.” He expressed his satisfaction with the practicality and simplicity of the service, emphasizing that Talento alleviates the often tedious procedures of traditional bank counters.

In addition to Mobile money services, Talento offers an extensive supply offer including Mobile banking, Web banking and SMS banking. This plurality of services allows the mutual to effectively support its customers in their daily financial lives, while strengthening their autonomy in managing their resources.

With this launch, Mutuelle ASJD reaffirms its desire to democratize access to financial services in Togo, while strengthening users’ confidence in digital solutions to meet their needs.

Source : Mutuelle ASJD

WHY INCLUSIVE FINANCE MUST BE CENTRAL TO THE CLIMATE RESPONSE

As we approach the high-level week of the United Nations General Assembly and the UN climate change conference COP29, the global climate agenda is being defined by intense discussions around climate finance. But largely missing from this debate is the question of who has access to this funding.

The need to channel climate finance into the hands of those most affected by climate change is well recognized. The issue is at the heart of the loss and damage talks and was central to UN Secretary-General António Guterres’s speech on World Environment Day, where he underscored how it’s “a disgrace that the most vulnerable are…struggling desperately to deal with a climate crisis they did nothing to create,” and argued that “the global financial system must be part of the climate solution.” It has also been key to COP negotiations ever since the Warsaw International Mechanism on Loss and Damage was established in 2013.

There is a clear global call for more climate finance to go to help support LMICs, for it to fund adaptation, and for it to go directly to those who need it most.  Yet, the world is far from achieving this vision. Roughly $4.8 trillion has been channeled into climate action, but 75 percent of this has been invested in high-income countries and it’s estimated that less than 10 percent reaches local levels.

The answer, however, might be within our reach. In a recent paper from CGAP, we argue that inclusive finance can be the most effective way to distribute climate finance at the grassroots level and enable a just transition and truly global climate action.

Financial services are a critical enabler for any climate action that people want to take. Savings and credit products equip people to invest in cleaner technologies, adopt more sustainable practices, and build more resilient livelihoods. Remittances and government payments are crucial in helping households live through climate shocks and avoid negative coping mechanisms. Insurance solutions strengthen risk management, unlock investment in livelihoods, and help affected people rebuild their lives after a crisis.  

Conversely, without access to finance, people affected by climate change cannot adequately anticipate, confront, and recover from climate shocks, nor can they adapt to increase their resilience and improve their livelihoods. It is therefore essential that this finance be accessible to all who experience climate impacts, including those in LMICs who are disproportionately vulnerable.

This opportunity was highlighted in our paper by World Bank President, Ajay Banga, and Her Majesty Queen Máxima of the Netherlands, who is the UN Secretary-General’s Special Advocate for Inclusive Finance for Development. They said that “Inclusive finance has a unique and critical role to play in ensuring that climate finance makes its way into the hands of the most vulnerable and empowers them to act… given the increasing scale and frequency of climate shocks, now is the time for united action to make inclusive finance a cornerstone of climate response.”

Inclusive finance is a mature, low-risk, high-impact channel that climate funders should take advantage of. The inclusive finance sector is already a well-established ecosystem, effectively and safely directing large volumes of financing from impact investors, intermediary funds, and development financial institutions to low-income populations through heavily regulated financial institutions. Inclusive financial services providers (FSPs) have existing relationships in low-income communities, a deep understanding of customers’ needs, and expertise on how to meet those needs with financial solutions. They also have strong internal controls to prevent misallocation or misuse of funds and are carefully supervised by banking regulators. This allows them to deploy capital efficiently and effectively where it is needed most.

Inclusive FSPs have done this at scale for decades. One example is the mobile money (MM) revolution: in 2012, there were 30 million active users of MM worldwide, while today there are 1.8 billion accounts processing $1.4 trillion a year. Most of those are held by unbanked, low-income users.

What’s more, inclusive finance providers have established a solid track record of serving low-income segments effectively and delivering positive outcomes, which has been proven by numerous evaluations. By contrast, existing climate finance for LMICs has been challenging to disburse, with large ticket sizes and years-long disbursement processes.  The disbursement ratio for adaptation-related development assistance is just 59 percent, compared to 91 percent for overseas development assistance  in general. The Green Climate Fund and other such funders are routinely criticized for cumbersome processes that often take five years or more before any money is disbursed.

Inclusive FSPs have a unique role to play in broadening the base of climate action to all 8 billion people living in the world today. They are the most effective way to convert large tickets of climate finance into small-ticket funding that reaches low-income households directly, with relatively light additional risk assessments and rapid turnaround time.

Inclusive finance can also help alleviate the global climate finance gap. It has a proven track record in mobilizing private capital for development action, having transformed the sector from nongovernmental organization driven and grant oriented 30 years ago to a massive commercial industry today. Global lending by inclusive FSPs is now over $180 billion a year.

