Website INAFI Alternative Microcredit Summit, Hyderabad, India

On June 21-23, INAFI Asia co-organized the INAFI Alternative Microcredit Summit in Hyderabad, India.
The Summit website is now updated. http://www.alternativemfsummit.org/overview.php

 Please check for copies of full report.


For full report Proceedings

Ninth Advanced Reflective Training and education (ART) course on Micro Insurance

We are happy to inform you about the “Ninth Advanced Reflective Training and education (ART) course on Micro Insurance”. The course focuses on micro insurance perspectives,   concepts, principles, product design and different insurance products for poor to reduce their risks and vulnerabilities in pursuit of poverty reduction. Further the course covers the vital aspects of community insurance, insurance regulations, literacy and reinsurance.

It would also cover micropension, Insurance to People Living with HIV and online micro insurance education. The participants are invited from Asian, African and European countries who are the implementers of   micro insurance practitioners and the learners. The course will facilitate sharing of experiences from different countries and aims at promoting collaborative efforts to advance micro insurance activities. Half day workshop would be conducted on specific insurance.  

The course duration is for four days from December 6 - 9, 2011, which includes one day field visit.  Faculty members are micro insurance experts, insurance company officials, and resource persons from different countries to ensure greater learning among the participants.

For more information, please contact:

J.A.N. Vijayabharathi

Coordinator, ASKMI,

Tata-Dhan Academy.

DHAN Foundation

T.Malaipatti, Thenkarai (Po)

Mullipalam (So), Solavandhan (via)

Madurai – 625 207, Tamil Nadu, India

Tel: 91-4543-293405/406, 0452 – 2301510.

tatadhanacademy@gmail.com

askmimail@gmail.com
Ph no:0452-2475318/2301510
Mob: 09486731466
website: http://www.dhan.org/tda

Please download training brochure here

INAFI International Implements a User-Owned, Low Cost Remittance Service

International Network of Alternative Financial Institutions (INAFI International) is delighted to announce that it secured funding from the International Fund for Agricultural Development (IFAD) under its Financing Facility for Remittances to start with the implementation of a User-Owned, Low Cost Remittance Service. This service will (i) provide an alternative to the current cash-to-cash dominated remittance services; (ii) increase financial literacy among remittance senders and recipients; and (iii) link remittances to microfinance services allowing access to bank accounts, savings, credit services and innovative remittance-based products and services. Initially, under the scope of the grant agreement signed between INAFI and IFAD, the service will target the important Spain-Senegal corridor and it will therefore be implemented at two INAFI member Micro Finance Institutions in Senegal (FDEA and U-IMCEC). Once the expected results are achieved, the service could easily be rolled out to other countries.

INAFI believes that low-cost transfer of remittances is a necessary tool to bring financial services closer to poor people and expects that this innovative new service will serve as a platform to promote local, social and economic development.

To implement the User-Owned, Low Cost Remittance Service, INAFI signed a partnership agreement with the Barcelona-based Federation of Associations of Senegalese Migrants (CASC) and AUXFIN. CASC is an organization established to promote cooperation and interrelation between the Senegalese community and the Spanish and Senegalese public administrations. AUXFIN will provide the UMVA system, a platform and software developed for small banks, with special functions for migrants and their needs for remittances services. Mr. Marco van Andel, an expert in micro-finance, remittances and financial development was recruited as the project manager of this project. He will be a key collaborator between the three partners and will manage the project on behalf of INAFI.

Soukeyna Ndiaye Ba (Executive Director of INAFI): “INAFI is convinced that remittances sent by migrants have a great development potential and therefore remittances is a key theme in our strategic development plan. New initiatives to leverage remittances for development by linking microfinance and remittances are now being initiated by our network in several countries around the world. We are delighted by the support of IFAD to this specific initiative for which our expectations are very high.“

Amadou Bocar Sam (President of CASC): “The idea of a user-owned, low-cost remittance service has been on top of our agenda for several years and after so much hard work the moment has now come to start implementing the idea. We are convinced that we have the right partners to turn this idea into an innovative reality.”

Cornelis Heesbeen (CEO of AUXFIN): “We are excited to provide our tested UMVA tools and expertise to this ground-breaking initiative. It is a great opportunity for us to start working with INAFI and 2 of its member MFI’s, thus expanding further the scope of our growing activities. New in this project is the Migrant Development Fund; the results of this project will have a large impact for migrants over the world.”

