AMIR

ASSOCIATION OF MICROFINANCE INSTITUTIONS IN RWANDA

Website: www,amir.rw

E-mail: amir@amir.org.rw

POB: 6526 Kigali

Tel. +250 782889582

NEEDS ASSESSMENT STUDY OF MFIs MEMBERS OF AMIR

May 2011

Draft Report:

Compiled by Mr. Aloys RUSANGANWA

Consultant in Microfinance

Kigali, May 2011

EXECUTIVE SUMMARY

The study initiated by the Association of Microfinance Institutions in Rwanda - AMIR which aimed at identifying the needs of its members, in particular, and the microfinance sector in general. This survey was conducted using a sample of 18 MFIs representing 25% of its members ( more than 50% of MFIs are registered as

members of AMIR with the presence of three major unions COOPEC (Wisigara (13), Ejoheza (10) and UMURIMO (7)). 

The questionnaire for collecting of information was launched before the end of February 2011 and the expected responses were to be collected and finalized by May 15, 2011. There were challenges faced in the process of collecting the information as MFIs were busy preparing their end of the year reports and were conducting their annual member’s general meeting. In this case they were not available to work on the questionnaire thus causing a delay in submitting the first draft report as expected.  

The methodology used in collecting the information is indepth questionnaire which were distributed to the 18 MFIs and the responses were collected for processing and analysis. Other ways used is through interviews by visiting the MFIs and conduct discussions. Telephone contacts were used to ensure all the intended persons were interviewed.

The information and data were processed and analyzed thus identified priorities and needs of MFIs which eventually generated opportunity to formulate possible strategies.

The following are ten most important needs expressed by almost all MFIs surveyed.

 1. Need of various and more trainings in all areas of operation and for all positions in an organization structure and staff of MFIs. 2. Need of identifying market demand and preferences of financial products and services so as to develop diversified services and products across all MFIs.

3.. Lack of suitable refinancing facility with suitable terms and accessibility as well as emergency funds that can quickly support the MFIs operating in difficulty. 4. Maintaining of regular exchanges between MFIs ,different boards including categories of staff for experience sharing 5. MFIs are suggesting for AMIR to organize study tours for professional enrichment, both within and outside the country. 6. Heaviness and slowness of judicial procedures in recovering defaulted loans and enforcement of judgments relating thereto. 7.MIS systems in MFIs are not properly performing to over 50%. 

8. Procedure Manuals not complete and not inclusive as the MFIs do not respect and follow.. 9. Members / clients not educated in advance on credit and other microfinance products, however reinforce of this concern will lead into increasing MFI’s expenses. 10. Lack of internal audit services and regular tracking system that would identify the errors and violation of procedures  

Apart from these primary needs, other needs, , were also noted, thus attracting AMIR and other industry partners attention, in order to pay attention and therefore satisfying the needs and to enhance the success and performance of MFIs and the entire microfinance sector in Rwanda. This is particularly the case of: 1. Cumbersome and costly registration procedures for guarantees in RDB; 2. The training courses currently organized are general and not practical to solve the real problems experienced in the field; 3. MFIs facing financial difficulties are not getting quick support either from Amir, nor from other members neither partners; 4. The cost of administering small loans remain too high relative to expected income. 5. The local administration is only interested in supporting Imirenge SACCOs instead of also considering the performance of microfinance sector.6. MFIs are not getting easily information on collaterals sold out.7. Non-performing loans system and collection tools need to be strengthened8. The supervisory boards and internal audit staff were not trained on their specific task; 9. The culture of non-repayment not yet completely eradicated; 10. Very expensive subscription services such as Rwandatel / SIMTEL for the "Online" computer network. 

The following are main strategies drawn for further analysis and decision before implementation.1. THE ESTABLISHMENT AND MANAGEMENT OF A TRAINING CENTER INITIATED BY AMIR SUPPORTING MFIs MEMBERS 2. THE OPPORTUNITY OF A CENTRALIZED INTERNAL AUDIT SERVICE FOR THE BENEFIT OF MEMBERS NOT YET NETWORKED.3.MFIs NEEDS TO BE ASSISTED IN THE PROCESS OF  PRODUCT DEVELOPMENT and IMPLEMENTATION AS EXPRESSED BY ALL MFIs SURVEYED.4. AMIR TO BECOME A "PLATFORM" OF EXCHANGE AND COMMUNICATION THEREFORE ENHANCING MICROFINANCE SECTOR’S PERFORMANCE. 5. THE ESTABLISHMENT OF A REFINANCING FUND EASILY ACCESSIBLE TO MFI MEMBERS.6. DEVELOPMENT OF A STANDARDIZED PROCEDURE AND SUPPORT FOR ITS IMPLEMENTATION

7. ADVOCACY FOR A NEW LAW THAT WILL FACILITATE MICROFINANCE INSTITUTIONS TO SETTLE LEGAL CASES REGARDING CREDITS. 8. THERE IS HIGH NEED OF ESTABLISHING A LOCAL RATING UNIT9. CREATE A SUPPORT FUND AT AMIR; AMIR SHOULD CREATE FUNDING RESERVE TO SUPPORT MFIs IN LIQUIDITY DIFFICULTIES.10. NEED OF HAVING A COMMON COMPUTERIZATION AS DESIRED BY THE MAJORITY OF THE MFIs

We expect good results, and we send our appreciation to everyone who contributed to the success of this study.

 RUSANGANWA Aloys Expert in Microfinance and MFI Registered Auditor 

ABBREVIATIONS

ABBREVIATIONS SERVICEAG General AssemblyAMIR Association of Microfinance Institutions in RwandaAQUADEV Rural development organization from BelgiumBNR National Bank of RwandaCA Board of DirectorsCC Credit CommitteeCLECAM Coopérative Locale d’Epargne et Crédit Agricole MutuelCMF MicroFinance CooperativeSACCO Savings and Credit CooperativeCS Supervisory BoardICCO Dutch Rural Development Organization MFI Microfinance InstitutionRCA Rwanda Cooperation AgencySMGF Mutual Guarantee Company promoted by AquadevTerrafina An affiliate of ICCO supporting rural microfinanceUCMF Union of MicroFinance CooperativesSA Public Limited Liability CorporationSARL Private Limited Liability Corporation

I. INTRODUCTION

A. Purpose and content of this report:

The microfinance sector in Rwanda currently has more than a hundred micro-finance institutions which are at different levels of development. Taking into account their institutional and financial situation, MFIs operating in Rwanda are found in the following forms:

1. Savings cooperatives and credit unions (SACCOs);2. The "Limited Liability Companies, formerly known as limited companies

(SA) and Limited Liability Companies (LLCs);

Among these MFIs, 86 (72 and 14 SACCO Ltd.) are full members of the Association of Microfinance Institutions in Rwanda – AMIR. This is the professional organization with an objective of providing micro finance institutions with a variety of services allowing them to become more professional and effectively contributing to the poverty reduction in Rwanda. AMIR plans to accomplish the following in its four directions:

Representation and Advocacy for MFIs Capacity building of MFIs Research and Business Development Promotion of a condusive environment for the development of MFIs

including their systems development.

AMIR ‘s purpose in conducting needs assessment survey is to improve the coherence and effectiveness of its interventions to its members, which are already provided through its Strategic Plan 2009-2013 which are: capacity building, research and development, financial intermediation, development of MIS and the Central information. Needs assessment survey would achieve the following:

An analysis of needs and current weaknesses of MFIs members of AMIR in particular and microfinance sector in Rwanda in general;

To develop recommendations of which AMIR and other stakeholders in the sector will devise ways and means to support the needs that have been identified.MFIs are giving out the diversified products and services that are designed to meet the needs of the poor population and the public in general.

A proposal to conduct long-term study and a development plan releasing the information and data that meet the needs that have been identified;

A proposal for capacity building for the benefit of MFIs governance and staff members.

B. Methodological approach adopted

To achieve its objectives, the assessment started by taking a sample, where 22 MFIs members of AMIR were selected and a questionnaire was sent to them whereby18 (6 SA and 12 SACCOs) sent their responses (listed in Annex 2).This represents 25percent of the active members of Amir, a quota considered sufficient to allow an objective analysis that can be generalized to the whole.

In order to achieve these results, the following phases of interventions were completed:

i. Preliminary exchange meeting with AMIR management took place so as to have the same level of understanding of the expected results including better clarifications of the terms of reference of the study.

ii. Collecting and using relevant documents for analysis from previous years, descriptive narrative and financial reports of the MFIs and the industry in general were used to derive into the information included in the needs assessment report.

iii. Questionnaires were Prepared and sent to the MFIs, allowing them to identify their strengths, weaknesses, and r specific needs at all levels. The questionnaires involves those concerning with the sector in general and alternative solutions and support that respond to the needs. Therefore these covers all areas such as structural, institutional, financial and operational.

iv. There was a lot of work in monitoring and collecting responses to the questionnaire.

v. Another step was to conduct a preliminary analysis of questionnaires so as to elicit pertinent answers that may require more details.

vi. Field visits and contacts to the MFIs to discuss key aspects of each questionnaire were carried out so as to ensure the questionnaires are well filled and also collecting other information through personal interviews..

vii. Exhaustive counting of the questionnaire.viii. Key stakeholders in the microfinance sector (AMIR, Terrafina, AQUADEV, BNR,

RCA, MINECOFIN (Secretariat for the promotion of the financial sector) were contacted, to comment on the assessment results in order to obtain clarifications on their level of participation in the proposed solutions to the needs expressed.

ix. Preparation of draft report detailing the expressed needs both general and specific from MFIs was prepared including possible solutions and expectations expressed regarding potential partners required to respond.

x. AMIR managenet will organize workshop inviting the MFIs to, discussand comments on the contents of the draft report during a validation workshop which will be attended by the leaders of AMIR, representatives of the MFIs and other stakeholders.

xi. The Report will be adjusted according to the comments from the workshop whereby afterwards the final report will be prepared and officially submitted to AMIR.

C. Structure of this report

This is the part of the introduction of the report constituting an outline of all the results of the study, which is divided into four sections covering the following items:

A. The outline of the strengths and weaknesses of MFIs surveyed.B. The main needs as expressed by MFIs and its strategies.C. The summary of other expressed problems and needs and ways of finding

the solutions.D. The report contains different products provided by the MFIs surveyed.

The reports closes by a conclusion reminding the objectives pursued and the main results regarding the concerns that were the basis of the research, before expressing gratitude to all of those who took part in this exercise.

D. Background work experience

Reaching at the end of this assignment, and in respect of the mission accoded to us, we take this opportunity to appreciate the positive support, without it, this work would have been difficult. At first sight, we appreciate the trust manifested by AMIR mandating us to carry out this study, all MFIs members of AMIR who sacrificed their precious time to answer the questionnaire, big as it isthat covers the entire area of operation. This is also to commend to all leaders from the IMFs who took time to review and complete the questionnaires in order to make their needs or solutions more clear, Vote of thanks is accorded to all microfinance stakeholders who will join us to validate the preliminary assessment of the results collected and those who could participate and give their inputs at the workshop .

However, it is with regret that some institutionswere given the same questionnaire but declined to to give the response. It is also important to mention that the study planned for two weeks maximum but took over two months and half. This has significantly delayed the release of the study report that was scheduled at the end of March 2001.

II. RESULTS ATTAINED

A. KEY STRENGTHS AND WEAKNESSES OF MFIs IN QUESTION..

The following table summarizes the main strengths and weaknesses identified and recognized by the MFIs surveyed, the details for each of them is in the table in Annex 3:

No Operating Acknowledged % MFI Acknowledged % MFI

. range strengths members

weaknesses members

1 Deposits and depositors

Increase of deposits 55% Products not diversified

83%

Staff members increasing gradually

28% Low level deposit portfolio

28%

Products more or less diversified

5% Alarming drop in deposits

11%

Depositors in regression

11%

2 Other financialresources

Experience with support partners

50% Results of exercise stagnant or insufficient

50%

Net surplus varies positively

33% Lack of experience with financial partners

33%

Experience in the use of refinancing

22% Results of exercise with deficit

11%

Amount of capital with high increase

5% Unsuccessful experience with the use of financial support

5%

Level of total net worth/equity with high increase

5%

3 Human Resources

Senior staff well qualified and experienced

61% Lack of training plan /staff capacity building

22%

Personnel cost increasing slowly

5% Senior staff without sufficient experience

22%

Controlled increase of number of staff

5% Wage level too high 5%

Good visibility on human resource requirements

5% Staff turnover 5%

Low wages 5%Staff numbers do not vary

5%

Overstaffed relative to the level of exploitation

5%

4 Credit management

Continued increase of the loan portfolio

50% Products not diversified

83%

A good proportion of loan officers

22% The rate on credit risk not respecting BNR standards (5%)

77%

Portfolio at risk respecting the

22% Limited loan fund (loan portfolio)

44%

standardsIncrementally improving rate risk

5% Loan officers with low credit analysis skills

27%

Products more or less diversified

5% Inadequate number of loan officers

27%

Recovery system requires to be strengthened

5%

5 Governance (management bodies)

Board of Directors (BD) dynamic

50% Management structures not trained

61%

Regular holding of the General Assembly (GA)

