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Embarking on a journey to scaling up financing for clean energy

Assistant Director of the Alternative Energy Promotion Centre of Nepal provides an overview of AEPC programmes 

April 29 , 2013

Embarking on a journey to scaling up financing for clean energy

Financial institutions from Nepal participate in business plan development training for energy microfinance in India
Lucknow, Uttar Pradesh, INDIA - 

CleanStart organized a five-day training on business plan development for energy microfinance for nine financial institutions from Nepal in Lucknow, Uttar Pradesh, India on 24-28 April, 2013. The purpose of the training was to guide institutions that have been successfully short-listed for the CleanStart programme through a step-by-step process of formulating a business plan for energy financing, as well as learn from the successes and challenges of fellow practitioners in India through knowledge sharing sessions and field visits. 

In his opening remarks, Surya Sapkota, Assistant Director of the Alternative Energy Promotion Centre of Nepal noted “the importance and timeliness of the training and CleanStart as the Government of Nepal envisions a full transition from subsidies to credit in the long term with the recent establishment of the Central Renewable Energy Fund under the National Rural and Renewable Energy Programme.” He also stressed the importance of partnering with energy suppliers, whereby past experiences have shown to improve the viability of energy loans.

Financial sustainability, risk mitigation measures such as refinancing and guarantees, partnership modalities with energy suppliers, demand creation among clients and carbon financing were some of the common interests of participants, covered in the training. As noted by Priti Rana, Relationship Manager of Himalayan Bank, “energy microfinance is an attractive proposition but as a profit-making organization the first question that comes to mind of a bank is what is the risk and how can it be mitigated.” 

Over the course of the training, participants brainstormed through case studies, had field interactions with branch managers and clients who have taken loans for improved cook stoves and solar home systems, and engaged in knowledge sharing sessions with financial institutions and energy suppliers of India who have successfully partnered in offering loans for clean energy. By end of the training, participants shared a common learning that business plans are living documents that should be adapted to changing external and internal environments. In setting out post-training action plans, Damodar Regmi, Senior Manager of Jeevan Bikash Samaj shared   “we have experience in biogas and solar lending, but will now plan to look into improved cook stoves.”   

As noted by the Lead Trainer, Aimthy Thoumoung of MicroEnergy Credits a key technical partner in delivering this training, “there has been a change of attitude from the initial skepticism that could be sensed on day one of the training. Above all, the financial institutions take with them not just knowledge but a sense of camaraderie in entering this new and innovative area.” 

By 2017 globally, CleanStart aims to support at least 2.5 million low-income people benefit from cleaner and more efficient energy through microfinance. CleanStart will support financial service providers in scaling-up energy financing, and in Nepal envisions reaching 150,000 households and micro-entrepreneurs.  Business plans of short-listed institutions from Nepal will be appraised for investment in the first half of 2013. 

CleanStart is implemented by UNCDF, in close partnership with the United Nations Development Programme and the Alternative Energy Promotion Centre. It is supported by UNCDF, Sida, Norad and Austria.

For more information, please contact
Vincent Wierda
Programme Manager, CleanStart

vincent.wierda@uncdf.org

 

www.uncdf.org/cleanstart

 


Ministry of provincial government and institutional strengthening commences formulation of ward profiles and five year strategic plans for provincial governments

April 01 , 2013

Ministry of provincial government and institutional strengthening commences formulation of ward profiles and five year strategic plans for provincial governments

Solomon Islands - 

The Ministry of Provincial and Institutional Strengthening formally launches Ward Profiling and Strategic Planning formulation for nine provincial governments in Solomon Islands in the first week of April 2013. The six month long exercise which shall lead to the production of Ward Profiles for each of the 170 Wards and Strategic Plans for each Province is being funded by Provincial Governance Strengthening Programme (through UNDP/EU), Ministry of Development Planning and Aid Coordination and the Ministry of Provincial Government and Institutional Strengthening.