MICROFINANCE AND INCLUSIVE DEVELOPMENT: DECLARATIONS

DECLARATIONS

An alternative Summit on Microfinance focusing on inclusive development has been organized by National Rural Livelihoods Mission, Ministry of Rural Development, Government of India, SERP, Government of Andhra Pradesh, and International Network of Alternative Microfinance Institutions (INAFI India) from 21-23, 2011. The international conference was attended by delegates from India, Bangladesh, Sri Lanka, Nepal, Afghanistan, Philippines, and China.

With primacy on social capital, development outcome and savings-led microfinance services, the summit had deliberated upon the multi-dimensional aspects of development covering livelihoods, health, MDGs, social security, gender empowerment and mainstreaming across the development spectrum. A host of operational and policy issues have emerged from the deliberations, so also policy leads in many of the topical issues. Synthesizing these issues and policy leads/recommendations, the summit resolved to commend the following declarations to the world of microfinance including the practitioners, Government, regulators and policy makers.

1.      The purpose of microfinance being poverty reduction, development outcome connecting with Millennium Development Goals, securing social security and entitlements should be guiding the provision of microfinance services.

2.      The institutions delivering micro-credit shall be recognized as MCIs i.e. Micro Credit Institutions and not as MFIs as it gives rise to misleading expectations and under advantages. The summit recognizes the need to develop appropriate nomenclature for microfinance with inclusive development.

3.      The social capital model of microfinance shall focus on building institutions founded on mutuality and solidarity, specifically federations of SHG, and specialized institutions on health, education, livelihood for technical support to SHGs.

4.      Microfinance shall go beyond credit and shall include ‘Savings-first’ approach with differentiated savings products for livelihood, health, education and life cycle needs; insurance and micro pension for social for social security, remittance services for migrants, micro justice for conflict resolution.

5.      Holistic development approach with social and financial intermediation, livelihoods/enterprise promotion, integration with mainstream for civic intermediation with proper sequencing, graduation, context and member specific interventions shall guide the microfinance programmes.

6.      Microfinance interventions shall be integrated into sub-sector economic development process such as agriculture, farming, dairy, fisheries, etc.

7.      Capacity building of the enabling and demand stream is a crucial component of microfinance interventions and needs continuous public investment.

8.      Self-regulation process shall be a part of the microfinance programmes, which would promote growth with equality. The SHG Federations shall draw a road map and set standards for governance, financial and social development aspects according to their age and contexts and evolve action plans for implementation.

9.      In building livelihoods systems, community ownership in the form of producer and marketing companies with professional management shall be promoted with innovative and appropriate credit products. Creation of value and supply chain needs public investments for establishing infrastructure like cold chain, transport and processing.

10.   Gender empowerment and mainstreaming shall remain the core of the microfinance programmes.

11.   Highly vulnerable groups including Destitute, aged, physically and mentally challenged shall be organized with the help of microfinance exclusively with higher degree of sensitivity and innovation.

12.   Mainstreaming microfinance through linkages with the banking system shall promote financial inclusion to provide access with affordability for the poor. The banking system shall respond to the microfinance clients with timely credit and appropriate financial products.

Centre advises self-help group model to counter MFIs

He said bank-linked SHG model can also offer a cafeteria of financial products similar to MFIs.Appreciating efforts of Andhra Pradesh government in regulating microfinance institutions (MFIs) and protecting interests of poor borrowers, union government has advised the state government to revamp its bank-linked self help groups (SHGs) model.

Jairam Ramesh, union minister of state for environment and forests, said the current bank-linked SHG model of AP does not offer a bouquet of financial products the way MFIs could offer. Also, while MFIs lending was more borrower driven meeting the needs, timing and quantum of loan of borrowers, the bank-linked SHG model was more bank driven.

“Both nature and timing of financial product is not borrower driven but bank driven in bank-SHG linkage program. This is the inherent limitation in bank-SHG linked model,” he said delivering keynote address at global summit on microfinance in Hyderabad on Tuesday.


Source

Intl summit on microfinance

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Hyderabad, Jun 20: The three-day international summit on the theme of 'Microfinance and Inclusive Development' begins here from tomorrow.

