INTRODUCTION TO MICROFINANCE

Duration: 3 days

OBJECTIVES

Upon completion of the programme, participants will be able to:

• Understand:

  - The definition of Microfinance.
  - Constraints holding back micro-sector.
  - How can Microfinance activities be integrated into commercial bank operations.
  - An appropriate enabling environment for micro-businesses.
  - Successful experience of commercial banks in Microfinance worldwide.
  - Microfinance best practices and successful strategies.
  - Organisation innovations for commercial banks in Microfinance.
  - No access.
  - Benefits of providing Microfinance services.
  - Why giving credit to Microfinance Institutions is slow.
  - Types of Microfinance Institutions.
  - Models of delivering Microfinance services.

CONTENT

• Introduction

  - Need for MFI coordination.
  - MFI contribution.
  - Why the sudden interest in Microfinance .
  - MFIs and the future.
  - Linkages between MFIs and banks.
  - IS and MF.
  - Use of information technology.

• Sustainability

  - Sustainable MF.
  - How can a bank manage costs associated with small loans?
  - Outreach and resource mobilization.

• Marketing

  - Innovative methodologies and products.
  - Product design and setting interest rates.
  - Delivery channels.
  - Methodologies.
  - Solidarity groups.
  - Marketing MF services.
  - Micro credit models.
  - Customer location.

• Screening Techniques

• Repayment Enforcement Mechanisms

• Regulations

  - Regulating and supervision of commercial banks in Microfinance.
  - What would an appropriate enabling and regulatory environment be in Tanzania?

• Control

  - Credit performance and portfolio quality.
  - Delinquency default rate.
  - Assessing performance of MFIs.
  - Measuring impact.
  - Financial sustainability.

• Case studies.

TARGET GROUP

Credit and Marketing Officers.

FORMAT

Lectures, group discussions, exercises and case studies.