44% Accounting system and loan tracking system not computerized

33%

Credit Committee (CC) dynamic

44% Procedures manual not adapted

27%

Procedures manual adapted

39% Supervisory Board (CS) not sufficiently dynamic

22%

CS dynamics 33% Staff Rules non-existent

5%

Board members have received trainings

11% Not yet acquired legal personality

5%

Several members of organs with sufficient experience in microfinance

11% Too many turn-over at the executive level

5%

CC not dynamic enough

5%

6 Information System Management

Computerized accounting system

50%

Loan tracking computerized

50%

Beginning of computerization or partial computerization

5%

7 Means of transport

Means of transport sufficient

17% Absence or inadequacy of means of transport

39%

8 Control System

Has an internal audit service

55% Internal audit staff untrained

33%

Regular external audit 17% Absence or insufficient production control report

11%

Had at least one inspection of the BNR

5% Without Internal Audit Service

11%

Sufficient monitoring 5% Absence of external 5%

reports are produced control when it should

Referring to the assessments made on 18 MFIs that responded to the questionnaire, we can generalize the results contained in the table above by holding that:

a. Strength of MFI members of AMIR:  55% experience encouraging growth in deposits, 50% has support from development partners, 61% have a senior staff equipped with skills and good experience, 50% have sustained growth in their loan portfolio while management bodies are 50% dynamic and operational. 50% have accounting systems and computerized processing of the portfolio and 55% already have an internal audit services.

b. As major weaknesses, both products of credits and savings are not diversified (83%), results of the exercise (net deficit)are not enough for more than 50%, no training plan for the staff or board members at most 50 %, 77% have a high portfolio at risk that not meet the standard of the BNR set to be below 5%, a limited loan fund equal to 44%, lack of means of transportation, especially for the supervision of credit equal to 39% and internal audit staff have largely unable to benefit from specific training in the area of audit

B. KEY NEEDS EXPRESSED AND PROPOSED SOLUTIONS

As noted in the responses from the questionnaires summarized in annex 3, deducted from weaknesses mentioned above, the top ten needs expressed by the majority of MFIs surveyed deserves more attention and a ways of implementation should be discussed further.

a. The ten major needs:

1. Additional training in all areas of operation and for all MFIs Board members and staff.

2. Non-diversified services and products across all MFIs surveyed.3. Lack of suitable refinancing in terms of accessibility as well as emergency

funds that can quickly support the MFIs’ operations in difficulty.4. Maintaining of the regular exchange visits between MFIs, governance and all

other categories of staff.5. Organization of the study tours for professional enrichment, both within and

outside the country.

6. Redtape procedures and slowness of judicial procedures in recovering defaulted loans and enforcement of judgments relating thereto.

7. 50% OF MFI’s MIS systems are not performing well .8. Procedures manuals not completed and inclusive lacking follow up on its uses

in implementing the MFIs activities.9. Members or clients are not educated in advance before granting credit and

other microfinance products. This call for reinforcement of the clients financial education especially for those applying for the first loan, although this will increase the operating cost of the MFIs.

10.Lack of professional internal audit services and regular tracking system that would identify on time the gaps in management and the nature of support to overcome the challenges.

b. Proposed main strategies as ways of meeting the main needs:

Following the discussions with the representatives of the MFIs surveyed gave their opinions and expressed requirements used to formulate the following strategies that are strongly supported by MFIs and believed to solve most of their weaknesses.

1. ESTABLISHMENT AND MANAGEMENT OF A TRAINING CENTRE FOR THE BENEFIT OF MEMBERS OF AMIR.

Through the needs expressed by all MFIs surveyed and the potential solutions they unanimously proposed the importance of establishing a training center.

The opportunity.

Indeed, all 18 MFIs responded to the questionnaire expressed a great need of training for their staff, members of the elected Board of directors and their customers. Therefore, some training topics were proposed in order of its importance as presented below (Tables in Annexes 4 and 5):

a. For staff:

o Management and credit administrationo Accountingo Risk Management

o Internal Audit (role, methods and tools)o Credit Management in generalo Good governanceo Project analysiso Financial Analysiso Planningo Fraud Detectiono System and computer processingo Product Developmento Bankingo Training diplomatso MFI marketingo English / Frencho Delinquency Managemento Customer Careo Audito Reportingo Relationshipo Advice / legal concepts

b. The training needs of the members of governance:

o Good governanceo Management and administration of risk / credit managemento Elements of financial analysiso Roles and tasks of different functionso Business Plano Internal Controlo Introduction to Microfinanceo Project management (training of beneficiaries)o Complementarity of the management bodieso Institutional marketing and producto Procedures Manualo The functions of the managero Product Developmento Notion of legal knowledge and practices to monitor court caseso Budget implementation and monitoringo Banking operationso Relationshipo Customer Careo Advocacyo Learning languages (English and French)o Structure and management of solidarity groupso Monitoring and control of executive actiono MFI Organizationo Personnel Management

c. For clients / members:

o Introduction to savings and lending programs;o Analysis of income-generating projects;o Basic management of projects;o Credit Management;o Dynamic cooperative;o Managing solidarity groups

In fact, the microfinance sector in Rwanda is still in its start-up phase,that is all microfinance institutions operating are still learning. Many technical experiences are at their initiation step. 

It is rather very logical that trainings should be provided including all domains in operations. In response to this, development organizations like TERRAFINA , AQUADEV and Network of microfinance AMIR, have organized several training sessions in some disciplines in the last three years. However, the extent of needs are immense that long-term training program needs to be developed.

Moreover, another issues observed is high turn-over of MFI staff, especially with the highly skilled jobs. Managers, loan officers and Accountants commonly leave such MFIs to be hired in other MFIs, because of the promise that the salary will be raised up by a certain percentage. For instance many staff members of MFIs moved to Umurenge SACCOs after knowing that the salary of a Manager will be fixed at Rwf 150 000. This is not surprising, given the fact that most of these MFIs were still operating at a level allowing only a salary of about one third of the Imirenge SACCOs. This high turn-over will always create the need of continued capacity building of new recruits.

The nature of turn-over of members of the governing bodies elected of SACCOs may not be ignored. It is important to note that SACCOs represent around 90% of the microfinance sector and 84% of the members of AMIR. There is a need to plan for board member’s training for each newly elected board in order to satisfy the need at any appropriate time. This need is amplified further by the fact that the elected officials are oftenly people without qualifications or limited technical experience and that most have low level of education

The importance of training is obvious considering that the majority of the Rwandan population do not have credit and savings culture. However, knowing the importance and delicacy of credit management, it is absolutely essential to collaborate effectively with financial institutions. A training program should be promoted, and AMIR in collaboration with partners has already tried to share

experience and enhance the benefit of the financial institutions in general and the MFI in particular.

The main tasks is to ensure that the identified training needs for staff members, leaders and clients, requires systematic plans in providing all the themes as implied in all aspects of functioning within MFIs throughout the year. Thus, during different periods, the MFIs can plan to train managers, directors, accountants, loan officers, recovery officers, organization and supervision; cashiers, inspectors and auditors.  Similarly, for other occasions during the same year, members of the Boards of Directors, Supervisory Boards, and other committees will receive training accordingly.

A pool of staff members from the same MFI, some number of staff required for the task, should be selected and prepared to accompany the initiation as trainer in various fields of interest (as mentioned above).

Its location:

AMIR as an umbrella organization of the MFIs has capacity building in its scope and mandate.  However the proposal for training centre will fit in well within AMIR’s responsibilities and hence should entirely manage and control the centre.

Nevertheless, AMIR should take care to have this training center located far from major urban centers such as Kigali, so as to have an advantage of having good climate for concentration during the training sessions. From experience, not only are people disturbed by telephone calls sometimes instructed to go back to work to fulfill their daily tasks, but also, even those from remote locations find an opportunity to do other businesses outside the training.

Finance for the Training centre:

Initiatives for the promotion of training center should be the responsibility of MFIs and development partners and stakeholders. Other partner’s especially international and domestic organizations, bilateral and multilateral will be requested to support the establishment of the training centre. 

Managing such a center, AMIR could benefit from specific interventions from partners through technical support basically during the initial stages of its development. AMIR will as a result achieve its sustainability objective by benefiting from the income earned from centre’s training activities.

However, at the beginning some MFIs will be interested but will contribute very little in terms of the cost. This is the reason the centre will need financial support for at least the first 3 years. Later the MFIs will be told to pay for any services they will require from the centre. This will include educating the MFIs on the culture of the management of all of the training centre costs.

Relevant experience:

Learning from other training centers in Africa such as KUSCCO in Kenya managed by the Union of Savings and Credit Cooperatives  Or from Senegal where such centers are successfully running different tailored courses related to the microfinance. Team of people who will be involved in running of the center should make a study tour to these countries to learn from their experience.

OPPORTUNITY TO GET A CENTRALIZED INTERNAL AUDIT SERVICE FOR THE BENEFIT OF MFIs

Constraint attached:

Article 37 of Law on the organization of microfinance activity and Article 22 of Regulations No. 02/2009, requires that all licensed MFIs should have Internal Audit Services to ensure the conformity and effectiveness of internal control system and report the performance of its duties to the Board of Directors of the Institutions.

Moreover,to establish internal audit function, t requires sufficient qualification and experience in the audit field. To be effective, it would take at least one staff with a University graduate in auditing, management, accounting or other related field and relevant experience of at least three years.

However, It is difficult for small MFIs particularly Saccos to afford hiring internal auditors as they cannot afford the high salaries.  A small survey conducted during this study found out that a salary of around Rwf 300,000 would meet the job requirements.

Audit function is enormously big and important in practice and therefore , it is no longer possible to have only one internal auditor. It's a job that requires a continuous exchange between the actors in the case of internal controlled and self-help in reasoning procedures to identify errors and to prevent malfunction. In this case it is obviously that there is the great need of centralized audit services because small MFIs operating individually, with a limited number of service points, could not afford the fair audit services internally, unless adopting the option of sharing the costs with other MFIs located in the same operating area. Discussions to this effect have also concluded that an internal audit department consisting of two or more people could be considered by an institution operating from 6 service points (branches or ATM). At this level, the two auditors have enough activities to handle consistently and effectively and affordable in terms of cost limits.

Intervention framework of AMIR:

The study depicted the fact that it is appropriate in this context to distinguish three categories of MFIs:

a. MFIs operating in large networks. This is the case of Saccos incorporated in Unions.

b. Individual MFIs in a wide range of operations with agencies and branches covering more than one District . This involves most MFIs with Public Limited Liability Corporation status and some SACCOs with large scale.

c. MFI of modest size covering only close range or with few tellers

The first and second category is able to afford employing their own internal audit system since they are financially strong. They have management capacity to develop a suitable independent Internal Audit Service to serve all their sub-structures or their member institutions (in the case of Union SACCOs).

However the third category in turn, must considered a common audit structure to enable them to benefit from internal audit services required by sharing the costs of its management. Amir was found competent and in good position to promote a centralized internal audit to satisfy the latent need experienced by small MFIs and Saccos that have no means of developing their own internal audit departments.

Elements of the centralized audit service

a. The Internal Audit Service should be established as a Department in AMIR and be at a level of paying and attracting skilled and capable people.

b. The centre should establish an annual schedule of interventions for comprehensive controls for at least one visit per institution per quarter.

c. Any institution of the third category may also request Internal Auditor services depending on its needs and the possibility.

d. To fulfill the the missions planned by the AMIR Audit Service a package of fees divided equally over all MFIs under its control would be billed annually and may be paid in quarterly installments in advance to allow the same service support the f tasks to be performed as early as the beginning of the year. The remuneration of staff of the Service would be included in such billing.

e. For additional missions ordered by each MFI member, such assignment will bear all other expenses related thereto; a statement of charges will be submitted at the end of each mission.

Institutions whose financial health would not easily support such costs, AMIR will assists in the identification and in approaching donors that can support during the first two or three years.

3. PRODUCT DEVELOPMENT AND ASSISTANCE FOR THEIR IMPLEMENTATION AS REQUESTED BY ALL.

A historical background:

All MFIs that responded to the survey supported the need for assistance developing various products although they are at different levels of development. Whether SACCO or Public Limited liability Corporation, large or small, almost all reported on the need for product development.

Indeed, we do not hesitate to say that microfinance in Rwanda didn’t start well, for two main reasons:

a. Over ninety percent of MFIs started by the initiatives primarily from local leaders with no qualifications or experience in financial management, which is necessary for consistent management techniques.

b. As a result of lack of a sufficient range of practical knowledge nationally or locally then, products and management processes were only "copy and paste" trade credit. The first MFIs initiatives were made in urban areas, and the approach of savings before credit were adapted as a model copied from Bank poplar of Rwanda, which was the first player in Rwanda market from 1975.

All MFIs that were launched at the end of the period of genocide that includes the Union des Banques Populaires operated with only the same product and similar procedures. There were no references to anything on the various needs of the specific groups. This is the same financial products applied to date that calls for marketing research that will identify the customer wants and preferences, which will be used to develop products tailoring to the exact needs of the market demands.

One approach system advocated:

The appropriate solution would not to repeat the error of "cut and paste" and it becomes necessary to seek a lasting solution through using a market approach, the only guarantee of clients-led products that can better meet the needs actually felt by the target group.

This would be conducted in three main steps:

a. Conducting national market study that would identify the needs expressed by different segments of the population throughout the territory and the products and services currently provided by existing institutions.

b. Consider products and services, which correspond to the characteristics of different strata of the population according to the findings from the national study. Existing Experiences from domestically of from abroad would be advantageously exploited for this purpose. 

c. Another step is to help each MFI to develop and adapt its products to the target group's mission and in its specific context depending on its location, its implementing capacities.

