Information Evening

Manna Project International

Chillos Valley - EcuadorDesigning an optimal Microfinance

Programme

Manna Project International

• Small American NGO with offices in Nicaragua, Guatemala and Ecuador

• Volunteering based• MPIE: community centre, various

educational programmes, small business development.

• Our task: How to expand into microfinance?

Project Structure

Project Proposal

Secondary Research

Research Design

Field Work

Research Report

Project Proposal• Define precisely what they expect

from you and what you expect from them: Project outline: How to expand small

business development, start a microfinance programme Time frames: deadlines of project stages, organisation of field work

Project Structure

Project Proposal

Secondary Research

Research Design

Field Work

Research Report

Secondary Research• Learn about microfinance and

consulting• Familiarise yourself with partner

institution, the region, the legal framework,…

• Make informed assumptions• Formulate hypotheses

think about how to test them, what data you need, and how to get it

Project Structure

Project Proposal

Secondary Research

Research Design

Field Work

Research Report

Research Design• Hypotheses• How to test them• What data?• How to get it?

organise field work

Project Structure

Project Proposal

Secondary Research

Research Design

Field Work

Research Report

Field Work• Get first-hand knowlege of your

partner institution• Gather data:

market survey to estimate demand

Field Work• Collaboration with local students,

contact to real communities • Get first-hand knowlege of your

partner institution• Gather data:

market survey to estimate demand interview governments, MFIs and international organisations

Project Structure

Project Proposal

Secondary Research

Research Design

Field Work

Research Report

Research Report• Analyse and process the data

gathered collect missing pieces of information

• Form, discuss, and revise conclusions

• Write report• Discuss conclusions and

recommendations with partner institution

Conclusions• Project was very successful:

microfinance feasible, implementation in two steps, focus on capacity-building

overcoming MPIE‘s institutional constraints

• 2 months after finishing the report, MPIE has already obtained necessary funding

• Follow-up project with OMI planned

My experience: Cresol, Brazil

Nature of the project

• The aim was to develop an expansion strategy for Minas Gerais.

• This included both a takeover and a new greenfield project.

• Client is a Brazilian cooperative bank.• Fieldwork was interesting and essential.• Even being a fairly sophisticated MFI, there

are many ways to improve their operations.

Michaelmas 2012 Projects

Forjadores de Negocios, Mexico

• The MFI has 35 branches in Mexico and offers loans to rural women in groups.

• The aim of the project is to establish a way of measuring branch profitability.

• They are also considering diversification.• They also need a web platform.• Spanish and/or IT skills are helpful.• The project includes fieldwork in Mexico.

Kubaru, London and Philippines

• Kubaru is an organisation that links individuals in the UK with individuals looking for microloans in developing countries over the Internet.

• They are looking for a team to develop an impact methodology that is easy to implement and look at Kubaru’s impact so far.

• There may be fieldwork in the Philippines (TBC)

Wonder Years Centre of Excellence, the Gambia

• TO BE CONFIRMED• This is a sustainable development project

working with one village of 5000 inhabitants.

• The aim is to find a way to give microcredits.• An enterprise selling honey and tiles which

employs local villagers will also be advised.

South Pacific Business Development, Bougainville

• SPBD Vision: Creation of a network of MFIs in the Sough Pacific and neighbouring regions

• Situation Analysis: SPBD is already working in Fiji, Samoa and Tonga, and will launch operations in the Solomon Islands this year

South Pacific Business Development, Bougainville

Project outline• Feasibility study for expansion into PNG and a

business plan with a financial model detailing how SPBD can start and scale a Greenfield Microfinance Institution in the Bougainville region

• Analysis of the socio-economic, cultural, geographic, financial and legal environment for microfinance expansion into a new market

Projects

• Crystal, Georgia– Evaluating Social Performance Indicators

• Kamurj, Armenia– Creation of value-chain services

• Transcapital, Mongolia– Design a 5 year expansion plan

Crystal Georgia – Evaluating SPIs

Crystal’s Background:– 5th largest MFI in Georgia by loan portfolio– Total portfolio of US$13m– Clients: more than 13,000 (46% rural)– 16 regional offices

– Focus on regional development– Market leader in SP reporting and CSR

Crystal Georgia – Evaluating SPIs

Project Objectives– Crystal wants to improve its social performance

and CSR– OMI project team will examine SPIs Crystal

currently uses, evaluate them against leading SPIs such as Grameen PPI, FINCA FCAT, others recommended by Social Performance Task Force

– It will then design and field test a new set of SPIs for Crystal

Crystal Georgia – Evaluating SPIs

Fieldwork– To take place over Easter holidays– Crystal has committed to providing US$3500,

translation support and logistical support– OMI will commit to training and preparing the

team in field research techniques if necessary.