This exercise is in response to Buala Premiers Conference Communique of 24th day of October 2010. On this day, Hon. Premiers adopted resolution 14 of Buala Communique for the Provincial Government Strengthening Programme to assist the provinces through the Ministry of Provincial Government and Institutional Strengthening to compile a comprehensive Ward profile in each of the 170 Wards in the nine Provinces of Solomon Islands. Resolution 14 of Buala Communique reads:

''Ward Development Profiles are important mechanisms for the participatory planning process in Provincial Governments. These will help the Provincial Governments identify potential priority developments aspirations in the rural areas/wards as it would be seen to be strengthening the capacities and improving the livelihoods of Solomon Islands' rural populace. The Premiers acknowledge that UNDP's Provincial Governance Strengthening Project has already started work on Ward Development Profiles, therefore request Ministry of Provincial Government and Institutional Strengthening to ensure that this work continues''.

The implementation of this important resolution was stalled as a result of the decision by MPGIS to wait for the completion and official launching of the National Development Strategy of SIG. The Ministry with the support of PGSP supported the consultation processes in provinces for the formulation of National Development Strategy in 2011. The launching of NDS in 2011 has now paved the way for the implementation of Buala Resolution 14 as prescribed by Provincial Premiers.

It should be noted that formulation of long term strategies of provincial governments is the starting point of public expenditure management cycle of PGSP as designed by the Solomon Island Government in 2007. The implementation of this part of the PEM had to wait for the launching of NDS by SIG.

Objectives of the assignment

  1. The exercise shall lead to the production a five year rolling strategic plans for the nine provincial governments of Solomon Islands that is based on the development needs of the provincial governments but linked to the priorities set out in the National Development Strategy objectives of the National Government.
  2. Produce a comprehensive ward profile for each of the wards in each of the provinces in order to compile the most updated and realistic database of socio-economic activities in each ward that could be used as inputs to inform the overall strategic planning process of the provincial governments. The ward profiles would later be updated on annual basis by the provincial authorities.

The Ward Profiling would include climate change vulnerability analysis questionnaires with the objective of compiling a database that would hold record of the types of assistance that local communities think they need with climate change adaptation. It may identify types of action and priority locations.

The long term outcome of the strategic planning exercise is localisation of National Development Strategy at provincial and community levels. All the objectives of National Development Strategy that need the support of provincial governments particularly objective 8 shall be addressed in this five year rolling strategic plans.

This important activity shall be implemented by the Ministry of Provincial Government and Institutional Strengthening by hiring two local consultants for a period of 100 days each to tour all the Wards in the nine Provinces for consultations and data collection to enable them to compile a comprehensive profile for each Ward that would inform provincial development strategies. The two consultants who have already signed their contracts with UNDP have had an initial briefing meeting with the Ministry of Provincial Government and Institutional Strengthening.

In a separate agreement with Ministry of Development Planning and Aid Coordination, one additional Consultant would be funded through European Union to assist the two consultants to undertake the exercise. The MDPAC funded consultant, who may be available by May, shall be responsible for Malaita, Central and Rennell & Bellona Provinces. Hon. Premiers of these provinces shall be duly informed when the consultant is on board. The other two local consultants shall be responsible for Isabel, Temotu and Guadalcanal as one group, Western Province, Choiseul and Makira Ulawa in another group.

During the exercise in the field, the strategic planning consultants will:

  • Review the provincial profiles that had been compiled by the SIG-UNDP Solomon Island Development Administration and Participatory Programme (SIDAPP) in 1998, a former project of MPGIS.
  • Review the data collected by the Rural Development Program in each ward and synthesize the information collated by that organisation to see if the data could be made use of.
  • Review any information that might have been gathered by each province in order to use them in the compilation of the ward profile and provincial profile.
  • Make reference to the reports produced by the provincial governments such as the provincial annual work plan and budgets to determine the resource utilisation and mobilisation of each provincial governments.
  • Hold consultations with the provincial authorities to formulate five year development strategic plans of the provincial governments based on the economic data collected and collated on each provincial government.
  • Hold intensive consultations with the Ministry of Development Planning and Aid Coordination to appreciate the National Development Strategies and how it needs to be linked to the provincial government development strategies on a long term.
  • Hold discussions with the line Ministries at provincial level such as Health, Education, Rural Development and Environment for a coordinated approach towards integrated planning processes at the provincial level.
  • Consult with the key provincial actors such as international and local NGOs plus UN Agencies operating in the provinces.
  • Consultant with the Ministry of Environment, Climate Change, Disaster and Meteorology.