A project for a period of 3 to 5 years will be started, to perform and work on all the steps necessary for the efficiency of the sector which will eventually lead to poverty reduction with the sustainability of actions.

The following are steps required for smooth running of the product diversification project for the MFIs:-

1. An exchange workshop to discuss different scenarios for organizing of the project should be conducted with wide scope nationally, comprising of representatives of the MFIs. Various resource persons to enrich the debate should be invited including consultants involved in the survey, representatives of sector partners and other stakeholders.

2. A consultant with mandate to produce the market research report will exploit the ideas from the workshop to harmonize the program or schedule of work to achieve the desired results. This program will incorporate the MFIs at different stages in data collection on the ground so as to reduce the costs of the survey..

3. The workshop will appoint a steering committee from the MFIs who will work in collaboration of AMIR Representatives to approve and monitor the progress of the survey activities.

4. The first step in launching the study itself will be the training of MFI staff at different stages who will be involved in the study.

5. AMIR and the consultant will coordinate and implement all activities according to the schedule of the study and to ensure the interim study report is produced on time planned.

6. The draft report will be sent to the same people gathered during the initial brainstorming workshop to receive comments in preparation for the workshop to present the results of the study. Market needs evaluation of existing products will be done as part of the exercise giving the proposal on the improvements to be made and the recommendations of the new products development and their main characteristics.

7. The workshop to validate the study results will compose of all persons who attended previous sessions and all other current and potential stakeholders as deemed appropriate in light of various scenarios identified by the study.

8. Consultant should then finalize the report in light of the comments and suggestions from the workshop.

9. A workshop on product development and adaptation to the specific context of each MFI will be held and will allow making an action plan under the coordination of AMIR.

10.Resources both human and material will be acquired to the effective launch of the project.

11.A six-monthly review of the project implementation progress will be scheduled in order to follow the evolution of loan product development and their implementation to the needs identified.

12.There will also be an evaluation at the end of the project that will analyze, in conjunction with the implementation of activities under the program, achieving the desired impact in different layers of the target group.  The final evaluation of the project will be instituted in order to assess the outcomes vis-à-vis the expected results. The related report will also be discussed to decide whether to extend the project or to declare it closed and therefore plan the period after the project,

4. AMIR AS A "PLATFORM" OF EXCHANGE AND COMMUNICATION FOR THE PERFORMANCE OF THE MFI SECTOR

Among the major attributions of Amir as a national umbrella organization of microfinance institutions include the role as platform for exchanges between MFIs and other MFIs from other countries. This involves also advocacy with Government and its agencies together with other supporting organizations.

This study, however, helped to find out major improvements to be made in this framework:

a. The meeting between MFIs takes place at least once a year during general Assembly with an agenda sufficiently to discuss on internal institutional problems coordinated under AMIR as an autonomous institution. However, that still does not leave any margin of time to share problems and operating environment between MFI members in order to draw important lessons and help each other although it is important target platform for MFIs.

b. MFI staff, or indeed their Board of Directors, didn’t found any opportunity to meet and discuss the problems and conditions that are exclusively related to their roles within their institutions. This would have leveraged by others in finding solutions to problems experienced by some MFIs using circumstances in response to their specific nature of challenges. MFIs should exploit local potentialities before believing that any capacity building can come from outside or from the government. A gradual maturity level of function was the direct impact expected from the lesson learnt.

c. AMIR is benefiting from support from some donors and Government to strengthen AMIR members. MFIs with no support from donors are suggesting having AMIR’s assistance in connecting them to the potential funders. These are the same MFIs that have never benefited from any financial or technical support from any stakeholder.

Proposed Strategy:

Following the observation mentioned above by MFIs ,they propose that AMIR should call regular meetings where all targeted stakeholders would meet the MFIs. This can be planned as according to the following table:

No.Organ or function Frequency of meetings

Location

1. General Assembly Annual Chairman or deputy National but rotating by province and city of Kigali

2. Boards of MFIs Semester Board Provincial with a half-yearly report sent to national synthesis each MFI and a provincial

committee to monitor the recommendations of all other bodies composed of three members who meet at least quarterly.

3. Supervisory Boards of MFIs (for Saccos and others who have)

Semester Office of CS Provincial

4. Credit committees of MFIs (and similar)

Semester Office of CC Provincial

5. Directors / Managers Semester All National rotating by province.

6. Accounting / Financial Quarter 1 by MFIs rotating Provincial7. Staff (responsible for

management, supervisors, credit officer, recovery agents, facilitators)

Quarter 1 by MFIs rotating Provincial

8. Cashiers (Treasurer, Chief Cashier, Tellers, ...)

Quarter 1 by MFIs rotatable Provincial

9. Presidents of MFIs and Donors

Half 1 by MFIs and donor representatives

National (see the possibility of rotation to provinces)

10. Presidents and administration (District, RCA, MINECOFIN and BNR MINALOC)

Annual 1 by IMF representatives and administrative bodies

National rotating by province.

11. Auditors and other consultants to the IMF and AMIR

Annual All National rotatable by province.

11. National Monitoring Committee following Recommendations (including bi-annual monitoring of performance is submitted to the Board for AMIR decisions and follow-up provincial committees for information)

Biannual 1 by Provincial Monitoring Committee, 1 donor, CS 1 of AMIR, 1 Director / Manager, 1 consultant, 1 of the Administration by becoming president of sales and 1 AMIR becoming Secretary.

National

Management of Information Center:

AMIR will ensure dissemination and circulation of all relevant information which may assist all stakeholders in general and the MFI members in particular.

This service could be exercised by creating and regularly updating "A Website" ,This should be continuously check to have all the latest information about the sector development, the main research findings, key recommendations from seminars / workshops on areas relevant to the subject in motion.

5. ESTABLISHMENT OF A REFINANCING FUND EASILY ACCESSIBLE TO MFIs MEMBERS OF AMIR:

Major reasons and its opportunities:

a. All 18 MFIs surveyed expressed to be in a great need of refinancing due to the volume of loan applications pending to be funded.

b. The Fund mobilized by government that was entrusted to the BRD, according to MFIs, the fund is inaccessible due to the conditions attached to it. The interest rate varies from 10% to 12%and there is requirement of real estate collateral that most of MFIs don’t have. This includes fixed funding rate from deposits collected (20% of deposits from the requesting institution) hence providing an amount less than the MFI needs. The applicant must not have portfolio at risk (PAR) exceeding 5%, no matter what improvements could be made at the time of application.

c. The refinancing fund of called “Société Mutuelle de Garantie et de Financement – SMGF SA “promoted by the Belgian development agency "AQUADEV" does exist charging the same interest rate as BRD. The applications remains limited in its refinancing given the limited funding capital the facility possessed.. Thus, it can only refinance operations less than 100 million. This fund provides guarantee to MFI loans from other commercial banks thus favor’s the interest of the MFIs. Their intervention approach and analysis is also more close to the MFI and other opportunities nationally and internationally.

d. The BPR used to lend to some MFIs, BPR was charging an interest rate ranging from 16% to 18% depending on the experience of the applicant. Irrespective of the interest of 14% usually reserved for projects with high priority, it is difficult for MFIs to get an opportunity to get loan at a rate of 14%.

e. Other commercial banks in place still practice higher rates than those reported above.

f. In addition to the rate of the interest of the refinancing, there are other additional commission charges to study the file which varies from 1 to 2% by lender. This makes refinancing cost too high for the MFIs in addition to other expenses related to their operations.

Possibility of AMIR accessing to such intervention:

In order to enable MFIs members of AMIR accessing to a refinancing fund which they feel a great need today, two ways are proposed:

a. MFI members of AMIR accessing SMGF refinancing facilities.

At the time this study was conducted, we were informed that the SMGF intends to increase the capital base of the funds. It is therefore an opportunity for AMIR and its members to take ownership of this opportunity as per SMGF’s mission that says “: "SMGF helps raise the population's access to financial services through the mechanisms of Microfinance Institutions, providing microfinance facilities to access resources to refinance their loan portfolio. "

The advantage of MFIs in Participating in the Capital formation of SMGF will give MFIs an opportunity to take part in determining the terms of refinancing that would be most suitable to their needs.

So it's a great opportunity to exploit as SMGF, already at 520 million in capital, will soon reach 600 million by the agreement in principle expressed by one of the existing shareholders to raise its participation slightly. But SMGF would like to be positioned quickly at the level of Microfinance Banks with capital of at least 1.5 billion.

AMIR and r its MFI members could seek through equity or assistance from their support partners, between 0.8 and 1 billion to acquire the new shares that the SMGF may start selling. This is the discussion we had with the director and the President of this Society.  SMGF is well open to a new integration with other actors in the sector as it is supposed to serve the MFIs.  Aquadev would not take bigger share holding position as confirmed by the President of SMGF saying that AQUADEV’s Objective in creating SMGF was to promote microfinance sector, not profit oriented.

By adopting such scenario, the process of incorporation of funds for refinancing as desired by the MFIs would be achieved quickly and would take advantage of SMGF experiences of one year and a half in the refinancing field.

b. Establishment of a new fund specifically for refinancing MFIs members of AMIR:

Another scenario discussed is for MFIs to have their own refinancing facility managing and controlled by them. MFIs appreciated this scenario than the previous one. This assumes, however, a new microfinance company to be formally created to host and manage the funds, hence complying with the provisions of Law No. 45/2008 of 26/08/2008 establishing the organization of Microfinance activity, particularly the content of Articles 6 (Category 3 MFI legal form SA may collect savings) and 7 (category 4 MFI SA and SARL providing only credit).

AMIR in its current status, under the status of professional organization, would not be entitled to manage the refinancing funds, because it is contrary to the

regulations that recommend s, for such activity as the company is established as financial institution.

A company would be launched, to provide refinancing service , it would be more convenient as it can be constituted under category 4 (SARL), which has flexibility in its operation as prudential standards are limited because of the non-management of public savings.

Another phase is to start a process of institutionalization of the company that is clearly drafted and brought to an end, starting from feasibility study to acquire its legal personality and its approval by the BNR through the subscription and payment of the capital.

A minimum capital will indeed be released though under the SARL form, no limits are set so far, which is not the case for the SA form. In case the S.A preferred would require a capital of 1.5 billion into Microfinance Bank or 5 billion to act as ordinary commercial bank. The two forms have in common the advantage of allowing the collection of savings, while the first category under SARL limit granting of loans / refinancing of up to five million Rwandan francs only.  However the challenge is that, refinancing expected by MFIs members of AMIR, exceeds the quota of 5m.

AMIR members have an opportunity for launching the company to manage the refinancing fund that would solve the problem of funding by AMIR members. AMIR should make a choice between legal forms SARL, SA (MFIs), SA (Microfinance Bank) or SA yet (Commercial Bank). The information mentioned above would facilitate the choice.

Nevertheless, there is a concern for Capitalization of experience in carrying out the activity, thus may be initially may launch limited liability company, and an plan for growth and gradually transforming into commercial bank type in the future..

Mobilization of capital:

Whether in the case of participation in the SMFG, or in the case of the creation of a new refinancing company, it is necessary that AMIR and its members raise funds through the acquisition of equity shares. AMIR will ensure the facilitation and coordination of the formation of the refinancing facility.

a. It is considered more dynamic and fairly representative that AMIR participates with all other MFI members to the raising of the capital.

b. The share is set at a level accessible to most members of MFIs (SMFG share is Rwf 20.000).

c. Support Partners would be approached by AMIR to support the interested MFIs to raise funds for the acquisition of shares that may be difficult to obtain by some of MFI members with little financial capacity. It is ideal to have all

MFIs to participate in the refinancing company. This applies also for AMIR for the provision of funds which AMIR might need for this purpose.

d. Corresponding to the originality and referred to the fund to be raised, the government should participate not only in booking a budget allocation instead it could decide to channel the refinancing funds entrusted to the BRD through this facility. The board of director of the refinancing company should have representation from BNR, MINECOFIN or RCA to its Board of Directors.

Mobilization of additional funds for refinancing:

In order to satisfy the maximum funding needs of MFIs the refinancing fund should be more than the amount of the share capital of the company. It is essential that investors should be invited to join hands with MFIs to build up the sufficient capital for the refinancing facility. There are social investors that are involved in the development of microfinance sector may be approached and asked to be generous enough to establish the refinancing Fund for it is has big l impact in the poverty reduction.

To estimate the volume of funds useful, we start from the 18 MFIs surveyed contained in the following table:

No.MFI Capital to 31/12/2010

Deposits to 31/12/2010

Equity to 31/12/2010

CAF iSong 321 550 000 309 046 725 222 435 259SACCO COMICOKA 52 320 000 208 771 937 105 794 645SACCO INKUNGA 15 519 300 1 580 34 312 137 277 971SACCO Ishema Murinde

11 970 022 22 467 705 1 1974 219

SACCO IIT 10 008 000 85 156 366 103 759 894SACCO Ubaka 19 526 100 335 571 323 146 283 911SACCO ZAMUKA 20 582 100 42 572 338 2 309 870COOPEDU 126 560 000 1 939 404 645 904 783 823COSHEN SA 461 908 566 2 039 288 082 590 797 042CT Muramba 22 577 788 85 166 958 37 639 536DUTERIMBERE SA 379 434 080 744 918 390 1 659 297 260INKINGI SA 785 000 000 135 102 4215 316 296 415SWOFT SA 320 992 073 127 825 398 248 579 716UCMF UMURIMO 48 597 200 87 386 456 95 300 044UMWARIMU SACCO

395 624 447 4 115 802 470 2 956 264 459

UNICLECAM EJOHEZA

82 572 816 390 894 926 242 058 820

UNICLECAM WISIGARA

131 549 481 409 727 961 159 384 218

VFC SA 1 355 340 121 262 027 501 1 270 765 983TOTALS 4 561 632 094 12 715 087 708 9 211 003 085

Some assumptions :

Any MFI should seek refinancing to comply with the standard net equity of 15% of total assets.

