AFRICA REGION MICROCREDIT SUMMIT (ARMS) 0ctober 8-12, 2000 Harare International Conference Centre Harare, Zimbabwe To reach 100 million of the world s poorest families, especially the women of those families, with credit for self-employment and other financial and business services by the year 2005. MICROFINANCE IN AFRICA : A SUSTAINABLE APPROACH TO POVERTY REDUCTION
BACKGROUND CONCEPT PAPER During the Washington 1997, New York 1998 and Abidjan 1999 Microcredit Summits, African delegates called for an Africa Summit that would focus on issues particular to microfinance on the continent. The continent has witnessed 250 million people who live on less than US$1 a day. This is very disturbing especially in the light of the potential on the continent that could be tapped and mobilized to achieve rapid development. The major constraints have been institutional weakness, lack of enabling environment, ill conceived projects that do not deliver and low investment in the Microcredit sector. Zimbabwe has been given the honour of hosting the inaugural Africa Region Microcredit Summit (ARMS 2000) which will take place in Harare from 0ctober 8-12, 2000. It is hoped that the success of the Harare Summit will result in similar events in Asia and other regions in the World. The theme for the Africa Region Microcredit Summit is Microfinance in Africa : A Sustainable Approach to Poverty Reduction. The Program will cover a wide range of topics and will include issues of specific interest to African and other developing countries. The Africa Region Meeting of Councils of The Global Microcredit Summit Campaign recommended at its meeting in June 1999 that the Africa Region Microcredit Summit (ARMS) be held in Harare, Zimbabwe in 0ctober 2000. The continued growth of poverty in Africa is raising much concern. People have witnessed fragmentation of families and the constant erosion of social fibres that have held societies together. Market forces are leaving the people worse off than ever before. Research studies indicate that Microcredit is one of the fastest growing industries. It will, therefore, be useful in employment generation. With the high rise of unemployment, the youth and women would benefit substantially from Microcredit systems. The linkage between the participants and the donor community, government and private sector is introducing an approach of smart partnership which will stimulate further growth. The Microcredit system is increasingly getting institutionalized, and hence being perceived as a vehicle for economic changes in society. The ARMS Summit will provide an opportunity to explore experiences from different societies and attempt to replicate the best practices in dealing with the problems of poverty. It is anticipated that through such a campaign, more resources would be designated in poverty eradication. The Summit will activate nodal organizations within countries in Africa to encourage entry points for future activities. 2
OBJECTIVES To carry out a strong advocacy campaign on Microcredit and poverty reduction strategies. To learn and share experiences on the best practices in Microcredit. To develop strong institutional linkages and networking for facilitating effective transfer of knowledge, skills and technology on Microcredit systems. Creating clear legal and regulatory frameworks for Microfinance Institutions to exist. To service savings and deposits. STRATEGIES In an effort to optimize the learning opportunities at the ARMS Summit, the following strategies will apply : Paper presentations and discussions in plenary. Carry out case studies on best practices and undertake intensive discussions and analysis on issues for follow-up and replication as necessary. Small break-away groups. Field visits to Microcredit projects. Networking. Exchanges of experiences, books, videos, journals, etc. Training of Trainers in Microcredit systems. Displays, Exhibitions and Vendors Forum. Follow-up on issues. SUMMIT OUTCOME To commission and publish twelve case studies selected from across Africa on microcredit best practices that have attained 80% or more self sufficiency levels. Commitment to the creation of an enabling environment for Microcredit in Africa to assist the poorest. Advocate for the establishment of a sound and sustainable Capital Foundation (Human, Finance and Technology Support) for Microcredit. Creation of a strategic, sound and sustainable (3s) Network to continue carrying out the Campaign. To devise strategies for capacity building and institutional development of MFI s. 3
CORE THEMES OF THE MICROCREDIT GLOBAL CAMPAIGN Reaching the poorest. Reaching women. Building financially self sufficienct institutions (sustainability). Ensuring impact. Establishing performance standards for MFI s. The empowerment of women. Establishing models of credit mechanism to reach the poor. Transformation of NGO s into financial institutional mediatories. TARGETED PARTICIPANTS All members of the Microcredit Campaign Councils, in particular those from Africa, have been invited to attend ARMS 2000. In addition the Summit will attract participants from : Miocroenterprises. Microfinance Practitioners. Service Providers. Donors. Governments and Parliamentarians. Banks, Financial Institutions and Private Businesses. Community-Based 0rganisations and NGO s. Academics. Advocacy Groups and Religious 0rganisations. It is anticipated that there will be up to 600 participants, of which 450 will be practitioners. 4
