Last news - November 2015

Our partner networks innovate and share their results in Luxembourg

ADA moderated a panel of exchange of experiences between networks at the e-MFP European Microfinance Week.

MCPI from the Philippines and Copeme from Peru, both prominent partners of ADA.

Three microfinance networks, three regions, three approaches to launch and disseminate innovative products through MFIs. That was the subject of the session presented by the networks MCPI from the Philippines, COPEME from Peru and the Pakistan Microfinance Network from Pakistan. The session, entitled " Implementing Innovation in Inclusive Finance: The Network Approach", was moderated by Benjamin Mackay, Innovation in Inclusive Finance Manager at ADA.

Why think about networks when we discuss innovation? Because as collaborative structures, networks have proven capable of pooling scarce resources, whether financial, human or technical, in order to provide their MFI members with the necessary tools, methodologies and incentives (financial or otherwise) to innovate more efficiently and effectively and increase industry uptake of new products and services.

Focus on the results shared by MCPI

Allan Robert Sicat, Executive Director of the Microfinance Council of the Philippines, Inc. (MCPI) opened the session presenting the DevSEA program, developed in partnership with ADA. DevSEA aims to enable the provision of sustainable energy solutions to micro and small businesses through MFI-based financial products. The pilot program began with the distribution, via a microcredit, of a Pico PV solar lamp.

Between March 2014 and September 2015, DevSEA enabled the sale of 949 solar lamps through 806 microloans, improving, directly and indirectly, the lives of 4.365 Filipinos.

Solar lights generate no pollution and recharge naturally through sunlight. They effectively replace the makeshift lamps connected on motorcycle batteries which discharge within 48 hours and travelling to town to for an expensive and polluting kerosene refill.

However, the challenges of such innovations are numerous. Allan notably mentioned that low profits from the sale of solar lamps do not encourage MFIs to promote the product. He also explained that cheaper but inferior quality solar lamps are swarming the market, impacting the sale of higher quality Pico PV lamps by MFIs.

DevSEA initial results are nevertheless encouraging and promising:

  • Loan disbursement targets for the pilot project were widely exceeded.
  • A Renewable Energy infrastructure in ASKI and PBC has been created to allow program expansion and to test on other RE tech.
  • The Asian Development Bank (ADB) now supports DevSEA through its Energy for All initiative. ADB provided a senior consultant as an adviser to DevSEA during the pilot phase.
  • The pioneer pilot MFI partners ASKI and PBC launched new energy loans for the commercialization of solar lamps.
  • Two new MFI partners, NWTF and PMPC, joined DevSEA in 2015.

To find out more about DevSEA…

Download for free the DevSEA presentation flyer and visit our partner MCPI online.

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