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Page 1: 8th umm workshop_presentation

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

Page 2: 8th umm workshop_presentation

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

1

Page 3: 8th umm workshop_presentation

� 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

2

Page 4: 8th umm workshop_presentation

1. A multi-country project in Western Africa – Partners

3

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

Page 5: 8th umm workshop_presentation

2. Development of the guide

4

� 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)

Page 6: 8th umm workshop_presentation

5

3. Structure of the guide

For each practice:

� Justification and

importance

� Key success factors

� Steps in the

implementation,

recommendations

� Illustration with concrete

examples

Page 7: 8th umm workshop_presentation

4. Ten best practices to reach financial transparency

6

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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

7

� 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

8

Page 10: 8th umm workshop_presentation

Eliane Augareils

Knowledge Manager

[email protected]

Contact