It is time for inclusive finance to take its essential place in the climate agenda.  As global negotiations on climate finance unfold, the question of how to reach and empower the people most affected must be front and center. Inclusive finance offers a powerful means to ensure that climate action is within reach for every person on our warming planet.

https://blogs.worldbank.org/en/voices/why-inclusive-finance-must-be-central-to-the-climate-response

Download the registration form here

As part of its capacity building program, MAIN organizes in collaboration of AEMFI a training on Environmental sustainability strategies. Environmental sustainability strategies are vital for MFI. It has become a paramount concern in recent years, as the world grapples with the far-reaching consequences of climate change, resource depletion, and biodiversity loss. The main environmental problems include land degradation, soil erosion, deforestation, loss of biodiversity, desertification, recurrent drought, flood and water and air pollution. In this context, the role of MFI in promoting and implementing environmental sustainability strategies has gained significant attention. 

MFI are increasingly recognising that environmental sustainability is not just a moral obligation but also a critical component of their long-term viability and success. That is why MAIN in its activities plan for 2024, had plan a training on environmental strategies for MFI. The training will give employees and managers knowledge and awareness that allows them to move forward in a sustainable way, and the confidence to promote change within the organisation.

The objective of this training is to aware the participants to acquire sensitivity to the environment and its problems and help them to acquire a set of values for environmental protection.

Expected results

At the end of the training, participants will be able to: 

1. Define green finance
2. Understand vulnerability in environmental context
3. Mitigate & adapt strategies
4. Identify green risk in MF
5. Overview green financial products
6. Integrate sustainability into organizational goals & MF operations
7. Report progress to stakeholaders

Quantify & report environmental impact reduction

Contents

The courses is composed of 15 modules as detailed below

Day 1: Introduction and Foundations

Module 1. What is Inclusive Green Finance? (1 hour)

• Definition of Green Finance
• Principles of Inclusive Green Finance
• Importance in Sustainable Development
• Case Studies: Financial Institutions and Green Finance

Module 2. Vulnerability and Negative Environmental Impacts (1 hour)

• Understanding Vulnerability in Environmental Contexts
• Key Environmental Risks: Climate Change, Biodiversity Loss, Pollution
• Assessing Negative Environmental Impacts
• Mitigation and Adaptation Strategies

Module 3. Advantages of Green Products and Their Multiple Services (1.5 hours)

• What Are Green Products?
• Ecosystem Services Linked to Green Products
• Economic and Social Benefits

Module 4. Green Index and USSEPM (2 hours)

• What is a Green Index?
• Importance of Measuring Green Performance
• USSEPM: Key Indicators and Frameworks
• Adapting Standards for Financial Institutions

Module 5. Green Risk and Opportunity Management (1.5 hours)

• Identifying Green Risks in Business
• Turning Environmental Challenges into Opportunities
• Risk Assessment Tools

Day 2: Developing Environmental Strategies

Module 6. Green Products and Services (1 hour)

• Overview of Green Financial Products and Services
• Types of Green Products: Loans, Bonds, and Investments
• Challenges in Promoting Green Products

Module 7. Green Products and Services – The Advantages (1 hour)

• Environmental, Economic, and Social Benefits
• Market Demand for Green Products
• Enhancing Competitiveness with Green Products 

Module 8. Environmental Strategy (1.5 hours)

• Steps in Creating a Comprehensive Environmental Strategy
• Integrating Sustainability into Organizational Goals

Module 9. Defining Green Policy and Environmental Strategy (2 hours)

• Green Policy vs. Environmental Strategy
• Key Components of a Green Policy
• Developing Policy to Address Environmental Priorities

Module 10. How to Develop a Green Agenda for an MFI (2 hours)

• Green Finance for MFIs
• Steps in Building a Green Agenda
• Integrating Environmental Goals in Microfinance Operations

Day 3: Implementation and Monitoring

Module 11. Monitoring Green Strategy and Progress (1.5 hours)

• Key Performance Indicators (KPIs) for Green Strategies
• Tools for Monitoring and Evaluation
• Reporting Progress to Stakeholders

Module 12. Managing Environmental Strategy: The Green Process, Tools (1.5 hours)

• Key Phases in Environmental Strategy Management
• Tools for Strategy Implementation
• Engaging Stakeholders in the Green Process

Module 13. Monitoring Progress in Implementing Green Strategy (1.5 hours)

• Techniques for Tracking Strategy Implementation
• Using Data to Measure Success
• Case Studies: Monitoring in Action

Module 14. Monitoring Vulnerability Reduction (1 hour)

• Framework for Measuring Vulnerability
• Indicators for Monitoring Reduction
• Tools for Data Collection and Analysis

Module 15. Monitoring Reduction of Negative Environmental Impacts (1 hour)

• Quantifying Environmental Impact Reduction
• Environmental Audits and Compliance Checks
• Reporting Environmental Impact Reductions 

The training will run from Nov 20-22, 2024. 

Deadline for registration is October 25th, 2024 

The following requirements should be fulfilled to attend the program.

A registration fee of USD 100 as member to be paid to MAIN and USD 150 for non-member of MAIN based in Addis, USD 600 for international participants who are MAIN member

Registrations form should be sent to main@mainnetwork.org  with copy to info@aemfi-ethiopia.org  & miheretab@gmail.com  

Participants who failed to pay the registration fee will not be accepted by MAIN.

