We are excited to share that we have just launched a fresh series of events designed to bring us together in a more informal setting. It's not just about showcasing our "final" products, but also about learning, sharing updates, understanding how others tackle projects, and gaining insights from various processes. The series is called: The Inclusive Economy Open Mic. The experiences will be shared with the education network for (mutual) learning and uploaded to the E+E shareweb.

More information: here

Impact story with Swiss Re Foundation: Protecting smallholder farmers against climate change

With Swiss Re Foundation as one of our strategic partners we are working towards our shared vision of improving the quality of life of low-income populations, smallholder farmers, and MSMEs. With them we have co-funded ten projects to date. One of these projects focuses on building resilience for smallholder farmers in India. Here’s the story highlighting how IBISA NETWORK and CInI - Collectives for Integrated Livelihood Initiatives, Tata Trusts are helping these farmers with parametric insurance solutions.
Watch it here. 

Compendium of projects with Swiss Re Foundation

We are very grateful and proud of our strategic partnership with Swiss Re and Swiss Re Foundation whose support has helped us create significant positive outcome at the ground level. Here is a compilation of projects with comprehensive details that we have done with their support that underscores the significance of this important partnership.
Read it here.

SCBF CEO's interview with FinEquity

FinEquity recently featured our CEO, Mrs. Sitara Merchant, in their Member Spotlight. In this conversation, Sitara shares her journey into the financial inclusion space and with SCBF, she talks about the unique blend of financial and human resource support provided by SCBF members to the project partners and grantees and provides a glimpse of SCBF’s new strategy that will address the needs and issues of the ‘pioneer gap’ faced by high-impact enterprises.
Read the complete conversation here.

Watch our CEO on "The Social Impact Journal" podcast on SCBF (33 min.)

A podcast recording for The Social Impact Journal - a conversation between Mrs. Sitara Merchant and Mr. Jack Farren, Co-founder & CEO of Rural Inclusion discussing multiple aspects of SCBF, its working, and future strategy.
Watch it here.

Impact linked finance for meaningful and sustainable change

New innovative business models require different types of financing to grow their operations and to achieve scale. Currently, only a few suitable financing mechanisms for emerging social enterprises are available – leading to the Pioneer Gap. To address this gap Impact-linked finance (ILF) can play an important role.
Read the blog here.

Fostering and enabling Women Self-Help Groups in Mali

In Mali, SCBF supported a project on implementing and scaling the “Yeredeme group or Self-Help Group (SHG) methodology” that aimed to enable and empower women involved in livelihood creation activities to come together as members of the Yeredeme / Self-help groups and foster each other’s growth by learning, working, and managing the funds together. Centre d’Appui à la Microfinance et au Développement (CAMIDE) provided the technical assistance, and Bɛnso Jamanu Microfinance helped in implementing the project.
Read the blog here.

How can low-income populations be financially included and effectively empowered? – Perspectives on client-centric approaches in Benin, Mali and Togo (1h 25 min.)

On 8th November 2023, SCBF organised a webinar in collaboration with MicroSave Consulting to have a detailed analysis of: The existing challenges in these countries and markets/ How these challenges can be tackled (based on the experience of the partners) and What and how client-centric approaches can be used to gain maximum outreach.
Watch the webinar here.

Inclusive property insurance: bridging the gap to financial security (1h 29min.)

On 6 December 2023, a joint webinar was organised by SCBF and ILO’s Impact Insurance Facility to discuss and gain insights from industry experts on the strategies that can help expand inclusive property insurance towards building a more inclusive and secure financial future.
Watch the webinar here.

In Colombia, IMIX Colombia S.A.S and 2M Consultores Estrategia y Desarrollo S.A.S are working on a project on designing, piloting and scaling beekeeping (honey) microcredit & piloting apiaries rural agent network 

In Côte d’Ivoire, GEAP Consulting and Groupe d’Epargne et de Soutien en Côte d’Ivoire (GES-CI) are working on Scaling up “Daily savings” product through digital collection process 

In Mali, EGITCOM and CAECE are working on Mobile Money integration and process of collecting digital savings and granting digital micro credit  to low-income clients. 

