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The Experience of AEMFI in the Expansion of SPM “ Performance, Challenges and the Way forward “. Tigist Tesfaye AEMFI, Program Manager July, 2010 Bern, Switzerland. Background of AEMFI.
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The Experience of AEMFI in the Expansion of SPM “ Performance, Challenges and the Way forward “ TigistTesfaye AEMFI, Program Manager July, 2010 Bern, Switzerland
Background of AEMFI • The Association of Ethiopian Microfinance Institutions (AEMFI) is a network of 30 microfinance institutions in Ethiopia • AEMFI’s vision is to be a world class, innovative network providing value added services in building an inclusive financial system in Ethiopia.
Main Functions/Activities • Training and Peer Exchange Visits • Knowledge Management • (Lobbying & Building Awareness) • Research & Publication • Performance Monitoring & Technical Assistance • National, Regional and International Networking • Conducting Thematic Workshops & Conferences.
SPM Activities Performed by AEMFI • Conducted SPM workshop to discuss overall concepts and tools. • Shared and presented the experience of the BussaGonofa MFI who developed and implemented the Poverty Score Card • Conducted a training on Quality Audit Tool • AEMFI developed a baseline survey and distributed it to member MFIs
Network’s Challenges Implementing SPM • Lack of funding • Limited knowledge on the tools and MFI capacity. • Lack of ownership supervising and overseeing the implementation of SPM • Absence of Code of Conduct • Too much attention on MFIs’ financial concerns
Quality Audit Tool (QAT) Challenges • Time consuming • Very rigid and not flexible • Requires additional resource • Requires effective MIS system • The tool doesn’t consider the external situation
Poverty Score Card Challenges • Time consuming • Requires champion to implement SPM. • Requires qualitative research, which in turn requires experienced researchers who have basic knowledge and understanding of qualitative research • Requires strong MIS System and needs close supervision.
Lessons Learned • QAT is very helpful in identifying the strengths and weaknesses of an organization. • It provides an opportunity to see the institution’s areas for improvement.
Lessons Learned from Poverty Score Card • In the initial stages it is not advisable to use so many poverty indicators. • SPM will be achievable when there is committed and dedicated board members, leaders and management staff. • SPM will be implemented when front line staff know SPM and understand their clients.
The Way Forward • AEMFI is planning to organize a workshop and raise awareness among the board members, management and the sector as a whole. • Introduce other tools so that MFIs have a chance to compare and select. • AEMFI is planning to form a task force that can handle and organize SPM indicators among members. • Encourage a balance between the financial and social objectives of MFIs through a code of conduct, as well as understanding and commitment at the level of the network. • Incorporate social indicators into MFI reports and start providing SPM reports to the MIX.