EUACP Microfinance Programme II Europe Aid EUACP Microfinance

EU/ACP Microfinance Programme II Europe. Aid

EU/ACP Microfinance Programme II Ø Overview of the EU cooperation in ACP countries Ø EU/ACP Microfinance Programme presentation Ø Implementation modalities Ø Mesuring results Stefania Zaninello Programme Manager Europeaid Co-operation Office Centralised operations in ACP Countries Europe. Aid

EU/ACP Microfinance Programme II Overview • European Development Fund (EDF): main instrument for development cooperation in the ACP States and OCT. • 10 th EDF: 2008 -2013 (Revised Cotonou Agreement) National and Regional Intra-ACP/Intra-regional Investment Facility Total allocation: • EUR 17 766 million EUR 2 700 million EUR 1 500 million EUR 22 682 million Regional Authorizing Officer: ACP Group of States created in 1975 by the Georgetown agreement, signed initially by 46 ACP States (today 79). Europe. Aid

ACP: Sub-Saharan Africa, Caribbean and Pacific Europe. Aid

EU/ACP Microfinance Programme II Presentation • EU/ACP Microfinance Programme II • It is part of the Intra ACP envelope and programme for Private Sector Development and Trade Related Assistance • Duration: 2010 – 2014 • Allocation: EUR 15 million • Objective: contribute to poverty alleviation through economic growth facilitated by the development of inclusive financial systems adapted to the needs the poor in ACP countries. • Financial System approach: o o o Equitable and efficient local markets Capacity building and consumer empowerement Pro poor access to finance Europe. Aid

EU/ACP Microfinance Programme II Presentation • Equitable and efficient local markets ü More efficient financial market infrastructure ü Better informed ACP policymakers, regulators and supervisors ü More effective and equitable funding for access to finance in ACP countries • Capacity Building and Consumer empowerment ü Improved financial capability of ACP microfinance clients ü More transparency of MFIs on their financial and social performance ü Developed skills of ACP microfinance actors ü Expanded MFIs institutional capacity to leverage investment and financial access • Pro-poor access to finance ü Innovative delivery models for serving communities excluded from the formal financial system ü Access to finance for vulnerable populations, for instance very poor or remote and rural people Europe. Aid

EU/ACP Microfinance Programme II Implementation modalities • Collaboration with other donors: Making aid more effective • Demand driven approach: Call for proposals Europe. Aid

EU/ACP Microfinance Programme II Making aid more effective Europe. Aid

EU/ACP Microfinance Programme II Call for proposals Responsible finance for all Main objective: pro poor access to finance, capacity building and consumer empowerment • Total allocation: EUR 7, 5 million – 1 Call • Between EUR 250, 000 and EUR 1 million • Up to 80% of budget of a project (other 20% co-financed by applicant and partners, no in kind contributions accepted) Europe. Aid

EU/ACP Microfinance Programme II Call for proposals • Eligible candidates: ü Retail financial services providers and their associations or networks; ü Providers of technical and business services to the microfinance sector; ü Providers of wholesale finance oriented towards pro-poor retail financial institutions • Requirements for grant recipients: ü Experience with microfinance operations >3 years - at least 3 similar actions ü Technical expertise in-house qualified staff dedicated to microfinance • Main eligible activities and initiatives: üAction research, Training, Technical assistance, Advisory services, Capacity Building, Financial education, etc. üPilot project in rural area, innovative solutions and client protection initiatives üMulti country, regional, cross border initiatives and South-South cooperation üReplicability and dissemination of good practice üComplementarity with other initiatives leverage effect üNo funding for capitalisation of loan portfolio, guarantees or equity. Europe. Aid

EU/ACP Microfinance Programme II Measuring results Performance Based Agreements both economic and social components Definition of performance baseline, targets and key indicators based on Social objectives : - Alleviation of poverty and outreach - Access to sustainable financial services - Well self managed mechanism Economic and financial objectives Standard performance indicators cover at least the five core areas: (1) breadth of outreach (2) depth of outreach (3) portfolio quality (4) efficiency (5) sustainability Europe. Aid

EU/ACP Microfinance Programme II Europe. Aid