Microfact aims to strengthen the performance of Microfinance and Microinsurance Institutions through the use of tools (Microfinance Tools and Microinsurance Tools) and workshops (Microfinance Workshops and Microinsurance Workshops).
Mid-September, TAMFI (Tanzanian Association for Microfinance Institutions) supported the organization of 2 Microfact workshops (Training of the Trainers and KPIs for Microfinace Institutions). Esther Nkambwe, TAMFI's Programme Officer, was one of the successful candidate trainers. She is now part of our trainers community. Read her testimony about microfinance sector in Tanzania.
# Karibu Esther #Microfact trainers comunity #MicrofactLinkedIn
1. What is TAMFI role in Microfinance sector in Tanzania? What are the challenges of the sector?
Tanzania Association of Microfinance Institutions (TAMFI) is an umbrella organization which works to promote unity and collaboration among microfinance institutions and other key players of the sector in the country. As from 2001 the association seeks to develop capability of microfinance institutions and the microfinance sector in general through advocacy, lobbying, research and development, promotion of responsible microfinance, capacity building, information gathering and dissemination. The sector is facing a number of challenges that include inadequate working capital of microfinance Institutions, weak institutional and professional capacity, poor capacity to develop Management Information System (MIS), and an environment which lacks legal and regulatory framework.
2. What will be the added value of the Microfact for the MFI’S operations in Tanzania?
MFIs in Tanzania will be in a position to analyze and monitor their Financial and Social performance through the use of MFI Factsheet and MFI Factsheets Compiler. Poorly performing institutions are likely to benefit most, as the MFI Factsheet will enable them to identify their operational and financial weaknesses. They will be able to interpret the results and take the right decisions to manage their operations and define their strategy.
3. What are the expectation of TAMFI after organizing the TOT and the KPIs workshop?
National Microfinance Policy says that there is inadequate data of microfinance services providers. In other words, there is insufficient information, on how MFIs are performing in Tanzania.
In this regard, TOT and KPIs workshop of Microfact enabled the microfinance industry in Tanzania to have trainers, who can sensitize, support, coach and mentor MFIs in using the MFI Factsheet. As from now, TAMFI will be able to gather, analyze and compile key performance indicators of its members. And MFIS will be able to attract national and international investment funders thanks to more transparency on key performance indicators data.
Microfact welcomes Maria Silvia Abalo, RADIM Managing Director, in the dynamic pool of certified Microfact trainers, after her successful replication in Buenos Aires in April 2018.
We talked with Maria Silvia about the importance of microfinance sector in Argentina, the role of RADIM (Red Argentina de Instituciones de Microcrédito) and why Microfact tools and trainings matter so much to the local MFIs.
1. Is Microfinance necessary in Argentina?
Yes it is, because 40% of the population live and work in the informal economy and do not have access to decent financing conditions. Moreover, an important part of those 40%, lives below the poverty line. In this context, microfinance give an opportunity to the entrepreneurs within this group. In addition to providing funding, many of the microfinance institutions in Argentina provide training in entrepreneurship or trade. Others give access to health services or provide legal advice for the people without any identity documents or for immigrants. Above all, we speak about the market where financing happens in conditions of absolute transparency and with respect for the customers.
2. What is the role of RADIM (Red Argentina de Instituciones de Microcrédito) in the operation of MFIs?
RADIM works under the three main pillars:
I. Institutional strengthening
In the first and second one, we educate our members on SPI4 and as of now, MFI Factsheet of Microfact. Together with the University of Buenos Aires, we organize a four-month course on Management and Leadership in Microfinance, delivered by the highest authorities from the microfinance institutions. Its purpose is to strengthen our institutions and seed new talent for them. We carry out “Knowledge to Grow” Program” that addresses the main issues of the MFIs management (e.g. Credit Risk and Portfolio at Risk) and “Inter MFIs Program” that allows institutions to improve performance of their employees through training in other institutions. In addition, with respect to Advocacy, for 13 years already, we organize the Annual Microfinance Conference, which is the meeting point for all the stakeholders in the sector. We also carry out a monthly cycle called "Reflection Mornings" on financial inclusion with the broad participation of actors from the public and private sectors.
3. What is the added value of Microfact tools in the operation of MFIs in Argentina?
In many cases, microfinance institutions in Argentina lack instruments that allow them to analyse their financial and social performance. Microfact offers highly professional tools that allow them to do it. They serve to the management of the institution and to attract the potential funders. We believe that if all our institutions use MFI Factsheet and SPI4, it would be a great advantage in the understanding of their financial and social performance and in the homogeneity of information.
Against all the odds, an electricity blackout in town, a hot training room and no elevators, 11 MFIs participated in a Microfact training in Myanmar.
28 participants, 2 trainers, 1 interpreter and very good energy from everyone were the ingredients for this successful training. Local and international, small and big… a good mix of MFIs allowed for good interaction between participants. MFIs included BRAC, CARD, Fullerton, KB Hana, LOLC, Ngew Marlar, MFIL, NYWCA, INNO Capital, Straits and Ar Yone Or.
The room got hotter as participants debated about gender distribution of staff and management ratios during the case study exercises. Ratios interdependency was one of the key elements participants were able to practice while improving their capacity to analyse their financial and social performance.
This was the first Microfact training organized in Myanmar but definitely not the last one!
KJay zu tin bar deh and Tat Tar!
KPIs / Microvision - Microfinance:
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KPIs - Microinsurance: