Presentation of Plenary Session on Micro Finance Institutes

1
Presentation of Plenary Session on Micro Finance
Institutes

• Presented to Provincial LED Conference
• Date 09 November 2007
• Presented By Geoff Orpen

2
Key Issues

• Investigative Analysis needed as to the best
  practice models on Micro Finance
• Recommendation T. S. to commission someone like
  University of Pretoria to do analysis and
  investigation
• How do we get co-operation between microfinance
  institutions so that visions and objectives are
  aligned to achieve a common goal?
• Recommendation Establish a Provincial Financial
  Services forum and define types of finance,
  categories of support, information requirements
  (typology, mapping, market, policy) and develop
  agency responsibilities per category of support
  ,Develop milestones, Develop types of finance
  (micro, small and development finance) There
  needs to be a linked formed between IGRs and
  Forum

3
Key Issues (cont)

• There is a need for Village banks. What are the
  Plans to revitalize the village banks
• Recommendation Pilot at least 5 Village banks in
  the Eastern Cape and take the lessons learnt
  forward to revitalize the Village bank System
• How do we achieve Sustainability of MFIs given
  that it takes 3 years to reach break even point
  and the default rate in the 1st year is 20
• Recommendation Need to have a skills
  intervention programme to educate both borrowers
  and lenders. Need to commit funding for start up
  operational costs and money for on-lending

4
Key Issues

• How do we increase access to Micro Finance given
  that only 5 of micro enterprises are reached by
  micro finance institutions
• Recommendation Give sustainable MFIs the access
  to borrow more capital that can be loaned out
  from institutions such as ECDC, SAMAF and ABSA
• How do we achieve a better understanding of the
  Legislative Framework and at the same time have a
  uniform policy
• Recommendation Support institutions such as
  MAFISA, Thina Sinako, SAMAF, academic
  institutions to familiarize MFIs with the
  legislation

5
Key Issues (cont)

• How do we mobilize communities to develop sound
  Business proposals that suit their needs to take
  advantage of Capital that is available?
• Recommendation. Standardize/ create generic
  application processes for support institutions
  such as SAMAF, ECDC, MAFISA, ABSA
• How do we educate borrowers as to the correct
  spending patterns to achieve Economic Growth
• Recommendation Strengthen the consumer
  cooperatives through capacity building so as to
  build the value chain at local level

6
Key issues (cont)

• How do we Unify the efforts of all lending
  organizations to ensure that Economic Growth is
  Maximized?
• Recommendation Commitment and meaningful
  participation in the Provincial Financial
  services forum.

7
Many Thanks and Ukhahlamba Greetings