The Society for Elimination of Rural Poverty (SERP), Government of Andhra Pradesh, in association with Natinal Rural Livelihoods Mission (NRLM) of Government of India and International Network of Alternative Financial Institutions (INAFI) were organising the summit, Minister for IKP, Women and Children V Sunitha Laxma Reddy said at a press conference here today.

Ms Reddy said on the opening day of the Summit, Andhra Pradesh Chief Minister N Kiran Kumar Reddy would deliver the inaugural address while Union Minister of State (Independent Charge) for Forests and Environment Jairam Ramesh would deliver the keynote address.

She said there was a greater concern across the globe that micro-finance programmes had been drifting from the original purpose and moving away from the primary objective of addressing poverty rather than being more concerned with the sustainability, resulting in gross commercialization with its attendant impact or chasing profits at the expense of clients.

The Minister, however said, the alternative perspectives of community ownership, building social capital through microfinance and leveraging microfinance for larger development process and outcome had been expressed well in many microfinanceprogrammes across the globe, particularly in Asia. Microfinance practitioners from the countries such as Bangladesh, Philippines, Afghanistan, Nepal, Srilanka, Africa and USA were attending the summit.

Ms Reddy said on the second day of the summit, the delegates would visit the villages and interact with the communities, with whom the SERP was implementing poverty reduction programmes and announced that the credit flow to Self-Help Groups (SHGs) through Banks accounted to Rs 9,000 crore in 2011-12 as against Rs 7,800 crore in 2010-11.

Parallel sessions on various themes related to microfinance issues and challengs to evolve strategies and way forward for inclusive development would also be held where success of SHGs will be showcased.


- Agencies

Jun 20, 2011

Source

Three-day microfinance summit begins today

Irrespective of what the Reserve Bank of India (RBI) thinks about the role of microfinance institutions (MFIs), the recent actions of the Andhra Pradesh government against these organisations for their alleged excesses in lending to the rural poor, have now assumed a pan-India significance.


Government of India's National Rural Livelihoods Mission (NRLM) and the International Network of Alternative Financial Institutions (INAFI), India, have joined forces with AP to correct what is termed as the 'mission drift' caused by gross commercialisation of microcredit in the last 3-4 years.

The two organisations, along with AP's Society for Elimination of Rural Poverty (SERP), are organising the fourth Alternative Summit, an international event, here from June 21 to 23. The theme is ‘Microfinance and Inclusive Development'. SERP spearheads the self-help group movement under the state rural development department initiative.

"There is a greater concern across the globe that microfinance programmes have been drifting from the original purpose and moving away from the primary objective of addressing poverty. They are more concerned with sustainability resulting in gross commercialisation...&" the state government today said while announcing the details of the summit.

In AP, the MFI operations have come to a standstill with the fate of Rs 6,500-crore microcredit outstandings hanging in balance. The state insists on regulating the MFI activities backed by the special legislation it brought out last year even as RBI thinks there is no need for such a regulation.

Apart from microfinance practitioners from countries such as Bangladesh, Philippines, Afghanistan, Nepal, Sri Lanka, Africa and USA, the event is being attended by senior officials from both the state and the Centre besides the World Bank and the RBI. Union Minister of State for Environment and Forests Jairam Ramesh and chief minister N Kiran Kumar Reddy will inaugurate the event tomorrow.

INAFI chief executive M Kalyana-sundaram said no mainstream MFI had been allowed to take part in the event. "The summit is being attended by those NGOs that consider microfinance as a part of their larger objective of addressing poverty," he said.

About 75 overseas delegates, 130 members representing community groups and 150 representatives from various NGOs are taking part in the event, according to Sunita Laxma Reddy, minister - Self-Help Groups and Women's Development.

SERP chief executive officer Rajasekhar said the government would soon announce the details of the proposed NBFC being exclusively set up for catering to the microcredit needs of women self-help groups in the state. The NBFC would be launched with a corpus of Rs 300-400 crore contributed by both the Centre and the state government apart from other financial institutions.


For more pictures, please click HERE:
Source:

Microfinance summit for steps to check exploitation of poor

About 75 participants from USA, Philippines, Afghanistan, etc. expected to participate

The motto of the three-day summit is ‘development with dignity'

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HYDERABAD: Worried over the trend of commercialisation of microfinance services originally envisaged as an important strategy to address poverty, an international summit on microfinance to be held here from Tuesday will analyse the reasons and explore ways to bring the sector back on to the track.

