Tigist Tesfaye AEMFI, Program Manager

July, 2010Bern, Switzerland

The Experience of AEMFI in the Expansion of SPM

“ Performance, Challenges and the Way forward “

Background of AEMFI

• The Association of Ethiopian Microfinance Institutions (AEMFI) is a network of 30 microfinance institutions in Ethiopia

• AEMFI’s vision is to be a world class, innovative network providing value added services in building an inclusive financial system in Ethiopia.

• Training and Peer Exchange Visits• Knowledge Management • (Lobbying & Building Awareness)• Research & Publication• Performance Monitoring & Technical Assistance• National, Regional and International

Networking• Conducting Thematic Workshops &

Conferences.

Main Functions/Activitie

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SPM Activities Performed by AEMFI

• Conducted SPM workshop to discuss overall concepts and tools.

• Shared and presented the experience of the Bussa Gonofa MFI who developed and implemented the Poverty Score Card

• Conducted a training on Quality Audit Tool

• AEMFI developed a baseline survey and distributed it to member MFIs

Network’s Challenges Implementing SPM

• Lack of funding

• Limited knowledge on the tools and MFI capacity.

• Lack of ownership supervising and overseeing the implementation of SPM

• Absence of Code of Conduct

• Too much attention on MFIs’ financial concerns

Quality Audit Tool (QAT) Challenges

• Time consuming

• Very rigid and not flexible

• Requires additional resource

• Requires effective MIS system

• The tool doesn’t consider the external situation

• Time consuming

• Requires champion to implement SPM.

• Requires qualitative research, which in turn requires experienced researchers who have basic knowledge and understanding of qualitative research

• Requires strong MIS System and needs close supervision.

Poverty Score Card Challenges

Lessons Learned

• QAT is very helpful in identifying the strengths and weaknesses of an organization.

• It provides an opportunity to see the institution’s areas for improvement.

Lessons Learned from Poverty Score Card

• In the initial stages it is not advisable to use so many poverty indicators.

• SPM will be achievable when there is committed and dedicated board members, leaders and management staff.

• SPM will be implemented when front line staff know SPM and understand their clients.

The Way Forward

• AEMFI is planning to organize a workshop and raise awareness among the board members, management and the sector as a whole.

• Introduce other tools so that MFIs have a chance to compare and select.

• AEMFI is planning to form a task force that can handle and organize SPM indicators among members.

• Encourage a balance between the financial and social objectives of MFIs through a code of conduct, as well as understanding and commitment at the level of the network.

• Incorporate social indicators into MFI reports and start providing SPM reports to the MIX.

Thank you!