amerms workshop 21: microfinance in post-crisis situations (ppt by najibullah samim)
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FULL TITLE: Microfinance in Post Conflict and Post Disaster Situations ROOM: Tsavo A Translated session: English & French SPONSORED BY: Microfinance Investment Support Facility for Afghanistan (MISFA) PANEL: Chair: Prof. Ndioro Ndiaye, President, Alliance for Migration, Leadership and Development (AMLD), Senegal Panelist: Ms. Emily Guegbeh Peal, CEO, Foundation for Women, Liberia Panelist: Mr. Tambwe wa Tambwe Musangelu, Executive Director, Diku Dilenga, DR Congo Panelist: Mr. Najibullah Samim, CEO, Microfinance Agency for Development and Rehabilitation of Afghan Communities (MADRAC), Afghanistan Panelist: Mr. Alex Pollock, Director of Microfinance Department, United Nations Relief and Works Agency (UNRWA), occupied Palestinian territoryTRANSCRIPT
The Microfinance Sector of Afghanistan
By: Najibullah SamimCEO of MADRAC &Chairman of the Afghanistan Microfinance Association (AMA)
Microfinance in post-conflict, post-disaster situationA session at the Africa-Middle East Regional Microcredit Summit 2010Nairobi, Kenya – April 2010
AFGHAN HISTORY
1979-1988: The Russia’s invasion
1988-1992: Internal war between different parties
1992-1996: Internal war between different Mujahideen parties
1996-2001: Internal war between Mujahideen and the Taliban
2001-Present: Ongoing war between Taliban and
Afghan Government
3 decades of war and conflict
AFGHAN HISTORY
About 1.5 million Afghans died and about1 million were disabled.
About 5 million migrated--mostly to Iran and Pakistan.
Infrastructures seriously damaged/destroyed.
Development works were almost stopped
Women did not have access to education and work mainly during the Taliban regime.
3 decades of war and conflict
MICROFINANCE IN AFGHANISTAN 2002: NGOs introduce microfinance, serving a combined
total of only 12,000 poor Afghans.
2003-2006: GoA-MRRD and WB-CGAP create MISFA MISFA transforms into non-profit LLC
2008-2009: No. of MFI partners grow from 4 to 16 All MFIs register with GoA as not-for-profit
organizations MFIs cover 70% of all provinces, serving more
than 400,000 poor Afghans; 60% of whom are women.
MICROFINANCE IN AFGHANISTAN
Key Indicators
Nov. ‘09
No. of MFIs 15Provinces covered 27
No. of branches 309Active clients 438,508Gross loans outstanding, US$ million
108
Women clients 60%No. of staff employed 4,109
MICROFINANCE IMPACT
Findings of a study on Gender Mainstreaming in Microfinance
Percentage of women clients vs. non-clients Clients Non-clients
Participating in household business decisions
74.5% 52.5%
Participating in household economic decisions (e.g. expenses on food, health, education, etc.)
77% 61.1%
Making purchases independently 87.4% 46.5%
Findings of the 2007 Baseline Impact Study, IDS, Sussex Uni., UK
Percentage of MF clients vs. non-clients Clients Non-clients
Clients reporting improvement in economic situation (from past year)
72% 51%
Client households with savings 46% 31%
MICROFINANCE IMPACT Afghans used loans mainly
for starting or expanding business
Business start-up/expansion Operating capital Health, education, food,
housing
16%
4%
80%
For every borrower, 1.5 job opportunities sustained or created
64% female clients and 74% male clients generated employment for themselves.
Nearly 45% of all clients generated employment for others.
Source: Baseline and Impact Study, a research commissioned by MISFA in 2007.
MICROFINANCE IMPACT
44% of women clients gained absolute control over their money vs. 18% of non-client counterparts.
80% of women clients reported “improved attitude” of husbands + other relatives, after the loan.
91% of women clients reported enjoying good relationship with other group members.
More IDS study findings:
AFG – MF OPERATION IN POST CONFLICTAssuring repayment
Government involvementInvolving local/community leaders in the operationPracticing group guaranteeDemand-driven products (Shari’a-compliant products)Respecting cultural values (female staff for female clients)Flexible services and productsSpecial operational security measuresLocalized human resources
ENVIRONMENT – ENABLING FACTORS International community support (financial
and technical) Government involvement Growing economy and relatively stable
currency Demand for microfinance services (refugees
returning home and starting new businesses) Private sector development (government
intention for privatization).
ENVIRONMENT – DISABLING FACTORS Security (affects MF operations in some
areas of the country)
Occasional resistance from local religious leaders
Natural disasters (flood, draught, extreme cold weather, etc.)
Staff turnover
High cost of service delivery
Thank you!