IDLO in Tanzania to examine burgeoning Microfinance sector in East Africa
The International Development Law Organization's (IDLO) in Tanzania to provide a training and technical assistance program for the microfinance sector in Tanzania, Uganda and Kenya. The two-week program, which runs from November 17-28, 2008, is based in Dar Es Salaam, Tanzania.
Speaking from Tanzania, IDLO Microfinance Program Manager, Jami Hubbard, says:
"There is an incredibly dynamic microfinance industry in East Africa. However, reaching the poor in rural areas remains the key challenge for all three countries which lack robust sectors for small and medium-sized enterprises and are struggling to balance serving the poor with consumer protection issues. In particular, we are seeing a trend towards microfinance providers focusing on educating clients to repay loans, rather than making them aware of their legal rights as a debtor if they find themselves over indebted."
The IDLO program looks at the commercialization of the microfinance industry and the impact on the poor borrower; discussing consumer protection issues and innovations in technology to better serve the client, as well as public interest advocacy for women's rights.
It will also analyze the various business entities which can legally provide financial services to the poor, comparing their efficacy, and the types of financial products and services that they provide. It will also discuss sources of capital for microfinance entity growth. Land access and contract farming issues will be covered in the context of financial services to the poor in the rural and agricultural sectors.
Facilitating the program's training sessions and interactive workshops are IDLO's specialist microfinance team, international consultants and policy advisors, and local professionals from the Consultative Group to Assist the Poor (CGAP), the Unitus Investment Group, Tomorrow's Child Initiative, the University of Michigan, DIW Berlin, and the Tanzanian Tea Research Centre.
Program participants include legal professionals who advise microfinance entities (MFIs); or who advise commercial banks seeking to downscale; telecom corporations entering the microfinance industry; or researchers for government law and policy makers, including ministries of finance and central banks.
In addition to a preparatory needs assessment mission for the program, IDLO also held a discussion via video conference with microfinance sector bodies from all three countries on "How Inclusive is our Country's Financial Services Sector & How Can the Legislative and Regulatory Frameworks Increase Inclusivity, Competition and Depth?". For a copy of the discussion report, please contact IDLO (see below).
This latest IDLO program forms part of the Organization's three-year global microfinance project, funded by the Omidyar Network. The project aims to build the capacity of developing country legal professionals to enable them to take an active role in the microfinance industry. Beneficiaries include microfinance entities, NGO's, central banks, other bank regulators, think-tanks, borrower groups and government law and policy-makers.
For further information, please contact:
IDLO HQ: Sophie Turner, Press Officer, IDLO Headquarters in Rome, Italy
Tel: (+39) 06 4040 3229, email: sturner@idlo.int
Tanzania: Jami Hubbard, Microfinance Program Manager, email: jhubbard@idlo.int
IDLO (International Development Law Organization) is an international, inter-governmental organization with a mandate to promote the Rule of Law and good governance in developing countries, countries in economic transition and countries emerging from post-conflict situations. Since its establishment in 1983, IDLO has worked with more than 17,000 lawyers, magistrates and officials from approximately 176 countries.
IDLO has its Headquarters in Rome, Italy and two Regional Offices; in Cairo, Egypt, covering Arabic speaking countries and in Sydney, Australia, covering the Asia Pacific area. IDLO currently operates Project Offices in Afghanistan, Indonesia and Kyrgyzstan.
IDLO is funded by contributions from its 18 Member States and other donors.
For detailed information on IDLO and its activities, please refer to our website at www.idlo.int
