The New Nation - Internet Edition

BUSINESS REPORT

Microfinance stakeholders attending a three-day gathering in Dhaka will be the first to benefit from newly launched training materials that are part of a capacity-building program by Citi (Citigroup Inc., the parent company of Citibank, N.A Bangladesh), the Foundation for Development Cooperation (FDC) and the Banking with the Poor Network (BWTP). This groundbreaking regional microfinance initiative will share best practices in establishing partnerships and strategic alliances between microfinance institutions (MFIs), regulators, donors and private enterprises that will, in turn, help to expand the reach and range of microfinance services delivered to the poor in Bangladesh.

Following a symposium yesterday, a two-and-a-half-day training workshop began with about 35 microfinance practitioners from various microfinance organizations in Bangladesh. The workshop is designed to develop the critical knowledge and skills needed to create partnerships and alliances in the microfinance sector. Potential MFI partners could include government bodies, other non-profit organizations (NGOs) or private sector companies such as retailers, telecom operators and large financial institutions.

The workshop will also share industry best practices related to the development of new microfinance products such as insurance and pensions, and educational materials.

Mamun Rashid, Managing Director and Citi Country Officer, Bangladesh said, "Developing sustainable partnerships between microfinance providers and relevant parties is key to expanding the range of microfinance products and services available. And Citi through its several community initiatives in Bangladesh and worldwide is committed to strengthening the microfinance industry to help uplift the poor out of poverty." Craig Wilson, Executive Director, FDC, said: "This program builds on Citi's existing strong support of microfinance in the region and the BWTP's greater involvement in Asia. Importantly, this program helps to take microfinance into new territory.

New partnerships within the microfinance industry will help introduce new technology such as mobile phone banking and diversified products. Partnerships can also help improve social service delivery, for example, financial literacy or community education, helping poor beneficiaries to make better choices."

Md. Shafiqual Haque Chowdhury, Founder and President of Asa, one of the largest and most successful microfinance institutions in the world, added, "We would like to take the leadership role and also request others to bring innovation to the microfinance industry in the form allowing equity ownership which will allow mobilizing deposits in turn become sustainable and think of going for a sustainable track record in the country and globally."

The symposium and workshop are part of a US$570,000 grant given by the Citi Foundation to FDC and BWTP to expand the provision of microfinance services across 10 Asian countries including India, Indonesia, Bangladesh, Philippines, Sri Lanka and Vietnam. The two-year program is focused on promoting public-private partnerships and industry best practices to help Asian MFIs build their capacity to reach more microfinance clients.

A key outcome of this program is a comprehensive set of training materials on 'Capacity Building for Partnerships in Microfinance' which have been developed and tested with over 160 microfinance practitioners in New Delhi, Colombo and Jakarta, and have also been subjected to rigorous peer review and technical editing. The completed materials will be introduced at a series of workshops in Asia, starting in Dhaka, and also being made available via the BWTP website: www. btwp.org. They will eventually be translated into multiple languages, including Bangla, for free distribution to members of the BWTP Network and others who may be interested in applying new skills and approaches to the development of partnerships for microfinance providers.

As part of the Citi, FDC and BWTP regional microfinance program, the Asia Microfinance Forum 2008 will be held in Hanoi, Vietnam on August 26-29, 2008. This follows the successful inaugural Asia Microfinance Forum held in Beijing in 2006, and will bring together over 250 local and international delegates from banks, regulatory bodies and microfinance networks to promote constructive dialogue, connect potential partners from the private and public sectors, and showcase international best practices to benefit the Asia microfinance industry.

FDC has an established record and commitment to improving the outreach and efficiency of financial

services to the poor. The BWTP Network is the leading pan-Asia microfinance network with a diverse

and inclusive membership of stakeholders involved in the financing, regulation and delivery of microfinance to the poor.

Citi supports the microfinance sector through a combination of philanthropic and commercial initiatives. Citi is one of the world's largest corporate donors to the microfinance sector. The Citi Foundation has contributed nearly US$60 million in funding to support 250 microfinance institutions, microfinance networks and microenterprise programs in 55 countries. In Asia alone, the Citi Foundation has committed more than US$17 million in funding for microfinance-related programs since 1997.