DRAFT PROGRAM SUNDAY OCTOBER 8 15h00 17h00 Registration. Opening Ceremony and Keynote Addresses Chairperson, Africa Region Microcredit Summit. Microfinance Leaders West, East, South, North. Microfinance World Leader (Muhammad Yunus). Microcredit Campaign Leader. Africa Chair : Organisation for African Unity. Minister of Public Service, Labour and Social Welfare, Government of Zimbabwe. Official Opening Address. 19h00 Welcome Reception. MONDAY OCTOBER 9 07h30-09h00 Late Registration. 09h00-10h00 Keynote Address by Muhammad Yunus. 10h00-10h30 10h30-12h00 Plenary : Theme I. The Microcredit Summit s Challenge : Working Toward Institutional Financial Self- Sufficiency While Maintaining a Commitment to Serving the Poorest Families. Leading African MFI Practitioner - Discussion of Updated Paper. To Be Determined : Author(s), African Case Study From Paper, FINCA Uganda, and Heads of Multilateral and Bilateral Donor Agencies. 12h00-13h30 Lunch. 13h30-15h30 Small Group Workshops Round 1. NOTE All sessions will be recorded so that participants can get the proceedings of those sessions they will have missed. 15h30-16h00 16h00-17h30 17h30 19h30 1) Management Information Systems for MFIs. 2) Case Studies. 3) Delinquency Management What Is It? 4) Defining Microfinance Corporate Culture. 5) Developing Demand Driven Financial Services Understanding Your Market. 6) Developing Performance Standards for MFIs. 7) Financial Appraisal of MFIs What Are We Looking For? 8) Fraud and Internal Control. 9) Human Resource Policies How to Retain Good Staff in MFIs. 10) 0wnership and Governance in Microfinance How This Influences an MFI s Growth Plan. 11) Sound Financial Management What Is It? 12) Strategic Business Planning in a Microfinance Institution What Does It Involve? 13) Strategies to Developing Microfinance Capacity. 14) What Kind of Audits for MFIs. Presentation of Institutional Action Plans and Discussion. End of Day s Sessions. Own Arrangements. Donors Meeting in the Plenary / Selection of Exposes and Films. TUESDAY OCTOBER 10 09h00-11h00 11h00-11h30 11h30-13h00 13h00-14h30 14h30-16h00 16h00-16h30 Council Meetings. In some cases, as many as four Councils will meet together. Two to three Action Plans will be presented in each Council meeting, followed by a sharing of Action Plans in groups of four. Governments and regional bodies will also have a separate Council meeting. Plenary : Theme II. Ensuring Donor Funds Reach Grassroots Groups. Discussion of Microcredit Summit Paper : Creating Autonomous National and Subregional Microcredit Funds. Lunch. Raising Capital : Savings and Commercial Funds. 5
TUESDAY OCTOBER 10 Continued 16h30-18h00 18h00 Discussion of Updated Paper Overcoming the Obstacles of Identifying the Poorest Families. Author(s), Ben Nkuna, Anton Simanowitz, Small Enterprise Foundation, Sukor Kasim, Universiti Sains Malaysia. End of Day s Sessions. 0wn Arrangements. WEDNESDAY OCTOBER 11 09h00-11h00 Small Group Workshops Round 2. NOTE All sessions will be recorded so that participants can get the proceedings of those sessions they will have missed. 15) A Code of Ethics for Microfinance/Moral Issues. 16) Accessing Private Capital Bonds and Equity Markets. 17) Designing and Developing Savings Services for the Poor. 18) Designing Microcredit Systems for AIDS Victims. 19) Developing a Conducive Financial Policy and Regulatory Environment for Innovative MFI Financing Strategies. 20) Developing a Financing Strategy to Support Balanced Growth. 21) Financial Apexes How Can They be an Effective Financing Source. 22) Fostering Linkages With Commercial Banks. 23) IFS vs Empowerment Concerns. 24) Increasing the Capacity of MFIs to deliver secure, High Quality Services For Poor People Lessons From MicroSave. 25) Microfinance as Part of the Financial Sector What Are the Social Implications. 26) Overcoming Legal and Regulatory Constraints to Savings Mobilisation. 27) The Role of Microfinance in Developing Social Capital. 11h00-11h30 11h30-13h00 Plenary : Theme III. Reaching The Poorest and Ensuring Impact. Discussion of Updated Paper Measuring Transformation : Assessing and Improving the Impact of Microcredit. Author(s), Susy Cheston or Larry Reed, Africa Director, Opportunity International. 13h00-14h30 Lunch. 14h30-17h00 Day-long Courses Part 1. 1) Learning to Plan for Institutional Financial Self-Sufficiency While Reaching the Poorest Families. 2) Learning to Use Cost-Effective Impact Evaluation Tools for Practitioners. 3) Learning to Use Participatory Wealth Ranking and Other Measurements to Identify and Encourage Participation of the Poorest Families. 4) Entering the Field : Learning the Basics on Starting a Microcredit Program (Optional). 5) Regulatory Frameworks / Creating Autonomous National and Sub-regional Microcredit Funds. 17h00-17h30 19h30 0wn Arrangements. Associated Sessions / Selection of Exposes and Films. THURSDAY OCTOBER 12 09h00-11h00 11h00-11h30 11h30-13h00 13h00-14h30 14h30-15h30 15h30-16h00 19h30-23h00 Day-long Courses Part 1 Continued. Day-long Courses Part 2. Topics as per Part 1 above. Lunch. Closing Session. African Spectacular at Chapungu Sculpture Park (Ticketed Event). A wonderful opportunity for participants to experience an evening of African cultural and culinary delights in a spectacular setting. (Dress is relaxed). FRIDAY OCTOBER 13 Morning 09h00-18h00 Field Visits to Microcredit Projects See Registration Form for Details and Indicate Your Preference thereon. Training of Trainers By Invitation Only. Morning and Afternoon Refreshments and Lunch will be provided for Training of Trainers Participants ONLY. Own Arrangements. 6