From Checker Book Publishing Group: Alan Moore: Judgment ...
ILCU Foundation Alan Moore - e-MFP Moore.pdf · [email protected] #emw2014 EUROPEAN MICROFINANCE...
Transcript of ILCU Foundation Alan Moore - e-MFP Moore.pdf · [email protected] #emw2014 EUROPEAN MICROFINANCE...
[email protected] www.e-mfp.eu
#emw2014
EUROPEAN MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
ILCU Foundation – Alan Moore
[email protected] www.e-mfp.eu
#emw2014
EUROPEAN MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
Contents
ILCUF
What is a Credit Union / SACCO?
What makes them work & fail?
Who are our members?
Savings Message
[email protected] www.e-mfp.eu
#emw2014
EUROPEAN MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
External funding
(Donors)
Partner Countries
Develop & strengthen Credit Union movements
Credit Unions & their members
Increased Credit Union
membership
Reducing
Poverty
Increased savings &
financial inclusion
Financial &
Technical
Support
[email protected] www.e-mfp.eu
#emw2014
EUROPEAN MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
Africa: Ethiopia, the Gambia, Ghana, Liberia, Sierra Leone North America: Belize
[email protected] www.e-mfp.eu
#emw2014
EUROPEAN MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
The Credit Union Model
[email protected] www.e-mfp.eu
#emw2014
EUROPEAN MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
Credit Unions / SACCOs
Formed by local initiative
Led by Savings
Member owned microfinance
Membership size
Voluntary board
‘Not for profit, but for members’ service
[email protected] www.e-mfp.eu
#emw2014
EUROPEAN MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
What makes SACCOs work?
1. Local ownership / Social cohesion
2. Leadership
3. Book-keeping
4. Members
5. Stakeholders & Government offices
6. Own Building
7. Portfolio Size
8. Audit and/or oversight functions
9. Apex Body & adhering to by-laws
[email protected] www.e-mfp.eu
#emw2014
EUROPEAN MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
General Distinguishing Characteristics
Financial
Reduces costs
Lower interest rates
Dividend to members
Savings
Operational
Limited financial services
Restricted by amount of portfolio
Services localised and not standardised
Accountability to members
Targets all local society
Social
Collateral mechanisms
High level of local community
Common bond
Promotes democratic procedures
Develops local capacities
[email protected] www.e-mfp.eu
#emw2014
EUROPEAN MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
Loans are not repaid
Money is stolen or misused
Incompetent governance
Lack of accountability, supervision & audit
Poor understanding of business model & operational procedures
Weak management
What makes SACCOs fail?
[email protected] www.e-mfp.eu
#emw2014
EUROPEAN MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
Types of Clients: Who are the Members?
0%
10%
20%
30%
40%
50%
60%
42%
58%
Below National Poverty Line Above National Poverty Line
[email protected] www.e-mfp.eu
#emw2014
EUROPEAN MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
Graduation
Targeting Poorer Members
Pilot Project in Ghana & Sierra Leone
Micro Loans First
Building Savings History by Weekly Meetings
Graduating to Credit Union Membership
Low Cost
Marketing Tool
[email protected] www.e-mfp.eu
#emw2014
EUROPEAN MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
Savings and Self-Reliance
The results of studies on the impact of savings are more consistently positive than those for credit, although there are fewer of these studies. Savings help households manage cash flow spikes and smooth consumption, as well as build working capital. (CGAP Focus Note 92)
[email protected] www.e-mfp.eu
#emw2014
EUROPEAN MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
ILCU Foundation Contact information:
www.ilcufoundation.ie