In Zambia, MicroLoan Foundation Zambia and 3 Syngeries are working on ‘Katumba’ Platform for promoting and scaling digital savings by low-income rural women 

In Burkina Faso, La Poste will be creating savings accounts (both formal & digital) for low-income clients

In Togo, COOPEC-SIFA with support from IFA Consults will be working on improving the productivity and income improvement of actors in Soybean value chain

In Uganda, we are providing Impact-linked finance support to Agro Supply Uganda to help scale their operations.

SDC E+E network members can ask for support from a pool of external experts for up to 3 days for PSD, VSD and FSD projects and for up to 4 days for PSE projects. You can use this service without any contracting and free of cost or administrative work for your unit. If your request is of general interest, the E+E network may even be able to cover for more than the above-mentioned duration. Find more information here on our shareweb.

Are you curious to learn how other colleagues have used this offer?

- Four colleagues from the SDC Chad and two colleagues from SDC Niger requested a tailored Market Systems Development (MSD) Training through the free support by external experts. The training took place between mid-October and mid-November 2023, consisting of online classes and offline homework. The participants not only benefitted from conceptual inputs and practical work on their own projects, but this also offered the opportunity to exchange and strengthen the connection between the two offices.

- Several SDC head office staff (VSD, PSD, PSE) and country offices requested further information about the possibility of engaging Swiss institutions and experts in hospitality and tourism. Online exchanges took place in the form of a question-and-answer session, followed by a mapping of the main Swiss actors and the sharing of additional resources. The participants benefitted from learning about previous SDC and SECO projects and an analysis of the different actors regarding their potential involvement in the different types of projects.

More information: here

Do you also wish to learn more about how development programmes can make a meaningful contribution to changing the existing economic system to an Inclusive Green Economic (IGE) system?

Then join the SDC Economy network’s upcoming series of consultation tables on Green Skills, Circular Economy and Green Finance.

You will find more information about the consultation process, outcomes and interesting reading materials on our newly created Shareweb page “Inclusive Green Economy”.

Looking at skills in the Inclusive Green Economy: The Donor Committee on dual VET (DC dVET) is conducting a series of interactive online Barcamps (Webinars) between October 2023 and June 2024. You can find more information on our new Shareweb page "Inclusive Green Economy". 

Graph: See the "Inclusive Green Economy Orientation paper" (2023), page 9, for complete graph.

Once again, sustainable finance met sustainable development, at the 4th edition of Building Bridges, which brought together a wide range of participants from Switzerland and internationally in Geneva. The conference was opened by Alain Berset and SDC was represented on several panels, on the topics of impact-linked finance in education, circular economy and impact measurement. The SDG Impact Finance Initiative reached a broad audience.

You can watch recordings of many of the 70+ discussions here.

As part of SDC’s 16 Days of Activism against Gender-Based Violence (GBV) Campaign, the Empower! Podcast released a new episode on GBV prevention. Listen to Rana Al-Motairi and Reine Musharbash from the International Rescue Committee explain how they use women's economic empowerment as an entry point to engage men and boys in the prevention and reduction of GBV in refugee camps and the wider society in Jordan.

Get inspired by this or any of the previous 11 episodes: here.

Are you interested in thematic mentoring, or have you recently joined the Economy and/or Education Networks as an NPO or in another role and are eager to learn? Mentoring is a renowned technique for personal development and professional growth that benefits both parties.

Click here to access the information brochure and registration form. We will make sure you are matched with the right person based on your interests and experience. 

Achieving Social Impacts in the Energy Access Sector

Key Takeaways from EnDev’s Social Impact Incentives (SIINC) Off-Grid Energy Pilot

financed by the Swiss Agency for Development and Cooperation (SDC)

EnDev is excited to share a lessons learnt report from the completed implementation of our recent pilot project in Kenya: an explicitly impact-oriented Results-based Financing (RBF) project. Piloting this so-called SIINC project in the field of energy access gives us insights and food for thought for the future of RBFs.

