PowerPoint presentations from Fundación Capital's South-South Knowledge Exchange Forum, organized with support from IFAD "Leveraging Opportunities to Encourage Financial Inclusion"

1. Rural Finance and Enterprise Development Programme
Bridging the Gap for the Un-banked Population through E-
Technology Solutions
Leveraging Opportunities to Encourage Financial Inclusion
Presented by the Micro Finance Unit
21 – 22 June 2012

2. Presentation Outline
1. Country Background
3. Financial Inclusion Overview
5. Rural Finance & Enterprise Development Programme
 Enterprise Development Process Flow
 Financial Environment Overview
4. E-Technology Financial Solutions Roadmap
 Micro-enterprise Development
 Access to Financial Services
13. Utilization of the E-Technology Financial Solutions
15. Future Plans
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3. Country’s Background
o Swaziland is a land-locked country
nestled between the RSA and
Mozambique
o It has a land size of 17, 364sq km and a
population size of 1.0 million
o Real GDP growth 1.3% in 2010 vs. 5%
target
o Agriculture sector contributes 10% to
GDP
o 73% of the population lives in the rural
area and 85% of the people are poor
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4. Finscope Swaziland 2011 - Financial Inclusion
Overview
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5. Sources of Income by Gender Split
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6. Role of the Rural Finance & Enterprise
Development Programme
o Semi-autonomous wing of the Ministry of
Finance
• Began implementation Sept 2010 and
running for 6 years
o Programme Objective:
• Implementing and developing enterprises
linking with E-Technology Financial
Solutions.
o Implementation Focus:
• Policy & legislative Reform,
• Institutional and Capacity Building,
• Innovative Technology Financial Solutions.
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7. Enterprise Development Process Flow
Programme Gap Analysis Stakeholder Participation Programme Intervention
Component
Demand for Financial
Services
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8. National Financial Environment
Commercial Banks MFIs Entrepreneurs
Long in liquidity Limited financial resources Limited technical,
vs. demand management and
marketing skills
Risk-adverse Large outreach in rural Limited collateral
areas
Primary focus is not on Dwindling financial Non-bankable projects
rural areas performance
Limited outreach Limited relationship with Absence of
banks diversification in
activities
Unable to use savings
mobilized for on-lending
Dwindling repayment
rates -In 2008: MFI loan
repayments were at 92% -
in 2011 70-75%
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9. E-Technology Financial Solutions Roadmap
Document Issued: MFU Expectation MFU Options Key Players MFU Way Forward
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10. Micro-enterprise Development – Demand for
Financial Services
o High Value Enterprises – Improved food
security & income e.g. Honey, Village
Chickens & Horticulture
o Value Chain Assessments - Honey
Processing finalised & Village Chickens on-
going (Technoserve).
o Training Target 280 Honey Producers - 96
trained in bee-keeping and 77 in
entrepreneurship.
o Mentoring & Coaching – Collaboration with
the value chain players (Experts, Input
Suppliers, Honey Processors & Financiers)
• Field Visits
• Business clinics
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11. Access to Financial Services
• Enhance MFIs – Transformation &
Institutional Development
o Strategic Planning, MIS, Credit Policies & Risk
Management
o New MFIs
• Re-financing Packages – Financial Linkage
Platforms & appropriate financial products
o MFI & 1 commercial bank (US$40, 000 Pilot)
o Indigenous businesses & Development
Finance Institution (US$1.25m)
• Capacity Building – Business
management & technical training of
micro-entrepreneurs
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12. Utilization of E-Technology Solutions
o MTN Swaziland Hamba Mali – Accessibility, Cost &
Convenience. The following are the current uses;
• Transfers & remittances through agents
• Group Savings Deposits
• Farmer Associations Wage Payments (proposal)
• Bills Payments (Electricity, Water, Air-time, etc.)
• Information Platforms
o FNB Swaziland E-wallet – Account holders send money to
non-account holders. The following are the current uses;
• Transfers & remittances through ATMs
• Group Savings Payments
• Farmer Associations Wage Payments (proposal)
• Bills Payments (Electricity, Water, Air-time, etc.)
o Postbank – Still being proposed
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13. Future Plans
o Financial Policy Reform
• Integration of Branchless & Agent Banking
• MFI Charter
• Credit Referencing
• MSME Business Start-up & Growth
o Financial Institutions Participation
• Prepared Entrepreneurs
• Viable Business Plans
• Appropriate Financial Products
o E-Technology Financial Solutions
• Reasonable Up-take – Good Business Case
• Multiple Uses – Need Responsive Products
• Accessibility – Registration, Cost, Convenience, etc.
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