Upload
cassia
View
49
Download
1
Embed Size (px)
DESCRIPTION
Rural Outreach and Innovation e-MFP Action Group: Lessons learned from member based MFIs on governance and strategic alliances Moderator Laurent Biot, SOS Faim Speakers Victor Chati Perez, Coop Los Andes (Peru) Alou Sidibe, Kafo Jiginew (Mali) Luis Panzer, Cresol (Brasil) - PowerPoint PPT Presentation
Citation preview
[email protected] www.e-mfp.eu
Rural Outreach and Innovation e-MFP Action Group: Lessons learned from member based MFIs on governance and strategic alliances
Moderator Laurent Biot, SOS Faim Speakers Victor Chati Perez, Coop Los Andes (Peru)
Alou Sidibe, Kafo Jiginew (Mali)
Luis Panzer, Cresol (Brasil)
Maira Gonzales, Coop. Jardin Azuayo (Ecuador)
With contributions from Bernard Ornilla (Alterfin), Lamarana Sadio Diallo
(CRG-Guinea), Anaïs Perilleux and Annabel Vanroose (CERMi)
Luxemburg, November 4, 2011
[email protected] www.e-mfp.eu
Rural Outreach and Innovation e-MFP Action Group: Lessons learned from member based MFIs on governance and strategic alliances
The experience of the Savings and Credit Cooperative Los Andes (Peru)
Presented by Victor Chati Perez, Los Andes General Manager
[email protected] www.e-mfp.eu
Presentation
Created in 2001 Coming from a rural microcredit program (1999) Founders: 5 rural communities Very rural focused, basically with savings and credits
Some figures Los Andes, in constant growth:
28,620 active Members (44% women); 97 salaried workers 21.63 M$ credit portfolio; around 85% of credit lines covered by
savings. 25.3 M$ equity and liabilities 114.9% OSS; OE/assets 9.93% 1,419 USD average loan size PAR30 is 2.3%
[email protected] www.e-mfp.eu
Governance
Cooperative model Decentralized and participatory: 12 offices and 42
service points Every office has elected representatives
They control operations They represent the members in the General Meeting (100
representatives) The law prohibits participation of the members in the credit
committee but they design the credit policy
For this model to be performing, Los Andes puts its efforts at two levels: Cooperative training Territorial focus: the Coop acts as an active actor in local
development
[email protected] www.e-mfp.eu
Strategic Alliances
Natural alliances with local partners: Villages associations / Farmers´ associations and local governments Strategic alliances with international development organizations But in the current context and for the model to be sustainable at long term, need to build new alliances with peers
Creation of CIDERURAL (2008): Second floor cooperativeObjective is to:
Exchange experiences and to learn from each other Economies of scale (TA, training, audits etc.) Financing possibilities Lobby, national representation
Creation of the Union of cooperatives from Apurimac (2011): with any type of cooperative
Make the local economy more dynamic Representation
[email protected] www.e-mfp.eu
Rural Outreach and Innovation e-MFP Action Group: Lessons learned from member based MFIs on governance and strategic alliances
The experience of Kafo Jiginew (Mali)
Presented by Alou Sidibe, Kafo Jiginew General Manager
[email protected] www.e-mfp.eu
MaliHDI: 0.309Rank: 160/169
[email protected] www.e-mfp.eu
Presentation
Created in 1987 in the South of Mali: cotton area Supported by an NGO consortium and the Crédit Coopératif Français Took its autonomy in 1994 Network: 19 local branches – 5 Regional Delegations – 1 Union – 167 service points
Kafo in figures of September 2011 302,000 Members – With 27% of women 647 employees Credit portfolio reaches: 33.29 millions of dollars (M$) and total
savings: 32.64 M$ 106.2% operationally self-sufficiency and 98.5% FSS OE/Assets: 13.48% – Borrowers/staff: 84 612 $ average loan size 7.3% PaR30
[email protected] www.e-mfp.eu
Governance
ReconfigurationFinalized in 2010
From 113 local branches to 19 branches But conserve the 167 service points From 22 elected presidents at Union BoD to 9
Advantages: Increases efficiency (speeds up decision process) Reduces strongly the operating expenses Easier to meet regulatory norms Improves professionalization
Disadvantages: Weakens the link with members
[email protected] www.e-mfp.eu
Governance
Diversification in order to reduce risk (reduce dependency on cotton sector) Geographic diversification
Creation of new local branches Urban: Bamako and Kayes Rural: Office du Niger Head Office transfer to Bamako
Sectorial Diversification of services
Finance new activities (other activities than cotton production)
Result: the portfolio dependency on the cotton sector reduced from 85% to 45%
[email protected] www.e-mfp.eu
Strategic Alliances Multiple partnerships
Strategy convergence (defined by Kafo Jiginew) E.g. Geographic diversification
Rural – Office du Niger (rice) (SOS Faim – FAIR) Urban – Bamako (with own funds)
One crucial partner: the Confédération des Institutions Financières (CIF)
Regional partnership: CIF groups 6 financial cooperative networks in 5 West-African countries
Same type of institutions: know very well the challenges of each other Exchange of experiences and expertise