Click here for the full news article & video. 

Social Impact Incentives (SIINC) was co-developed by the Swiss Agency for Development and Cooperation and Roots of Impact. It is a financial instrument that rewards enterprises for achieving social impact – instead of pure sales figures. The aim is thus to leverage funds to catalyse private investment in underserved markets to generate impact.

Energising Development (EnDev) is a strategic partnership of likeminded donors and partners to support access to modern energy. The driving forces behind EnDev are Germany, the Netherlands, Norway and Switzerland.

Listen to episode 11 of the ‘Empower!’ podcast, featuring inspiring and insightful stories on how to promote women’s economic empowerment

Refugees, especially women, are often excluded from financial services because they are regarded as too high-risk and "unbankable". In this episode, Bdour Al-Hyari from the Jordanian Microfund for Women (MFW) tells us how they successfully developed holistic financial products according to the needs of Syrian women refugees. To more effectively make use of MFW’s loans, the beneficiaries can pair them with diverse capacity-building and training offers. The programme allowed to build trust in refugees within financial institutions and strengthened the business case for their financial inclusion. MFW empowers Syrian and Jordanian women to become entrepreneurs and improve their livelihoods.

All episodes can be found on spotify and google podcast.

If you like the episode, you’re more than welcome to share our post on LinkedIn or X.

Happy Listening!

Brought to you by the Peace, Governance and Equality Section (PGE) & the Economy and Education Section (E+E)

      Welcoming Blue Marble as SCBF’s newest member

Blue Marble an insure-tech focusing on climate protection and insurance for underserved communities has joined SCBF as its 30^th member. With aligned areas of synergies, they  will be working together to create a lasting impact on vulnerable communities. Read about it here. 

       SCBF in Media: Driving resilience in the African continent

In a published article, JeuneAfrique, highlights the work done by SCBF in the African continent since 2011, that has helped improve the lives of more than half a million people (half of it are women) in the continent. Read the article here.

       Partnering on a project for increasing access to WASH

On 24th March 2023, SCBF signed a contract with Aqua for All and La Banque Agricole (LBA) of Senegal, alongside of the UN Water Conference 2023 for a unique project

The signing ceremony was attended by (sequence in the pic): Mr. Malik Ndiaye, CEO, La Banque Agricole; Honorable minister of Water and Sanitation, Senegal Mr. Serigne Mbaye Thiam; Ms. Josien Slujis, MD, Aqua for All and Ms. Sitara Merchant, CEO, SCBF

What is the future of Green Inclusive Finance? 

Green inclusive finance is critical to addressing climate change and making low-income and vulnerable households more resilient. Here is an insightful piece by our team on - what role it plays, how it is evolving to meet development challenges, and how SCBF is supporting this endeavour. Read the blog here.

Unlocking the benefits of embedded insurance for micro and small businesses – Insights from Mozambique 

In Mozambique, micro-entrepreneurship is fraught with high-impact, disruptive economic events, with few mitigation or management tools available to those affected. With support from SCBF, Accion used human-centered design to help Socremo improve its savings product with the inclusion of a funeral cover to increase it’s outreach. You can read the full report on the project to understand the outcomes, challenges, learnings and the key-takeaways. Read the report here.

Five lessons for designing fit-for-purpose health micro-insurance

In Kenya, SCBF is supporting a health micro-insurance project being implemented by Cenfri, Britam and M-Tiba. Cenfri did a study on the market’s perception of insurance, sentiments about the hospital industry and current resilience practices based on which they are working with the other partners to adapt the product to be able to reach the low-income market segment. In a blog published by them they share the “Five lessons for designing fit-for-purpose health micro-insurance”. Read the blog here.

