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Microfinance and DanChurchAid
Microfinance and DanChurchAid
Microfinance and DanChurchAid
Microfinance and DanChurchAid
Microfinance and DanChurchAid
Microfinance and DanChurchAid
Microfinance and DanChurchAid
Microfinance and DanChurchAid
Microfinance and DanChurchAid
Microfinance and DanChurchAid
Microfinance and DanChurchAid
Microfinance and DanChurchAid
Microfinance and DanChurchAid
Microfinance and DanChurchAid
Microfinance and DanChurchAid
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Microfinance and DanChurchAid

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Very general introduction to microfinance in DanChurchAid, a Danish NGO

Very general introduction to microfinance in DanChurchAid, a Danish NGO

Published in: Travel, Economy & Finance
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    • 1. Microfinance in DanChurchAid Popcorn and politics – May 15, 2008 ODR
    • 2. Agenda
      • A very recent history of microfinance in DCA
      • Why you and DCA should care about microfinance
      • What is microfinance outside DCA?
      • What is microfinance inside DCA?
      • Questions for debate
    • 3. Microfinance and DCA - a very recent history
      • 1978: DCA supports microfinance-like schemes in Bangladesh
      • 2004: A set of guidelines are drafted
      • 2006: A group is set up to make microfinance more systematic in DCA
      • 2006-7: Survey of microfinance by Biliana
      • 2007-8: New microfinance guidelines are made, approved by Core group and Board (May)
      • 2008 (Oct): ODR to work 10-20% with microfinance
      Danish NGOs evaluate and discuss their microfinance activities
    • 4. Why you and DCA should care about microfinance
      • Sustainability: The microfinance promise
        • World’s best 1000 microfinance banks are completely sustainable (and this is what has made the sector grow - graph).
        • LWF’s 138 Village Banks in Cambodia are sustainable
        • Pass-on-the-gift is better that not passing not the gift
      • Donors want it
        • Danida wants it, EU wants it, private donors wants it
      • DCA is using it a lot
        • – but not always very profesionally, constructively, nicely
    • 5. What is microfinance globally – outside DCA?
      • Dinner suggestions: Small loans for very poor women, so they can start a business and work themselves out of poverty – in a group with their neighbours.
      • Not just loans – savings, insurance, money transfers
      • Usually not the poorest – cash-use and lending require resources which the poor do not have
      • Not just women (but mostly) – men too
      • Not just to start a buisiness– perhaps to grow a business
      • Microfinance alone can rarely get people out of poverty – other things are needed
      • Not just groups – more and more toward individuals
    • 6. What is microfinance globally – outside DCA?
      • Definition:
      • Financial services, for example savings, credit, money transfers and insurance, adapted and targeted poorer groups.
    • 7. Facts in global microfinance
      • 130.000.000 clients in 2006
      • Interest rate at 15 to 60%
      • Used as a tool for development and poverty reduction since at least 1930
      • Different inside DCA because the normal MF:
      • Does not reach the poorest of the poor
      • Require bank-like competencies
    • 8. What is microfinance in DCA? - in the sector
      • Formalized microfinance institutions
        • A part of our world: 130m poor clients, fastly growing, sustainable, on the ground
      • Informal microfinance institutions
        • Rotating savings and credit schemes, co-operative banks, village banks
      • Other market-based micro tools
        • Pass-on-the-gift systems, seed banks, more
      Poorer, more vulnerable groups reached
    • 9. What is microfinance in DCA? - activities
      • Formalized microfinance institutions
        • Create links: Know you financial market
        • Enhance inclusion: Who’s not reached?
        • Advocacy/consumer protection: Responsible microbanking
      • Informal microfinance institutions
        • Facilitate establishment and development of informal providers - Malawi
        • Integrate with programmes and projects – LWF Camb
        • Advocacy: Inclusive microbanking
    • 10. What is microfinance in DCA?
      • Other market-based micro tools
        • One goat, ten goats - Ethiopia
        • Seed banks more effectively - Uganda
        • Others
    • 11. What is microfinance in DCA?
        • Principles
        • Promote more than provide
        • Do savings more than credit
        • Know the financial market and what it can do for you
    • 12. Questions for debate
      • Considering the programmes, projects and countries you know of, where and how could/does microfinance – or market-based microtools – contribue?
      • What are the main pitfalls and challenges to be considered?
      • How do we improve what we’re already doing?
        • Quality control, competence building, knowledge management?
    • 13.  
    • 14.  
    • 15. Why you and DCA should care about microfinance: Demand

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