Giving the details, Minister for Women Development and Child Welfare and Indira Kranthi Patham (IKP) Sunita Laxma Reddy told reporters here on Monday that the three-day fourth international summit ‘International Alternative Summit on Microfinance and Inclusive Development' will have ‘Microfinance and Inclusive Development' as its main theme.

It was being organised by Society for Elimination of Rural Poverty (SERP), AP Government in association with the National Rural Livelihoods Mission (NRLM) of Central Government and International Network of Alternative Financial Institutions (INAFI).

Ms. Sunita said that about 75 participants from countries like Bangladesh, Philippines, Afghanistan, Nepal, Sri Lanka, and USA were attending the summit along with the representatives of SHGs, government, NGOs and banks.

Chief Minister N. Kiran Kumar Reddy would give the inaugural address and the Union Minister of State for Forests and Environment Jairam Ramesh would deliver the key note address.

The Minister said that unfortunately the MFIs which initially started as NGOs drifted from the objective to promote microfinance as an alternative solution for empowerment of poor communities and focused only on maximising profits by giving multiple loans without due diligence.

This led to several poor families getting caught in the debt trap. That's when the State government brought the legislation to regulate the commercialised MFIs and safeguard the poor.

The three-day summit would have parallel sessions on various themes related to microfinance, issues and challenges and the way forward for inclusive development, she said.

SERP CEO B. Rajsekhar said that this summit would comprise like-minded organisations who view microfinance activities for facilitating the socio-economic development of the BPL families. The summit thus chose ‘development with dignity' as its motto.

Mr. Kalyanasundar, Chief Executive, INAFI, said the summit would focus on community ownership as an alternative to exploitative system by ensuring micro-credit, savings, insurance as a package.

Source

International microfinance summit from today

HYDERABAD: To put microfinance back on development track, the state government in association with the National Rural Livelihood Mission (NRLM), the Union government and International Network of Alternative Financial Institutions (INAF), will be organising a two-day seminar in the city from Tuesday.

Announcing this at a press conference on Monday, women development and child welfare minister Sunita Laxma Reddy said the microfinance summit, in which MFI practitioners will take part, would focus on sharing knowledge and practice on advancing development of the power with dignity.

The minister said that microfinance in the state had shown an increasing trend of drifting towards crass commercialisation, resulting in many poor families falling into debt trap. This had made the government to introspect as to what had gone wrong with microfinance and also think of ways to put it back on the track.

Microfinance practitioners from Bangladesh, Philippines, Afganisthan, Nepal, Sri Lanka, Africa and USA are among the countries participating in the summit. On the second day of the summit, the delegates will visit and interact with communities with whom Society for Elimination of Rural Poverty is implementing poverty reduction programmes. Chief minister N Kiran Kumar Reddy is slated to inaugurate the programme and Union environment minister Jairam Ramesh will deliver the keynote address. 


Source

Global Remittance Flows Into Continent Less Than 20 Percent

SINAPI ABA Trust (SAT), a financial institution which seeks to be transforming lives in Africa through micro finance, has revealed that the total global remittance flow into African continent is less than 20 per cent.

The financial institution attributed the low flow of remittance into Africa to lack of confidence and trust building, and exorbitant service charges on the part of the African immigrants.

Speaking in an interview with the Business Chronicle at a conference dubbed 'Harnessing the Potentials of Migration for Development' in Accra, the Chief Executive Officer of SAT, Tony Fosu, added that the percentage of remittances that flows into sub-Sahara Africa when compared with Asia and Latin America countries, which is nothing to write home about.

According to him, the main objective of this conference seeks to link up immigrant associations in the developed world to microfinance institutions in Africa, towards building the necessary confidence so that immigrant organizations and people from Africa can have the confidence to remit money and also to create the necessary environment for people in Africa, to put the money into good use.
Mr. Tony Fosu emphasized that if Africans are able to have access to their remittances on time, they would be able to put the remittances into productive use, such as buying their farming inputs and also pay for other services. This would increase their productivity thereby increase their turn over to improve the national economy.

