TOTs to MFI Staffs and TSPs
AEMFI in partnership with LIFT delivered two Training of Trainers (TOTs) to microfinance practitioners and technical service providers in the sector from November 11-20, 2020. The focus area of the first training was on SLLC linked product manual preparation/ product development, while the second one focused on Business plan appraisal and saving mobilization. A total of 14 participants from various microfinance institutions and independent technical service providers attended the trainings.
Study on Effects of COVID-19 Induced Crisis on Ethiopian MFIs and their Clients
AEMFI has conducted a study to assess the effects of COVID-19 on Ethiopian MFIs and their clients. The study was conducted to get insight from the MFIs, their customers, and the key stakeholders of the industry and recommend actions that need to be taken to help MFIs respond to the crisis. It focused on understanding the impact of COVID-19 and the government’s containment efforts on MFIs and their customers. Effect of the pandemic on MFIs liquidity, as well as the role played by the microfinance industry’s key stakeholders and their coordinated efforts to minimize the effect of COVID-19 induced crisis has been emphasized in the study. Validation Workshop was conducted on the 24th of July at Elilly International Hotel. The consultants have presented the findings of the study to the Microfinance Institutions and proposed subsequent measures to be taken in order to rescue the industry.
Since the start of the outbreak, the association has carried out advocacy activities mentioning the problems faced by MFIs to relevant stakeholders. As a result, the National Bank of Ethiopia notified the ‘Development Bank of Ethiopia’ to avail credit for COVID-19 pandemic impacted Microfinance Institutions and Consumer Cooperatives to the extent of ETB 2 Billion from 2019/20 allocated loan budget of DBE with a concessional interest rate of 7% per annum. NBE has also relaxed some prudential requirements to MFIs as a response to COVID-19 pandemic. Member MFIs have contributed significant resources both in cash and in kind to the task forces established at various levels in order to support the people affected by the pandemic.
Facilitate the Certification Program in collaboration with Enterprise Partners (EP)
After certifying Technical Service Providers, AEMFI developed the TSPs database on its website in which certified TSPs profile has been posted. Business to Business linkage program between certified TSPs and MFIs has been organized in collaboration with the partners in order to complement demand cultivation work of certified TSPs. Most of the certified TSPs have participated in providing training to the MFIs in the linkage program. The trainings provided include: IFRS, Customer Handling, Strategy and Business Modeling, Product Development and Saving Mobilization, Financial Inclusion and basics of Microfinance; Microfinance Services in Ethiopia. In addition to this, mentoring and on job training program including handout preparation on IFRS has been done.