AFMIN: STRENGTHENING MICROFINANCE IN AFRICA

The Africa Microfinance Network (AFMIN) is the world's first regional association of microfinance networks. Headquartered in Benin, AFMIN consists of 21 country-level microfinance networks, which together represent more than 1,000 microfinance institutions (MFIs) across the continent. These MFIs serve more than seven million low-income clients, 48 percent of whom are women.

The AFMIN network provides sustainable and responsive financial services to Africa's low-income population by offering support, training and information to its member networks and their MFIs. AFMIN plays a critical role as a catalyst to improve the environment for microfinance in Africa and globally.

AFMIN strengthens African MFIs by helping them share up-to-date knowledge and information and develop essential financial programs and services.

AFMIN's exchange visits, knowledge transfers and workshops allow members to learn from each other about what works and what doesn't, identifying key success factors and challenges to effective functioning as a network. Training and best-practice workshops organized by AFMIN have covered such topics as:

• cost-effective human resource development and management for sustainable MFIs,
• Africa microinsurance and HIV/AIDS in the microfinance sector in Africa,
• improving microfinance pro-client approaches in Africa, and
• "Strategies and Innovative Products to Expand Financial Services to the Poor in Africa," an annual conference.

AFMIN's assistance of its country networks in developing financial services, tools and programs for their MFIs has brought effective and sustainable financial services to increasing numbers of poor people. Individual country networks received training in:

• transparency,
• financial ratio analysis,
• performance monitoring,
• evaluation of institutional capacities, and
• network sustainability.

AFMIN has established a set of performance indicators and regularly publishes performance reports of member MFIs in order to guide them, and the sector as a whole, towards sustainability and transparency. AFMIN also helps its network members integrate into the financial systems of their countries.

From New Economic Initiatives to Poverty and HIV/AIDS: AFMIN Tackles Tough Issues

AFMIN's Annual Conference, December 4, 2006

At the 2006 AFMIN Annual Conference in Addis Ababa, Ethiopia, members discussed an issue that is likely to move microfinance in Africa in a new direction: the need to invest more resources in small industries and manufacturing. Traditionally, the trading sector has been the largest market for microfinance.

AFMIN is also exploring how MFIs can contribute to the productive sector by increasing the amount of their portfolios that goes toward financing micro- and small industries. Member organizations are currently evaluating what economic policies are needed to support the growth of micro- and small industries in order for these industries to become viable projects for MFIs to finance.

On the policy front, eight AFMIN country networks in francophone West Africa met in 2004 to discuss concerns about restrictive microfinance policies. The industry had outgrown the Central Bank of West Africa's regulations governing MFIs, which were not conducive to either sustainability or expansion. Working with WWB, AFMIN members carried out a survey of West African microfinance practitioners, and together drafted a new policy framework reflecting the concerns and recommendations of AFMIN members. This framework is in the process of being adopted as the new microfinance policy of the Monetary Union of West Africa. Also on the policy front, AFMIN and WWB network leaders are partnering with other stakeholders in the Africa Microfinance Strategy Initiative, to develop a coherent microfinance strategy for the region that will help to accelerate the growth of the sector and also serve as a model for microfinance strategies at the country-level.