2005年-世界发展银行全球_Country-Level_Effectiveness_and_Accountability_Review___Madagascar_56页_1mb

Madagascar CLEAR - Summary

Core Content

The Madagascar Country-Level Effectiveness and Accountability Review (CLEAR) was conducted in 2005 to evaluate donor effectiveness in microfinance and support the development of a sustainable and inclusive financial system. The review aimed to align donor support with the needs of microfinance institutions (MFIs) and the broader financial ecosystem in Madagascar.

Main Points

Overview of Microfinance in Madagascar

• Growth: Microfinance in Madagascar has shown significant growth since 1999, with a 246% increase in the number of members and over 100% increase in savings and credit volume by 2004.
• Clients: As of 2005, MFIs served 70,000 clients for loans and over 500,000 for savings.
• Providers: The microfinance sector is supported by a variety of providers, including cooperatives, non-cooperative institutions, and banks.
• Structure: The financial system is divided into three levels: micro, meso, and macro.

Donor Role

• Donors continue to play a vital role in the development of microfinance in Madagascar, despite the country's political and economic challenges.
• Donor support is crucial for the sustainability and expansion of microfinance services.

Key Challenges

Micro-level

• Strengths:

  • A large number of points of service.
  • Growing interest from banks and private investors.
  • Dominance of cooperative financial institutions (Decentralized Financial Systems).

• Weaknesses:

  • Structural weaknesses in governance, portfolio management, internal control, human resources, and financial sustainability.
  • Negative return on assets and high portfolio at risk (PAR) rates.
  • Lack of reliable financial performance data.

• Donor Recommendations:

  • Help MFIs clean up their portfolios through targeted missions and sound management practices.
  • Promote the diversification of institutions and approaches, including the creation of a microfinance bank.
  • Support well-performing MFIs in tailoring their services to better meet client needs.
  • Promote MFI transparency and help the government maintain a favorable environment.

Meso-level

• Strengths:

  • Availability of support services such as training and auditing.
  • Existence of professional associations and networks.

• Weaknesses:

  • Limited and uneven quality of support services.
  • Insufficient investment in local training.
  • Need for improved governance within MFIs, especially for cooperatives.

• Donor Recommendations:

  • Improve investment in training by promoting local, accessible, and sustainable training programs.
  • Establish multidonor funds for technical support.
  • Encourage the merger of professional associations (APIFM and AIM) and support the resulting organization.
  • Promote the emergence of a sustainable system for MFI refinancing.

Macro-level

• Strengths:

  • Supervisory and coordinating bodies are in place.
  • A legal framework specifically for microfinance is being introduced.

• Weaknesses:

  • Limited resources for supervisory bodies.
  • Legal framework is in flux.
  • Risk of interest rate subsidies distorting the market.
  • Inconsistent involvement of the Ministry of Agriculture, Livestock, and Fisheries (MAEP) with the National Microfinance Strategy (SNMF).
  • Legal system is not reliable enough to support financial sector development.

• Donor Recommendations:

  • Help the government maintain an environment conducive to microfinance.
  • Recognize and phase out interest rate subsidies.
  • Clarify roles among stakeholders.
  • Promote capacity building at the CSBF (Commission de Supervision Bancaire et Financière).

Donor Systems

• Strengths:

  • Access to best practices in microfinance.
  • Willingness to support microfinance initiatives.
  • Broad stakeholder engagement.

• Weaknesses:

  • Lack of reliable financial performance information.
  • Limited coordination among donors.
  • Inadequate internal systems for managing microfinance programs.

• Recommendations:

  • Ensure donor staff are qualified in finance.
  • Apply the key principles of the National Microfinance Strategy.
  • Strengthen performance-based management with service providers.
  • Reactivate donor coordination.

Key Takeaways

• Microfinance Needs:

  • Donor support to reduce fragility of MFIs.
  • Development of training subsidies, not interest rate subsidies.
  • Establishment of multidonor funds for technical support.
  • Promotion of MFI transparency.
  • Clarification of roles among stakeholders.
  • Capacity building at the CSBF.

• Donor Internal Needs:

  • Staff qualification in finance.
  • Application of the National Microfinance Strategy.
  • Strengthening performance-based management.
  • Reactivating donor coordination.

Conclusion

The CLEAR emphasizes that donor support is essential for the sustainable development of microfinance in Madagascar. It outlines specific recommendations at the micro, meso, and macro levels to improve the effectiveness and alignment of donor activities with the needs of the financial system and the poor. The review team conducted extensive consultations with over 110 stakeholders and relied on literature reviews and interviews to gather comprehensive insights.