Considering a basic structure of the liabilities that would be established that (1) equity, (2) deposits and (3) funds for refinancing, and using a little algebra [FP 1 = 15% (D 2 + Ref 3)], we obtain, using the totals of the previous table, a capacity request to refinance 61.5 billion if we only consider the standard of equity . This amount is the proposal for the upper limit of any fund to be established.

It would also be logical, especially at the outset, to consider that no MFI will require the refinancing of most of its capital. The total for the 18 MFIs surveyed constituting 20% of members of AMIR, which is 4.5 billion. The total Fund predictable for all 86 members is expected to be 22.5 billion Rwf.

Considering that this amount would be substantial enough to finance the sector, and most importantly, it would be unlikely to mobilize the whole amount at the same time as it is the gradual process, it is assumed that all MFIs will not apply for funding at the same time. Therefore while others are repaying the installment others are applying and taking the funds. This would not need to retain funding worth ¼ cap calculated based on a quarterly rotation, at least, during the year, which will not necessitate to raise the amount with total loan of 5.6 billion We give the flexibility to mobilize funds to the subsequent installments of 22.5 billion within five years after assessments and repay it at the end of each accounting period.

The accumulation of the calculated maximum ceiling of $ 61.5 billion would be accrued beyond the first five years of operation, because still the rotation of funds between the MFI beneficiaries through regular payments will be progressing as planned.

6. PROVISION OF A STANDARD PROCEDURE MANUAL AND SUPPORT FOR ITS ADAPTATION

This finding is expressed by all microfinance actors we mate. This seems rather unusual because everyone considers it to be a simple problem that they never care about. The current procedure manuals were prepared at the request of BNR registration approval and were used just for that purpose. Since then MFIs do not make use of the procedure manuals though they are very basic documents and essential tools for effective management.

The important consideration for Amir and other partners is to explain and sensitize the mandatory role of using administrative and financial procedures manuals. In parallel, there must be a model procedure manual developed to be adapted to each MFI’s context operation environment. By doing this the MFIs will eventually use the working manuals during their daily activities be in the field or in the office.

For example, here are the main areas that any procedures manual should at least describe in detail:

I. GENERALITIES

I.1. INTRODUCTION

I.1.1. Purpose of the procedures manual

I.1.2. Structure of the procedures manual

I.1.3. Management and adaptation of the procedures manual

I.2. PRESENTATION OF THE MFI.

I.2.1. Mission and Organization

I.2.2. Target group

I.2.3. Institutional Partners assessed

I.2.4. Types of regulations governing the MFI

II. ADMINISTRATIVE AND FINANCIAL PROCEDURES

1. ADMINISTRATIVE ORGANIZATION

1. Organizational chart2. Opening of branches and service counters3. Job Descriptions4. Specific committees and commissions in the management of the MFI

2. PERSONNEL MANAGEMENT

1. Key processes2. Duties, prohibitions, incompatibilities and responsibilities3. Recruiting4. Ranking positions, functions and classes5. Schedule of wages and other employee benefits6. Working conditions7. The separation8. Of staff appraisal9. Salaries, allowances and other benefits10.Disciplinary Action

3. FINANCIAL MANAGEMENT

3.1 Financial Management: Key processes

2.3 Accounting System at Headquarters

3.3 Principal Accounting Headquarters

3.4 Accounting system in the Agencies

5.3 Optimal allocation of tasks by the personnel available to the Agency

6.3 Consolidation of financial statements of the institution

3.7 Closing of financial year

3.8 Management of decentralized bank accounts

3.9 Limits of cash authorized for Agencies

3.10 List of authorized signatories for bank accounts

3.11 The management of liquidity

3.12 Sources of Liquidity

3.13 intermediation between Agencies

3.14 Authority to commit funds

4. MANAGEMENT OF SAVINGS

4.1 Concept Savings

4.2 General principles of management of savings

3.4 Basics of strategic mobilization of savings

4.4 Characteristics of savings management

4.5 Conditions for opening and closing of savings account

6.4 Variety of savings products

5. CREDIT MANAGEMENT

1.5 Key areas of credit management

5.2 Organs involved in credit management

5.3 Guiding Principles in the management of appropriations

4.5 Beneficiaries of funds

5.5 Principal methods of crediting in force

5051 Listed funded

5052 and offered guarantees required

6.5 Stages of analysis of lending

The 5061 credit application

The 5062 selection of borrowers

5063 The analysis of the application of credit

5064 Proposed terms of the credit

7.5 Steps for setting up credit

5.8 Management of lending

9.5 Specific credit to solidarity groups

5091 Creation and development of solidarity groups

5092 Summary of specific characteristics of groups of solidarity

5.10 Nature of appropriations staff

5.11 Other specific credits developed

6. SUPPLY MANAGEMENT AND STEWARDSHIP

1. General Principles2. VEHICLES FLEET MANAGEMENT3. Price movements in private4. Managing office supplies5. Procedures for acquiring goods and services6. Management, maintenance, and repair of equipment, furniture and

buildings

7. RELATIONS WITH SHAREHOLDERS AND CLIENTS

1. Relations with shareholders / members2. Relationships with customers3. Terms of coaching participants in institutional meetings

8. PARTNERSHIP

8.1 Partner, agreements and conventions

9. PLANNING AND BUDGETING

1.9 Practical Planning and Budgeting

10. MONITORING ACTIVITIES AND BUDGET

10.01 Monitoring of implementation of activities and budget

11. EVALUATION OF ACTIVITIES

11.01 of the evaluation

12. CONTROL

12.01 Terms and conditions control

12.02 Function of Internal Inspection Service

13. LITIGATION

13.1 Principles of Litigation Management 

7. ADVOCACY FOR A SPECIFIC LAW ON THE LEGAL ASPECTS REGARDING CREDIT

In recent years, legislation and regulations specific to microfinance activities were enacted as a result of concerns expressed by the actors in microfinance sector.

From beginning there has been exchange of ideas on various specific issues concerning microfinance sector compare to the rest of the financial sector made up largely by classic banks. National Bank of Rwanda, from its supervising role, took it seriously and has coordinated several feasibility studies leading to the Law No 40/2008 of 26/08/2008 on the organization of microfinance activities. 

Today, all MFIs claim to have difficulties related to the slowness of legal proceedings against their debtors and enforcement of judgments related to different convictions, which is quite understandable, considering that most of their loans are short term. In case of failure to repay the loan, in general, until three months after at least one term, the MFI is forced to wait for a trial that can easily take a year before a decision is taken and after once the ruling is made wait for loan period before the ruling is executed. Therefore the whole process can take two years or more for a loan that should be repaid within three months.  

The cost of managing such a credit, increased by the very nature of specific services rendered to its clientele. The small size of projects financed suggests that the government and other authorized partner should be concerned about the possible introduction of any facility to secure the loans. Otherwise, the MFIs face

with increase of the operating expenses, financial losses that may slowdown the mission of fighting against poverty. It would therefore appropriate for a judicial reorganization, to make it conducive and possible for trials and execution of their judgments to take as shortest time as possible. 

MFIs are proposing “a special office” open for MFIs at each commercial court and the institutions such as the nearest "Abunzi, the village committee-Umudugudu “can be empowered to reinforce judgments rendered by them. 

It was also suggested to analyze the possibility of granting, through the same restructuring, the capacity of bail for either staff of major microfinance networks such as AMIR (for small MFIs). 

8. LOCAL RATING UNIT

Opportunity: 

Rating is a tool for self examination at a certain stage of the life of any institution that call for in depth assessment and views by external people and in the process identify its strengths and weaknesses on the one hand, and make a comparison with others in the same sector. 

Although it is highly useful for any institution eager to reach its performance, the intervention of outside experts is too expensive, so we can think of acquiring their services if:

a. We reached a significant level of business providing sufficient capacity to fund from its operating surpluses;

b. There is funding partners to cover its cost;

Apparently the use of rating firms would not be within reach of small MFIs that do not generally have financial support. Even when they can benefit from some support, their operational needs are so many that they usually concentrate on the basic needs.

The biggest challenge that prevents MFIs from using the rating is not bound to its appropriateness, or importance, or indeed the willingness of leaders, but more related to its cost. 

The strategy to solve this challenge is to seek ways to provide the same service or at least a comparable service on small scale, but progressing slowly. This is particularly the fact that some leaders of MFIs interviewed suggested that AMIR can create a local rating unity which will be continuously be improved thereafter, especially through collaborative relationships and support with specialized rating firms that are internationally recognized. Large institutions would continue to acquire the services from international rating firms. 

Funding

MFIs proposed some possibilities of the rating funding managed by AMIR for the benefit of MFI members:

a. Among MFI, some can afford the services of international rating firms. They will continue to do so.

b. All those who cannot bear the cost, can take advantage of the services from AMIR rating unit, but as long as they adhere to and make an effort to ensure that external support is declining while at the same time making AMIR sustainable. Thus, AMIR may benefit from the rating by paying a real cost-sharing tasks pertaining to the first year 25%, 50% the second year and 75% the third year. Support would be full (100%) from the fourth year of the Unit.

c. Initial funding for the establishment of the RATING SERVICE would be fully supported by the support of industry partners.

d. Support from outside of any operating deficits should be provided until the fifth year. So that by the sixth yea, AMIR should be able to cover all its costs by billing entities served. This, in the sense that AMIR experience will grow progressively through mastering of the field, internships and training of staff. This will substantially reduce operational costs, along with MFIs that will be ready to pay for the services because they will require competent rating serves and pay the equivalent of services rendered.

e. Staff recruitment will be based on criteria of competence covering all areas of operation of MFIs.

f. Intensive training of short duration (inside or outside) will be carried out in staff orientation program were they will clarify the scope of their duties, the ethical rules pertaining to the methodology of intervention, structure and content and reports to be produced.

9. CREATION OF FUNDING SUPPORT AT AMIR

Besides the unfortunate case of MFIs closed by BNR when they collapsed due to insolvency, the sector experiencing the start of the liquidation process of Coopec IRIBA shortly after that of UCT. According to the information about some MFIs taking into account the financial situations exhibited by some, the difficulties are still prevailing. Some believe that it is appropriate to strengthen the mutual fund that enables the creation of a professional association to defend its members by setting up a fund to support MFIs in difficulty which would be managed by AMIR.

Thus, any IMF facing insolvency or year-end deficit will apply to the management committee responsible for analyzing whether the circumstances are so serious as to require its intervention. The fund would be engaged in only where the Boards of the MFIs had nevertheless tried to follow the recommendations that have been given by previous assessments. This will be facilitated by the criteria and procedures which following the regulation to be adopted in the preparation of its launch. It is the regulation that will ensure the survival and sustainability of the fund. 

The source of resources: 

Every member of AMIR will participate according to its financial capacity:

a. Each MFI , except those already in Federation or Cooperative Union where the umbrella may also have the same service because the relevant law already provides for the establishment of such a solidarity fund or stabilization level as each MFI would pay a certain percentage (2%) of its net results achieved at the end of each accounting year;

b. AMIR pays 10% of its annual operating surpluses;c. MFIs with deficits will not pay anything (or in other words, paying 0% from its

results). However, they could be assisted by the allocation of subsidies after the decision by the committee.

d. The fund will also inherit the funds that managed by other institutions, projects or organizations which cease to function when they invest in the promotion of microfinance at both national and international levels. AMIR must have mechanisms for collecting information at any time to take advantage of such opportunities for the benefit of this fund.

Different donors may participate in the creation of the fund, especially at the beginning, when the interests of members are still insufficient. As they are always alternative for other interventions in the same area, there will be careful attention in applying too much generosity towards the fund.

Government considers the role and development of social welfare constitute the objectives of MFIs and assessing the risks and the importance of the operational cost, which these institutions are forced to endure to achieve their objectives. There will always be a portion of the budget to support sector initiatives. 

The fund's operating regulations describe in detail the nature of interventions, eligibility criteria and participation of members.

10. SHARED COMPUTERIZATION AS DESIRED BY THE MAJORITY OF THE MFI.

Over 50% of MFIs surveyed expressed the need to be computerized in order to easily perform the accounting, loan tracking and report regularly. 

Each MFI makes their own individual purchase order of the software, it will make huge amount of acquiring a computerized system, and there are no potential sources of fund as many of MFIs rely solely on grants. 

It would be more beneficial to everyone, to assess the needs of all members in this area so as to recommend the relevance to perform a common purchase of the banking software. 

Expected benefits to be derived from common computerization process go well beyond the simple acquisition of the software. MFIs will benefit from reduced prices, possible funding jointly by one or a few donors, a communication gateway to

reliable information for the selection and use of a single source and regular maintenance more orderly and less expensive. 