Crystal Georgia – Evaluating SPIs

Competencies (not required)– Survey techniques– Statistics– Past development experience– Knowledge of Georgian– Ability to commit 2-4 hrs/week and manage

timeNo prior knowledge required,

as long as you are enthusiastic and willing to learn

Kamurj Armenia – Creating Ecosystems

Kamurj’s Background:– 6th largest MFI in Armenia by loan portfolio– Total portfolio of US$13.5m– Clients: more than 15,000 (majority rural)– 4 branches, 8 offices

– “Kamurj” means “Bridge” in Armenian– For-profit MFI wholly owned by non-profit

foundation

Kamurj Armenia – Creating Ecosystems

Project Objectives– Kamurj hopes to initiate value-chain services to

better serve low-income rural farmers, by developing a coordinated network of different service providers (technical assistance, input suppliers, food processors, distributors, etc), that when combined with microfinance services, will help the farmers increase their productivity and credit-worthiness in a sustainable manner.

Kamurj Armenia – Creating Ecosystems

Project Objectives– OMI project team will conduct a literature review and case

studies of agricultural microfinance value chains around the world, and produce a project report for Kamurj summarising the group’s findings and recommendations

– There will be an option to extend the project from one term to two terms in order to customise the report to the Armenian context, and propose “value chain” partnerships for Kamurj that meet the needs of its clients. This step, if taken, will involve close cooperation between the project team and Kamurj, including fieldwork.

Kamurj Armenia – Creating Ecosystems

Fieldwork– To take place over Easter holidays– Kamurj is willing to host a fieldwork team. It

has agreed to support the team in terms of accommodation, local transportation and translation.

– OMI will sponsor part of the costs of travelling.– OMI will commit to training and preparing the

team in field research techniques if necessary.

Transcapital Mongolia - Expansion Plan

Transcapital’s Background:– 4th largest MFI in Mongolia– Total portfolio of US$2m– Clients: more than 14,000 (semi-urban)– 10 branches

– Mongolia grew 17% in GDP last year– Transcapital has just acquired new funding

Transcapital Mongolia - Expansion Plan

Project Objectives– Transcapital has received outside funding from

several sources, and it is looking to expand its client base, but competition from banks and other NBFIs is increasing.

– It is concerned with keeping average loan size small while increasing client numbers. This is a challenge because the mining boom in Mongolia has resulted in inflation and salaries increasing, causing people to request larger loans

Transcapital Mongolia - Expansion Plan

Project Objectives– OMI project team will conduct market research on

microfinance in Mongolia, in the form of (a) broad economic trends and (b) competitor analysis.

– It will then develop a five-year expansion plan that will evaluate possible channels for expansion, such as the following:

1. Gaining new clients in existing branches 2. Expansion to new branches in other “ger” districts of

Ulaanbaatar 3. Expansion to other cities in Mongolia 4. Offering new microloan products to existing clients

Transcapital Mongolia - Expansion Plan

Fieldwork– May be necessary– Transcapital is committed to providing

translation support and logistical support– Funding remains to be negotiated– OMI will sponsor part of the costs of travelling– OMI will commit to training and preparing the

team in field research techniques if necessary

Transcapital Mongolia - Expansion Plan

Competencies (not required)– Economics/Business background– Past development experience/knowledge– Knowledge of Mongolian– Ability to commit 2-4 hrs/week and manage

time

No prior knowledge required,as long as you are enthusiastic

and willing to learn

Recruitment

• www.oxfordmicrofinance.org • Project Application Form• Deadline Sunday, 21st October• Researchers – Written application• Project Leaders - Interviews

Training

• Regular Meetings between Regional Coordinators and Project Leaders

• General Consultancy Skills – 8th November • Leadership and Effective Teaming – 31st October

OMI provides you with all the skills and support you need for a

successful project!