Youssef bencheqroun al amana, morocco gamal khalifa efsa, egypt jurgen hammer grameen credit agricole microfinance foundation, luxembourg. Since microfinance has been delivered on large scale as a policy tool to alleviate poverty and promote the development of small enterprises, evaluating its impact on. It was founded on february th in 1997 and approved as an association of microcredit by. Microfinance is about building permanent local financial institutions. This paper is based on grameenjameels experience in morocco and on testimonials of individuals working in the sector. Al amana started operations in 1997 as a nonprofit association under the 1897 microcredit association law. Al amana is in the top 100 of the best mfis in the world and was awarded several international prizes. The microcredit sector in morocco pre and post crisis grameenjameel microfinance limited took a close look at the moroccan microcredit sector crisis, its causes, how the sector reacted and the lessons learned. The paper has dual on macro and micro challenges to the delivery of microfinance. The microfinance sector is made of mfis with various legal structures and one microfinance bank al rafah bank. While conventional microfinance institutions mfis have expanded their operations in the last two decades, povertyfocused mfis based on islamic principles are lagging behind. Broadly, microfinance refers to small scale financial. You must be of age and have a 6 months seniority in the same activity and in the same place. Microfinance an overview the term micro literally means small.
This is the basis for the most important critique of microfinance. The microfinance industry is characterized by a schism, or debate, between two camps that represent broadly different approaches to microfinance. A survey nur indah riwajanti abstract the purpose of this paper is to demonstrate the potential of islamic microfinance as an alternative tool for poverty alleviation. Thats where microfinance, or microcredit, agencies, come in. It used a solidarity group lending methodology, targeted women clients, and offered sixmonth loans. After all the papers were submitted, al amana paid the claim in the. As a market leader in morocco, the association has a retail network covering the whole country. It is also licensed to do both commercial and investment banking services, similar to a universal bank. This paper reports the results from a randomized evaluation of a microcredit program introduced in rural areas of morocco starting in 2006 by al amana, the countrys largest microfinance institution. If youre interested in participating in microfinance we recommend learning more about kiva, how lending works and. It had 101,553 clients, 421 employees 74 % of which were productive field staff, and a portfolioatrisk ratio more than 30 days of 0. Achieving financial sustainability means reducing transaction costs, offering better products and services that meet client needs, and finding new ways to reach the unbanked poor. An emerging market niche 1 honohons study finds that in the islamic development banks 56 member countries, only 28 percent of the adult population uses formal or semiformal financial intermediaries, whether through deposit accounts or borrowing. Sanabels 2017 conference november 78 beirut, lebanon.
Overview the poorest and poverty reduction have become the object of unprecedented attention at international summits in the 1990s. Canada, through the canadian international development agency cida, has committed to the targets set by both the oecd international development. Microfinance as a poverty reduction tool a critical assessment 3 thus, there is broad agreement about the need for complementary factors. Individual loan to the company alamana micro finance. Al tadamun microfinance foundation, egypt bachar kouwatly ibdaa microfinance, lebanon. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext.
Case studies in onor good practices microfinance gateway. It was founded on february th in 1997 and approved as an association of microcredit by the ministry of finance on march 31st in 2000. Agency locations our representatives at the cars agencies. In december 2011, grameenjameel signed a memorandum of understanding with al amana microfinance. This percentage includes nonmuslims living in such countries. Sak closed is a leading auto finance company in kuwait.
A rating provides an opinion on the sustainability and longterm solvency of the institution through a comprehensive assessment of its risks, performance, market positioning and responsible practices. Microfinance as a poverty reduction toola critical. Islamic microfinance as an alternative for poverty. The new microfinance handbook fills a critical gap in the current literature on financial inclusion. Al amanah islamic investment bank of the philippines is the only bank in the philippines authorized to offer islamic banking. Al amana is a microcredit organization based in morocco which gives loans to small solidarity groups to promote and support microenterprises. How this debate is resolved has crucial implications for the future of microfinanceits guiding. Press releases, press kits and iconographic resources that amana microfinance puts at their disposal to make known its news and activities. These are nonprofit organizations dedicated to reaching the poor with small loans that enable borrowers to work their way out of poverty. The year 2009 was a major inflection point for the sector in morocco. Lingering challenges of microfinance institutions mfis.
