TECHNICAL ASSISTANCE
The Financial Inclusion Advocacy Centre’s Technical Assistance Department includes leading international trainers in microfinance, as well as a robust group of trainers and consultants from renowned institutions around the globe who provide expertise as needed. Our trainers are fully certified in the range of CGAP and World Bank microfinance training, as well as Citibank Foundation training materials in English. FIAC has its own home grown internal training and consulting materials and tools, based on global best-practice benchmarks. FIAC trainers and consultants have vast practical experience managing diverse range of microfinance institutions, from self-help groups , foundations, cooperatives and commercial banks. They are assisted by international training specialists in microfinance, with over 15 years international microfinance technical capacity building expertise.
FIAC technical assistance is bespoke to the need of each client, often based on the detailed findings of MIR ratings. FIAC incorporates follow-ups, coaching, mentoring and practical hands-on training in its training deliveries, to enhance with implementation of new skills and ideas. FIAC’s main aim is the building of sustainable skills and abilities of its clients, rather than performing work on their behalf and leaving the institutional soft skills unaffected.
FIAC’s Technical Assistance Outfit engages in the following activities:
- Direct delivery of technical assistance services, including training, consulting, on-the job-training, etc., to MFIs;
- Development and introduction of best-practice training and consulting tools (in collaboration with the Research and Innovation Department);
- Intensive training of trainers and consultants to ensure broad circulation of learning materials throughout Africa at affordable cost to MFIs; and
- Delivery of technical services to large scale audiences through FIAC networking events, including conferences and workshops.
RESEARCH & INNOVATIONS
FIAC’s Research and Innovation Department work to address critical developmental needs of the African microfinance sector by conducting research, developing and propagating new technical skills and materials on microfinance innovations.
FIAC is committed to actively translating research findings and field experience into innovative practical training and consulting tools for MFIs in Sub-Sahara Africa. FIAC training materials are based on international benchmarks and are developed by both local and international experts in training curricular development.
The Department conducts time tested socio economic market research in microfinance for Micro finance investment vehicles (MIVs), MFIs, donor agencies, governments and other interested parties in the industry. In addition, the department conducts social impact research to measure the success of different products and strategies, as well as to determine levels of social performance for:
- Progressively build micro housing finance;
- Development of micro-insurance;
- Entrepreneurship development for Youth;
- Improvements in technology to mobilize and manage savings;
- Delinquency turnaround for MFIs in crisis.
RATINGS & APPRAISALS
FIAC performs specialized MFI appraisals and ratings – using The MIR rating tool – on behalf of MFIs, donors, investors, and governments. These services provide independent expert evaluation and verification of individual MFI performance, based on international microfinance best practice and country specific commercial banking reporting norms.
The MIR rating tool, appraisal tool and Investor Report were developed by FIAC staff in cooperation with MicroRate. The tools are based on national and international standards, providing information for the banking industry, as well as international investors
Ratings typically result in an Investor Report, which provides detailed information and statistics on MFI operational, financial and strategic performance. FIAC also conducts shorter MFI Appraisals, which do not include financial verifications, but give a comprehensive picture of institutional operations and performance and often act as the basis for future technical assistance or establishing new partnerships.
The rating tool lends itself well to a range of purposes and can be quickly adapted to different client needs. The ultimate MIR product is the full rating, which is typically conducted by two analysts over a period of two to three field days, with an additional two to three days required for advance preparation and report finalization, depending on the size of the MFI. However, the following additional products and services are also offered:
- Full Appraisals (does not include financial or portfolio audit)
- MFI Desk Reviews (covering financial statements, business plans, etc.)
- Rapid Institutional Appraisals (1 field day for two analysts)
- Technical Assistance Needs Assessment
- Commercial Funding Recommendations
- Benchmarking
- Research related to aggregated rating findings
- Social rating
POVERTY ACTION CENTRE
The Sub-Saharan microfinance sector is one of the largest in the world, encompassing over 1,000,000 institutions, including community banks, rural banks, cooperatives and credit unions. Despite the scale, more 70% of the adult population in Sub-Saharan Africa still lack access to financial services, mainly in rural areas and urban slums.
PAC also promotes pro-poor models to other MFIs interested in working on the microfinance market. Best practices and tools will be documented and disseminated through newsletter, website and conferences.
Managed by a team within the Financial Inclusion Advocacy Centre, PAC fuses its resources with donor support to provide direct services to up to 500 pro-poor MFIs in the next five years. It will build market awareness among all MFIs about viable pro-poor products and approaches to increase overall service to underserved market segment. Eventually, effective and sustainable MFI financial services are hoped to lift millions of Africans living in abject poverty.
The PAC program was initiated by the Financial Inclusion Centre in order to build MFI outreach to the poor. PAC strongly believes that everyone, including those with low or no income, deserve access to financial services. At present, many of those people are not served by commercial banks and only few microfinance institutions reach out to this market segment. A recent FIAC study revealed that only a third of the MFIs surveyed provide significant services to the poor.
As a program, PAC focuses on identifying, promoting and linking pro-poor MFIs to resources. The program is integrated and serves as a centre for learning. It also acts as a centre of activities for pro-poor MFIs to develop their outreach and effectiveness. PAC enables MFIs to receive access to various resources so that they can grow and share experiences.
