| Project ID: 1126
Executive Board Document: EB-99-68-R-14-Rev-1
National Microfinance Programme Support Project
To a large extent, the Government of Cameroon's ability to reduce
poverty and ensure sustainable rural livelihoods for its population
depends on the availability of viable microfinance services and
networks. The overall objective of this six-year IFAD-initiated
project is to help create and maintain a system of properly supervised
MFIs whose services are accessible to all segments of the population,
including those living in rural areas. In collaboration with other
development partners and as part of a national platform for microfinance
development, IFAD has assisted the Government of Cameroon in formulating
a national microfinance policy that will protect small depositors'
money while leaving room for institutional and product innovation.
More specifically, the project's objectives are to:
- increase the ability of government institutions to implement
the national microfinance policy and establish a permanent consultative
mechanism that brings together concerned government departments,
MFI networ ks and professional associations;
- support the consolidation and professional development of MFI
networks and the expansion of their outreach;
- replicate, through action research, innovative approaches to
rural microfinance; and
- capitalize on and disseminate experiences and best practices.
While national in coverage, the project devotes special attention
to the more disadvantaged segments of the population with little
or no access to financial services. Poor, small-scale users of resources,
who are clients of rural and urban MFIs, constitute the target group.
The project will also contribute significantly to improving the
situation of women, since the majority of MFI clients come from
the informal sector, in which women predominate.
Innovative Features:
- IFAD has played a key facilitator role in this project by bringing
together government agencies, donors, MFI networks and NGOs in an
effort to facilitate the development of the entire rural microfinance
system. The project will help coordinate the activities of all major
stakeholders and will intervene in particular areas to extend the
financial services of sustainable microfinance institutions to rural
women and the poor.
- The project focuses on expanding and strengthening MFIs and on
broadening the range and coverage of financial services. Project
implementation has been conceptualized in a decentralized manner,
with beneficiary MFIs and networks taking responsibility for their
own delivery and recovery systems as well as monitoring and control
mechanisms.
- The strength of the project will be direct implementation of
project activities by the agencies, supported by technical assistance
and other resources provided under the project.
Loan Amount:
SDR 8.1 million (approximately USD 11.1 million) on highly concessional
terms.
Total Project Costs:
Estimated at USD 13.5 million, of which USD 2.0 million will be
provided by the Government and USD 478 000 by the beneficiaries.
Cooperating Institution:
UNOPS.
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