The main output expected from this exercise is a Ward profile for each ward and a five year comprehensive strategic plan based on National Development Strategy objectives aligned to provincial development aspirations. The five year strategic plan shall be a rolling plan that would be reviewed annually by the provincial governments in order to keep it up to date.

The Ministry of Provincial Government and Institutional Strengthening has agreed with Provincial Governments to contribute immensely to the exercise. Activities at the provincial and community level shall be coordinated and led by the provincial governments. Provincial government shall be mobilising both human and financial resources to ensure adequate logistic to the consultants.

By Stanley D. Pirione (Permanent Secretary, Ministry of Provincial Government and Institutional Strengthening)

For more information, please contact
Momodou Lamin Sawaneh
Chief Technical Advisor (Interim)

sawaneh.modoulamin@uncdf.org


Roundtable Discussion “Microfinance Development in Thailand”

Her Royal Highness Princess Mathilde of Belgium at the Roundtable discussion about “Microfinance Development in Thailand”.

March 19 , 2013

Roundtable Discussion “Microfinance Development in Thailand”

Bangkok, THAILAND - 

On the occasion of the visit of Her Royal Highness Princess Mathilde of Belgium to Thailand, a Roundtable discussion about “Microfinance Development in Thailand”, took place at the Asian Development Bank (ADB) office in Bangkok yesterday. The discussion was attended by senior government officials, representatives of specialized financial institutions (SFIs), and experts from universities and the research community.

The discussions primarily focused around key issues of financial inclusion in Thailand, including issues of over indebtedness and client protection, which are being highlighted by the recently launched UNCDF Making Access Possible (MAP) tool. 

MAP is a diagnostic and programmatic framework to support expanding access to financial services for individuals and micro and small businesses. The MAP framework creates the space to convene a wide range of stakeholders around evidence-based country diagnostic and dialogue and leads to the development of national financial inclusion roadmaps. The roadmap identifies key drivers of financial inclusion and includes specific actions that will contribute to greater financial inclusion. The framework has been developed by UNCDF in partnership with FinMark Trust and Cenfri and is intended to become a public good that can advance the global financial inclusion agenda.

MAP is designed to bring together a broad range of stakeholders from the public and private sectors, and is led by national authorities. As financial inclusion moves beyond traditional providers of financial services, this means bringing to the table other providers and players in new value chains (such as insurance companies, mobile network operators, technology companies, agricultural suppliers) as well as the regulators and policymakers implicated (such as ministries of telecommunications, agriculture, education, social welfare) and other civil society actors (such as consumer associations, financial education providers).

MAP can be a powerful catalyst for donor harmonization and coordination in supporting financial inclusion at the country level, consistent with the Paris Declaration, and for building on the lessons and recommendations from CGAP’s CLEAR exercises. It also offers a promising platform of cooperation for UN agencies to work together to promote financial inclusion (e.g., moving transfers linked to social or relief programs from cash disbursements to electronic platforms). MAP can complement other instruments, particularly the FSAP, by addressing financial exclusion at the bottom of the pyramid.

The topic of the fairly dominant role of the public sector and over-supply of debt was also discussed at some length during the workshop.  HRH Princess Mathilde was particularly interested in why the private sector was not as active in Thailand at the base of the pyramid and how they may be encouraged.

As a very active representative during the International Year of Microcredit in 2005, Princess Mathilde was very familiar and engaged with issues of financial inclusion. In response to her high interest, UNCDF Senior Regional Technical Advisor for Inclusive Finance, Mr. Feisal Hussain, offered a wider analysis of issues in the region and UNCDF’s emerging approach to Microfinance. He specifically pointed out the opportunities that may be brought about by emergences of the Association of Southeast Asian Nations (ASEAN) common market and its implications for driving faster financial inclusion in countries such as Laos, Myanmar and Vietnam. 

The roundtable provided an opportunity for participants to update one another on Thailand's plans for greater financial inclusion, ADB's involvement in developing a national strategy and implementation plan for Microfinance Institution in Thailand, and an opportunity to hear HRH Princess Mathilde's views on microfinance development based on her many field visits and discussions with participants regarding microfinance in other countries. 

