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
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).
ACP: Sub-Saharan Africa, Caribbean and Pacific EuropeAid
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
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
EU/ACP Microfinance Programme II EuropeAid Implementation modalities• Collaboration with other donors: Making aid more effective• Demand driven approach: Call for proposals
EU/ACP Microfinance Programme II EuropeAid Making aid more effective
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)
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 initiativesMulti country, regional, cross border initiatives and South-South cooperationReplicability and dissemination of good practiceComplementarity with other initiatives leverage effectNo funding for capitalisation of loan portfolio, guarantees or equity.
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