International Candidates are requested to arrange their own international travel and MAIN will make reimbursement up to USD 500 upon presentation of flight ticket receipt, and boarding pass along bank details immediately after the session is over. Please note that the cost of air ticket exceeding USD 500, the difference will be covered by the participant institution. 

International Participants will be lodged by MAIN for 4 nights. Meals and rooms are provided by MAIN for international participants.

Member institutions are requested to clear their arrears of annual contribution to MAIN before attending the training.

Testimony of the impact of a training on Ecological and Social Transition (EST) from one member institution of MAIN

Extreme climatic and meteorological events linked to climate change or its impact on natural resources can have direct effects on the real economy: these are physical risks. They can cause major operational disruptions in businesses and/or damage to exposed households and thus threaten their ability to repay their debt, which then impacts the financial sector.

It is in this regard that since 2017, Fondation Terre Solitaire (FTS) and MAIN network have been thinking about the role that microfinance could play in Africa in the context of climate change. During the 4th edition of the African Microfinance Week (AMW, Ouagadougou – October 2019), MAIN organized a workshop with SIDI on the links to be established between microfinance and EST. Following these discussions, MAIN included in its strategy (2020-2023), the promotion of EST, which constitutes the main component of this project.

After three years of implementation of the project, it is important for MAIN to follow up with its members to ensure the positive impact of the project, not only on microfinance institutions, but also and above all at the level of the final beneficiaries of the project.

Henry MUZALIWA HABIMANA – Manager of COOPEC AKIBA YETU

That is why on the sidelines of the National Microfinance Conference in DRC, MAIN had an interview with Henry MUZALIWA HABIMANA (HMH), Manager of COOPEC AKIBA YETU based in Goma.

Let’s follow the discussions between MAIN and the Manager of Coopec Akiba Yetu.

MAIN :Hello Manager. Could you introduce yourself and briefly present your institutionplease?

HMH : Hello MAIN . I am Henry MUZALIWA HABIMANA, Manager of COOPEC AKIBA YETU and contact person of (APROCEC) in North Kivu. COOPEC AKIBA YETU is a microfinance cooperative operating in Goma in the province of North Kivu since 2008. It is approved by the Central Bank with a total balance sheet of USD 6,200,000 with an outstanding credit of USD 4,500,000 as at June 30th, 2024. 

MAIN : Thank youManager. Can you tell us what the training on Ecological and Social Transition (EST) that you followed at UCAC alongside your Master’s program brought you?

HMH :
Thank you very much MAIN. I glorify God for meeting with MAIN and I congratulate MAIN for building capacity of practitioners in the microfinance sector and particularly for this opportunity that was given to me to attend the training on Master in management of microfinance institutions. As for the training, personally I put into practices the knowledge that I received. This allowed me to set up two green products. The product that was developed specifically after the training is called “Jiko Bora” in Swahili, which means “Healthy cooking” in English. Jiko Bora is a financial and non-financial green product that helps fight against global warming, which helps protect the environment. It is a product developed just after the training. It consists of mobilizing the population of Goma and North Kivu to abandon the use of firewood and ember fires and replace them with Liquefied Petroleum Gas (LPG). It is a product that works very well and the institution earns a lot from this product and also draws a lot of advantage. For this I say thank you to MAIN Network

MAIN :Thank you very much Manager. Following this product that you developed, were you able to mobilize or raise awareness among your members about this new product? what was your members’ appreciation about this new product that you had put on the market because you had, instead of using ember fires, made them aware of the use of butane gas.

HMH : I think that you yourself have followed the video that we showed on the occasion of the National Microfinance Conference in DRC. COOPEC AKIBA YETU members appreciate this product very much, which allows them to save money right away, not only the bag of embers is very expensive compared to the use of LPG, but also LPG provides a cooking method that is very clean. This is why the trend is to move from cooking with embers to cooking with LPG. This significantly reduces their expenses. Before the training, we financed the start of the embers, but since then we no longer finance them. We finance the LPG trade and this is very important and appreciated by all our members at COOPEC AKIBA YETU. Today, we have more than 300 credits up to date. We glorify God for this and it brings us a strong clientele and the members understand that COOPEC AKIBA YETU is not stuck with its traditional products. We innovate with this new product and it contributes to the protection of our Virunga National Park and Kahuzi-Biega National Park which are close to Goma.

MAIN :Thank you Manager. Your final words

HMH : I wanted to invite all those who follow MAIN training courses to always put them into practices. There is a lot to gain. For example, COOPEC AKIBA YETU when we set up this product it attracted a lot of partners, I am talking about UNDP, through UNCDF project which granted us subsidies for the Jiko Bora product. UNDP itself granted us another subsidy through Project“Actif 2” which allow us to open a new branch in a very remote area called “Katindo”. I am inviting all MAIN members to put into practices what they learn from training received from the network and this is very important for MFI.

MAIN : Thank you very much MD and see you soon.

