1. EU/ACP Microfinance Peer Learning Event 2008 - October 1-3, 2008 Agricultural and Rural Finance Recent trends in products and delivery channels serve rural clients Presented by Renee Chao Béroff PAMIGA-CIDR

2. EU/ACP Microfinance Peer Learning Event 2008 - October 1-3, 2008 2 Stakes and challenges 2 Due to constraints related to governance, capacities and product range, participatory MFIs operating in rural areas have difficulties reaching scale and growing to a critical size to be sustainable The isolation and the concentration of risk threaten these IMF vis-a-vis the competition A simple and limited product range does not make it possible to serve all client segments

3. EU/ACP Microfinance Peer Learning Event 2008 - October 1-3, 2008 3 Trends and experiences to face challenges Scale: Apex structure at regional or national level to reach economies of scale. Ex: Study Coady-Ford Merge between two or more similar or complementary MFIs and commercial alliances. Ex: Kafo Jiginew et Nyesigiso au Mali Transformation in joint stock company to attract investors with capital and expertise. Ex: Apex Bank of Ghana

4. EU/ACP Microfinance Peer Learning Event 2008 - October 1-3, 2008 44 Linkages: Question: With whom do you link? Rural-urban linkages to gain productivity and efficiency. Ex: CIDR Éthiopie, CIDR Tanzanie MFI-bank linkage to attract financial resources and expand the product range (including NTIC) and extend the client segments being served. Ex: EcoBank Question: What brings every partner for a balanced partnership? What are the risks, especially in terms of mission drift?

5. EU/ACP Microfinance Peer Learning Event 2008 - October 1-3, 2008 5 Product development and delivery methods/channels: Community based models for microsavings and micro-credit for poor rural households. Value chain financing with commercial agro processing industry for the more entrepreneurial producers and agribusiness integrated into the value chains. Ex: CIDR – PRIDE Tanzania in Iringa The new rural inclusive finance which promotes the entrepreneurial spirit in rural areas and makes it possible for rural entrepreneurs to seize the opportunities of the rise in prices of the agricultural produce to improve their living conditions: impact on local economic development.

6. EU/ACP Microfinance Peer Learning Event 2008 - October 1-3, 2008 6 Which approaches for which challenges? Do you have a problem of critical size? Or of isolation, concentration of risks and lack of resources? Or of narrowness of your product range which limits you to the not so profitable micro credits? Make your diagnosis and identify your solutions of evolution in your environment.

7. EU/ACP Microfinance Peer Learning Event 2008 - October 1-3, 2008 7 Learning Café Discussions Our three learning coffee sessions will relate to these three topics: 1.How to change scale? 2.What linkages to make for a win-win relationship? 3.Which products and delivery channels to serve all the categories of rural economic actors. Come to the session which concerns you most or come to the three if you hesitate in your diagnosis!