AMIRS can coordinate members, who are interested and organize them to express their common need, assist them in choosing the right equipment and assess potential donors. The transaction would in any way, be faster and less cumbersome than it was when it is done by MFIs individually.

C. OTHER PROBLEMS REPORTED OR NEEDS EXPRESSED AND PROPOSED SOLUTIONS 

The following table describes other needs assessed and proposed ways of satisfying them. Every institution will be improving its operations and the entire sector will be impacted.

No.

Reported problems or needs Alternatives

1. Frequent fluctuations in prices of agricultural products.

Promote the grouping of members / clients in marketing cooperatives.Promote storage counters.Promote credit system of warehouse receipt

2 Supervisory Boards (CS) not sufficiently dynamic

Rather general problem for most MFIs under cooperative status. Make it a priority in the AMIR’s scheduled training.

3 Customers with multiple borrowings because of the delay in transmission of relevant reports.

Require awareness to all MFIs to provide situations in time for their portfolios at the BNR and the CRBA.

4 Recovery system and tools to be reviewed and strengthened.

Conduct analysis across all MFIs on the strengths and weaknesses of their credit management, structure and tools and identifying best practices and proposed improvements

5 Malfunction of interm boards often led to mismanagement, reflected in poor results of exercises.

AMIR and other partners should be able to monitor the functioning of MFIs that are still fragile at the right time to intervene before it is late. Regular monitoring and a good flow of information coordinated by AMIR would help to this end.

6 Customers who sell out pledged collaterals or who leave their recorded home addresses without informing the MFIs.

Working closely with local administrative authorities to identify and block the transfer of wages, as well as information on the location of customers on the transfer move. Regular reports must be sent to them.

7 Local government promoting and supporting Imirenge SACCOs only instead of promoting microfinance actors in general.

Advocacy for the microfinance sector, as part of their performance contracts, respond similarly to the preservation and promotion of all MFIs in their mandate. That should be the case for the recovery activity for defaulting loans.

8 The major part of Coopecs and Unions has no legal personality and the approval of the BNR.

AMIR could play a role of lobbying to the RCA and BNR to speed up the process.

9 High cost of managing small loans Maximum involvement of administrative authorities at all levels and all other partners in order to lighten the burden, through the analysis and recording guarantees, support for recovery, the speed of judicial procedures, enforcement of judgments the benefit of the social welfare of the entire Rwandan population.

10 The culture of non-repayment not yet completely eradicated.

Extended education to the people with the aim to implement priority actions promoting the microfinance sector intervention in the context of Vision 2020. Involvement of local authorities in the recovery process of delinquent loans accompanied by a law severely punishing non-compliance.

11 Once an IMF member is facing financial crisis, AMIR, and other partners should support instead of doing nothing (see UCT and IRIBA).They're only removing from the list and cancel the relationships.

Hold a meeting of members once the problem is found (before the spreading of rumors) and to allocate customers between MFIs of the same geographical areas, if there is no other possibility to save the MFI, after trying to keep it alive, in consultation with other members and partners AMIR.

12 Members passing through crisis are not supported.

Establish a support fund at AMIR where every member must participate, which could help MFI members passing through a crisis.

13 The training courses held so far (in recurrence by AMIR) were more focused on generalities and not on practical and real problems experienced in the field.

A preliminary training needs assessment must be conducted to provide suggestion of the trainings and to stick with the more useful and appropriate. The theoretical training should be taught at school and leave enough time to experience the practice: for example we prefer to be trained on key books used during control instead of theories on accounting principles generally accepted, in the strategies to reduce delinquency rates successful in MFI instead of the general principles of risk treatment; in summary integrate the specific practices and the appearance of real problems in MFI context.

14 The information does not flow between Amir and its members, and between MFIs on the other hand

Ensuring effective platform for exchanging experience, information on regular activities in AMIR, its members and other opportunities in the sector. This is also the same way that new technologies and experience would be regularly communicated to all members.

15 The meetings are held exclusively in Kigali with participants handling their

Organize meetings alternately in coordination of AMIR, as possible, and the proposal is to meet in

own expenses, this discourage the participation of MFIs, which generally have less capacity.

various localities on the national territory.

16 A number of seminars / workshops are organized but mostly invited are other partners than representatives of MFIs (especially those located in Kigali).

MFIs located in rural needs more capacity building than those located in Kigali. They should be invited to attend discussions that concern them and by also avoid representations that are not involved in MFI business.

17 "AMIR forget us in all its activities: linking with partners, organizing trainings, advocacy, etc.". Expression of leaders of some very small MFIs located in very remote rural areas.

Dwell more on MFIs decentralized and low capacity. Often integrate them in different interventions because they require more institutional reinforcement.  Example of Coopec Ishema Mulindi that faces limited contacts with external environment.

18 The grace period of exemption from paying income taxes expired for most MFIs

Lobbying for the extension of exemption from paying income taxes for all MFIs.

19 Training of the members residing in city has proved to be difficult because of their unavailability.

Schedule training during the weekends.

20 Registration of Collaterals used in different financial institutions.

Advocacy for an original single title and numbered. This should be accompanied with the decentralization of RDB in order to be close to customers.

21 Failure of solidarity group methodology (report from certain institutions which practice the methodology, but also contradicted by some others)

Conduct a study to assess the reasons of failure and provide advice on the improvement. 

22 The cost of registering collateral to RDB exceeds the capacity of target group: 25,000 RWF for RDB, 150,000 FRW for the real property expertise required, 30,000 RWF for local authorities in addition to travel fee.

Advocacy needed that the collaterals with the value up to 3 million are registered at sector level.

23 Very expensive subscription services at Rwandatel / SIMTEL for the "leased line" for computer network.

Finding a cheap alternative solution in consultation with all MFIs in need, with the assistance of AMIR.

D. CURRENT PRODUCTS AND SOME OF THEIR MFI CONDITIONS 

We are detailing the products used in MFIs surveyed and some of their terms and conditions, as an example. Only market research will determinate if the product fits the need of the concerned target group

No.

Legal Target group Periods (months)

Nature Rates (monthly)CREDITSAgri-livestock All; Teachers;

farmers;breedersFlat - Declining

1.17, 1.25, 1.3, 1.35, 1.41, 1.5, 2, 2.5, 3%

1, 6, 12, 24, 36;

Business (restaurant, hotel, ...)

All, teachers, traders Flat - Declining

1.3, 1.33; 1.35, 1.41, 1.5, 2, 2.5, 3%

1, 6, 8, 12, 24, 36;

Social credits / consumer

All, employees Flat - Declining

1.17, 1.25, 2, 2.5% 6, 12, 24, 36

Solidarity groups All,Women; Flat - Declining

1.1, 1.17, 2, 2.5%; 3, 6, 9, 10, 12

Construction All, teachers, traders, salaried people

Flat - Declining

1.3, 1.35, 1.41, 2, 2.5, 3%

3, 12, 24, 36, 60

School fees All teachers, parents, farmers, artisans;

Flat - Declining

1.25, 1.35, 1.4, 1.41, 1.5, 2, 2.5, 3%

1, 3, 12, 24, 36

Health Care Teachers, farmers; Flat - Declining

2, 2.5, 3% 6, 36

Other Credits Artisans, small entrepreneurs; Teachers

Declining 2.5% 6, 36

Transportation, Communication

All; Flat - Declining

1.35, 1.41, 1.7% 1, 24, 60;

Women entrepreneurs

Women Flat - Declining

1.1; 1.85% 24; 48;

Salary advances All (employees); salaried people and officials; Women;

Flat - Declining

1.25, 1.3, 1.5, 1.7, 2, 4%

12, 24, 36

Regular All; declining 1.5, 1.58, 1.7, 2.5% 8, 60;Overdraft / cash credit

All, traders, employees (salaried people);

Flat - Declining

3; 4% 1, 3;

Fortnight loan ( for 15 days)

All (employees); declining 3% 1;

Equipment All, employees, farmers, artisans (craftsmen);

Flat - Declining

1.1, 1.3, 1.5, 2, 3% 12, 24

Seasonal Credit Farmers Flat 1.5%Short term All; declining 1.5, 2% 6;Medium term Farmers declining 2% 12;Crafts Artisans (craftsmen Declining 2% 6, 12, 18,

24;Individual All (with physical

collateral)Flat 2.5% 3 -36

Community Banking Mutual guarantee Flat 2.5% 3-8Leasing (lease -) Traders; Flat 2% 12;Emergency All declining 5%SAVINGS (annual interest rate)Free / current account

0%

DAT / Fixed deposit 2, 2.5, 3, 3.25, 3.75, 4, 4.25, 4.5, 5, 5.75, 6, 6.25, 6.5, 6.75, 7, 7, 5, 8, 9, 10, 12%

1, 2, ... .., 12

Security Deposits 0, 5% Credit period

Permanent savings 2, 4, 6% Under Contract

Compulsory Savings 0% Credit period

Prior savings 0% Until the release

Mobile Savings 0; 4%Saving equipment 4%Housing savings account

0%

III CONCLUSION

The objective of the study was to assess the needs of AMIR members and provide guidance on specific strategies and activities planned as the recommendation, must be accurate as possible, with the aim to facilitate further implementation: 

For this purpose we may summarize the major accomplishments of this mission in these few points worthy of retaining more attention:

a. Training needs are the priority for all MFIs. A "Training Centre for Microfinance" was proposed, following a timetable to be prepared in a participatory way, everyone involved in the operation of MFIs should participate throughout the year.

b. A market study followed by the products development tailored to the needs of target group needs more attention. Indeed, the culture of “copy-paste" characterized the starting phase of microfinance industry, it is now the right time to develop products that meet the real needs of different target groups.

c. The need for refinancing is also a concern: the collection of deposits is still in nascent phase and there is high need to promote the public education in credit management. A decision needs to be taken on the establishment of a refinancing fund or integration with an existing one. We should ask ourselves why to create a new one, are there other options to consider, is it satisfying the need of members?

d. Many of other elements to the performance of MFIs and the entire area were discussed and exposed through the previous paragraphs of this report and provided the real results to be exploited. This applies in particular to:

1. Constitute a permanent platform for exchange of information between all stakeholders;

2. Advocacy for law refining in order to facilitate the loan management and speed up the trial and execution of cases submitted to the court.

3. Adapt and tailoring the procedure manual to the need and context of MFIs, thus contributing to performance improvement.

4. Development unconditional Internal Audit Service and the local rating unit handled by AMIR to reduce the cost that MFIs.

In addition to these observations and recommendations, most important guidelines have been leveled against various other problems and needs faced by MFIs. The reader will find these proposed actions and recommendations in the above relevant paragraphs.. The ideas expressed are the opinions and considerations of the various officials and deepening of analysis that we've brought, for better clarification of the topics discussed. By doing so, we believe that decisions will be more facilitated and carried out quickly, so that this study cannot dry up in drawers before reaping the fruits.

With these considerations, we believe that this study will contribute to the improvement of the services for the benefit of AMIR members. We would like to express again our deep gratitude about the trust we bestowed to us.

Our humble thanks go to both leaders and MFI staff who answered the questionnaire, and the partner institutions met during the survey. We appreciate their strong cooperation without which the success of our study would, be jeopardized. 

Expert Consultant -Microfinance appointed: 

Mr. Aloys RUSANGANWA. 

APPENDICES

Schedule 1

Terms of reference for the study of identifying the needs of MFI members AMIR 

TERMS OF REFERENCE TO CARRY OUT AMIR MEMBERS 'NEEDS ASSESSMENT 

1. Organization's Overview

AMIR, an Association of Micro finance institutions in Rwanda was created in June 2007 by 32 founding members. By now the membership of the association has increased to more than 80 MFIs composed of limited liability companies and savings and credit cooperatives spread across the country.

The core mission of the Association is to support its members to improve the quality and the outreach of their services and contribute to poverty reduction in sustainable manner.

The Association is currently running a number of programs in line with its mission and vision of becoming a strong sustainable organization through the provision of diversified and quality services.

The major services rendered to its members are mainly capacity building, information sharing, research and development, advocacy and MIS development.

The Association is governed by the Board of Directors, the daily management of the Association’s affairs falls under the responsibility of the Executive Secretariat.

AMIR has four priorities:

The first priority is to offer diversified services to the micro finance institutions that enable them to work professionally to efficiently contribute to poverty reduction in a sustainable manner.

To support the micro finance institutions on accessing trainings, funds, and institutional support for their harmonious development and to promote best practices.

To support and promote the exchange of information and experience between micro finance institutions and partners at the national and international level

To advocate for micro finance institutions to the government, donors and other institutional partners.

1. Objective of the assignment and expected outputs

The objective of this assignment is to carry out needs assessment of MFIs which are AMIR members, these needs should be centered on following flaggers that are found in AMIR’s strategic plan of 2009-2013

Capacity building Research and development Financial Intermediation MIS development Information sharing and dissemination Any other pillar that would help in addressing member MFIs’ needs

The expected output will be:

(i) A comprehensive analysis of the current needs and weaknesses of AMIR members in particular and microfinance sector in general

(ii) A report with recommendations to AMIR (and maybe other stakeholders) on the way forward and how AMIR can provide services and products that suits its members’ needs and the microfinance sector in general;

(iii) An outline of specific services and products for AMIR members;(iv) A draft proposal of long term research and development plan for AMIR

which will provide detailed information and data that will help to serve the identified needs

(v) A draft proposal for capacity building for board and management of the member MFIs.