Participation of MAIN at the Third Edition of the National Microfinance Conference in the DRC

From July 22 to 24, 2024, the National Association of Microfinance Institutions and the Professional Association of Savings and Credit Cooperatives organized the third edition of the National Microfinance Conference at Pullman Hotel in Kinshasa. This special moment of exchanges and sharing of experiences among microfinance stakeholders, Government, and various partners to raise awareness about the role and place of microfinance in the inclusive development of the country, was supported by the World Bank through its project ≠TRANSFORME. The main theme of the conference was “Microfinance in the Era of Climate Change: Challenges and Perspectives,” and it brought together more than 200 participants from the inclusive finance sector, state authorities, technical and financial partners, and international experts. Several topics were discussed during the event, including:Financial inclusion in the era of digitalization, Green microfinance as a contribution to fight against climate change, Challenges of viability and sustainability of microfinance institution in the context of climate change, promotion of smart agriculture using ICT,the role of Fintech in improving digital financial service offerings, promotion of financial inclusion through financial education for youth, etc.

On the sideline of the conference , the two professional associations awarded participants who attended the Professional course in Microfinance on “Branch Manager” certificate . Thirty-three (33) recipients received their Professional certificate as “Branch Managers” as part of the training organized by MAIN Network in collaboration with APROCEC and ANIMF. The awarding ceremony was chaired by the Executive Director of MAIN. In his speech, he first presented the objectives of this training, which enable participants to professionally perform the role of Branch Manager by providing them with a comprehensive understanding of the operation of a branch and in-depth expertise on the technical skills inherent to this position. He then introduced the target audience for the training and the conditions for obtaining the certificate and gave a brief overview of the training path through the different training units included in this program . Finally, he urged microfinance institutions to enroll their staff massively in this certified program organized in partnership with the Ecole Supérieure de Banque in Paris. He congratulated the recipients and reminded them of the professionalism they must now demonstrate in performing their duties.

Master’s degree in management of microfinance institutions at UCAC, 2024 session

As part of its capacity building program for inclusive finance stakeholders, MAIN network (Microfinance African Institutions Network) organized from August 5 to 24, 2024, a training for MFI executives on “management of microfinance institutions” in partnership with the Catholic University of Central Africa in Cameroon (Yaoundé). The training brought together twenty-seven (27) participants (22 men & 05 women) from 9 countries and 23 microfinance institutions.

The training covered different themes such as governance, social and environmental performance, digitalization, human resources management, MFI accounting, ecological and social transition, ethics, business plan, audit and control, credit management, risk management, management of information systems, regulation, agricultural value chains digitalization, etc. At the end of each module, participants evaluated the course’s content, the way the teacher delivered it and the relevance of the course to their work in their institution. Participants in master 2 (Second year of the training) defended their preliminary draft of dessertation on different issues related to the industry such as the MFIs’ viability, women’s empowerment, digitalization, social and environmental performance management, etc.

At the closing ceremony of this 18th edition, the program coordinator and the Executive Director of MAIN gave instructions to the participants’ dissertations as well as on the topics to be chosen. The Executive Director of MAIN reminded the participants of the need to complete the program within 3 years in accordance with the commitment form signed by their respective managers. He also encouraged participants for their conscientiousness during the three weeks and recommended them to work harder to complete the program in a due course . He ended his speech by announcing that 2025 will be the year of official graduation and urged participants to greatly participate in this solemn event which marks the end of their professional Master’s course in MFI management. The program coordinator Prof. Jean Robert KALA concluded by thanking MAIN, the lecturers , the support staff as well as the participants for their respective contributions for the smooth running of the session . The closing ceremony ended with the handover of certificate to the participants.

World Bank to Accelerate Digital Inclusion for 180 Million People Across Eastern and Southern Africa

A new program that will benefit over 180 million people by 2032 is poised to significantly increase access to the internet and the inclusive use of digitally enabled services and transform the digital landscape in Eastern and Southern Africa.

Digitalization is one of the most potent tools available today to eradicate poverty on a livable planet. Yet, the Eastern and Southern Africa region has the slowest pace of digitalization globally, with only 64 percent of the population covered by high-speed internet, and just 24 percent of the population using the internet as of 2023. To accelerate digitalization, the region needs more integrated digital markets as digitalization thrives on economies of scale and network effects, often expanding across markets and borders.

The Inclusive Digitalization in Eastern and Southern Africa (IDEA) Programis a $2.48 billion financing envelope—financed through the International Development Association* (IDA) and International Bank for Reconstruction and Development (IBRD)— that aims to bring together 15 countries and Regional Economic Communities and address common challenges such as limited internet coverage due to infrastructure gaps, low usage due to high cost of data and devices, limited digital skills, and lack of digital identification needed for online transactions.

“IDEA is a holistic program that will unleash opportunities for hundreds of millions of Africans to actively participate in and contribute to the advancement of the region’s digital economies. This effort underscores the critical importance of public and private sector partnerships in driving sustainable economic growth,” said Victoria Kwakwa, Vice President for the World Bank’s Eastern and Southern Africa region.

IDEA will be implemented in phases over an eight-year period and initially target countries that have less than 50 percent high-speed internet access. Angola, the Democratic Republic of Congo (DRC), and Malawi will participate in the first phase, providing new and enhanced broadband internet access to over 50 million people combined. Additional countries and regional bodies are expected to join in the subsequent phases based on their eligibility and readiness. The Common Market for Eastern and Southern Africa (COMESA) will lead the regional coordination and facilitate the knowledge exchange of experiences and lessons across participating countries.

