8th umm workshop_presentation
TRANSCRIPT
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CONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission of PlaNet Finance is strictly prohibited
19/07/2012
Financial Transparency 10 Best Practices Guide
UMM Workshop - Frankfurt
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1. A multi-country project in Western Africa
2. Development of the guide
3. Structure of the guide
4. Ten best practices to reach financial transparency
5. Adaptability to different contexts
6. Complementing ongoing initiatives
Table of contents
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� An EU-funded multi-country project in Senegal, Mali, Burkina Faso, Benin
� 2 year- project, from January 2010 to January 2012
� Objective: To contribute to the development of inclusive finance in the
targeted countries through:
o Allowing durable access to financial services for low income populations
o Promoting and strengthening financial transparency in partner MFIs
� Main Activities:
o Capacity Building for MFIs’ staff, management and governance members
o Support in upgrading their MIS
o Technical assistance in improving and formalizing Internal Control
o Best Practices dissemination
1. A multi-country project in Western Africa - Context
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1. A multi-country project in Western Africa – Partners
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Financial Partners
European Union
French Cooperation Agency
f
Benin Burkina Faso Mali
Alidé CVECA BM Soro Yiriwaso
PAPME MUFEDE Jigiyaso Ba
RENACA URCBAM Kondo Jigima
Senegal
Caurie MF
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2. Development of the guide
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� Objective: To develop a tool that gathers the insights drawn from projects
linked to FT in order to improve the overall financial transparency of the sector
o Enabling knowledge dissemination on FT for the sector’s stakeholders
o Creating a toolkit to help practitioners in the implementation of FT
practices
� Methodology: A participative approach
o Project team brainstorming and analysis:
• Literature review
• Analysis of FT project’s activities
• Preliminary list of best practices
o Inclusion of other stakeholders in the
discussion
• Sharing of thoughts and experiences
• Integration of feedback, examples and
lessons learnt from partner MFIs
o Dissemination of the guide through
conferences, seminars, specialized websites,
etc.
“Financial
Transparency consists
in producing, testing,
disseminating and
using information
relative to the
financial results of an
MFI” Consultative
Group to Assist the
Poor (CGAP)
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3. Structure of the guide
For each practice:
� Justification and
importance
� Key success factors
� Steps in the
implementation,
recommendations
� Illustration with concrete
examples
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4. Ten best practices to reach financial transparency
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Creation
• Organizational culture
• Production of reliable data
• Internal control
• Transparency with clients
• Financial analysis
• Human resources
Growth
• Governance
• MIS
• Audit
• Information disclosure and sharing
• Financial analysis advanced
• Human resources management
Structuration
• Refine and adjust practices to new organizational structure
• Innovative practices
5. Adaptability of the guide to different contexts
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� Although the guide was developed in the framework of an Africa-based
project, the lessons learnt and the practices identified can apply to other
contexts
� The MFIs’ areas of improvement in terms of financial transparency are
linked to their own maturity and that of their national sector
� This guide can be used in each of the 3 life-cycle phases MFIs go through
prior to reaching maturity
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� Several initiatives at the international sector level already aim at
increasing Financial Transparency through different means and for
different targets :
o Mix-Market: financial and social information disclosure
o MF Transparency: transparent pricing
o SMART Campaign: client protection
� The FT guide adds-on to the content and tools created by those actors:
o Placing MFIs as the drivers of the sector’s financial transparency
o Incentivizing their efforts by clarifying the beneficial impact of the
practices on their activity, especially with regards to performance
o Giving them the necessary recommendations and tools to implement
the practices through a step by step guideline
o Helping donors, investors and technical assistance providers in
designing efficient technical assistance programs, taking into account
our lessons learnt.
6. Complementing ongoing initiatives
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