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It was possible to win a pen, a book or even an entry to the SAM 2019 at our booth!

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Unnamed

Jérémie Chapet (ADA)

More than half of the population in sub-Saharan Africa is under 25 years of age (about 465 million people).

It is expected that this demographic trend will go on for the next twenty years with a doubling of the population by 2050.
Such a natural increase represents a major opportunity for the future of the continent, with a dynamic workforce for many years. An opportunity, on the condition that the economies of the area can absorb this workforce, which had not been the case over the last decade. Indeed while sub-Saharan Africa has experienced relatively high growth rates in recent years, the labor force participation rate has remained stable at less than 70% of the labor force since 1990.

From one hand the 11 million young people entering the African labor market each year, there are few job opportunities in formal and informal enterprises or in government. Entrepreneurship is therefore considered as one of the main sources of job creation for the coming years. From the other hand a lot of youth drop out the school for economic reasons and do not get necessary skills to access labor market.

It is in this sense that the projects of professional insertion of young people launched within ADA partner MFIs are directed towards the young entrepreneurs wishing to create or reinforce their activity, to become directly and indirectly to the creation of employment on the African continent.

Over the past 10 years, ADA have been committed with four different MFIs to develop an adapted package of financial and non-financial products addressing the needs of young entrepreneurs starting-up or building-up a business. ADA partners MFIs are still offering the product today and have reached about 4 200 young entrepreneurs in Burkina Faso, Rwanda, Niger and Togo.

Since 2011, ENDA in Tunisia has been offering a similar package called « Bidaya », mainly to finance and accompany starting-up projects. Bidaya have reached 6000 young people.

Since 2003, Sinapi Aba has been implementing the Youth Apprenticeship Program, a three-year artisanal vocational training for unemployed young people, after which a starting-up loan is provided.

After a first phase between 2011 and 2016, in 2017 SwissContact initiated the second phase of the project called Learn Earn and Save II (ULEARN-II) in Uganda and Tanzania. The Swiss NGO is acting as a market facilitator linking youth and market actors (business companies, inputs providers, financial institutions, BDS …) for skills acquisition (learning through production), business partnership for youth employement. In 2017, with the ULEARN-II, about 1700 youth had access to a specific training, from which 850 have got an employment, mostly self-employed.


European Microfinance Week 2018


The European Microfinance Week 2018 was held from 14 to 16 November in Luxembourg.


Où trouver notre stand à la Semaine européenne de la Microfinance ?

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Congratulations to the winner of the 9th European Microfinance Award: Advans RCI in Côte d'Ivoire.

Advans offers payment, savings and credit services activated by an Advans account linked to an MTN mobile money account.

Advans RCI

Photo credit: twitter.com/MFA_Lu


And the winner is...

Francisco Cuamba (Microbanco Confianca SA, Mozambique) who wins an entry at the SAM 2019! Congratulations!!

Francisco Cuamba & Jean Jaecklé (ADA)

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Mathilde Bauwin (ADA) during the panel

Mathilde Bauwin (ADA) during the panel

Social performance management: where do MFIs stand in 2018?

Since the launch of the SPI4 tool in 2014 by Cerise, more and more MFIs are using it to assess their social performance management. Cerise is consolidating a database with all the audits completed and sent back, and ADA, in cooperation with Cerise, is analyzing the database in order to publish a study on social performance management.

The study aims at giving insight on the profile of MFIs assessing their social performance management, on the strengths and weaknesses of these MFIs on this topic, and on the possible synergies between social, financial and environmental performances. ADA is presenting the first results of the study during the European Microfinance Week 2018, in the panel “Building capacity for better social performance management”.

The study shows that smaller MFIs, cooperatives and African MFIs are the ones which need more support on social performance management (SPM) in general. More specifically, all MFIs especially have difficulty in ensuring the commitment of their various stakeholders into their social goals, which is partly due to their difficulty in precisely defining and tracking these social goals. Regarding possible synergies between different types of performances, the results show that there is no contradiction between social and financial performance; there is even a clear and strong positive correlation between good social performance management and portfolio quality: the higher the SPM score, the lower the portfolio-at-risk. Finally, the MFIs tracking their environmental performance tend to show better social performance management than the average, however the environmental performance of these MFIs remains low. Thus, there is probably a need for support on this specific subject.

To know more on the topic, the final report of the full study will be released in early 2019.


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