Since our last update, we have co-funded 12 new and exciting projects focusing on a varied area, e.g., loans and savings linked to agriculture and business, digital platforms, and providing access to water and sanitation, micro-life and health insurance, index-based agriculture insurance for smallholder famers and pastoralists, digital savings for women and youth and financial literacy:

In Cote d’Ivoire, Reseau Mucrefab Côte d’Ivoire (REMU-CI) will work on scaling-up a ‘Digital savings’ product  for low income consumers along with providing consumer education

In another project in Cote d’Ivoire, OKO will work with Allianz on a weather index-based crop insurance for smallholder farmers

In Ethiopia, Democrance will work with local insurance company for building resilience with digital micro health solution  for low-income consumers

In Ethiopia, Jamii.one will work on leveraging its digital platform to scale affordable life insurance and to launch health insurance for community-based groups

In Indonesia, Blue Marble will support from Zurich General Takaful Insurance will work on developing and launching a parametric insurance scheme for coffee smallholder farmers

In Lebanon, Vision Fund international and World Vision Lebanon are working together on providing health insurance to vulnerable children in the country and personal accident cover to their families

In Pakistan, Mobilink Microfinance Bank with support from Business & Finance Consulting (BFC) will work on customising a credit scoring solution that will increase the outreach  of the 

This year's Savings and Credit Forum took place on September 14th. Sophie Sirtaine (CGAP) introduced us to "Financial Inclusion 2.0". We then went deeper into the topic with two lively and insightful panel discussions that Vatsala Shreeti (BIS) reflected upon.

 Watch the Forum (2.5h), or some of its highlights (find the exact timecodes) on the E+E shareweb (here)

SDC commissioned an independent evaluation of SDC’s Private Sector Engagement (2015-2021). The evaluation assessed the performance of SDC’s programmes and projects along the OECD DAC criteria of relevance, coherence, effectiveness, impact, efficiency, and sustainability. The evaluation aims to support SDC in achieving the objectives of Switzerland’s International Cooperation Strategy 2021-2024, and in contributing to achieving the Sustainable Development Goals (SDGs).

Overall, the evaluation found that the diligent effort and significant resources invested by the SDC in its PSE are paying off in innovation, learning and results progress. However, there are some crucial issues SDC still must address for its PSE to achieve its full potential. 

In terms of PSE usefulness to contribute to SDC and its partners’ goals, the evaluation found that the Agency is effective. It is, however, well-positioned to do more in the short and medium terms. To do so, the Agency needs to better strategize its way forward. SDC’s PSE modality is working well to foster partnerships with the private sector. Yet, to ensure that PSE contributes to the goals of the private sector, SDC must take their needs and priorities into consideration. PSE is useful to contribute to partner countries’ goals. Projects normally match partner countries’ national needs and priorities. Nevertheless, the evaluation also highlighted the lack of involvement of the governments themselves in SDC’s PSE projects. While PSE focuses mainly on creating synergies with the private sector, it is also important to have national governments involved, including authorities at the sub-national level.

The evaluation report including the senior management response can be found here.

Link to the presentation

Since 2020, the Annex 2 exercise, carried out as part of the annual reports of SDC’s operational units, provides a picture of SDC’s Private Sector Engagement (PSE) portfolio. As a modality, PSEs are implemented across all of SDC’s priority topics and they are diverse in terms of objectives and private sector partners. By comparing data from SAP with information entered by operational units, we get an understanding of the universe of PSE projects SDC is engaged in. Last year, the Annex 2 database allowed SDC, for the first time, to report to the OECD on mobilizing private sector funding. You can find the overview here.

This guidance sheet is part of a series of tools developed to support SDC staff and partners in designing and implementing projects aiming at financial inclusion.

This specific guidance sheet introduces the concept and key aspects of responsible credit. It provides guidance on how to design, prepare, implement, and monitor SDC projects effectively. 

>> open FSD Guidance Sheet on Responsible Credit

>> look at all the FSD Guidance Sheet (scroll down and open "working aids) 

Mr. Diepak Elmer (Co-Head Section Economy and Education, SDC) and Mr. Patrick Luternauer (Principal Relationship Lead Europe, IFC) were elected to the SCBF Board of Directors. Watch what they were saying on joining the board (videos below)  and  read more here.