These institutions face a number of challenges that minimize the comparative advantage they enjoy (for instance geographic location), vis a vis other banking institutions. It is imperative to support MFIs with a realistic lens, in order to increase financial access in Africa through the diaspora".The Principal Investment Officer of African Development Bank (AfDB), Jaaba Rafeal said "The full picture is rather complex because the number of microfinance institutions (MFIs) in Africa operating in the business of remittance transfers is very small, below 5% of all remittance payers.

He noted that although financial institutions generally offer a full range of financial services, the geographic scope of their branches is often limited to their presence in the urban areas.

Source

INAFI Asia organizes Microfinance and Inclusive Development - An Alternative Summit in Hyderabad, India

Please download conference brochure, by clicking on the picture.


Invitation

We are delighted to write to you to invite you to the Alternative Summit for microfinance being organised by Inafi network (International Network of Alternative Financial Institutions) in association with National Rural Livelihoods Mission, Government of India and Society for Elimination of Rural Poverty, Government of Andhra Pradesh (a Province in India) from 21-23 June, 2011 in Hyderabad, India.  INAFI is a global network which brings together microfinance institutions and NGOs at global, regional/continental and country level.

The theme of the conference is Microfinance and Inclusive Development.  The conference will focus on the development narrative and stories of microfinance interventions from alternative perspective.  

The three day conference will have sub-themes with day one devoted to Client Centric/Community Based Microfinance Programmes and Social Capital, the day two on Development Process and Outcomes Engendered by Microfinance and the day three would look at Innovations, Novel Approaches in delivering financial Services with development focus including savings, credit, insurance and remittances.  

For information, please contact:

M.Kalyanasundaram

Chief Executive Officer

E-mail: inafiindia@gmail.com

INTERNATIONAL NETWORK OF ALTERNATIVE FINANCIAL INSTITUTIONS-INDIA   
(Incorporated as Section 25 not-for-profit Company of Companies Act, 1956)
New No.65, First Floor, 3rd Street, Harvey Nagar, Madurai-625 016, Tamilnadu, INDIA
Tel: 91-452-2300490  : Telefax : 91-452-4358490
E-mail: indiainafi@airtelmail.in ; inafiindia@gmail.com
Skype: inafiindia
Website: www.inafiindia.in

INAFI International website: www.inafi.orghttp://shangrilai.files.wordpress.com/2011/06/microfinance-inclusion-brochure2.pdf

Demise of Chairman, INAFI Asia Trust and our condolence

THE LATE CONRADO S. NAVARRO

August 22, 1945 – May 5, 2011

It is with profound regret and deepest sorrow to announce the death of Mr. Conrado ‘Ding’ S. Navarro, former President of the Philippine Rural Reconstruction Movement (PRRM). This sad event occurred at 12:45 A.M. of May 5, 2011 at the Perpetual Help Hospital in Las Piñas City. He died of cardiac pulmonary arrest.
The late Ding Navarro or CSN was a very dedicated family man and development manager. He was well respected and loved by his family, friends, colleagues and those who knew him. He leaves to mourn his wife (Medy), children (Gingin and Dondon), grand children (Roxanne, Joreen, Jamie and Kyle Miguel), and sister Baby.

FUNERAL ARRANGEMENTS

All services will be held at:
La Funeraria Paz
Manila Memorial Park
Sucat, Parañaque

• Viewing and Wake Keeping:
  Beginning on May 5 (Thursday), afternoon until May 8 (Sunday), morning
• Funeral Service:
  Sunday, May 8 (exact time to be announced later)
• Interment:
  The remains will be cremated on Sunday, May 8, 3:00 P.M., Manila Memorial Park, Sucat, Parañaque.

For more information, please contact:

• Divine Tapec

PRRM National Office

Tel. 3724989, 09178003317

Email: info@prrm.org

Message from INAFI Asia:

Dear all INAFI Friends,

It is very sad news to all of us in INAFI family to hear about the demise of Mr. Conrado S. Navarro alias Ding Navarro. Commonly we all call him “Ding”. Mr. Ding Navarro was the Chair of INAFI Asia Trust, Chair of INAFI Philippines and Vice Chair of Stichting INAFI International. We were shocked and became sorrowful when we heard that Mr. Ding Navarro was no longer with us. Mr. Ding was a generous, well –behaved man, very articulating leader, patient hearing person and good friend of everybody. I had the opportunity to work with him since February 2004 to August 2008 actively. To me, he is a very inspiring leader. I learnt many things from him, particularly how to run the network effectively. We would never forget his contribution in leading INAFI Asia as chair, his kindness, advice and always constructive suggestions, his strong convictions to INAFI’s vision and goal.

