tigist tesfaye aemfi, program manager july, 2010 bern, switzerland the experience of aemfi in the...

Tigist Tesfaye AEMFI, Program Manager

July, 2010Bern, Switzerland

The Experience of AEMFI in the Expansion of SPM

“ Performance, Challenges and the Way forward “

Background of AEMFI

• The Association of Ethiopian Microfinance Institutions (AEMFI) is a network of 30 microfinance institutions in Ethiopia

• AEMFI’s vision is to be a world class, innovative network providing value added services in building an inclusive financial system in Ethiopia.

• Training and Peer Exchange Visits• Knowledge Management • (Lobbying & Building Awareness)• Research & Publication• Performance Monitoring & Technical Assistance• National, Regional and International

Networking• Conducting Thematic Workshops &

Conferences.

Main Functions/Activitie

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SPM Activities Performed by AEMFI

• Conducted SPM workshop to discuss overall concepts and tools.

• Shared and presented the experience of the Bussa Gonofa MFI who developed and implemented the Poverty Score Card

• Conducted a training on Quality Audit Tool

• AEMFI developed a baseline survey and distributed it to member MFIs

Network’s Challenges Implementing SPM

• Lack of funding

• Limited knowledge on the tools and MFI capacity.

• Lack of ownership supervising and overseeing the implementation of SPM

• Absence of Code of Conduct

• Too much attention on MFIs’ financial concerns

Quality Audit Tool (QAT) Challenges

• Time consuming

• Very rigid and not flexible

• Requires additional resource

• Requires effective MIS system

• The tool doesn’t consider the external situation

• Time consuming

• Requires champion to implement SPM.

• Requires qualitative research, which in turn requires experienced researchers who have basic knowledge and understanding of qualitative research

• Requires strong MIS System and needs close supervision.

Poverty Score Card Challenges

Lessons Learned

• QAT is very helpful in identifying the strengths and weaknesses of an organization.

• It provides an opportunity to see the institution’s areas for improvement.

Lessons Learned from Poverty Score Card

• In the initial stages it is not advisable to use so many poverty indicators.

• SPM will be achievable when there is committed and dedicated board members, leaders and management staff.

• SPM will be implemented when front line staff know SPM and understand their clients.

The Way Forward

• AEMFI is planning to organize a workshop and raise awareness among the board members, management and the sector as a whole.

• Introduce other tools so that MFIs have a chance to compare and select.

• AEMFI is planning to form a task force that can handle and organize SPM indicators among members.

• Encourage a balance between the financial and social objectives of MFIs through a code of conduct, as well as understanding and commitment at the level of the network.

• Incorporate social indicators into MFI reports and start providing SPM reports to the MIX.

Thank you!