- E.g. Reference group on agricultural finance Increases independence from external technical support Possibilities to implement new tools and to mutualize services, e.g. bank
and insurance company
[email protected] www.e-mfp.eu
Rural Outreach and Innovation e-MFP Action Group: Lessons learned from member based MFIs on governance and strategic alliances
The experience of CRESOL (Brazil)
Presented by Luis Panzer, CRESOL General Director
[email protected] www.e-mfp.eu
II. CasosII. CasoslatinoslatinosII.3. CRESOLII.3. CRESOL
Brazil
HDI: 0.699Rank: 73/169
[email protected] www.e-mfp.eu
Presentation Created in 1995, with the objective to help local rural communities to access credit and savings Coming from social movements Works intensively with government programs Decentralized institution: network of cooperatives (79) composed by rural families Active in two Southern regions of Brazil, currently considering expansion CRESOL in figures of December 2010:
41,200 savers and 45,023 active borrowers (18.38% women) 100% rural activities 417.7 M$ credit portfolio and 137.3 M$ savings 118.6% OSS; OE/ assets: 5.36% 3,800 USD average loan size 2.81% PaR30
[email protected] www.e-mfp.eu
Governance
The MBOs are all initiated locally and directed towards rural families; average number of members: 500-2,000. CRESOL puts a lot of effort in the decentralization of the COOP so that the management stays in the hands of the farmers. Therefore all members and directors receive training. All committees (e.g. credit, audit) are composed of members and consequently decisions are taken by the community
Recently discussion towards putting “managers” in charge of the operational tasks
Three level system: local, regional and central level MBO is a network: have local and regional meetings and a central
cooperative who manages the IT system, is responsible for audit, lobby and advocacy towards external partners
Principio Solidario: Local COOP is “guaranteed” in case of default, by its regional service centre who covers 70% of the losses
[email protected] www.e-mfp.eu
Strategic Alliances
All the cooperatives have constructed alliances with local organizations (trade unions, NGOs, producer oriented cooperatives) => member has access to different services Has developed different activities with other institutions
Training activities (training of credit officers) with Infocos To create access to insurance products for its members, CRESOL created
alliances with MAFRE, Liberty, HDI etc. The CRESOL system has national alliances with the government, banks and national cooperative systems.
Banco de Brasil (public-private bank) and the BNDES (National Development Bank)
Central CRESOL is member of Unicafes (National Union of Cooperatives) and Confesol (National Union of Credit Cooperatives)
Support of international partners such as Trias, Rabobank Foundation, BRS etc. Receives technical support which have been decisive in the growth process
[email protected] www.e-mfp.eu
Rural Outreach and Innovation e-MFP Action Group: Lessons learned from member based MFIs on governance and strategic alliances
The experience of Savings and Credit Cooperative Jardin Azuayo Jardin Azuayo (Ecuador)(Ecuador)
Presented by Maira Gonzales, Jardin Azuayo Treasurer
[email protected] www.e-mfp.eu
EcuadorHDI: 0.695Rank: 77/169
[email protected] www.e-mfp.eu
Presentation
Created in 1996, as a response to local disaster in the village of Paute
Currently the second biggest MBO in terms of assets in Ecuador Decentralized institution: 27 offices and 3 service points
JA in figures of October 2011: 205,000 Members (52% women borrowers); 289 employees 70% rural members 205 M$ credit portfolio and 191.5 M$ voluntary savings 120.7% OSS and OE/assets: 4.14% 4.830 USD average loan size 2.80 % PaR30
[email protected] www.e-mfp.eu
GovernanceCooperative model - Training focus: Educational programs towards members, directors and employees
Effects: Strong appropriation and embeddedness, people know very
well the cooperative Contributes to local development Social control of the operational part of JA Balance between social and financial objectives
Decentralized governance model, except for the technical areas of the 27 offices
Effects Services and products adapted towards the needs of the
clientsFor example: remittances, shared financial services within national cooperatives
[email protected] www.e-mfp.eu
Strategic Alliances Started with the support of a local NGO called CECCA (NGO specialized in
education and training of farmers) but without international support.
Local development organizations Red de Mujeres de Paute, local governments, producer organizations
Effects: Alliances, part of local development, knowledge of the environment etc.
Member of several microfinance networks in Ecuador Red Financiera Rural, Ucacsur y FINANCOOP: ratings, publications,
trainings, product supportEffects: representativeness, knowledge development, products
and services, financing
International partners and organizations Since 2003 started to build international alliances: FUSM, BID (B-loan),
AlterfinEffects: technical support, long term financing, development of
new products
[email protected] www.e-mfp.eu
Thank you for your attention!