Annual Report 2013

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Annual Report 2013 ANNUAL REPORT 2013 May 2014 Table of Contents Acronyms & Abbreviations ......................................................................................... 3 Foreword by the Chair ................................................................................................ 4 1 Background of the MFA ....................................................................................... 5 2 Vision, Mission and Core Values ......................................................................... 6 3 Strategic Objectives ............................................................................................. 7 4 Organizational Structure ...................................................................................... 8 5 Activities and Achievements 2013 ....................................................................... 9 5.1 Knowledge Management/ Research & Representation ................................. 9 5.2 Capacity Building ........................................................................................ 11 5.3 Advocacy .................................................................................................... 12 5.4 Organizational Development ....................................................................... 13 6 Conclusions & Outlook ...................................................................................... 15 Annexes ................................................................................................................... 15 Annual Report 2013 Page 2 Acronyms & Abbreviations ADA Appui au Développement Autonome, Luxembourg AFP Access to Finance for the Poor Project (GIZ) BOL Bank of the Lao PDR BRS Belgian Raiffeisen Foundation BWTP Banking with the Poor Network DGRV German Cooperative and Raiffeisen Confederation DPF Depositor Protection Fund DTMFI Deposit Taking Microfinance Institution FIF Fund for Inclusive Finance (UNCDF-MAFIPP) FISD Financial Institution Supervision Department (BOL) KfW Kreditanstalt für Wiederaufbau IFC International Finance Corporation ILO International Labor Organization INGO International Non Government Organization GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH GOL Government of the Lao PDR HRD Human Resource Development MAFIPP Making Access to Finance more Inclusive for Poor People (UNCDF-BOL) MCPI Microfinance Council of the Philippines (National Microfinance Network) MFC Microfinance Center MFA Microfinance Association MFI Microfinance Institution MFWG Microfinance Working Group for the Lao PDR MIX Microfinance Information Exchange NCAT Network Capacity Assessment Tool (SEEP) NDTMFI Non Deposit Taking Microfinance Institution NERI National Economic Research Institute NGO Non Government Organization NGPES National Growth and Poverty Eradication Strategy NSO Network Support Organization SCU Savings and Credit Union SEEP Small Enterprise Education and Promotion Network SBFIC Savings Bank Foundation for International Cooperation SPTF Social Performance Task Force TOT Training of Trainers MoHA Ministry of Home Affairs UNDP/UNCDF United Nations Development Fund/United Nations Capital Development Fund USSPM Universal Standards of Social Performance Management WEC World Education Consortium Annual Report 2013 Page 3 Foreword by the Chair On behalf of the Microfinance Association (MFA) I have the great honor to present you the Annual Report for 2013. The year under review was marked by some important achievements that paved the way for the further development of the association. First and foremost I want to mention the fact that, in October of 2013, the MFA finally obtained its temporary license as a non profit association (NPA) from the Ministry of Home Affairs (MoHA). This was the culmination of an application process that had lasted almost two years. The Association then held its first General Against this background, I would like to Assembly in November 2013. At this meeting, convey my sincere thanks to all the members a new Board of Directors consisting of 5 of the MFA as well as to BOL, MoHA and members as well as an Audit Committee were donor agencies for their strong support of the elected and the MFA’s by-laws were discussed MFA. I extend my special thanks to all and approved by the members. members, old and new, of the Board of Directors for their great contribution to the The permanent license is expected to be in MFA’s formalization and development. In place in the second quarter of 2014. Its official addition, I would also like to thank the recognition and clear legal status will help the director, the advisor as well as the other MFA Association to provide more services to its staff for providing high quality services to members, increase its income and have better members and maintain a good working access to external funding. Currently the MFA relationship with all stakeholders in the has 3 full time staff including the director to sector. carry out operations. In addition, an international technical advisor provides I wish you all a lot of success for the coming support and advice to the management team year! and the Board. Vientiane, May 2014 The Association is presently being supported by several funding agencies such as ADA Vanhsy Chindavong Luxembourg, SBFIC, GIZ, and UNCDF/UNDP. MFA Chairperson Annual Report 2013 Page 4 1 Background of the MFA The Microfinance Association (MFA) was than 80% of the overall sector. founded in May 2007 under the name of Microfinance Working Group for the Lao PDR Since January 2011 the MFA has had a (MFWG) as the national microfinance industry secretariat with one full-time staff (office network. It gathers microfinance practitioners manager) as well as a part-time international and other relevant stakeholders to share advisor. Moreover, in May 2013 the MFA was experience and information about the sector able to hire a Director. with the aim to improve sector coordination, transparency, sustainability and quality of The organization is presently being supported microfinance services. The MFA’s services by the following funding agencies / technical focus on three core areas: knowledge assistance providers: ADA Luxembourg, SBFIC, management/research & representation, GIZ, and UNCDF/UNDP. The MFA also capacity building, and advocacy. established its by-laws and internal policies as well as formal membership criteria for its MFA members encompass regulated members. microfinance institutions (DTMFIs, NDTMFIs, SCUs and Network Support Organizations) as In late October 2013, the MFA obtained its well as donors, bi/multi-lateral agencies, temporary license as a non profit association INGOs, service providers and individual (NPA). On 15th November 2013, the MFA held microfinance experts. its first General Assembly. At this meeting, the association members discussed and approved At the end of 2013, the MFA comprised 52 the MFA’s By-Laws and elected the members members including 32 Microfinance of the Board of Directors and Audit Institutions (MFIs), which represent roughly Committee. 50% of the formal microfinance sector in the Lao PDR in terms of the number of MFIs. It is expected that the Ministry of Home However, in terms of total loan portfolio and Affairs (MoHA) will issue the permanent combined assets or total number of active license to the MFA in the second quarter of borrowers, MFA members account for more 2014. Annual Report 2013 Page 5 2 Vision, Mission and Core Values VISION: ’To be the representative body for the microfinance industry in Lao PDR’ MISSION: ’To enable the microfinance sector to provide sustainable, demand- driven, efficient services to poor and low income populations’ Core Values Inclusion MFWG respects & engages all microfinance stakeholders in Laos & places high value on the diversity of experience represented in the sector Commitment Accountability Members assign & devote The MFWG takes themselves to actively engage in responsibility for its achieving the vision & mission of decisions and activities the MFWG Transparency Social Orientation The MFWG strives for full The MFWG places high transparency in its operations value on the interests, well- and services. It is open and being and needs of poor and honest about its experiences and discloses and shares information low-income populations in with its members & stakeholders Lao PDR Annual Report 2013 Page 6 3 Strategic Objectives Goals Strategic Objectives 1. The MFA is the coordination and Strengthen coordination/ information platform for the industry collaboration and information flow (Knowledge Management/Research & among microfinance stakeholders Representation) Support ongoing learning and research in the microfinance sector Improve sector transparency 2. The market environment in Laos is Engage in policy dialogue that conducive to sector development encourages an enabling market (Advocacy) environment; provide input and feedback to policy makers and/or regulator regarding policies affecting the sector 3. MFA members have access to quality Identify and address common needs microfinance services in training and technical resource (Capacity Building) development Pool capacity development resources to maximize impact and outreach in moving towards international good practice principles 4. The MFA is the professional Be a formal network (legally microfinance industry network in Laos registered entity) with sufficient (Organizational Development) funding in place to run the network sustainably Be sufficiently staffed with a professional staff and Board of Directors Annual Report 2013
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