“The IDEA program will support participating countries and COMESA Member States in enhancing digital infrastructure and skills to foster productive use of digitalization towards economic growth and inclusive societies, thus paving the way towards increased digital services trade and a vibrant regional digital market. Given the rapidly evolving and cross-cutting nature of the sector, COMESA aims to put emphasis on capturing learnings, and results, and sharing practical tools across the region to help countries fully reap the benefits of the digital economy,” said H.E Chileshe Mpundu Kapwepwe, Secretary General of COMESA.

IDEA is structured around three technical pillars focusing on expanding broadband and securing data hosting so people can access low-cost, reliable and quality internet; deploying interoperable digital public infrastructure and digital safeguards needed to promote trusted and safe use of digital technologies and digitally enabled services; and advancing digitally enabled applications, services and overall capabilities, which can promote productive use of digital technologies and potentially have a high impact on economic and social activities. The program specifically seeks to leverage private sector investment and take advantage of regional economies of scale, encourage the promotion of economic opportunities for women and foster gender equality in the digital landscape, as well as maximize climate co-benefits given the region’s exposure to climate change.

A fourth pillar will focus on project management and capacity building to support implementation, knowledge generation and regional coordination. Each pillar offers a range of options, allowing countries to select activities based on their priorities, readiness, underlying enabling environment, and available resources.

IDEA will contribute to sustainable economic growth through long-term cost savings, efficiency, and productivity gains, fueled by greater digital adoption by citizens, businesses, and governments across the region.

*The World Bank’s International Development Association (IDA), established in 1960, helps the world’s low-income countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve people’s lives. IDA is one of the largest sources of assistance for its 75 client countries, 39 of which are in Africa. Since 1960, IDA has provided $552 billion to 115 countries. Annual commitments have averaged about $36 billion over the last three years (FY21-FY23), with about 75 percent going to Africa. Learn more online: https://ida.worldbank.org . #IDAworks

About the World Bank Group: The World Bank Group has a bold vision: to create a world free of poverty on a livable planet. In more than 100 countries, the World Bank Group provides financing, advice, and innovative solutions that improve lives by creating jobs, strengthening economic growth, and confronting the most urgent global development challenges. The World Bank Group is one of the largest sources of funding and knowledge for developing countries. It consists of the World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID).

For more information, please visit:

www.worldbank.org, www.miga.org, and www.ifc.org #IDAworks

https://www.worldbank.org/en/news/press-release/2024/06/27/world-bank-to-accelerate-digital-inclusion-for-180-million-people-across-afe-eastern-and-southern-africa

Upcoming events

1. Master’s program in microfinance for English speakers,Ines Ruhengeri, september 2024, Rwanda
2. Professional certificate in Microfinance (loan officer & Branch Manager), September 2024
3. Human Resource Management in the Area of Artificial Intelligence, September 2024, RDC
4. Negative Environmental Impacts and Agroecological Practices, October 2024, Togo
5. Environmental Strategies, November 2024, Ethiopia

General Assemblies of MAIN members

Lomé Hôtel 2 Février, Octobre 20th, 2023

Press Release

AFRICA CELEBRATES MICROFINANCE IN TOGO

The African Microfinance Week is a major event dedicated to the development of financial inclusion in Africa and which takes place every two years in an African country. It is organized by ADA (Appui au Développement Autonome), MAIN and the host country of the event with the support of the Luxembourg government. After the first edition in Arusha in 2013, the second edition in 2015 in Dakar, the third edition in 2017 in Addis Ababa, the fourth edition in 2019 in Ouagadougou and the fifth edition in 2021 in Kigali, the sixth edition will take place from October 16 – 20, 2023 in Lomé, Togo. This year’s theme is “towards sustainable inclusive finance”.

This year’s conference aims to provide a platform for sharing knowledge and ideas on how Financial Service Providers (FSPs) can help fight climate change and promote sustainable development through their product and services. In addition, the conference should also encourage Microfinance Institutions (MFIs) and other FSPs to adopt environmentally friendly practices. The conference is structured around plenary sessions, parallel sessions, an investor fair, an innovators’ village, training and workshops, the organization of general assemblies, etc.

Conference attendees can expect to gain insight into the latest trends and innovations in green financial inclusion, as well as the role of technology in promoting it. The conference should be interactive, allowing participants to share their experiences and ideas on how to promote green and inclusive finance.

We look forward to seeing you at this major meeting of financial inclusion players. You can register using the discount codes that you can get from the MAIN secretariat.

GUIDE TO FINANCIAL CONSUMER PROTECTION IN THE DIGITAL ERA

Financial services are evolving rapidly, with a growing array of new technologies, unconventional providers and innovative combinations of financial and non-financial services. While this evolution can help enhance financial inclusion for women, low-income and vulnerable consumers, it also brings greater risks.   

There is evidence that digital finance consumer risks, such as data misuse and fraud have increased in several markets over the last few years. Crises such as the COVID-19 pandemic exacerbate these risks, as vulnerable groups are more fragile due to economic hardship.  

