Case Study

A French Position

How has French Aid helped enhance the profile of microfinance?
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This presentation describes the varied support that French Aid provides to the financial sector.

It states that French Aid aims to:

  • Promote diversification, meet the complete range of an economy's needs and catalyze constructive interaction between the various components of the financial sector;
  • Support new forms of financial intermediation, helping them achieve long-term sustainability;
  • Create a favorable environment for the institutions operating in it by lending support at institutional, macroeconomic and social levels.

The presentation states that French Aid:

  • Funds development by providing institutional support, support to the financial sector and finance for the private sector;
  • Passed through various stages in its association with microfinance, namely:
    • Experimentation;
    • Focus on cost-effectiveness and sustainability;
    • Consolidation and professioanalization of microfinance institutions (MFIs).
  • Serves sections of society that have no access to financial aid with short term financial facilities.

The presentation:

  • Describes the impact of French Aid schemes that confirm the role of microfinance as an instrument of both economic and social development;
  • Identifies the following channels that microfinance has to face:
    • Financial, social, and institutional viability;
    • Fitting into the financial sector and the economy as a whole.

The presentation concludes by presenting the current strategy of French Aid in the areas of:

  • Project funding;
  • Training of MFI staff and support to MFIs;
  • Support to improvement of regulatory frameworks;
  • Innovations in products and operating methods;
  • Communication and capitalization.

About this Publication

By Vindel, B.
Published