This space has been specially designed for journalists and media professionals. It takes advantage of the expansion of al amana, moroccos largest microfinance institution, into rural areas of morocco where access to formal credit is very low. Over the past 10 years kiva has enabled more than 1. Developing competencies for microfinance institutions, a report which shares several years of wwbs handson experience and lessons learned in the use of competencybased human resource systems to build organizational capability for microfinance institutions. Do you carry a project committed to developing your microbusiness. Definition of microfinance loans microfinancing loans are small loans granted to the basic sectors, on the basis of the borrowers cash flow and other loans granted to the poor and lowincome households for their microenterprises and small businesses to. Microfinance the provision of financial services in limited amounts to lowincome persons. Al amana microfinance is the first moroccan microfinance institution and in the mena area. To learn more about artificial intelligence for finance through combining my machinedeep learning and probabilistic modeling experience in a leading and innovative company. Impact of rural microcredit in morocco innovations for.
Al amana was the only mfi operating in the study areas during the evaluation period. Bencheqroun and the staff at al amana, mohammed allouch and the staff at attawfiq, and mouatassim belghazi. Microfinance and remittances 3 african money transfer business, there is no doubt that remittance inflow has been an important factor in africas economic development. The idea that more than a few will turn tiny loans into a viable business is simply unrealistic. Al amana is the largest mfi in morocco with 2,152 employees and 463 branches. Acad page 5 96,000 households demand small and medium credit and a further 200,000 households demand smallbalance savings accounts and money transfer services. We provide our valued customers with optimal credit solutions, giving you the freedom to choose from a wide range of new and used vehicles, through our relationships with major dealerships. Al amana upscaling health microinsurance to lowincome clients in morocco 1. As the cornerstone of usaids program, al amana was envisaged as a major mfi that would set the standard for good microfinance practice in.
Good practice cases of bds provision for small business in the south 18 4. Microfinance institutions and public policy wp02159 created date. While poverty is a common problem faced by all countries, the efforts and actions has not reached the purpose yet. The basel committee on banking supervision is a committee of banking supervisory authorities which was established by the central bank governors of the group of ten countries in 1975. This project is one of the few to rigorously evaluate the impact of a microcredit program. As of march 2012, al amana has a client outreach of 296,262 clients and an outstanding loan portfolio of over mad 1. Al amana microfinance the abdul latif jameel poverty. It provides a comprehensive source for the design, implementation, evaluation, and management of microfinance activities. By the end of usaids project in december 2003, al amana had become an exemplary microfinance institution.
Al amana microfinance has designed for you the individual loan to the company. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the full. In a simple language, microfinance means provision of financial services on a small scale to the rural and urban poor, including the self employed. Al amana microfinance the abdul latif jameel poverty action lab. We also describe eys position in the microfinance industry sharing the services and support that we can provide. Today there are several large microcredit agencies, including the grameen bank, which lends to 2 million poor women in bangladesh.
The microfinance has evolved due to the efforts of committed individuals and financial agencies to promote selfemployment and contribute to poverty alleviation and provision of social security. Microfinance is the provision of financial services for the poor. Al amana microfinance is also today a staff of 2378 people. It has 597 sales outlets, including 280 in rural areas and 86 mobile branches. Microfinance institutions and public policy wp02159. The microcredit sector in morocco pre and post crisis.
It has served more than 4 million loans for an envelope of over 32 billion dirhams since its beginning. The ratings of al amana microfinance are categorized by year of publication and title of documents. Al amanas ambition is to be a market leader in the sector and to maintain its leadership through its outreach, performance and innovation. Islamic microfinance as an alternative for poverty alleviation. Thus, it would like to invite sealed bids from selected eligible bidders for the supply, delivery and. The purpose of this handbook is to bring together in a single source guiding principles and tools that will promote sustainable microfinance and create viable institutions. I am particularly pleased with the explicit focus on consumers and their needsthis, together with the onset of technologybased delivery models, has been the most important shift in the microfinance field over the past 15 years. Launching al amana al amana was founded in 1997 to provide financial services to urban microentrepreneurs.
1054 735 933 1052 493 1434 917 1600 928 1383 1629 654 694 1561 90 857 1379 1448 85 1166 482 1175 894 440 559 147 793 508 669 611 1432 558 213 656 1086 1139 881