There are no words we can say that can provide comfort to his grieving family members but to pray to almighty god for his eternal peace and happiness. We will always be praying for Mr. Ding Navarro. We would like to extend our condolence and sympathy to Ding’s family so that may god give them the strength and courage to absorb this shock and repair the damage caused by his death.

On behalf of INAFI Asia

Atiqun Nabi

Executive Director

INAFI Asia.

Atiqun Nabi
Executive Director
INAFI Asia
Navana Shefali, Apt # 2-D & 1-C, House # 11, Road # 14
Gulshan # 1, Dhaka # 1212, Bangladesh.
Tel # +880-2-8837983, +880-2-8853576, +880-2-9890835-Ext 102
Fax # 880-2-9890835,Ext – 112.
Email: inafi.asia@inafiasia.net, nabi.atiq@inafiasia.net
Web: www.inafiasia.net

Message from INAFI International

We receive this  morning with deep emotion and sadness, the death of our friend and colleague, former President of INAFI Philippines,  INAFI Asia and the , Vice President of International, Mr Conrado Ding Navarro. Ding has left us the memory of a man deeply humanistic man, fighting for his ideas, rigorous and dedicated to the cause of humanity, development, and justice.
With his passing   we lose a great friend.

We will never forget his kindness, advice and suggestions always constructive, his strong convictions.

To his family, his wife (Medy, children (Gingin and Dondon), grand children (Roxanne, Joreen, Jamie and Kyle Miguel) and sister Baby, to  his friends and relatives, to INAFI Philippines and to the global  family of INAFI International, I would like on behalf of the team of the International Secretariat, and on behalf of our families, to present to all our sincere condolences.

May God grant him paradise, that his suffering is finally over and may he rest in peace.

HON. Soukeyna Ndiaye Ba
International Network of Alternative
Financial Institutions
Sacré Cœur 2, N° 8609 D
BP: 45374 Dakar-Fann, SENEGAL
Tel.: +(221) 33 825 32 22
Fax: +(221) 33 825 32 23
info@inafi.org
www.inafi.org           

Microfinance Faces Changing Risks: Banana Skins 2011

With growth in some markets moving at a fast pace, the microfinance sector faces changing risks. The latest Microfinance Banana Skins 2011 report shows that microfinance institutions must confront new realities to sustain the good reputation the microfinance industry has enjoyed in recent years. The survey measured the risk perceptions of more than 500 practitioners, investors, and close observers of microfinance in 86 countries. Read more

FG Supports Creation of Microfinance Development Fund

President Goodluck Jonathan has said that the Federal Government will back the Central Bank of Nigeria (CBN) to ensure that a Microfinance Development Fund is established in the country.

The President disclosed this while speaking in Abuja at the opening of the 5th Annual Microfinance Conference and Entrepreneurial Award themed, 'Financial Inclusion for Accelerated Micro, Small and Medium Enterprises Development: the Nigerian Perspective'. Read more

Related topic: Microfinance Development Fund will crash interest rates

The European Microcredit Research Award 2011 re-launched

Microfinance Focus, December 18, 2010: European Microfinance Network (EMN) together with Fundación Nantik Lum are re-launching The European Microcredit Research Award in anticipation of the 8th annual EMN Conference this June 9-10 in Amsterdam and has called for original research paper for to be considered for the award.

Papers presenting ongoing or finalised research on issues related to microfinance in the European Union (the 27 Member States) and EFTA (including Norway and Switzerland) countries exclusively are eligible for the award. Papers relating to one of the EMN working groups: Legal environment and regulation, Growth, Sustainability and Funding, Information Technology, and Social Performance will be especially valued.

Representatives of the Fundación Nantik Lum, RWG Core Membership and the EMN will choose the five best papers to distribute at the Conference and the top three will also be presented to the Conference's Research Strand Workshop where the best paper will be awarded the 2011 European Microcredit Research Award. Source