Consumer protection is considered a basic regulatory enabler for digital financial inclusion. By better protecting consumers, this may also enhance their trust and increase their usage of formal financial services. Several emerging markets have taken important steps on consumer protection, including in digital financial services. Financial regulators and supervisors have adopted consumer protection regulatory and supervisory measures, and some global and national industry associations have developed codes of conduct.  

But the growing and evolving nature of consumer risks in digital finance demands more effective, and holistic consumer protection actions. Several industry players have already begun developing various solutions that can help address financial consumer risks, with CGAP paving the way towards a responsible digital finance ecosystem approach. This approach requires all ecosystem actors to play key roles in securing a responsible financial system by putting the customer at the center and collaborating in ways that protect and ensure positive outcomes for digital finance users.  

This FinDev Guide consists of a selection of resources that offer insights on good practices, solutions and tools that regulators, supervisors and providers can adopt to ensure that consumers achieve positive outcomes in their financial journey.   

https://www.findevgateway.org/guide/2023/07/guide-to-financial-consumer-protection-in-digital-era

MAINTAINING MOMENTUM OF FINANCIAL INCLUSION THROUGH DIGITAL ADOPTION IN THE WEST AFRICAN ECONOMIC AND MONETARY UNION (WAEMU)

West African Economic and Monetary Union (WAEMU) countries have seen increased financial account ownership since 2014, with mobile money accounts driving adoption and usage.

On average, 41% of adults in the WAEMU have an account with a bank or similar institution or with a mobile money service. Senegal has the highest account ownership rate at 56%, but it still falls 15 percentage points below the developing economy average. However, there is room for growth in financial inclusion, and the Global Findex data suggests opportunities to accelerate ownership and usage through digital financial enablement.

Nearly 75% of account owners in WAEMU own a mobile money account.  

In 2014, WAEMU countries had low account ownership rates, except for Côte d’Ivoire. Banks and similar institutions held most of these accounts. However, between 2014 and 2021, mobile money accounts boosted account ownership rates across most countries.

https://blogs.worldbank.org/fr/allaboutfinance/maintenir-la-dynamique-de-linclusion-financiere-par-ladoption-du-numerique-dans

Certificate in Microfinance Management

MAIN is pleased to announce the launch of the Certificate in Microfinance Management. It is a certificate programme that provides a broad based, practical exploration of the key ideas, techniques and skills needed to be a microfinance manager in 21st century.

The certificate is ideally suited to the needs and aspirations of both those already holding management positions within MFIs, as well as those staff who are being prepared to take up management positions. 

It is a self-study programme that consists of six modular courses, (see below for details). It is flexible and allows students to fit their studies around their work and social commitments. Students can enroll for the programme at any time of the year. The programme can be completed within three months. 

Admission Requirements

The Certificate in Microfinance Management is open to anyone who is interested in advancing their career within the microfinance sector.  However, the content of the programme requires students to possess:

• Sound educational background
• Strong familiarity with microfinance operations
• Good written English skills. 

Fees

The total fee for the certificate programme in Microfinance Management is 200 USD  

This includes:

• Registration fee
• Detailed study guides and workbooks, to accompany each of the six modular courses
• e-copy of The New Handbook of Microfinance by Joanna Ledgerwood (World Bank)
• Online support
• Assessment of course work

The Certificate in Microfinance Management covers the following areas and topics:

MODULE 1: MANAGEMENT & MFIS

MODULE 2: OPERATIONAL CHALLENGES AND MFIS

MODULE 3: MARKETING AND MICROFINANCE 

MODULE 4: CLIENT SERVICES MANAGEMENT 

MODULE 5: HUMAN RESOURCE MANAGEMENT & MFIs  

MODULE 6: STRENGTHENING MICROFINANCE INSTITUTIONS 

Prof. Martin O’Reilly, PhD. will lead this programme.  

For more information about this online programme, please contact the secretariat of MAIN. 

Download Admision form

MAIN ACTIVITIES OVER THE PERIOD

EDITORIAL

Dear Members,

The resume of work after the summer is always a busy time for MAIN Network. Thanks to our various summer training sessions, we continue to support the work of our partners and members of our network.

MAIN promotes the capacity building of Microfinance Institutions as much as it promotes the experiences sharing so that all together, we, actors of inclusive finance, can respond to the challenges of the sector collectively.

This newsletter is an opportunity for us to come back to the various training activities of the last months and to discuss topics of capital importance for the sector such as: ecological and social transition, Islamic finance, staff motivation mechanisms in MFIs, efficient management of MFIs, etc. Some participants who attended the training gave us their testimony and we thank them for their contribution.

Microfinance is at a crossroads and players must adapt to its ecosystem with new emerging paradigms. We are the agents of change of tomorrow’s microfinance. This newsletter highlights the changes in the sector which give it a new breath on the one hand with a focus on the different activities of MAIN on the other hand.

Capacity building for professionals in the microfinance sector remains our main concern and we hope to welcome many of you during our next training sessions.

