Microfinance role in conflict and post natural disaster areas
Download
1 / 14

Microfinance Role in Conflict and Post Natural Disaster Areas - PowerPoint PPT Presentation


  • 123 Views
  • Uploaded on

Microfinance Role in Conflict and Post Natural Disaster Areas. Michaël KNAUTE CEO OXUS Development Network. Who we are. Assumptions : many cases of successful MFIs in crisis-affected areas & microfinance recognized as a key economic recovery/development tool

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Microfinance Role in Conflict and Post Natural Disaster Areas' - braith


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Microfinance role in conflict and post natural disaster areas

Microfinance Role in Conflict and Post Natural Disaster Areas

Michaël KNAUTE

CEO OXUS Development Network


Who we Areasare


  • Assumptions : Areasmany cases of successful MFIs in crisis-affected areas & microfinance recognized as a key economic recovery/development tool

  • But key success factors/lessons learned

  • Presentation :3 case studies about impact of political crisis/shocks in various contexts ; natural disasters covered by Kashf Foundation

  • 3 countries :

    • Kyrgyzstan, 2010 : mature but affected by a sudden crisis

    • Afghanistan, 2004-2010 : chronic conflict/crisis

    • DRC, 2006-2010 : post-conflict

3 case studies


  • A strong, commercial and fast-growing microfinance industry…

    • Positive economic trend and investment climate, strong actors, high involvement from commercial investors, strong regulatory environment, mature market

  • … affected by a sudden political/ethnic crisis in 2010

    • Coup and new government in April 2010

    • “Pogrom” in June 2010 targeting mostly Uzbek micro-entrepreneurs in Southern Kyrgyzstan

Case study 1 : Kyrgyzstan (1/3)


Case industry…study 1 : Kyrgyzstan (2/3)

Impact of the crisis on MFIs portfolio, source : AMFI, September 2010


  • Lessons learned industry…

    • Resilience of MFIs and clients to political crisis

    • Importance of having strong actors (size, procedures, advocacy )

    • Dialogue and collaboration/coordination between donors, NGOs and MFIs

    • Dialogue between MFIs and affected clients (monitoring, image, restructuring, grants, …)

    • Partnerships and creativity (e.g. co-projects Kompanion/Mercy Corps, ACTED/OXUS, …) to support the most-affected

Case study 1 : Kyrgyzstan (3/3)


  • A war-torn country for the past 30 years … industry…

    • No state, no regulatory framework, very high insecurity and instability, no banking/microfinance sector until 2003

  • … but microfinance sector launched from scratch in 2004, mainly funded by a WB-led apex institution

    • Creation of MISFA in 2003

    • High-pressure for growth : from 0 in 2003 to 100 mUSD industry in 2008

Case study 2 : Afghanistan (1/3)


Case industry…study 2 : Afghanistan (2/3)

Source: Mix Market


  • Lessons learned industry…

    • Importance of professionalization of MFIs and risk-management before focusing on growth

    • Difficult to recruit top-managers

    • Necessary involvement of publics donors and DFIs to support birth/strengthening of the sector/delayed profitability

    • Get deep field knowledge (cultural, political risks) and focus on safer areas

    • Still possible to develop an ambitious/commercial microfinance industry in such a context

    • Growth opportunities offered by high demand/low offer

Case study 2 : Afghanistan (3/3)


  • A post-conflict country … industry…

    • No state, no regulatory framework, high insecurity and instability, no banking/microfinance sector until 2005

    • Gradual stabilization and post-conflict situation since 2006

  • … but no major microfinance initiative/strategy launched in the meantime

    • Total MFIs portfolio in 2010 : 60 mUSD ; 2 big MFIs only

    • Lack of ambition of donors/NGOs, still very much in an emergency approach

    • Or weak decisions: let’s build local capacities and that’s it

Case study 3 : DRC (1/3)


Case study 3 : DRC (2/3)


  • Lessons learned industry…

    • Some similar to Afghanistan (resilience, deep knowledge, risk-management and portfolio quality, capacity building, etc …)

    • Public donors/government still uncomfortable with microfinance in post-conflict strategies

    • Gap may be more important with marginalized/rural communities (lack of market, logistical issues, capacity building)

    • Smaller loans, shorter terms, bigger groups, high credit files rejection

    • Reputation is not reality

    • Needs to welcome international actors who can bring professionalization to the sector and leverage donor funding

Case study 3 : DRC (3/3)


  • Summary lessons learned : industry…

    • Big variety of crisis/situations

    • MFIs can prosper during chronic conflicts or resist to sudden crisis

    • Importance of adapting to the context (slow growth hence delayed profitability, field knowledge, capacity building, products)

    • Gap between mainstream clients and marginalized communities may be higher than other contexts

    • Importance of partnerships/dialogue with donors/DFIs/NGOs for strategy definition/funding/quick response

    • Importance of having strong/established MFIs to withstand shock and bring professional approach

Conclusion


Thank you ! industry…

Contact :

Michaël KNAUTE

CEO OXUS Development Network

[email protected]

www.oxusnetwork.org

+ 33 6 74 61 36 42


ad