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Background

The world's microfinance industry is in the midst of unprecedented expansion and transformation. No longer simply a provider of small loans, the array of financial and non-financial products being offered by MFIs has proliferated and now includes, for example, insurance, remittances, telecommunication services, energy, water and sanitation, and health and education services.

Underpinning this expansion and transformation is the growing relevance of partnerships. Microfinance partnerships are providing new ways for MFIs to better enable poor households to protect income and assets, increase productivity and business opportunities, insulate against risks and shocks, and improve health and education outcomes.

Innovative partnership approaches are opening up new streams of funding for MFIs, which translate into expanded outreach and new levels of financial sustainability. In addition, commercial banks are increasingly focusing on microfinance as a potential new market and revenue stream. It is within the context of this proliferation of partnerships in microfinance that these training materials have been developed.

The Foundation for Development Cooperation (FDC), in partnership with the Banking with the Poor (BWTP) Network and with funding support from the Citi Foundation, has developed these materials as part of a larger multi-year program, which aims to promote partnerships in the microfinance industry in the Asia-Pacific region and beyond. The program is a natural extension of the objectives, activities and needs of the BWTP Network which centre on promoting partnerships and the exchange of ideas and know-how among its diverse group of members. These training materials - Capacity Building for Partnerships in Microfinance - are available free of charge to registered users and to the BWTP Network members.

The production of these training materials is an outcome of a 2006 FDC initiative, also completed in conjunction with the BWTP Network and with funding from the Citi Foundation, which focused on helping MFIs to better prepare for and deal with natural disasters. Those materials were translated into multiple languages, including Mandarin, Indonesian, Hindi, Tamil and Sinhala. We expect that the Capacity

Building for Partnerships in Microfinance training manual will be translated into various languages in due course.

While these training materials are aimed primarily at MFIs, those from the commercial banking sector and other stakeholders will also find these materials useful. There is no doubt that much can be learned from the huge body of work that has been built up around alliances in the business and public sectors. However, partnerships in the microfinance sector present their own unique possibilities and challenges. It is hoped that these training materials will go a long way to advancing the successful and innovative application of partnership approaches by and for MFIs.

The workshop materials contained on this website are very much exercise-based; participants are encouraged to brainstorm, debate and role-play within the context of both general and specific partnering considerations over the course of the partnership cycle. This provides scope for participants to share experiences and lessons learned, as well ask questions within a framework that provides guidance in seeking answers. The aim is to reflect the wide variety of permutations possible across partnerships and to avoid the risk of being too prescriptive.

The materials provide a structure, guidance and suggestions that allow for a standalone presentation of the workshop. However, the complexities of the issues at hand require preparation and a tailoring of the materials to specific audiences, countries, regulatory and legal environments. In this sense, the trainer's  manual other materials on this website should be used as tools that can, and must, be adapted as the facilitator sees fit.

Co-ordinating Organisations

The Foundation for Development Cooperation

Established in 1990 in Australia, The Foundation for Development Cooperation is an independent, not-for-profit international development organisation. The mandate of FDC calls for it to conduct policy-oriented research, foster public awareness, mobilise broader Australian and overseas development cooperation, and support nongovernmental development efforts. Through partnerships and alliances, FDC undertakes a range of initiatives which seek to improve the lives of poor people in developing countries, foster innovative approaches to development, and connect policy work to self-help efforts at the grass roots level. FDC's work includes economic development and assessment, policy analysis, grass-roots community based initiatives, strategic research, partnerships and leverage, advocacy, consulting and advisory services.

The Banking with the Poor Network

The Banking with The Poor Network is a network of more than 30 national policy institutions, commercial banks, MFIs and NGOs from numerous countries in the Asia-Pacific region - including Australia, Bangladesh, India, Indonesia, Laos, Nepal, Pakistan, Philippines, Sri Lanka, Thailand Vietnam and East Timor. Established in the 1990s, the BWTP Network's objective is to link microfinance with the financial system and to support the provision of inclusive financial services in Asia. It pursues this objective through capacity building, information sharing, policy dialogue, advocacy and research.

Citi Foundation

The Citi Foundation is committed to enhancing economic opportunities for underserved individuals and families in the communities where we work throughout the world. To achieve this goal, the Citi Foundation is focusing its giving on Microfinance and Microentrepreneurship which helps individuals become economically self-sufficient; Small and Growing Businesses leading to economic expansion and job creation; Education including basic education for youth and financial education; and the Environment with a focus on sustainable enterprises that generate jobs and stimulate economic growth while preserving the environment.