2. Time Frame

The length of the assignment, including the submission of the final report, will be 3 weeks starting from the date the contract is signed.

3. Reporting

-The Consultant(s) will work directly with the AMIR’s staff in charge of Research and report every progress.-The Consultant(s) will report to AMIR Executive Secretary on a regular basis.-The Consultant(s) will be required to submit a final report and recommendations latest 5 days following the end of the assignment and the report should be in English.

4. Qualifications

-Must have a post graduate university degree in the area of Economics, Management, Human Resources management, sociology, development studies or assignment related field. Must have a minimum of more than five (5) years experience in financial institutions management and training, or in rural area development field.-Having an in depth knowledge of the Rwandan microfinance sector;-Being acquainted with the national legislation and regulation of the financial sector in Rwanda;-Should have carried out or participated in microfinance/poverty reduction related research -Having a long-standing experience of working with rural financial institutions;-Having a good grasp of the particularities of co-operative organisations.-Should be bilingual (English and French) with a working knowledge of Kinyarwanda

5. Presentation of the bids.

The offer shall be presented in one copy which is original and in an envelope containing:

A technical offer in English with :- An explanatory note of the mission- The methodology of the work- The calendar of activities- The CV of the principal consultant, his team and their references.

Financial offer Any submission could be done before January 31, 2011 by post office of AMIR

P.O BOX 4526 Kigali or hand delivery at AMIR offices behind CAMERWA.

Done at Kigali on January 24, 2011

Rita NGARAMBE

Executive Secretary

Annexe 2

List of microfinance institution surveyed:

No. Legal status Institution1 SA Vision Finance Company2 Goshen Finance3 CAF Isonga4 SWOFT5 Inkingi6 Duterimbere IMF7 COOPEC Union des CLECAM Wisigara8 Union des CLECAM Ejoheza9 Union des CMF Umurimo10 COOPEDU11 Umwalimu SACCO12 Ubaka13 Inkunga14 CT Murambi15 ITI16 Zamuka17 Ishema Mulindi18 COMICOKA

Annexe 3 

TABLE OF MFI NEEDS BY MEMBERS OF AMIR 

FORCES WEAKNESSES FELT NEEDS PROPOSED SOLUTIONS

1. SACCO INKUNGA

Growth maintained in The portfolio at risk Employee Creating a

deposits from 2007 to 2010, passing from 45 to 158 million (+ 211%).

ranged from 5 to 9%, which exceeds the standard of BNR.

training in credit management, delinquency management and solidarity groups

permanent training center at AMIR. MFI members to participate in operating costs.

Members moving from 2242 to 3712 between 2007 and 2010 (+65%).

The institution doesn’t have an effective plan for the training for its staff or elected Board. It benefits occasionally from the opportunities provided by some supporting organization like AMIR and Terrafina

Training of elected officials in good governance, product development, promotion and marketing and initiation in microfinance.

Same

The result of exercise varied less from 3 to 26.6 million (+ 988%) in the last four years.

Although operational, the Supervisory Board should meet over 2 times per year . The law provides at least 4 times per year.

Equipment: Rolling Stock (3 motorcycles and a car), establishment of two fixed counters (tellers) and installation of solar energy in 3 counters.

Need of financing submitted to Terrafina.

Encouraging growth of the loan portfolio from 2007 to 2010 from 68 to 280 million (+ 312%). The growing number of borrowers by 200%.

Board members capacity building began only in 2007 with the Terrafina program

There is still a need of building capacity.

Development of products tailored to the needs of the target group.

Lobbying and High demand of AMIR’s intervention.

Payroll progressing smoothly.

Has no internal audit function other than the Supervisory Board.

Construction of an office building (plus or minus 42 million)

Establishment of Internal Audit department. We would prefer the idea of sharing cost for internal audit service under the coordination of AMIR.

Controlled increase of staffing. It only covers two administrative areas.

One audit report was produced in 2010 by CS.

Computerization of new counters (tellers)

Establishment of appropriate procedures and tools for

strengthening the internal control.

The General Assembly was held from 2 to 3 times per year. This is far enough and within the law.

Products non-diversified and have not been launched after identifying the target group needs.

Refinancing AMIR should establish, promote and support the lobbying for the establishment of a refinancing fund that is easily accessible by members.

The Board of Directors and Credit Committee are fairly dynamic; more than 10 meetings were hold through the whole year.

Operating subsidy for the 2 new counters for a period of 2 first years.

An external audit has been conducted annually from 2007.

Insurance that may cover weather change prevalent in the agricultural sector.

Get the Agricultural Guarantee Fund established at the BNR and / or BRD.

Two inspections were conducted by BNR

Additional personnel: 2 loan officers and 2 accountants for 2 counters ( tellers).

Has a computerized accounting system: software Adbanking provided by AQUADEV and funded by Terrafina.

The need for internal auditor is crucial

Qualification and experience required are expensive for a small Coopec. Consider sharing the cost through AMIR.

Adbanking is used for both loan tracking and savings tacking. The most needed financial reports are produced.

2. CT Murambi

Positive increase of The result of exercise Lack of

deposits in 2008. remains stagnant at around 5 million from 2008 to 2010.

transport means to ensure proper tracking of funds and projects funded.

The number of members has doubled from 2008 to 2010 from 3122 to 6556.

No experience of working with partners due to limited knowledge of potential partners.

Refinancing Refinancing funds handled by AMIR.

Growth maintained of loan portfolio between 2007 to 2010 from 24 to 89 million.

The portfolio at risk decreases gradually but remains beyond the 5% as benchmark.

Staff training.

A single Loan officer is insufficient compare to the entire staffing (14%).

Additional personnel: 1 Credit Officer and an accountant.

The wage level should be a little high compared to other MFIs of similar size. A monthly average salary of Rwf 166 000 per person, regardless of category.

Training for all board members

The CS and CC should meet more often.

Strengthening the system and internal audit service.

Sharing cost with other MFI of the same size.

Members of Board never trained.

Assistance in study and product diversification.

Market research and assistance in adapting product by AMIR

One audit report was produced in 2010.With deposits exceeding 20 million, an external audit should be contacted each year, not conducted in 2009 or 1010.Has no means of transport, allowing follow-ups of loans.

Products non-diversified

3. UMWALIMU SACCO

Exponential growth of deposits from 2007 to 2010 from 134 million to over Rwf 4 billion.

Despite generous subsidies benefitted from the government, its financial results are not significant. Are only 166 million in late 2010 with over 100 million in grants received in that year.

Cheap refinancing fund consisting of huge amount: around at list one billion (preferably medium to long term).

Demand of 600 million from BRD; 100 million from SMGF and adhere to the idea of creating a refinancing fund managed by AMIR.

Full Members doubling in 4 years: 28 thousand in 2007 and 48 in 2010.

Drop in the number of outstanding credits from 2009 to 2010 from 23 903 to 14738.

Strengthening mechanisms for monitoring of lending and project financing.

Reorganization of local representation and accountability of representatives to the base (10 members including 3 district constituting his office).

Doubling the amount of capital over the same period: from 158 to 395,000,000.

The portfolio at risk increases by 4% in 2008 to 9% in 2010.

Personnel Training

Teachers grouped into cooperatives to be funded.

The loan portfolio grew from 626 million to 3.6 billion from 2008 to 2010.

Centralized risk more regularly to avoid teachers who receive loans from other institutions without our knowledge.

Other safeguards requirement: 5% of salary on accounts not available, property and two teachers as guarantors and a family member.

Senior managers of high qualification in relevant areas.

The staff of the Internal Audit Service has never received any specific training.

Organization of specific training for internal auditors.

AMIR could organize such training

Has administrative and financial manuals adapted.

Products non-diversified

Product Development

We are currently recruiting a person in charge

of product development. The interview is over.

Board is dynamic and is holding meetings regularly.Thirty members of the Board have benefited training in credit management, risk, accounting and financial analysis.At least 4 monitoring reports were produced in 2010 by the supervisory bodies (supervisory committee and board commissions.)Systems computerized, using the software Ad banking

4. DUTERIMBERE MFI SA

Increase of deposits from 320 to 745 million from 2007 to 2010.

The result of exercise of 128.5 went down to 84 million from 2009 to 2010 due to increased recovery efforts and high Portfolio at risk, despite significant operating grants received of Rwf 1 billion in 2010.

More than 1.5 billion refinancing received.

Lobbying to get cheap refinancing from donors with quick access. AMIR could liaise with external donors to get easy terms and conditions.

Experience in the use of refinancing loans from banks (BRD and UBPR)

The portfolio at risk is increasing every year. It has reached 29.5% in June 2010.

Investment Fund for Growth

Rapid growth of the loan portfolio from Rwf 668 million in 2007 to 2 billion by end 2010.

Lack of experience of field workers

Personnel Training

Assistance in the training of field workers especially.

A good proportion of loan officers in comparison of total staff: 42%.

Recovery system and tools to be strengthened.

System diagnostic tools and credit management

Conduct analysis across all MFIs on the strengths and

weaknesses of their credit management, structure and collection tools in the aim of improving the situation.

Good qualification and experience of key senior managers with a high hope of better performances.

The board members have never been trained because of lack of availability.

Training the following positions: Operations Director, MIS, Accounting, Marketing Manager and Internal Controller.

Has an internal audit department consists of two inspectors who have already received training in operational risk.

Internal auditors didn’t receive specific training in control.

Training of personnel with positions related to control.

Request to be organized by AMIR.

Recruitment of internal auditor by Branch ( 5)

Financial support to pay their salaries for one year.

Has an accounting and loan tracking computerized system called Ad banking.

Networking of the Branch of Nyagatare with its 6 agencies.

Support needed

Sufficient means of transport (1 vehicle and 10 motorcycles)

Product diversification

Possibility of study and implementation through AMIR.

5. CAF iSong SA

Reduce of 50% of deposits in 2010 (fall down to 309 million at December 31).

An additional loan fund of 300 million.

External support required.

3 of 4 Agencies are computerized under "Finance Solution"

Results for the year falling down between 2008 and 2010 to a net loss of 251 million despite some subsidies received.

Computerization of one agency additional to 3 agencies finalized. There is a need to install the solar

Wish to get an additional funding from Terrafina.

panels and accessories. An online connection is to be made .

Not successful experience with the use of refinancing Rabobank, almost exhaustively assigned to the cooperative whose stock has rotted.

Replacement of furniture and office equipment already quite old or broken (copiers, printers, lap top, etc.). A jeep and 2 bikes for the fieldwork.

idem

Staff regulations and ROI never existed.

Training of personnel, especially officers and agency officials, and training of elected concept of microfinance, planning and management of credit.

Organization AMIR expected

Administrative and financial manual not yet approved by the board.

Necessary adjustment after analysis of the completeness of required fields.

Funding from internal except staff training and Board requiring AMIR’s intervention.

Although steady between 2008 and 2009, the loan portfolio increased by more than 100 million in 2010.

Change in portfolio didn’t have a positive impact on 2010 earnings

Two agencies without motorcycles for agents and recovery officers.

Portfolio at risk galloping up to 20% in late 2010.

Lack of physical collateral for loans granted.

Two Credit Officers remaining cannot handle 14 counters.

Support to pay at least four additional officers during the first year.

Support needed.

New senior staff with Training AMIR Program

degrees recently obtained.

program consisting in upgrading the technical level and institutional management.

expected.

Additional staff to be recruited: 2 Internal Auditors for the 14 counters (tellers) and commercial agents or marketing Officer.

To process the recruitment at the same time improving internal capacity of the institution.

Not operational supervisory board and is not trained.

Training of CS and all other elected board members (although dynamic, they have not been trained)

Waiting AMIR’s assistance.

6. COOPEDU

Deposits reached of an amount over 1.5 billion by 2007.

Construction of its headquarters from just 1.5 billion.

Land acquired from internal resources;

External support needed for the part remaining.

15 000 members by the end of 2010.

Refinancing at low price.

AMIR’s support.

Progressive net profit in 2007.

Lack of support staff such as Finance and operations officers.

Recruitment of two officers (Technical and Administrative and Financial Department)

Internal resources.

Additional equity of one billion (904 million) for a small saccos.

Other staff to be recruited: 3 branch managers, 1 IT, 6 cashiers, 3 reception staff, 4 Credit Officers

Internal resources.

and 3messengers.

Experience in using bank refinancing (200 million from BRD).

No systematic program of staff training.

Training needs clearly identified, the remaining part is its programming.

AMIR Program to come and internal support.

Loan portfolio grew to more than 2 billion by the end of 2010

The Supervisory Board is not well performing.

Training for the Supervisory Board.

AMIR Program to come in.

Portfolio at risk is improving continually. It is no longer 3% in 2010.

The board members have never been trained as expressed.

Organize advanced training as per Board members attribution.

AMIR support yet to come.

Experience working with technical and financial partners.Good profile of executive leader presented.Dynamic elected Boards.Existence of an internal audit service in place from the last five years ago.

One person over three has received training in operational risk management.

Organize specific training on internal audit

AMIR’s support .

Existence of procedure manual which seems to be suitable.Accounting system and loan tracking are computerized with the use of Ad banking.Savings and credits more diversified (better than elsewhere in other MFIs)

7. UNICLECAM WISIGARA

Customer deposits remain low for an umbrella (union) of ten SACCOs.

