Requirements for MFIs
The distinct character of our TA approach is based on the following guiding principles:
- The TA project should be of strategic relevance to the Institution. It should lead to clear deliverables and measurable institutional change within a reasonable time frame (app. 2 years).
- Preference is given to TA projects that facilitate innovative approaches to high-risk, high-cost and low-yielding clients. These may include value-chain approaches, livelihood finance, or innovative business models that enable more cost-effective service delivery to poorer or vulnerable client segments.
- The Facility`s support should add value and be critical for the applying institution to achieve its aims of effectively servicing the prime needs of their clients in their specific contexts through financially and environmentally sustain-able products and services.
- The TA should be delivered through a hand-holding approach. Content and methodological TA approach are based on clear terms, jointly defined with the Institution, to be delivered on the spot and tailor-made to their needs.
- The TA project should combine financial with social and environmental performance. Microfinance Initiatives operating from a triple bottom-line perspective are not expected to realize exceptional returns for external stakeholders, but build financially healthy institutions that cover all costs related to service delivery.
- The Facility will support projects that have full institutional commitment to optimally utilize TA provided. Senior management and Board of the applicant should approve the TA goals and fully commit to include TA in the institutional development plan or business plan.
- The Facility will only support projects where the applicant can not reasonably be expected to cover the full costs of technical assistance. At all times, however, the applying organizations will contribute financially to the costs of TA provided.
- Applicants will monitor implementation and keep track of results of TA projects. These include definition of clear deliverables, timelines and obligations for all parties, as well as indicators for success.