For more information, please contact
Feisal Hussain
Senior Regional Technical Advisor for Inclusive Finance

feisal.hussain@uncdf.org


Bangladesh to roll out an innovative financing mechanism to promote the performance of Local Government Institutions

January 23 , 2013

Bangladesh to roll out an innovative financing mechanism to promote the performance of Local Government Institutions

UNCDF and the Government of Bangladesh sign a Memorandum of Understanding on Performance-Based Grants for Union Parishads
Dhaka, Bangladesh - 

The United Nations Capital Development Fund (UNCDF) and the Local Government Division (Ministry of Local Government and Rural Development & Cooperatives) signed a Memorandum of Understanding (MoU) on the 22nd of January, which sets the framework and procedures for Performance-Based Grants for Union Parishads (the lowest tier of Local Government in Bangladesh), supported through the Union Parishad Governance Project (UPGP).

The document was signed by the UNCDF Head of the Regional Office, David Jackson and K.M. Mozammel Haq, Additional Secretary, Local Government Division, and National Project Director.

UPGP supports the design and implementation of an effective, transparent and functioning financing mechanism, based on performance-based grants that enable and encourage the Union Parishads to deliver services, alongside inclusive and efficient public expenditure management procedures.

The performance-based grants will target  571 Union Parishads, located in seven pilot districts across the seven divisions of Bangladesh, and will be provided to UPs selected on the basis of their performance, and compliance with specified access conditions. The performance criteria are closely aligned to the laws and frameworks associated with Union Parishads, and promote efficient pro-poor service delivery.

The total contribution from UNCDF and contributing development partners to the performance-based grant mechanism will be of USD 6,880,000 over the 4 fiscal years, with an average annual allocation of USD 1,720,000. 

In the same effort to strengthen the planning and financial management of UPs, UNCDF signed in September, an Instrument of Cooperation with the United Nations Development Programme (UNDP), the World Bank and the Local Government Division (MLGRD &C).  This framework establishes areas of coordination and cooperation between UPGP and the second LGSP, which is implemented nationwide, capitalizing on the different agencies’ respective comparative advantages.

Within this framework, UNCDF, the World Bank and the Local Government Division, jointly organized training for over 1,800 auditors who are now engaged in auditing accounts and performance of Union Parishads across the country.

The UPGP is part of the overall programmatic framework for UNCDF and UNDP support to the Government of Bangladesh Local Governance reforms that is supported by the European Union (EU), the Government of Switzerland (SDC) and Denmark (Danida).

For more information, please contact
Fernanda Tripodi

fernanda.tripodi@uncdf.org

 

www.uncdf.org

 


Provincial Capacity Development Fund Annual Performance Assessment Results

January 08 , 2013

Provincial Capacity Development Fund Annual Performance Assessment Results

The allocation of Fund for 2013/14 to provincial governments
Solomon Islands - 

The Joint Oversight Committee of the Provincial Governance Strengthening Programme has released the final results of the annual performance assessment conducted in 2012 for access to Provincial Capacity Development Fund 2013/14. The JOC, chaired by the Permanent Secretary of the Ministry of Provincial Government and Institutional Strengthening Mr Stanley D. Pirione, presided over the results of the assessment on the 20th of December 2012.

In 2012 annual performance assessment, provincial governments were assessed on seven (7) minimum conditions and eight performance measures with 100 indicators. For a province to qualify for funding from PCDF, it has to meet all seven minimum conditions. The 2012 assessment results have been highlighted in table 1 below. The amount of funds that should be allocated to each province has also been determined as indicated in the table.

 

Table 1: 2012 PCDF annual performance assessment results

Items

Provinces

Minimum conditions met

Performance score per province (out of 100 points)

Amount allocated

SBD

1

Malaita

3

53

 0.00

2

Makira Ulawa

7

62

3,805,540

3

Central

7

66

2,739,989

4

Isabel

7

70

2,784,438

5

Choiseul

7

75

3,268,998

6

Western

7

68

5,492,773

7

Guadalcanal

7

58

5,184,307

8

Temotu

7

69

2,771,118

9

Rennell & Bellona

7

54

1,636,961

 

In addition to Malaita Province, Rennell & Bellona Province was going to miss out from this year's funding but the province successfully appealed against minimum condition 6 (tabling of audit report in the provincial assembly).  The JOC heard the appeal from Renbel and approved the qualification of Renbel on the basis of evidences produced before the steering committee. The PCDF Operational Manual has a provision for provinces that do not meet certain minimum conditions to file an appeal directly to the JOC through the Permanent Secretary of MPGIS who is the chairman of the Project Steering Committee. The appeal is heard only when it is filed within a period of two weeks of the date of JOC announcing the results of the assessment.

