Identification of appropriate financing instruments and technical assistance
Description
The study is financed under the technical assistance (TA) component of the Facility for Euro-Mediterranean Investment and Partnership (FEMIP). In the short term, TA is aimed at increasing the efficiency of the EIB’s investment activities in favour of the private corporate sector (industry, services).
This study will focus on determining the best way to further support microfinance institutions (MFIs) in Algeria, Morocco and Tunisia. Over the last 20 years the relevance of microfinance to alleviate poverty has been recognized in the light of pioneering operations in East Asia and Latin America. Non-governmental organizations (NGOs) dedicated to microfinance activities have played a very significant role in establishing the effectiveness of microfinance as a tool to fight poverty and to empower low-income populations. These early experiences have demonstrated, among other results, that the poor are “bankable” and can represent good credit risk. This is now leading more main-line financial institutions, such as private equity funds and banks, to pay greater attention to microfinance as a relevant market for their activities.
Services
- Overview of existing situation in the microfinance sector
- Provide a detailed assessment of the actual financing needs of MFIs and identify financing gaps
- Identify operations where the EIB would have a value-added in the provision of equity or quasi-equity finance and technical assistance to MFIs
- Provide a detailed analysis of the MFIs development and financing arrangements in each country.