1. EuropeAid EU/ACP Microfinance Programme II

2. EuropeAid  Overview of the EU cooperation in ACP countries  EU/ACP Microfinance Programme presentation  Implementation modalities  Mesuring results Stefania Zaninello Programme Manager Europeaid Co-operation Office Centralised operations in ACP Countries EU/ACP Microfinance Programme II

3. EuropeAid European Development Fund (EDF): main instrument for development cooperation in the ACP States and OCT. 10th EDF: 2008-2013 (Revised Cotonou Agreement) National and Regional EUR 17 766 million Intra-ACP/Intra-regional EUR 2 700 million Investment FacilityEUR 1 500 million Total allocation: EUR 22 682 million Regional Authorizing Officer: ACP Group of States created in 1975 by the Georgetown agreement, signed initially by 46 ACP States (today 79). EU/ACP Microfinance Programme II Overview

4. EuropeAid ACP: Sub-Saharan Africa, Caribbean and Pacific

5. EuropeAid EU/ACP Microfinance Programme II Presentation EU/ACP Microfinance Programme II It is part of the Intra ACP envelope and programme for Private Sector Development and Trade Related Assistance Duration: 2010 – 2014 Allocation: EUR 15 million Objective: contribute to poverty alleviation through economic growth facilitated by the development of inclusive financial systems adapted to the needs the poor in ACP countries. Financial System approach: o Equitable and efficient local markets o Capacity building and consumer empowerement o Pro poor access to finance

6. EuropeAid EU/ACP Microfinance Programme II Presentation Equitable and efficient local markets More efficient financial market infrastructure Better informed ACP policymakers, regulators and supervisors More effective and equitable funding for access to finance in ACP countries Capacity Building and Consumer empowerment Improved financial capability of ACP microfinance clients More transparency of MFIs on their financial and social performance Developed skills of ACP microfinance actors Expanded MFIs institutional capacity to leverage investment and financial access Pro-poor access to finance Innovative delivery models for serving communities excluded from the formal financial system Access to finance for vulnerable populations, for instance very poor or remote and rural people

7. EuropeAid EU/ACP Microfinance Programme II Implementation modalities Collaboration with other donors: Making aid more effective Demand driven approach: Call for proposals

8. EuropeAid EU/ACP Microfinance Programme II Making aid more effective

9. EuropeAid EU/ACP Microfinance Programme II Call for proposals Responsible finance for all Main objective: pro poor access to finance, capacity building and consumer empowerment Total allocation: EUR 7,5 million – 1 Call Between EUR 250,000 and EUR 1 million Up to 80% of budget of a project (other 20% co-financed by applicant and partners, no in kind contributions accepted)

10. EuropeAid EU/ACP Microfinance Programme II Call for proposals Eligible candidates: Retail financial services providers and their associations or networks; Providers of technical and business services to the microfinance sector; Providers of wholesale finance oriented towards pro-poor retail financial institutions Requirements for grant recipients: Experience with microfinance operations >3 years - at least 3 similar actions Technical expertise in-house qualified staff dedicated to microfinance Main eligible activities and initiatives: Action research, Training, Technical assistance, Advisory services, Capacity Building, Financial education, etc. Pilot project in rural area, innovative solutions and client protection initiatives Multi country, regional, cross border initiatives and South-South cooperation Replicability and dissemination of good practice Complementarity with other initiatives leverage effect No funding for capitalisation of loan portfolio, guarantees or equity.

11. EuropeAid EU/ACP Microfinance Programme II Measuring results Performance Based Agreements both economic and social components Definition of performance baseline, targets and key indicators based on Social objectives : - Alleviation of poverty and outreach - Access to sustainable financial services - Well self managed mechanism Economic and financial objectives Standard performance indicators cover at least the five core areas: (1) breadth of outreach (2) depth of outreach (3) portfolio quality (4) efficiency (5) sustainability

12. EuropeAid EU/ACP Microfinance Programme II