For provinces that do not meet the minimum conditions, the Ministry ensures that support is provided to them in the form of capacity building in order to improve their financial management capabilities. Support is provided to all provinces though the capacity building initiative funded by Provincial Governance Strengthening Programme designed to improve public expenditure management system and good governance at the provincial level. In the case of Malaita Province, further assistance shall be provided in order to ensure that the province is back on track.

Performance measures

In terms of performance measures, the provincial government of Choiseul has been consistently leading the nine provinces since the performance assessment commenced in 2009. The overall trend analysis of the results shows that, on average, provinces have been improving their performance. Average score has increased from 40 in 2009 to 64 in 2012 assessment. Even though performance measures have been enhanced as a result of the revision that took place in 2012, the average score has improved.

About 50% of PCDF funds have this year been allocated to provinces based on performance. The remaining 50% is allocated based on basic allocation formula. Provinces that obtained higher scores in performance measures such as Choiseul and Isabel have gained more resources despite their low population.

This year, 20% of fixed service grant has been allocated to provincial governments based on their scores in the performance measures assessment for PCDF. Provinces that did well in the PCDF performance measures increased their allocations in the fixed service grant. The use of performance measures in allocating a portion of fixed service grant to provinces is an indication of the impact of the Provincial Capacity Development Fund mechanism of promoting sound fiscal reforms.

The Provincial Capacity Development Fund is a performance based grant which has been set up by the Solomon Island Government to provide provinces with investment for small scale infrastructure projects whilst at the same time promoting public expenditure management systems and public financial management systems at the provincial level. When the PCDF started in 2008, SIG and donors (EU, RAMSI, UNDP and UNCDF) contributed equally to the capital development fund accessed by provinces that meet the minimum criteria. For the first four years, the donors and SIG were each contributing about SBD5.4million but since 2011, the National Government up-scaled its contribution to SBD30 million per annum.

The Ministry hires four independent consultants annually (one planning expert, two accountants and one auditor) to carry out the assessment over a period of two months. The final reports of the assessors are first discussed by the Provincial Fiscal Grant Coordination committee (a committee that discusses fiscal issues of PGSP) and then later finalised by the Joint oversight Committee (project steering committee) based on PFGCC recommendations.

The next assessment to determine who should qualify for PCDF funding in 2014/15 shall be carried out in July 2013.

 

By: Stanley D. Pirione - Permanent Secretary, Ministry of Provincial Government and Institutional Strengthening and Chairman of PGSP Joint Oversight Committee (Project Board)

For more information, please contact
Sawaneh Modoulamin
Chief Technical Advisor (Interim)

sawaneh.modoulamin@uncdf.org


CleanStart Expression of Interest

December 19 , 2012

CleanStart Expression of Interest

Request for Expressions of Interest from Financial Service Providers Operating in Nepal
Nepal - 

The UN Capital Development Fund (UNCDF) and the United Nations Development Programme (UNDP) are launching a Request for Expressions of Interest (EoI) for the Access to Clean Energy for the Poor through Microfinance (CleanStart) programme in Nepal. The EoI is open to eligible financial service providers (FSPs) that have retail or wholesale operations in Nepal. The programme will award grants and technical assistance to leading FSPs to create new financing models and expand their retail or wholesale operations in the clean energy markets, in particular to provide microfinance for clean energy solutions to low-income households and micro-entrepreneurs in areas which are underserviced at the moment. CleanStart will operate over a period of four years (2012-2015) in Nepal, and provide business development support to up to three qualified financial institutions.

After reviewing responses to this EoI, CleanStart will invite shortlisted FSPs to participate in a structured training on business plan development for energy lending (pre-investment support). As part of the final process of selecting grantees, shortlisted financial institutions that have participated in this initial stage will later be invited to submit their business plans for investment appraisal.

