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Rural finance study : an inventory of policies, practices and challenges regarding support to rural (micro) finance among Netherlands’ MicroNed members


Document type: report
Download file(s): 124397 (2805 KB)
Abstract: The study includes a quantitative portfolio analysis of rural MFIs, an overview of CFO policies, institutional setup and supporting instruments, and several case studies highlighting successes and challenges of different supporting approaches of the Co-Financing Organizations (CFOs) ICCO, Oxfam-Novib, Hivos, and Cordaid. Three support approaches are distinguished: 1. support to credit-led microfinance institutions 2. support to member owned microfinance institutions 3. support for the provision of financial services to actors in the value chain. The most commonly used approach is building financially sustainable Microfinance Institutions (MFIs), whereby MFIs are gradually prepared for semi-commercial funding. CFOs use a wide variety of instruments in all three approaches, including grants, seed capital packages, guarantees, loans, equity and technical assistance. Support to MFIs and support to value chain development are covered by different CFO staff. Through an interaction between microfinance and rural development specialists, innovative and technically sound solutions for rural finance can be further developed. Finally, 12 key challenges for rural finance service provision are identified, including vulnerability constraints, operational risks, and political and regulatory constraints.
Authors: Athmer, G. , Havinga, C. , Mol, J.
Category: General
Keywords: credit , rural development
Language: eng
Organization: ICCO - Interchurch Organization for Development Cooperation
Organization: MicroNed , Terrafina Microfinance
PAGE: 89
Place: [Utrecht etc.]
Publisher: ICCO [etc.]
Year: 2008
Right: © 2008 ICCO
Subject: Economic Development and Trade
Title: Rural finance study : an inventory of policies, practices and challenges regarding support to rural (micro) finance among Netherlands’ MicroNed members