Enjoy your reading

Mohamed ATTANDA

Executive Director

THE ACTIVITIES OF MAIN NETWORK DURING THE PERIOD JUNE-AUGUST 2022 ARE RELATED TO EST (ECOLOGICAL AND SOCIAL TRANSITION) INCUBATORS PROJECT, THEMATIC TRAININGS AND THE MASTER’S TRAINING IN MICROFINANCE.

EST Incubators Project: a model of collaboration between MFIs, MAIN and MSMEs (Medium and Small Micro Enterprises)

As part of the project entitled ” 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 is experimenting an incubator model with two members institutions, namely Mutual ASJD and WAGES. The establishment of incubators allows MAIN to develop new skills for the creation of small and medium-sized enterprises wishing to engage in activities that contribute to EST: renewable energies, energy efficiency, waste recycling, etc.

The companies selected for this pilot are: Green Industry Plast Togo (GIP-TOGO) LLC, a company specializing in collecting, sorting and recycling of plastic waste, RUCHE/SETRAPAL, whose main activity is the drying and processing of organic food products, in particular the drying of pineapples and fresh mangoes and their marketing, EGENT TOGO, an Electrical Engineering and New Technologies company that supports companies, communities and individuals to have access to sustainable energy at an affordable cost and AgroSolutions and Development (ASD), a company that produces and markets organic soybean meal and oil, floating pellets for Tilapia and catfish, complete and complementary feed for poultry, ruminants and monogastrics.

The diagnosis of each MSME made it possible to identify the axes of intervention on which MAIN could support them and strengthen their organizational skills. Among others we can note:

• Building a Business Plan
• Analytical operating accounting
• Digital Marketing and TES

Testimonial from a EST Incubator project company

We are a company specializing in the collection, sorting and recycling of plastic waste. The collaboration with MAIN network with the support of an Expert on Ecological and Social Transition (EST) issues has helped us a lot to improve our organization, particularly in  structuring our  business plan. This allowed us to highlight key indicators relating to EST. We had in-depth training on the business plan of a structure that is in EST and which takes into account his  parameters . We also had training on cost accounting. I admit that it is a tool for strategic decisions that I did not know at all. I did not know that apart from general accounting there is an accounting called analytical. But with this training and this technical assistance that we got from  MAIN , we came to know the meaning of cost accounting that we are putting in place in our structure. We are  able to identify the costs   associated with our products to know if they are profitable or not. The training really edified us and brought a lot to our institution. From this moment we will improve our way of doing things. We hope to continue benefiting from assistance from   MAIN  to allow us to become sustainable and competitive .

Mr Bemah GADO

Managing Director Green Industry Plast Togo

In addition to the classic themes that suit them, they must set up or diversify their businesses in the innovative theme of “Ecological and Social Transition”

For the project’s partner, it is an opportunity to acquire knowledge and skills in the design, creation and financing of products and services of an ecological nature. The micro-entrepreneurs will come out very tough from this experiment and will be able during the capitalization workshop to share their experiences, the lessons learned and the challenges encountered.

Cost accounting practice session at EGENT Togo

Strengthening the capacities of financial inclusion actors through appropriate training

Five thematic training sessions were carried out during the period respectively in Togo, the Democratic Republic of Congo (DRC), Ethiopia and Rwanda. These are three training sessions on Ecological and Social Transition (Togo, DRC and Rwanda), one training session on Motivation (Togo) and one training session on Islamic Finance (Ethiopia).

The trainings on Ecological and Social Transition were for the participants and their institutions an opportunity to understand that the major challenge for African MFIs is to offer new financial and non-financial services that allow microfinance to play its role in the context of the fight against the effects of climate change and in achieving the SDGs (Sustainable Development Goals). And to achieve this, MFIs must, with a forward-looking vision, professionalism and experience, be able not only to offer accessible products and services that meet the needs of their customers, but to do so under sustainable conditions of institutional viability, economic and environmental in order to meet both social and environmental challenges. Climatic variations and the difficulty of predicting them jeopardize the livelihoods of microfinance borrowers and threaten the future ability of MFIs to operate in rural areas. The challenge for MFIs is therefore to strengthen the resilience of rural economies through financial service strategies that are better suited to their members/customers.

Presentations, experiences’ sharing, group work were the basis of these training sessions which were very practical and participatory. The participants, at the end of the training, were equipped to:

• Understand the concepts related to Ecological and Social Transition (EST) and be able to develop their first personal concept on EST.
• Know why EST is relevant for their clients and for their institutions;
• Know the main elements of EST and some existing projects and experiences;
• Understand how to integrate EST into the operating mechanism of their MFIs.

Testimonial from a participant of the EST workshop in Rwanda

The training held in Kigali, Rwanda was an excellent training. The training was practical and the questionnaire designed by the facilitator is thorough and requires a lot of time for reflection and verification. Immediately after the training, we organized a meeting with our 32 agencies and also a meeting with the management. Our mission is to serve entrepreneurs and economically active people by providing environmentally friendly, innovative, sustainable, women-centered and quality financial and non-financial services to improve the livelihoods of society by filling the financial inclusion gap. “We are currently working on the revision of our business plan. Smart climate change is one of the major pillars of our new strategic plan. We are working on the triple bottom line by encompassing profit and people and contributing to the well-being of the planet (The Three Ps) Participating in this training helped us to revise and update our mission which takes into account the triple mission of MFIs.

