Microfinance and Microenterprise Development Project
The Microfinance and Microenterprise Development Project in Djibouti aimed to establish a viable network of savings and credit unions; promote microenterprises services and develop sustainable non-financial services; formulate and adopt a national microfinance and microenterprise strategy with a legal framework; and strengthen and diversify income-generating activities. Overall, the project 's contribution is important in terms of reform of the microfinance sector, particularly through the adoption of legal texts and strategies, and partnerships with institutions specialized in microfinance. The project has advocated for an inclusive approach that has promoted women's participation in decision-making regarding the governance of savings and credit unions. However, sustainability of benefits has been hampered by human resources constraints of savings institutions and credit unions, the absence of an apex structure, the continued importance of subsidies, weak profitability of the portfolio and weak savings and credit unions operational and financial autonomy. The evaluation recommended that future interventions focus on strengthening the network of credit and savings banks so that they can better serve the target group.