Refinancing Desire to get refinancing partners with cheap services. AMIR may establish a fund in respect

thereof.Financials not good but recently, good progress made ( 17 million net profit from deficit).

Good experience in managing refinancing from (loan repaid to BRD and Rabobank)

Legal personality of the Union not yet acquired.

Advocacy and support in getting legal personality.

AMIR may support Wisigara and other SACCOs Unions located in the same situation.

Experience working with both financial and technical partners (Terrafina, Aquadev, BAIR, ROPARWA, AMIR ...

The loan portfolio is progressing positively but still quite low for a network (500 million).

Insufficient Credit Officers.

Fundraising both internally and externally (for at least one year)

Portfolio at risk is still high: 31%

Organizing and monitoring of the zonal committees and strengthening of both credit operations and recovery.

Organize trainings for all members and members of boards. Aquadev, Amir and Terrafina could intervene.

Staff with good management profile

Staff turnover due to low salaries scheme.

Raise the wage level

Desired support but wait until performance improves (for 2 years at least)

Development and refining of products, some were lunched without market study (target group)

AMIR and / or its intermediation desired.

Good assessment and plan on human resources

Technical Support Officer, 3 Inspectors, in charge of human resources management, a Chief Financial Officer and an accountant

Business plan support to be submitted to partners.

A fairly detailed procedure manual and

Computerization of the Union and

Support in acquiring

periodically adjusted its members. hardware and software, training and maintenance related thereto at least during the first year of implementation.

Dynamic Board commissions.

Board members are not regularly trained

Has a person who provides internal audit.

It is uncomfortable to carry only one inspection visit.

At least one additional internal auditor.

Use of internal resources

Internal auditor did not receive specific training

Organization of specific training in internal audit

AMIR Program

Doesn’t own an office and no transport means.

Office acquisition for Union Head Office, a TT vehicle, a motorcycle by Clecam and 4 bikes to the Union.

Research support through specific funding supporting the business plan..

Non-diversified products that fit the needs of the target group.

Identifying real needs and development of related products

AMIR ‘s support needed.

8. UCMF UMURIMO

Experience in working with technical and financial partners.

Volume of deposits increasing but too low for for an union of 7-saccos (87 million in late 2010)

Refinancing at low cost and fast to access.

Dialogue at the microfinance sector level to find a safe and durable solution with AMIR’s facilitation.

Elected Board commissions exist and function properly.

Exercise with increased profit but also low for an Union (11 million in 2010)

Rehabilitation of the Head Quarters and their equipment.

Research support through the financing of the business plan

Starting experiencing outside refinancing in 2010 (via SMGF)

Scarcity of training especially for elected officials.

Training of staff and elected officials.

AMIR Program’s support.

Effective medium of loan Volume of loans Additional Internal and

officers (30% of all full-time staff)

increasing but still low for the coverage of operating expenses

personnel: 8 cashiers, 10 loan officers, an internal auditor and a person in charge of technical support.

external resources to be allocated.

Portfolio at risk deteriorating and is still above 5% currently.

Structuring legal procedures to expedite the conduct of the trial and execution of judgments.

Advocacy from AMIR and other partners.

Our former internal auditor has left and has to be replaced.

Recruiting another internal auditor, or two to enhance their complementarity.

Internal resource to be raised for the overall funding of the business plan.

Procedures Manual not updated

Support for the update of the administrative and financial manual.

External support matching the internal resources.

Computerization of the accounting system and loan tracking.

External support centralized and coordinated by AMIR, wish expressed by all members.

Non-diversified products as needed and needs not well known.

Assistance in identifying market needs and developing products to satisfy them.

External assistance at large scale required.

9. UNICLECAM EJOHEZA

Positive trend of deposits (almost 400 million by the end of 2010) with an increase in outreach.

Refinancing of Sacco members.

Refinancing idea supported.

Savings mobilization strategy launched in

SACCOs Union members are not yet

Funding the operating

Donors to be contacted

2008 through the successful outcome (50 million in 2010)

able to contribute to its running costs.

budget of the Union for the next three years at least;

Loan portfolio increasing (525 million by the end 2010).

Not many loan officers have bikes for follow-ups (5 of 10 SACCOs)

Funding for field support

Application for external support

Two Saccos already under computerization with Ad banking

8 Saccos not yet computerized

Computerization in two phases: (1) manual consolidation remains with the Union level, (2) establish online connection of the entire network.

External support required.

Portfolio at risk slightly above the standard (6%) because of individual credits generally not well paid and not sufficient monitoring of solidarity groups.

Intensifying the monitoring of credit groups and assist members in the recovery.

Funding included in the business plan.

Extensive experience in working with partners, both financial and technical

Number and skills of senior staff to strengthen the recovering of all dues for the union from members.

More intensive training in key areas of MF and recruitment of remaining staff (additional internal auditor, responsible for finance and administration at Union, 8 credits Agents, 5 and 3 accounting cashiers at SACCOs).

Intervention of AMIR and other donors.

Has a fairly detailed manual of procedures and appropriate.All Board commissions are now operational and dynamic, including the

Rare occasion that elected officials are trained.

Organize training for both staff (current

AMIR Program to support.

supervisory boards at Union and Saccos

and new recruits) and elected representatives (who have a high turn-over)

An internal audit service is operational

One person is assigned to internal audit

A second internal auditor is required for complementarity during missions.

Support through the business plan funding

The internal auditor has not yet been trained in this specific area

Specific training required.

AMIR Program expected.

Non-diversified products and don’t satisfy the needs of the target group

Identifying the needs and developing products that are customers-led.

There is big gap recorded in product development. Suggestion to have AMIR coordinating this.

10.SACCO Ishema Mulindi

Low level of deposits but progressing slowly due to its size (22 million in late 2010)

Not aware of technical support and AMIR where it became member in 2009.

Incrementally improving fiscal results from deficit to positive (2.7 million in 2010).

Doesn’t express well its needs

From assistance in assessing their situation in order to provide useful advice and guidance on management bodies for better decisions.

Intensification of exchange visits and prospecting that AMIR would take the opportunity to direct them to other potential partners

Portfolio at risk on loans incrementally improving and is already meeting the standard of 5% (4.5% at end 2010)

Outstanding loans too inadequate to enable it to cover its operating expenses (13 million).

Need of external refinancing because it needs more liquidity reserves on deposits because of working with

May benefit from the fund from AMIR. Even a refinancing of 50 million could easily be taken.

salaried people that may need all their salaries at any time.

Staff profiles good enough to be able to scale up the performances.

Very low level of wages (Manager at 98 000 francs and a loan officer at 59,000 RWF)

Raising the salary level a bit so that it can at least keep the current staff and operate effectively.

Assistance by an operating grant for wages during the next 3 years.

Staff and Board have not even been trained by AMIR

Emergency to organize training in priority areas

AMIR Program to assist.

Already thinking to have an internal audit service.

Internal Audit Service would be irrational too expensive.

Possibility to share the internal audit department at AMIR

Even manually, it easily produces the quarterly and considers itself able to produce monthly BNR reports.

Get a computerization of its only counter if the opportunity comes

AMIR could coordinate access to a shared computerized system.

Has no means of transport

The acquisition of a motorcycle would be sufficient as per now.

Get support through AMIR

Products non-diversified and target group needs to be identified.

Identification of needs and development of product

Assistance to be provided under the intermediation of AMIR

11.SACCO Ubaka

Good average level of deposits for a Sacco with a single Branch Coopec (300 million)

Lack of experience in working with partners.

Computerization of the single branch opened in Remera and one they intend to open in Nyamirambo

External support required. AMIR can support to identify and approach a donor.

Moderate profit(23 million in 2010)

Products non-diversified

Identification of real needs and adapted

Assistance required as having some

products. concerns.Need of recapitalization.

There is a plan to transform the SACO into a company s.a.. It has already increased the share from 5000 to 15000 to be the value of the share in the new company. The company will have at least a capital of 300 million. Each shareholder will subscribe for 10 shares or less.

Portfolio at risk greater than the standard of 5%.

Excellent collaboration with local authorities in recovery..

Need of AMIR advocacy.

The number of staff does not increase since the inception

It plans to open a second Branch in Nyamirambo, there is a need to hire additional personnel.

Funding from internal resources.

No trainings conducted or to conduct.

Training for the Supervisory Board and Board of Directors to be repeated because of the regular turn-over after two years.

AMIR Program

A shared internal audit service because of high cost not supported by the operations.

Scenario to have a shared internal auditor service with the coordination of AMIR.

Do not have means of One 4wheel Support needed.

transport while covering the entire city of Kigali.

driver would satisfy the need.

Refinancing Refinancing funds coordinated by AMIR.

12.SACCO IIT

Increase of deposits and members: 85 million of savings and 2649 members in 2010.

Loan portfolio increasing slowly(85 million in late 2010)

Training held for staff and the board.

AMIR Program Expected

A moderate profit (5 million in 2010).

Low skill level of staff for a coordinated management.

Computerization (program in the business plan with agreement to be funded by Terrafina)

Will agree with others to an acquisition (and possibly funding)

Experience using the refinancing from 2009 (Rabobank)

Low capacity of credit analysis

Additional means of transport (she has two motorcycles used by the Manager and the 2 Credit Officers and supply of 3 sites

At least two additional bikes would be financed by external support.

Experience working with partners in technical and financial support (Terrafina, Aquadev, AMIR ...

Refinancing at low cost and easy access.

High portfolio at risk: 45% in 2010.

- Recruitment of 4 credit Officers / recovery;

- Involvement of local authorities;

- Police intervention;

- Introduction of incentives based on

External support required to support new recruitment during at least one year

performance of field workers.

Annual external audit conducted in 2007

Hiring an internal auditor

Exploit the opportunity to share the internal audit service via AMIR

The board members were trained each year from 2007.

There is a manual of procedures generally not yet adapted to the specific ITI.

Adapting the administrative and financial manual on the current operations.

Hire consultant services and external support needed.

Even manually, reports are produced on monthly basis

Products non-diversified

Identification of reel needs and products development that fit the need.

Coordinated and monitored by AMIR for all MFI members.

13.GOSHEN FINANCE SA

Rapid increase of deposits and customers from its inception in 2006 (2 billion at end 2010)

Personnel Training AMIR Program to support

Positive result except in 2009 when Goshen began to pay a lot of charges and its computerization project.

Refinancing Supported the idea of creating the refinancing fund coordinated by AMIR (which should not exceed 8% interest and with repayment terms favorable).

They tried their first experience of refinancing with BRD for an interest rate of 12% over 3 years.

Products not enough diversified.

Identification of market needs and development of products that are market led.

To seek assistance.

Outstanding loans growing rapidly up to 2.4 billion in June 2010.

Too few loan officers (3) over 11 000 clients to manage.

Establish liaison with partners in technical and financial support

Attribution AMIR

Portfolio at risk ratio of 3%.

Not transport means reserved for Credit Officers in following clients.

Good profile for executive leaders for expected performance in the short, medium and long term

Has a new internal audit unit

Specific training for internal audit for that service and other staff

AMIR Program, otherwise, the institution will try to handle the situation.

Has a procedure manual

adaptedThe accounting system and loan tracking are computerized with "Financial Solutions"

14.Coopec ZAMUKA

Staff profile sufficient compare to the level of operations of the Sacco.

Deposits not increasing without being able to express the reason.

Staff training and the board.

AMIR Program

Low if not negative result.

Good distribution of tasks to avoid the accumulation of incompatible duties

Expected AMIR support in accounting.

Not informed on potential partners to approach for different support they need.

Orientation to potential partners

AMIR action expected

Credit portfolio and rates do not vary. Very high portfolio at risk (58% in 2010)

Manual procedures to adapt

Analysis and assistance expected from AMIR

Was subject to external audit in 2007 and 2 BNR supervisions.

Without Internal Audit Service (understandable at their level)

Internal audit service to be shared with other MFIs

AMIR coordination required.

No means of transport for follow-

Acquisition of a motorcycle at least

To seek external funding

up and recoveryProducts not diversified

Identification of market needs and product adaptation

AMIR assistance expected

15.INKINGI SA

With some experience with financial partners (Accesbank, Ecobank, BRD, DFMS ...)

Deposits did not progress since 2008.

Refinancing AMIR refinancing fund supported by the institution.

Staff profile sufficient for MFI achieving high performance(A0 level in at least interesting options)

Depositors decrease caused by the elimination of inactive accounts and closed some branches.

Staff training especially in the field (loan officers, supervisors, Collection Agents, ...).

AMIR Program to support

The majority of board members have enough experience in microfinance (4 of 7 have a profile banker)

Low operating results. First positive result in 2010 of 5 million.

Has a procedure manual adapted

Insufficient number of loan officers in comparison to the size of all staff (12% instead of 30% or more)

Renewal of old equipment.

To seek external support

Has an internal audit department of 4 inspectors.

Loan portfolio declined due to insufficient of liquidity.

Specific training for internal auditors

AMIR Program Expected

Portfolio at risk on loans (11%) still exceeds the

standard of 5% of BNR.

10 branches in 19 are computerized but not Online (using Loan Performer).

Overall computerization and Online implementation

To seek external support

Has a vehicle for the General Director and 2 for the fieldwork

Motorcycles for field staff in rural areas.

