Presentation Microfinance: EU/ ACP countries


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A presentation given by the EC at the European Microfinance week 2010

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Presentation Microfinance: EU/ ACP countries

  1. 1. EU/ACP Microfinance Programme II EuropeAid
  2. 2. EU/ACP Microfinance Programme II EuropeAid Overview of the EU cooperation in ACP countries EU/ACP Microfinance Programme presentation Implementation modalities Mesuring resultsStefania ZaninelloProgramme ManagerEuropeaid Co-operation OfficeCentralised operations in ACP Countries
  3. 3. EU/ACP Microfinance Programme II EuropeAid Overview• European Development Fund (EDF): main instrument for development cooperation in the ACP States and OCT.• 10th EDF: 2008-2013 (Revised Cotonou Agreement) National and Regional EUR 17 766 million Intra-ACP/Intra-regional EUR 2 700 million Investment Facility EUR 1 500 million Total allocation: EUR 22 682 million• Regional Authorizing Officer: ACP Group of States created in 1975 by the Georgetown agreement, signed initially by 46 ACP States (today 79).
  4. 4. ACP: Sub-Saharan Africa, Caribbean and Pacific EuropeAid
  5. 5. EU/ACP Microfinance Programme II EuropeAid Presentation• EU/ACP Microfinance Programme II• It is part of the Intra ACP envelope and programme for Private Sector Development and Trade Related Assistance• Duration: 2010 – 2014• Allocation: EUR 15 million• Objective: contribute to poverty alleviation through economic growth facilitated by the development of inclusive financial systems adapted to the needs the poor in ACP countries.• Financial System approach: o Equitable and efficient local markets o Capacity building and consumer empowerement o Pro poor access to finance
  6. 6. EU/ACP Microfinance Programme II EuropeAid Presentation• Equitable and efficient local markets More efficient financial market infrastructure Better informed ACP policymakers, regulators and supervisors More effective and equitable funding for access to finance in ACP countries• Capacity Building and Consumer empowerment Improved financial capability of ACP microfinance clients More transparency of MFIs on their financial and social performance Developed skills of ACP microfinance actors Expanded MFIs institutional capacity to leverage investment and financial access• Pro-poor access to finance Innovative delivery models for serving communities excluded from the formal financial system Access to finance for vulnerable populations, for instance very poor or remote and rural people
  7. 7. EU/ACP Microfinance Programme II EuropeAid Implementation modalities• Collaboration with other donors: Making aid more effective• Demand driven approach: Call for proposals
  8. 8. EU/ACP Microfinance Programme II EuropeAid Making aid more effective
  9. 9. EU/ACP Microfinance Programme II EuropeAid Call for proposals Responsible finance for all Main objective: pro poor access to finance, capacity building and consumer empowerment• Total allocation: EUR 7,5 million – 1 Call• Between EUR 250,000 and EUR 1 million• Up to 80% of budget of a project (other 20% co-financed byapplicant and partners, no in kind contributions accepted)
  10. 10. EU/ACP Microfinance Programme II EuropeAid Call for proposals• Eligible candidates: Retail financial services providers and their associations or networks; Providers of technical and business services to the microfinance sector; Providers of wholesale finance oriented towards pro-poor retail financialinstitutions• Requirements for grant recipients: Experience with microfinance operations >3 years - at least 3 similar actions Technical expertise in-house qualified staff dedicated to microfinance• Main eligible activities and initiatives:Action research, Training, Technical assistance, Advisory services, CapacityBuilding, Financial education, etc.Pilot project in rural area, innovative solutions and client protection initiativesMulti country, regional, cross border initiatives and South-South cooperationReplicability and dissemination of good practiceComplementarity with other initiatives leverage effectNo funding for capitalisation of loan portfolio, guarantees or equity.
  11. 11. EU/ACP Microfinance Programme II EuropeAid Measuring results Performance Based Agreements both economic and social componentsDefinition of performance baseline, targets and key indicators based on Social objectives : - Alleviation of poverty and outreach - Access to sustainable financial services - Well self managed mechanism Economic and financial objectives Standard performance indicators cover at least the five core areas: (1) breadth of outreach (2) depth of outreach (3) portfolio quality (4) efficiency (5) sustainability
  12. 12. EU/ACP Microfinance Programme II EuropeAid