Case Study
A French Position
How has French Aid helped enhance the profile of microfinance?
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9 pages
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.
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