External support required.

Non diversified products according to the needs of target group

Identifying needs and product adaptation

Do in synergy with all other MFIs (AMIR coordinates)

16.VFC SA

Computerized accounting system with "SunSystems' and portfolio management with" eMerge "

Continuous decline of deposits from 2008 (262 million in 2010)

Restructuring of the institution to become a Microfinance Bank

Around 100 million to have a minimum capital requirement for a microfinance bank.

Experience working with major financial and technical partners

Negative result of exercise or moderate despite high potentialities to obtain operating grants and refinancing

Product development to meet the needs of the target population;

Some products under analysis and testing, others may be developed with the involvement of AMIR after a market study (agricultural insurance, mobile phone banking, credit, warehouse receipt, eg.).

Increasing loan portfolio (2.3 billion in 2010)

Portfolio at risk increasing from 2009 (9% in 2010)

Changing the centralized management system.

Internal restructuring underway.

Enough loan officers compare to other staff

Loan officers with not sufficient knowledge in credit

Training in credit management, delinquency

AMIR Program expected.

management management and recovery

Staff profile is interesting and enough to achieve high performance.

Establish the communication and branch network.

Support and negotiate terms and principles.

Has a procedure manual adapted

Diversified Products somehow.

Diversification as real market needs to be identified.

Collaborate with AMIR and other MFIs .

Management and Board are dynamicHas an internal audit and an audit committee within the Board of Directors.Sufficient means of transport (5 vehicles and 35 motorcycles)

17.SACCO COMICOKA

Encouraging level of deposits for such a small Sacco (208.7 million at end 2010)

Refinancing at low cost.

The idea of refinancing of AMIR . Fund to support

Achieving profitable results in comparison of its size (20 million in 2010)

Beneficiaries not prepared for microfinance products

AMIR Program and other partners expected.

Good experience working with both financial and technical partners.

Always possible climatic risk in agricultural sector

Advocating for appropriate guarantee fund and development of agricultural insurance.

Loan portfolio not increasing because of the limited loan funds (300 million loan).

Staff acquired some knowledge in microfinance but need to be reinforced.

Staff training and board.

AMIR Program expected

Rate risk within the regulatory standards.

Too many staff for one branch (19)

Number of loan officers enough compare to the number of clients (487 in 2010)

Procedures Manual not adapted.

To adapt the procedural manual to the current practice and future (recent computerization)

Assistance required for this purpose

Dynamic board. Board is rarely receiving training

Set a regular schedule for training

AMIR Program to support

An internal auditor was recruited in February 2011

Specific training required of the listener

AMIR Program on hold

Accounting and loan tracking system with Ad banking

Products not diversified

Identification of market needs and adapting products accordingly

To development synergy with other MFIs with the coordination of AMIR

Has a Land Cruiser Jeep for business travels.

Lack of motorcycles as tools adapted to their work area.

Acquisition of 2 bikes for 2 loan officers at least.

To seek assistance.

18.SWOFT SA

Deposits decreased from 2009 to 2010 (127.8 million at end 2010)Negative goingNo experience on refinancing

Refinancing desired

Loan portfolio gradually decreasingHigh portfolio at risk (29% end 2010)

Means of transport for recovery

To seek assistance

Operational bodies Too many turn-over at the head office.

Internal restructuring and reorganization of the work.

Internal evaluation and implementation of recommendations.

Staff profile sufficient to lead to a certain level of perfection

Low capacity to analyze credit

Training for Credit Officers, management and board.

AMIR Program to support

Draft procedures manual awaiting discussion and approval

Rarefication of training for board members

Organization of discussion to finalize the procedures manual

Schedule.

In connection with some support partners (Terrafina)

Accounting and loan tracking system non-computerized

Computer equipment in common use (lap top)

Adequate support to search.

Has an internal auditor Internal auditor did not receive specific training

Organize training specific to the audit for both the internal auditor and the rest of the staff and Board members

AMIR Program Expected

We have two bikes Lack of a field vehicle and four motorcycles for loan officers

Acquisition of a vehicle and 4 motorcycles

Assistance to that effect would be welcome

Products not diversified.

Needs identification and necessary adaptation of related products

AMIR assistance and other potential partners sought

Annex 4

TOPICS OF TRAINING DESIRED 

Training staff: 

INSTITUTION 

Training topic

Inkunga

CT Murambi

Umwalimu SACCO

Duterimbere MFI SA

CAF iSong SA

COOPEDU

Uniclecam Wisigara

UCFM UMURIMO

UNICLECAM EJOHEZA

SACCO Ishema Mulindi

Coopec Ubaka

Coopec IIT

Goshen Finance SA

Coopec ZAMUKA

INKINGI SA

VFC SA

Coopec COMICOKA

SWOFT SA

% TOTAL

Management and credit administration

X X X X X X X X X X X X X X 78

Accounting

X X X X X X X X X X X X X 72

Risk Management

X X X X X X X X X X X X 67

Internal Audit (role, methods and tools)

X X X X X X X X X 50

Credit Management in general

X X X X X X X X X 50

Good X X X X X X X X 44

governanceProject analysis

X X X X X X X X 44

Financial Analysis

X X X X X X X X 44

Planning X X X X X X X 39Fraud Detection

X X X X X X X 39

System and computer processing

X X X X X X X 39

Product Development

X X X X X X 33

Banking X X X X X 28Training diplomats

X X X 17

MFI marketing

X X X 17

English / French

X X X 17

Delinquency Management

X X X 17

Customer Care

X X 11

Audit X X 11Reporting X 5

Relationship

X 5

Advice / legal concepts

X 5

Training to members of elected bodies: 

INSTITUTION 

Training topic

Inkunga

CT Murambi

Umwalimu SACCO

Duterimbere MFI SA

CAF iSong SA

COOPEDU

Uniclecam Wisigara

UCFM UMURIMO

UNICLECAM EJOHEZA

SACCO Ishema Mulindi

Coopec Ubaka

Coopec IIT

Goshen Finance SA

Coopec ZAMUKA

INKINGI SA

VFC SA

Coopec COMICOKA

SWOFT SA

% TOTAL

Good governance

X X X X X X X X X X X X X X X 83

Management and administration of risk / credit management

X X X X X X X X X X X X 67

Elements of financial analysis

X X X X X X X X X 50

Powers of the

X X X X X X X 39

Business Plan

X X X X X X X 39

Internal Control

X X X X X X X 39

Introduction to Microfinance

X X X X X X X 39

Project management (training of beneficiaries)

X X X X X X X 39

Complementarity of the management bodies

X X X X X 28

Institutional marketing and product

X X X 17

Procedures Manual

X X X 17

The functions of the manager

X X 11

Product Development

X X 11

Notion of rights to follow trial

X X 11

courtBudget implementation and monitoring

X X 11

Banking X 5Relationship

X 5

Customer Care

X 5

Pleading X 5Learning languages (English and French)

X 5

Management structure and solidarity groups

X 5

Monitoring and control of executive action

X 5

MFI Organization

X 5

Personnel Management

X 5

Annex 5

TOPICS OF STUDY TOUR DESIRED FOR STAFF AND MEMBERS OF BODIES 

INSTITUTION

Training topic

Inkunga

CT Murambi

Duterimbere MFI SA

Umwalimu SACCO

CAF iSong SA

COOPEDU

UniclecamWisigara

UCFM UMURIMO

Coopec IIT

Goshen Finance SA

INKINGI SA

VFC SA

Coopec COMICOKA

SWOFT SA

General opening

X X X X X X X

Good governance

X X x X X X X X X X

MFI management (general)

X X x X X X X X X

Control of management tools

X X X X X X

Development Programs

X X X X

Product development strategies

X X x X X X X X

Management

X X X X X X X X

strategy unpaid (CB Amasezerano SA)Management of large networks (RIM SA)

X X X X

Management of rapid growth (MFI Unguka SA)

X X X X X

Terms existing products

X X X X

Procedures for granting credit

X X X X X X X

Operation of institutional bodies

X X X X

Computerized management

X X X X

Nature of safeguard

X X X X X

s applied and strategies relating thereto (solidarity groups)Different sources of success

X X X X

Organising meetings

X X X

Conducting and managing PV

X X X

Monitoring and evaluation of decisions

X X X

New management technology MFI

X X

Annex 6

KEY ACTION DESIRED OF AMIR (alone or with other support agencies): 

INSTITUTIO Inkung CT Umwalim Duterimbe CAF UCFM Coope Goshe Goshe Coopec INKING BT Coopec SWOF

N

Training topic

a Murambi

u SACCO re MFI SA iSong SA

UMURIMO

c IIT n Finance SA

n Finance SA

ZAMUKA

I SA V SA

COMICOKA

T SA

Pleading with the government and donors

X X X X X X X X X

Organize and / or coordinate training sessions in the areas expressed by the IMF and members over an agreed timetable between them.

X X X X X X X X X X X X X X

Conduct a market study revealing the national products that meet the needs of different segments of the population.

X X X X X X X X X X X X X

Assist in the development

X X X X X X X X X X X X

and implementation of products tailored to the needs of the target group of MFIs member.Promote MFIs to the people to regain more confidence after the incident at the 2006 closures, administrative bodies for more effective assistance on land and donors for technical and financial support more objective.

X X X

Making the "platform" of trade for the promotion of harmony and all the

X X X X X X X X X X

microfinance sector: Hold workshops by levels of responsibilities within MFI by representation of MFIs, MFIs and between administrative authorities and donors.Close as possible MFI members by making field visits often. Do not stay only in big cities.

X X X X X X

Assist members in research MFI refinancing

X X X x X X X X X X X X X X

Facilitate mutual support between IMF members in the self: MFIs may be involved in heavy

X x X X X

training for small MFIs.Programmed to respond as in the training of grassroots beneficiaries (customers)

X x X X X X X X

Ensure ongoing communication of information, research or report relevant to MFI members: communication platform for the industry.

X X X X X X X X

Provide advocacy for specific legislation on microfinance trial and execution of judgments. If possible, open a special chamber to

X x X X X X X X X X X

MFIs at the Commercial Courts.Provide advocacy for a more flexible and / or nearest registration guarantees at the RDB.

X X X X X X X X X X X

Provide more frequent training (at least quarterly)

X X X X X X X

Follow up - regular assessment of any IMF member in order to assist in a timely and intervene in time to resolve some conflicts still occur.

X X X X X

Effort to regularly monitor the health of all members especially

X X X X

those MFIs away from Kigali.Organize study tours carefully targeted according to the grievances expressed by member MFIs

X X X X X X

Search for scholarships at MFI staff members.

X X

Make lobbying for the establishment of a guarantee fund for agricultural

X X X X

Promote and enhance the quality of service in its members

X

Often meet representatives of members (up agencies) to incorporate a

X X X X

common direction of the industry.Help develop the field of micro-insurance

X X

Training activities carried out by AMIR not followed by an evaluation or a coaching

X X

Assistance in improving work systems: Procedures Manual, Product development, management of unpaid ...

X X

Establish a local office for an evaluation and rating advice more timely and lower cost within the limits of endurance.

X

Annex 7

List of persons interviewed or contacted

No.

Organization / institution

Person met Function Contacts

1 AMIR Rita NGARAMBE Executive Secretary 0782889582

Patricie Uwimbabazi Capacity Building Manager

0788356811

Peter Rwema Head of Research and Development

0788574201

2 AQUADEV Francis HUFF Coordinator 0788304033

3 CAF iSong Callixte KALISA Kayiranga

Director General 0788304319

Theoneste HABIMANA Management Accountant 0788463055

4 COMICOKA Jean Damascene NKURIKIYINKA

Chairman of the Board 0788467206

5 SACCO Inkunga Claudian NSENGIMANA Manager 0788685877

6 SACCO Ishema Mulindi

Joram BITAMPAMIZE Manager 0722401401

7 SACCO IIT Christian Uwayezu Manager 0788485599

8 SACCO Ubaka Bernardin KAYUMBA Manager 0788635937

9 SACCO Ubaka Kind BIZIYAREMYE Accountant 0788558139

10 SACCO Zamuka Aimee Marie UWERA Manageress 0785193516

11 COOPEDU Gilbert RUGWIRO Chief Legal Department / D ai

0788866700

12 CT Murambi Jean Baptiste MUTAGANZWA

Manager 0788878283

13 Duterimbere MFI Delphin NGAMIJE Director General 0788305651

Illuminated Mukantaganzwa

DAF

14 Goshen Finance SA

Samuel Munyankumburwa

Director General 0788301313

Jean NZAKAMWITA Steering Control 0788309214

15 Inkingi MFI SA Bernadette MUKAMWIZA Managing Director 0788301663

Jean Baptiste MINEGA Operations Director16 DFMS Emmanuel NDAHIMANA Director General 078830017

017 SWOFT MFI SA Julien Mafutala Director General 078847999

618 Terrafina Frank Backx Technical Support

Officer - Great Lakes0783100003

19 Umwalimu SACCO Joseph MUSERUKA Director 0788302393

20 Union CLECAM Ejoheza

Merchiers DUSABUMUREMYI

Director 0788531995

21 Union CLECAM Wisigara

Ildefonso NDATURANIWE Director 0783480952

22 Union of CMF UMURIMO

Elie BIGIRIMANA Director 0788405478

23 Vision Finance Company

Patrick Birasa Operations Director 0788304590