Diepak Elmer, Co-Head Section Economy and Education, SDC

Patrick Luternauer, Principal Relationship Lead Europe, IFC

Welcoming Roche as SCBF’s newest member

Roche, the world’s largest biotech company and a global leader in in-vitro diagnostics, has joined SCBF as the newest member. Commitment from such private partners help in leveraging of both public and private resources to support the development of an enabling ecosystem for financial inclusion. Read more about the partnership here.

Knowledge & Insights:

• Southern Voice in ESG: Risk and Opportunity Inquiry
  The Dutch Entrepreneurial Development Bank (FMO) and SCBF, sponsored a study undertaken by Shining Rock Ventures to understand the impact of ESG frameworks on companies operating in the Global South or emerging markets. Read more about it here. 
  
  
• Impact created by Health Microinsurance pilot in Ghana and Malawi
  Health microinsurance can be a powerful tool for vulnerable individuals to deal with health emergencies. To get an understanding of the impact created by such products, SCBF had partnered with VisionFund to pilot health microinsurance with World Vision Savings groups in Ghana and Malawi. Read the full report here that summarises the results of the pilot, learnings and the next steps.

New projects: Building resilience through climate, life and health insurance; digital finance and financial education

Since our last update, we have co-funded 9 exciting projects focusing on insurance, digital finance and financial education:

• In India, the IBISA Network and Avanti Finance will work on providing climate insurance to smallholder farmers
  
  
• In India, Saathealth is expanding the family health intervention to address the financial health needs of low-income users
  
  
• In Kenya, Democrance DMCC, Ilara Health, Emerging Markets, Paa and APA Insurance will work on scaling the uptake of hybrid micro-health insurance amongst informal sector (gig) workers and smallholder farmers
  
  
• In Kenya, Hiveonline and Association of Women in Agriculture Kenya (AWAK) will work on enhancing agricultural cooperatives and rural economies with digital management and finance
  
  
• In Madagascar, Flow Madagascar will deploy a float financing solution to address the issue of agent liquidity and ensure mobile money agents can efficiently serve clients
  
  
• In Senegal, Symbiotics and Baobab Senegal will be working to support access to finance of women's groups in rural areas through digital financial education, mobile banking and mini-kiosks
  
  
• In Senegal, Women's World Banking (WWB) is supporting Baobab Senegal SA in designing and launching a Caregiver solution for Baobab’s customers
  
  
• In Zambia, Briisk Limited will provide support to Prudential Life Assurance for scaling Upendo Life Cash Boost - the first fully digital life insurance product for low-income clients in Zambia
  
  
• In Zambia, the Syngenta Foundation for Sustainable Agriculture (SFSA) along with Mayfair Insurance and other stakeholders is working on scaling up a macro resilience bundling (seed + agrochemical + fertilizer) programme for smallholder farmers

The factsheet provides an overview of how Basic Education is addressed at SDC. It discusses the main challenges faced, the strategic priorities pursued, and the partners supported at the international, regional, national and local levels. In addition, it presents the expenditure by education sector and by area within SDC. A map presents the geographic spread of SDC's Basic Education projects and is complemented by project examples that illustrate SDC's engagement in Basic Education.

Link to the factsheet

  French Version    German Version

This updated VSD Factsheet provides an overview of the opportunities and challenges in vocational education and training, SDC's approaches to promote vocational skills development in its projects, the partners , as well as project examples and facts and figures.  

Link to the factsheet

The Swiss Guidance on Business and Human Rights is intended to help the Swiss Representations in the field to engage in a constructive dialogue with Swiss companies in order to raise awareness of human rights issues and provide specific advice in relation to the local context.

The guidance has been sent to embassies and cooperation offices and is available online and as a hard copy brochure. It can be ordered (in E, F, D versions) from: sts.afm.mrd@eda.admin.ch 

Link to the document

The evaluation found that overall programmes such as PES and SIINC LATAM, which promote both the social impact of small- and medium-sized enterprises and support a conducive social entrepreneurship ecosystem are highly relevant in the Latin American region. This report includes the management report of SDC.