The CleanStart programme focuses on improving access to modern energy and contributes to the reduction of greenhouse gas emissions by assisting poor households and micro-entrepreneurs to obtain access to sustainable low-cost, clean energy solutions through microfinance. By end of the programme in Nepal, more than 150,000 low income households and micro-entrepreneurs (600,000 beneficiaries) will have access to clean energy through microfinance. Implementation will be based on the ‘CleanStart Business Plan - Nepal’ (Link http://uncdf.org/en/project-documents-cleanstart).

Deadline for submission

Expressions of Interest are due by 18 January, 2013 (17:00 Kathmandu time) and must be submitted by e-mail to clean.start@uncdf.org, with a copy to hee.sung.kim@uncdf.org 

Please read the three (3) attachments below before making an application. 

Relevant links

Access to Clean Energy for the Poor through Microfinance (CleanStart) programme http://uncdf.org/en/cleanstart

CleanStart Business Plan for Nepal http://uncdf.org/en/project-documents-cleanstart

For more information, please contact
Hee Sung Kim
Programme Analyst

hee.sung.kim@uncdf.org

clean.start@uncdf.org

Resources
Attachment:

The Challenge

Myanmar is a country rich in natural resources, however, decades of poor economic management with a heavily controlled economy has resulted in a weak private sector and under-developed financial sector, misallocation of public resources with relatively small public spending on basic services. In Myanmar access to finance is limited and compared to neighbouring countries the financial sector is small and underdeveloped. There are only few institutions providing microfinance services and an estimated 90% of potential deposit and loan clients are unserved, while 95% are considered underserved. Access to finance in rural areas is hardest to find yet most needed, both in terms of economic development as in terms of food security and poverty reduction.

How We Are Helping?

In Myanmar, UNCDF is helping to create inclusive financial sectors by providing access to financial services for individuals and micro and small businesses through the Making Access Possible Programme (MAP) and the Microlead Expansion Programme.

The purpose of MAP is to expand financial services for individuals and small businesses by defining the financial inclusion agenda in Myanmar and aligning resources with key priorities, based on a rigorous evidence-based diagnostic exercise concluded by intense stakeholder dialogue and decision making.

Microlead, launched in 2008 by UNCDF, with support of the Bill & Melinda Gates Foundation with the purpose of providing loans and grants to leading southern Financial Service Providers (FSPs), supports the expansion of microfinance market leaders in Myanmar. Moreover, it contributes to the United Nations Framework for Myanmar, particularly on contributing to sustainable livelihoods and improved household income in Myanmar.

In Detail

Project

MAP
Goal To support expanding access to financial services for individuals and micro and small businesses.
How
  • By developing financial inclusion roadmaps in 22 developing countries over the next six years, while contributing to learning and dialogue at the international level.
Period Ongoing (2012-2013)
Partners FinMark Trust and Cenfri
Total project cost and UNCDF contribution  
 
Project

Microlead
Goal To contribute to the development of strong inclusive financial sectors and the achievement of the MDGs.
How
  • By providing access to demand-driven, responsibly-delivered, savings-focused financial and non-finacial products and services to low income people in Myanmar;
  • By generating knowledge among FSPs, policy makers, donors and other stakeholders.
Period Ongoing (2012-2016)
Partners LIFT Myanmar
Total project cost and UNCDF contribution  
 

English
Coming Soon ...

Pioneering Financial Education in Nepal

Clients of Swabalamban Laghubitta Bikas Bank, a microfinance development bank in Nepal supported by the UNCDF/UNDP Enhancing Access to Financial Services Programme, are attending the monthly center meeting, for repayment, loan demand and savings deposit.

November 06 , 2012

Pioneering Financial Education in Nepal

Nepal - 

Since the end of the civil war in 2006, Nepal has changed dramatically. Overall poverty rates have declined, almost all children now attend primary school, and women make up 30 percent of the representatives in parliament. Yet, despite these impressive achievements, almost one third of the population still lives below the national poverty line.

UNCDF has been working towards making financial services available for the poor in Nepal for decades, by supporting providers that offer a range of financial products at a reasonable cost, including savings, credit and insurance. But access to financial services is only a first step towards enabling people to build better futures. In order to empower poor families and small businesses to make informed choices, financial education is key.

Living on around one dollar per day requires tremendous financial skill. In Nepal as elsewhere, poor people rely mostly on family and informal networks to manage their finances. Although their incomes are small and paid at unpredictable intervals, they devise strategies to save, invest and borrow by entrusting money to a neighbor for safekeeping or visiting a moneylender in times of need. Unfortunately, these strategies can at times be unnecessarily risky and costly.

