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Financial Risk Management Workshop Given in Kampala, Uganda, April 11-13

Citigroup and WWB will partner with the Association of Microfinance Institutions of Uganda (AMFIU) to deliver a workshop in Kampala, Uganda, on financial risk management for microfinance institutions (MFIs). The workshop – the first in Africa to be delivered through the Citi/WWB partnership – will be held from April 11-13, 2007, and will help East African MFIs develop clear financial risk management strategies and systems, so that they can protect and sustain profitability, and gain increased access to capital to fuel their institutional growth and client outreach.

Effective risk management strategies are essential for microfinance institutions striving to attract capital, protect against losses, and gain the confidence of customers, donors, investors and rating agencies. Women’s World Banking’s partnership with Citigroup has addressed this need through a series of training programs that help MFIs strengthen their financial risk management capabilities. The Kampala workshop will be the seventh delivered through this successful Citi/WWB partnership. Participants will include microfinance practitioners from MFIs in Uganda, Kenya and Tanzania.

“WWB’s in-depth knowledge of MFIs and their funding structures, combined with Citigroup’s banking and market risk management expertise, make for a highly instructive training,” said Louise Schneider-Moretto, Manager of WWB’s Financial Products and Services Team. “There is a great demand for this know-how in Eastern Africa especially, given the regulatory environments and the number of transforming or transformed MFIs.”

Louise Schneider-Moretto, Financial Products and Services Manager, Women's World Banking.

“This workshop will teach MFI managers to focus on liability management as well as asset management, and to think holistically about product development, so as not to increase their risks as lending institutions,” said Karla Brom, former Citigroup market risk manager and one of the workshop trainers.

The workshop will be opened on April 11th by Shirish Bhide, CCO of Citigroup Uganda, and David Baguma, Executive Director of AMFIU. Presentations by experts from Citigroup’s Treasury and Market Risk Management divisions will follow over the remaining days of the workshop.

The three-day program will introduce East African MFIs to financial risk management policies, procedures and tools, helping them strengthen those structures and practices in their institutions. It will consist of interactive lectures and practical exercises in asset liability management, cost of funds assessment, foreign exchange, interest rate and liquidity risks, and other topics which will contribute to the creation of financial risk manuals and policies. The workshop will use WWB’s Tool for Developing Financial Risk Management Policy – a step-by-step practical guide developed by the WWB Financial Products and Services Team.

Citigroup and WWB have delivered similar regional workshops in India, Mexico, Poland, Colombia and the Philippines during 2005-2006. Additional workshops are planned in India, CEE/NIS and the Andean region during 2007. For more information about future the Kampala workshop, please contact Louise Schneider-Moretto at lschneider@swwb.org or Christina Frank at cfrank@swwb.org.

About Citigroup
The Citi Microfinance Group works with MFIs as partners and clients to provide innovative products and services to microfinance partners and customers to support more inclusive financial services. The Citigroup Microfinance Group’s objective is to establish methods and systems to reach the global unbanked in partnership with Microfinance Institutions. Please contact Karla Brom at karla.brom@citigroup.com for more information.

About AMFIU
The Association of Microfinance Institutions of Uganda (AMFIU) was established in 1996 with a mission to stimulate and enhance private sector development to facilitate members’ capacity building, participate in global microfinance industry, and be a key player in Uganda’s rural/urban transformation. AMFIU’s membership includes 102 members, including 73 Financial Institutions and 29 Associates,,who serve over 820,000 clients. The organization seeks to enhance the sustainable delivery of financial services by all microfinance institutions in Uganda by taking the following actions: coordinating capacity building initiatives such as this Financial Risk Management Training, providing lobbying and advocacy services, collecting, analyzing, and disseminating information, monitoring MFIs’ performances, and developing strategies for consumer education and protection.