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Supporting microfinance in the European Union: business models, impact assessment and lessons learned from EU initiatives. Planet Rating’s learnings and methodological adaptations. Antoine Navarro – Planet Rating anavarro@planetrating.com. Planet Rating - PowerPoint PPT Presentation
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contact@e-mfp.eu www.e-mfp.eu
Supporting microfinance in the European Union: business models, impact assessment and lessons learned from EU initiatives
Antoine Navarro – Planet Rating
anavarro@planetrating.com
Planet Rating’s learnings and methodological adaptations
contact@e-mfp.eu www.e-mfp.eu
Planet Rating
Created in 1999, it became a private independent rating
firm in June 2005
Mission to contribute to the development of microfinance
thanks to increased transparency on the financial and
social performance of MFIs
Enjoys a global coverage, thanks to a network of six
offices spread over four continents (Paris, Lima, Dakar,
Nairobi, Beirut, Manila)
A team of 16 experienced analysts, with backgrounds in
investment banking, management consulting, non-profit,
microfinance
Offices
Missions
contact@e-mfp.eu www.e-mfp.eu
JASMINE initiative
Joint Action to Support Microfinance Institutions in Europe (JASMINE): A 5 year project (2009-2013), managed by the European Investment Fund (EIF) funded by the EC
Objectives To promote good practice in the field of microcredit.
To provide additional funding for microfinance institutions.
In the long term, to improve the environment of the European microcredit sector, by developing partnerships between the banking and non-banking actors.
How does it work? Evaluation: providing an assessment or rating to the MFIs by specialized microfinance
rating agency
Technical assistance: provide dedicated training in areas where improvement is needed.
Funding: After the technical assistance, MFIs may apply to the European Microfinance Facility Fund managed by the EIF, which offers guarantees and equity/loans funding.
Implementation 24 MFIs selected in 2010 and 2011 already received an evaluation and TA.
After a second call for proposals, an estimate 20-30 MFIs will receive an evaluation and TA in 2012.
contact@e-mfp.eu www.e-mfp.eu
JASMINE 2010Créa-Sol (France)CP’AC (Spain)FEA (Hungary)Mikrohitel (Hungary)PRIMOM (Hungary)PSBYT (Scotland)
JASMINE 2011Credal (Belgium)Jobs MFI (Bulgaria)Mikrofond (Bulgaria) Nachala (Bulgaria)Qredits (The Netherlands)Patria Credit (Romania)
KosovoKEP
Serbia & Montenegro AgroInvest
Bosnia Herzegovina10 MFIs: EKI, Mikrofin, Partner, LOK
micro, Mi-Bospo, Prizma, Benefit, Sunrise, Women for Women, Sinergija Plus
26 ratings
Russia5 MFIs: FFECCC,
RWMN, VRFSBS, Doveriye, Narodnyi
8 ratings
MoldovaMicroInvest
UkraineHope Ukraine
JASMINE 20126 MFIs in GermanyAnd 9 others in Romania, Slovak Republic, UK, Malta,
Poland, Belgium, Bulgaria and Sweden
TurkeyTGMP
Ratings and assessments conducted for the JASMINE program
Experience in other EU countries
contact@e-mfp.eu www.e-mfp.eu
Context Higher level development of financial services narrow potential market
Lower margins of businesses of micro-entrepreneurs in EU countries: Low level of informality
Higher costs (taxes)
Cannot always afford higher interest rates
Consequences on the business models Specific targeting: financially marginalized population represent a smaller share of the
population than in developing countries target unemployed, start-ups, and SMEs which have difficulties to access finance
Different business models : often includes business development services as a core service Specific training on admin, legal processes
Entrepreneurial and business planning trainings find a market niche
Dependent on grant funding from public or private donors and socially oriented investors for their sustainability
Different approach needed for the analysis of the sustainability of MFIs from Western or Eastern Europe
Main differences of microfinance in Western Europe with “traditional” microfinance
contact@e-mfp.eu www.e-mfp.eu
Financial Inclusion
Social Change
Factors have been addedOutreach to the excludedAdaptation of servicesCost of Services
Factors have been addedFight vs. UnemploymentBusiness creationEmpowerment
Ratios and scales have been adapted and benchmarks collected
GIRAFFE-S Evaluation Framework for EU MFIsA rating methodology tailored for European MFIs
contact@e-mfp.eu www.e-mfp.eu
THANK YOU FOR YOUR ATTENTION!
www.planetrating.com
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