New Microfinance Initiative to track poverty reduction in Mali, Senegal

Friday, February 19, 2010, 13:51
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Microfinance Focus, Feb 19, 2010: Grameen Foundation has announced a two-year initiative to help African microfinance institutions (MFIs) better target poor clients and track how they are moving out of poverty.

The first of its kind in Africa, the initiative is being organised by the PPI™ Users Collaborative in Africa (PUCA), a new, multi-stakeholder group that unites five charter partners – Oikocredit, Catholic Relief Services, Terrafina Microfinance, Planet Rating and Grameen Foundation – with the national microfinance networks APIM/Mali and APSFD Senegal.

The Progress out of Poverty Index™ (PPI™) is a poverty assessment tool that enables MFIs to understand their effectiveness in targeting poor clients and tracking their progress.

The initiative will work with three MFIs – Caurie Microfinance and U-IMCEC of Senegal and Kafo Jiginew of Mali – to implement the PPI and analyze its findings. During the course of the initiative, PUCA will promote the adoption of the PPI by other MFIs across Africa and in other countries where PUCA partners are active.

“The PUCA initiative is laying the foundation for the microfinance sector in Senegal and Mali to collect and use poverty assessment data in the most effective way,” said Norman Buckham, Grameen Foundation’s regional CEO for Africa. “It also enables us to demonstrate the importance of integrating social performance into the day-to-day operations of poverty-focused institutions in Africa and, equally important, to provide them with a blueprint for doing so.”

All three MFIs have already received training and are preparing to pilot the PPI within their organizations. As part of the project, PUCA will publish case studies documenting the MFIs’ experiences which can help guide the work of other MFIs as well as networks seeking to replicate this collaborative model of poverty assessment training. In addition, PUCA will also work with external groups interested in conducting independent research and analysis of data.

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Tags: africa, APIM/Mali, APSFD Senegal, Catholic Relief Services, GRAMEEN FOUNDATION, Oikocredit, Planet Rating, PUCA, Terrafina Microfinance

2 Comments on “New Microfinance Initiative to track poverty reduction in Mali, Senegal”

Yasmine wrote on 24 February, 2010, 6:24
Thank you for this article that in fact helped shed more light on the concept of micro financing in regions of the world where it is very much needed and to the surprise of many, quite successful in building communities and sustainable/viable businesses.In the context of microfinancing and banking, Gayle Ferraro’s new documentary called “To Catch a Dollar” beautifully illustrates how Muhammad Yunus’ Grameen Bank America successfully assisted women in Queens,New York in improving their lives with the help of loans they benefited from under the frame of microfinancing. The documentary premiered at the Sundance Film Festival called and many public screenings were held. I invite you to take a look at this website http://www.tocatchadollar.com/ and hope you’ll get a copy of it once it is out there.
Berhanu Alemu wrote on 20 May, 2010, 23:03
I want to have material like, pdf, journals and books related to the role of microfinance and poverty
reduction in Developing countries.

Thank you.