In January, UNCDF launched a new initiative in Nepal that aims to empower poor people by teaching them the basics of personal finance. Working with financial service providers and the Central Bank, UNCDF conducted a training course on how to deliver financial education for specific target groups. As a result, these organizations are now equipped to broaden their clients’ knowledge of financial options and promote effective money management. The course covered all aspects of financial literacy from identifying the needs and demands for financial education to monitoring and outcome evaluation.

Just as there is a renewed emphasis on financial education in the developed world in the aftermath of the economic crisis of 2009, financial literacy is gaining traction across the developing world. Financial education is especially important in the context of rapidly expanding microfinance institutions in Nepal and elsewhere. Combining access to financial products and services with financial education will allow poor people to realize the benefits from financial inclusion and manage their incomes in ways that maximize wellbeing and ultimately contributes to pro-poor growth.

In Nepal, UNCDF also seeks to support efforts by financial institutions and regulators to deepen, broaden and scale up the outreach of financial services. The initiative is taking the lead in assisting the Government of Nepal in formulating a National Strategy for Financial Literacy. Lessons from the initiative will also feed into the process of developing a regulatory framework for the microfinance sector in Nepal. These efforts will also contribute to the formulation of the Microfinance Act, which will likely be passed in the course of 2012.

UNCDF is also promoting financial education in other countries as part of the Pacific Financial Inclusion Programme (PFIP), which is being implemented jointly with UNDP, financed by AusAID and the European Union. The PFIP aims to find new ways to provide financial services to hard-to-reach populations and is active in Fiji, Papua New Guinea, Samoa, the Solomon Islands and Vanuatu.

For more information, please contact
Ana Klincic Andrews
Programme Manager

ana.klincic.andrews@uncdf.org

www.uncdf.org


First Stakeholder Consultation meeting for Financial Inclusion in Myanmar

October 22 , 2012

First Stakeholder Consultation meeting for Financial Inclusion in Myanmar

Jointly organized by UNCDF, IFC, the World Bank and CGAP, the Consultation brought together a broad range of stakeholders to discuss roadmaps for financial inclusion.
Yangon, MYANMAR  - 

UNCDF, IFC, the World Bank and CGAP organized the first Consultation Meeting on Financial Inclusion.  The purpose of the meeting was threefold:  IFC/CGAP presented its recent microfinance sector assessment report. The World Bank introduced its upcoming Financial Inclusion for National Development (FIND) programme; and UNCDF, in partnership with UNDP Myanmar and the Livelihood and Food Security Trust Fund (LIFT), launched the consultation for the “Making Access to Finance Possible” (MAP) diagnostic and programming framework.

The meeting brought together a broad range of stakeholders presenting three complementary initiatives on Financial Inclusion in Myanmar.  The IFC/CGAP microfinance sector assessment was recently completed. It constitutes a rapid assessment of the sector, and aims at providing a basis to discuss key priorities for action in the sector, including future technical assistance. 

The World Bank Financial Inclusion for National Development (FIND) programme,  part of the World Bank’s support to the financial sector in Myanmar, focuses on building the supervisory and regulatory framework for microfinance in Myanmar.  

UNCDF launched MAP – Making Access to finance Possible, a diagnostic tool developed by UNCDF, FinMark Trust and Cenfri.  MAP takes a broad view of financial inclusion through the ranges of products and services, institutions, delivery channels and actors; it incorporates deep quantitative and qualitative diagnosis and analysis, setting the stage for well-informed dialogue among stakeholders.

Taking the G20 Principles and other international initiatives into action, MAP catalyzes domestic efforts to make financial inclusion a reality, enabling a wide range of stakeholders to organize dialogue around a set of comprehensive and in-depth country diagnostics, leading to the development of a nationally owned financial inclusion roadmap and programming framework.  The country work will be leveraged to inform and contribute to global experience and dialogue. This will serve to benefit large numbers of low-income households and enterprises through significantly expanded access to financial services.

For more information, please contact
Feisal Hussain
Senior Regional Technical Advisor

feisal.hussain@uncdf.org

www.uncdf.org

 


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