November 11, 2009
DID Invited To Assist Development of Microfinance Sector In West Africa
Lévis, November 11, 2009 – Développement international Desjardins (DID) has been awarded two new contracts to provide assistance to the microfinance sector in West Africa. Under these contracts, specific measures will be taken to strengthen West African microfinance institution (MFI) professional associations. The awarding of these contracts also demonstrates the credibility DID has built up in the sector along with its understanding of microfinance in West Africa, and related issues and challenges.
Significant assistance provided to the sector
It is noteworthy that microfinance activities have shown strong growth over the last ten years in the eight countries involved (Benin, Burkina Faso, Côte d’Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo). Consequently, regulatory authorities there intend to structure the microfinance sector for sound growth and greater outreach of community financial services. For this purpose, new legislation requires all microfinance institutions to join national MFI professional associations which will be called on to play an ever greater role in self-regulation and better structuring of the microfinance sector. This will lead to emphasis on greater capacity building and sustainability for these associations.
In light of these circumstances, DID has been called on to conduct a diagnostic analysis of all MFI professional associations in West Africa. Based on the study, proposals will be formulated to ensure viability and operational modes for these associations. This project is receiving funding from the Government of Luxembourg (Lux-Development) and from the Central Bank of West African States (BCEAO).
Specific intervention in Burkina Faso
At the same time, DID has also been asked to provide capacity building assistance for APIM, the Association professionnelle des institutions de microfinance, an association of 55 MFIs located throughout Burkina Faso. APIM has been playing an active role since 2002 in government development of the Burkinan microfinance strategy and action plan.
DID will work with APIM to improve the association, orienting it towards the needs of its members as it assumes the duties it has been assigned under the law. DID intervention will be directed towards improving the APIM governance structure and making use of institutional tools to facilitate implementation of the action plan in order to build capacity to promote the microfinance sector effectively and support the fight against poverty.
Additional support measures will be put into effect dealing with gender equity. DID will be called upon to work in collaboration with UTE, the technical unit for execution of the national microfinance strategy to improve its approach with regard to the microfinance needs of women. DID will thus contribute to meeting the needs of women in relation to financial services and will see to it that women take part in decision-making processes.
The assistance provided to Burkina Faso will be carried out with financial support from the Deployment for Democratic Development mechanism (DDD) financed by the Canadian International Development Agency (CIDA).
About DID
Développement international Desjardins (DID) is a component of the Desjardins Group and has been providing support for the creation, development and strengthening of financial institutions for nearly 40 years. DID is currently active in twenty countries in Africa, Latin America, the Caribbean and Europe. DID, which specializes in providing technical support and investment for community finance, draws on the rich and diverse experience acquired through collaboration with numerous partners, and on the over 100 years of experience of the Desjardins Group, the largest cooperative financial group in Canada. DID works in partnership with the Canadian International Development Agency, the Inter-American Development Bank, the World Bank and many other multilateral organizations.
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Source :
France Michaud
Communications Supervisor
Développement international Desjardins
(418) 835-2401, ext. 6026
fmichaud@did.qc.ca
www.did.qc.ca