Mr Tezera K. Bekele

Managing Director, Peace Microfinance S.C.

Ethiopia

Regarding the training workshop organized by MAIN on the theme: ” From work to performance: the motivation and commitment of executives to work in microfinance institutions apart from remuneration” , it enabled participants to understand that beyond the issue of salary which is of the greatest concern to the leaders of Microfinance Institutions when it is already an asset for the staff, they must strive to understand the human person as a whole and allow him to reconcile his private life and his professional life. The leader must know how to inspire trust to motivate by being the credible person that employees choose to follow with both character and competence. Leaders must have the ability to bring employees together around the common strategy of the organization and achieve results with and through others using disciplined processes and coach employees as needed to unleash the abilities of each member of the team, to improve their performance, solve problems and develop their careers.

Testimony of a participant in the Lomé workshop on motivation

I would first like to thank the organizer of this training ,  (MAIN) , the participants and especially the consultant. It is true that before arriving and I even expressed it from the first day that I am waiting to the end and   see  how  we can motivate without the salary. We are indeed at the end of the training and I understood that apart from the salary, there are other elements that must be taken into account in Human Resources Management.

Mrs. Huguette Valentine ADOUKONOU

Managing Director Africa Finances

As for the training on Islamic finance that took place in Addis Ababa, Ethiopia, it is part of the promulgation by the National Bank of Ethiopia (Central Bank) of the ‘Banking Proclamation No. 592/2008 which enabled conventional banks and MFIs wishing to do Islamic banking and open interest-free banking windows from 2011. In addition, Islamic banking has become a rapidly growing universal phenomenon in Muslim and non-Muslim countries alike.   Following an assessment needs of members in Ethiopia, it emerged that there was a need for training on this subject. It is in this context that MAIN has decided to organize this training to train and develop its members who have started interest-free banking or plan to do so in the near future to better manage the challenges of adopting interest-free microfinance.

Group picture training on Islamic finance, Addis Ababa, Etiopia

The training allowed in a participatory approach, participants to acquire notions on the piloting, launching and supply of Islamic financial products, including its mechanisms, scope, new product development processes, delivery methodologies and its durability. They are now also able to explain and integrate organizational, operational, governance and regulatory factors in the development of Islamic microfinance products and services and identify appropriate sources of funding and build strategic partnerships with partners, development and promoters of Islamic Microfinance.

With a better understanding of its environment, its governance, its regulations, its supervision, the executives and managers of the microfinance institutions who participated in this training workshop are equipped to identify the main opportunities and challenges of the conversion or diversification towards Islamic microfinance.

The various evaluations of the trainings have revealed that, in view of the positive assessment which stems from the testimonies of satisfaction of the various participants, it can be deduced that the objectives of the training has been achieved.

Strengthen inclusive finance actors through universities programs

As part of its capacity building program, MAIN organized from August 07 to 28, 2022 the residential session of its Master’s program in Microfinance in Yaoundé. This program, which is jointly organized by MAIN in collaboration with UCAC, brought together for the 2022 edition, 35 participants from several countries (Togo, Benin, Cameroon, Mali, Guinea, DRC, Burundi, Congo Brazzaville, Chad, Burkina -Faso, etc.).

Group picture UCAC 2022

It was a real occasion of experiences sharing between inclusive finance players as shown in the testimony below

The training allowed me to acquire so much knowledge in various fields to better manage my organization that I have to prioritize the reorganizations that I will bring   and remain pragmatic so that the added value is very quickly visible.

The mix of professionals of  the field with university lecture  from UCAC gave a special touch to this training session rich in experiences and good practices sharing between participants andfacilitators.

I would like to thank MAIN for having set up a special program of this kind, thanks  to UCAC and to its trainers  who gave the best of themselves during the session. Thanks  to the organizers for this great initiative. I encourage MFIs who are still reluctant to join MAIN to do so because MAIN training is very enriching and practical. This is truly an opportunity to seize for the growth of our respective MFIs.

NDEMIGN Ngaradoum Akominassi

Executive Director of WAKILI SA, Social MFI in GUINEA

This training allows MFI executives to manage their institutions effectively and soundly and better equips them in several areas such as: management , financial analysis, governance, social performance management, strategic planning, internal control , management of information systems, etc. so that they can better meet the demands of a sector that is constantly developing and evolving.

During this session, 19 participants in Master 2 defended their preliminary dissertation project in front of a jury made up of professors from the university. Instructions have been given to each student for what he has to do with the dissertation itself. In terms of training logistics, significant improvements have been made for the 2022 session.

The participants left very satisfied with the organization of this training and the lessons learned during the session.

It should be recalled that this training, intended for managers of French-speaking MFIs, is  certified by a Master’s degree in management of MFIs. It has been organized since 2016 in collaboration with the Catholic University of Central Africa It  meant for managers and board members  of French-speaking MFIs, members or non-members of MAIN. Lasting 2 years, this master involves both academics and professionals from the sector. The training includes three weeks of classes per year on the premises of the UCAC face-to-face. Between the different sessions, the participants work on the platform on which they drop their work and interact with the teachers.