RAFIP M&E SYSTEM 12 TH – 14 TH DECEMBER, 2011 RAYMOND MENSAH M&E OFFICER

RURAL AND AGRICULTURAL FINANCE PROG. (RAFIP) Programme Goal to improve the livelihoods of the rural population including smallholder farmers and rural micro entrepreneurs (esp. women and vulnerable groups). Objectives to enhance access of rural and agricultural population to sustainable financial services o through enhanced outreach and o financial linkages of rural retail institutions and formal financial institutions.

PROG. COMPONENTS Component I - STRENGTHENING RURAL FINANCIAL SYSTEMS oI.A: Capacity-Building for Sustainability oI.B: Product Development and Innovation Component II - STRENGTHENING FINANCIAL AND AGRICULTURAL LINKAGES AND SUPPORT SYSTEMS oII.A: Linkages and Technical Support oII.B: Policy, Regulation, Supervision, Monitoring oII.C: Knowledge Development & Dissemination Component III - PROGRAMME ADMINISTRATION oIII.A: Training oIII.B: Administration oIII.C: Monitoring and Evaluation

M&E SYSTEM Monitor procurement, disbursement and financial management; Monitor general indicators of programme development impact; Monitor the extent to which formal rural financial institutions are able to link with informal financial intermediaries (to reach their clients, esp. women and poorest segments of the rural population); Monitor and assess the extent to which the programme supported institution-building mechanisms are effective in strengthening the capacity of IAs

Data capture is through Field Supervision and M&E reports designed in a participatory manner Use of the MiX tool: 11 indicators by which to measure the social performance of microfinance institutions (MFIs) which provides a platform for benchmarking and analysis. PRIMARY OBJECTIVE of MiX To increase transparency in the microfinance industry through data collection and analysis.(REPORTING?) o focus on those indicators that are clearly and directly linked to results, o have quality that can be tested and benchmarked, o can be easily validated by third parties. M&E SYSTEM

MiX INDICATORS INDICATOR CATEGORYWHAT THE INDICATORS MEASURE 1. Mission and social goals The MFI's stated commitment to its social mission, its target market and development objectives 2. Governance Whether members of the Board of Directors have been trained in social performance management and the presence of a formal Board committee that monitors social performance 3. Range of products and services Both financial and non-financial products and services offered by the MFI 4. Social responsibility to clients The number of Smart Campaign Client Protection Principles applied by the MFI 5. Transparency of cost of services to clients How the MFI states its interest rates

MiX INDICATORS INDICATOR CATEGORYWHAT THE INDICATORS MEASURE 6. Human resources and staff incentives The MFI's policy regarding social responsibility to staff. This includes: human resource policies in place, board and staff composition, staff turnover rate, and staff incentives linked to social performance goals 7. Social responsibility to the environment Whether the MFI has policies and initiatives in place to mitigate the environmental impact of financed enterprises 8. Poverty outreach Poverty levels of clients at entry and their movement out of poverty over time 9. Client outreach by lending methodology The type of lending methodology(-ies) employed by the MFI 10. Enterprises financed and employment creation The number of enterprises financed by the MFI and employment opportunities created by the enterprises financed 11. Client retention rateThe client retention rate of the MF

INITIATIVE Focus is on the rural banking network (RCBs, ARB Apex Bank, and RMFIs) o demonstrated contribution to making the financial system more inclusive of the poor o progress toward becoming self- sustaining to be able to continue providing services beyond the end of the Programme. Support will be performance-based and demand-driven, rather than pre- determined (AWP&B, MOUs).

LESSONS LEARNT POSITIVE EXPERIENCES o POSITIVE ATTITUDE TO LEARNING AND KNOWLEDGE SHARING (PCO and IAs) o FOCAL M&E STAFF OF IAs o IAs WILLINGNESS TO MAKE THE PROGRAMME ACHIEVE ITS GOAL CHALLENGES o MAINSTREAMING M,E&R INTO OPERATIONS o HUMAN RESOURCES: NUMBERS AND COMPETENCE WAY FORWARD o STRENGTHEN THE KNOWLEDGE AND SKILLS OF BOARD, MANAGEMENT AND M&E UNIT STAFF o STRENGTHEN PARTICIPATORY PLANNING, MONITORING AND REPORTING AT ALL LEVELS o STRENGTHEN IAs M&E UNITS