AN EXECUTIVE SUMMARY OF COURSE REPORT ON

THIRD COUNTRY TRAINING PROGRAMME IN

MICROFINANCE FOR AFRICAN REGION:

ESTABLISHING AND MANAGING MICRO FINANCE INSTITUTION

(Jakarta and Bandung, Indonesia, 1 - 12 November 2010)

NAM CSSTC has signed Minutes of Meeting with Japan International Cooperation Agency (JICA) on 13 September 2007 concerning the Third Country Training Programme on Micro Finance for African Region – Batch II, to be implemented for five consecutive years (2007-2011). 

The first batch (2004-2006) focused on the operations of microfinance, and the second batch (2007-2011) focused on the institutional set-up and management for microfinance development. This Report is made for the fourth year of the second batch, that has been conducted on 1-12 November 2010 in Jakarta and Bandung, participated by 10 representatives from Ethiopia (3 persons), Kenya (3 persons), Namibia (1 person), and Uganda (3 persons). The participants of the programme comprise of policy makers and practitioners where they could share common issues with different perspectives.

The Course was intended to provide participants from African countries with an opportunity to improve their knowledge and techniques in establishing and managing microfinance institution (MFI). In order to enrich the discussion, a Japanese expert (Ms. Haruko Awano) was also invited to share the results of JICA-supported ground research results concerning the macro and micro views on African microfinance development. At the end of the Course, participants were expected to have improved and upgraded relevant techniques and knowledge of: (a) applying different approach to establish MFI; (b) applying appropriate method in managing MFI operations either they are conventional-based or sharia-based; and (c) enhancing the capabilities to develop MFI products and learn the experiences of other countries.

The Course was more focused on practical aspects of microfinance development based on two different operational schemes of Conventional Rural Banking and Sharia Financial Institution. Semi-internship activities were also conducted at the two different financing schemes in Bandung. The two different MFIs observed by participants are the fast-growing conventional Rural Bank (BPR) of Kencana and the most developed Sharia Financial Institution of BMT Barrah. Those two MFIs facilitated participants with some exercises of the practical knowledge of microfinance development. The participants also observed the two MFIs’ members and clients; how the members/clients/entrepreneurs manage their small enterprises by using microcredit from the two MFIs.

Built-in topic and overall evaluations were also conducted by using JICA’s templates and another format prepared by NAM CSSTC (as a pre-checked-test). The NAM CSSTC format was intended to cross-check whether the participants’ expectations expressd before the training session started were met or not met after the overall training subjects had been thoroughly discussed.

Results of the evaluation could be summarized as follows:

1.   Concerning Topic Evaluation:

The highest score for the topic/subject evaluated is on the basic operation of sharia microfinance in Bandung (4.92), followed by basic operation of rural bank (4.82) then presentation and discussion on savings mobilization (4.80)

Regarding level of understanding, application, training materials, methodology, time given, and facilities, average score is upper than 4.0 ranging from 4.20 to 4.90, of the maximum scale 5.0.

2.   Concerning Overall Evaluation:

The highest score for the overall evaluation is the relevance of the establishment and management of MFI that  stated as the priority needs and concerns of participant’s countries (4.90). Another interesting issue is that the contents of the course meet the participants’ needs. In line with this is the field study and the objective within country’s context which both reached the second highest score (4.70). The rest score is ranging from 4.50 to 4.90 of the maxium scale 5.0.

3.   Concerning Expectations (Pre-Checked-Test):

Participants were asked to fill-out the prepared form to explore their expectations before training session was started. On the last day their expectations were disclosed and openly discussed among themselves to check whether their expectations were met or not met. There are four parts of the expected results, namely: (a) on the microfinance development (95% met); (b) on the substances (100% met); (c) on the possible application of knowledge and experiences be shared to participants’ country (93% met); and (d) other expectations (100% met). The final result (average of the four parts) was that they satisfied with the Course as their expectations are almost perfectly met (96%) in accordance with the Scale of Assessment on Expectations which is: 0%-25% met is Failed, 26%-50% met is Sufficient, 51%-80% is Good, and 81%-100% is Satisfied.