Link to the report

IED (now part of E+E) and FCHR thematic units have engaged on a workstream to provide SDC staff with practical guidance on        

i) how to plan and implement IED projects in fragile contexts, taking into account the particular challenges of fragile contexts and 

ii) how IED projects can go beyond the minimalist approach of doing no harm (working in conflict/ fragility) by explicitly contributing to reduce fragility (working on conflict/fragility).

Link to the guidance sheet

This practical guidance sheet should be used as additional practical tool together with the slide deck and FAQ published on the shareweb (links below): 

Slide Deck: Inclusive economic development (IED) in fragile contexts 

FAQ: IED in fragile contexts Slide Deck

Village Capital with the support of its partners at the Impact-Linked Finance Fund, the Swiss Agency for Development and Cooperation and the Austrian Development Agency have launched the Catalyzing Financial Inclusion: Gender-Inclusive Fintech Solutions for Migrants report. This report shares insight on the financial inclusion obstacles disenfranchised migrant populations (especially women migrants) face in Saharan Africa, the Middle East and North Africa, and South and Southeast Asia – and highlights innovative, tech-driven solutions to these challenges.  

Link to the report

Impact-linked finance soft launch

SCBF, with the support and mentorship of Roots of Impact, is piloting two impact-linked finance transactions to foster innovative solutions that boost inclusive finance. We are currently finalising the selection of two high-impact enterprises that will receive an impact-linked instrument.

Impact-linked finance is a mechanism which enables high-impact potential enterprises, such as insurtechs or fintechs with a socially driven market strategy, to access financial rewards linked to the achievement of positive outcomes. By providing “better terms for better impact,” impact-linked finance aims to incentivise enterprises to deepen and accelerate their positive impact while growing their businesses. It will also be a core element of our new strategy, and our partners and donors are already excited about embarking with us on this new venture. 

Welcoming MPower Ventures as SCBF’s newest member

MPower Ventures, a climate and fin-tech start-up revolutionising how people in emerging contexts access and finance clean energy solutions for their homes or businesses, has joined as our 28th member. Read more about the partnership here. 

New projects: Remittances as a gateway to financial inclusion, micro-pensions and fintech solutions for MSMEs

Since our last update, we have funded 7 exciting projects tackling remittances, pensions, digital finance and MSME lending:

• In Benin, with the support of CIDR Pamiga, RENACA (a union of decentralised financial systems) will roll out safe and responsible mobile banking services.
• In Ghana, People’s Pension Trust will scale-up a unique micro-pension product linked to savings for people, especially women, working in the informal sector. 
• In India, Accion will support Annapurna Finance to scale a pre-approved digital emergency loan and a client-engagement platform.  
• In Kenya, Val Partners and Mbao Pension Plan will build informal sector workers’ awareness around retirement planning and enable them to access a digital micro-pension product. 
• In Nigeria and Senegal, SympliFI will scale up its platform which enables remittances to be used as collateral for immigrants’ family members or friends to obtain loans for kickstarting their business ventures. 
• In Senegal, AXA and Democrance will work together to leverage remittances to boost insurance coverage for migrant workers’ families back home. 
• In Uganda, OKO Finance and Jubilee Allianz General Insurance will launch a digitally-powered index insurance solution for smallholder farmers.

In 2021, SCBF committed over CHF 1.36 million towards 13 new projects, attaining CHF 18.26 million in grant funding committed since inception. The projects SCBF co-funded touched a variety of themes: digital transformation for effective and efficient service delivery, micro-property insurance to enhance the resilience of MSMEs and low-income households, and innovative index-based insurance to enable vulnerable smallholder farmers and households to adapt in the face of an increasingly changing climate. Additionally, SCBF’s membership grew from 25 to 27, as SCBF had the pleasure to welcome AXA and the Basel Agency for Sustainable Energy (BASE). 

SDC is a strategic partner of SCBF.

Click here for the report.

This guidance sheet is one of a series of tools written to support SDC staff and partners in designing and implementing projects aimed at financial inclusion. It outlines key issues regarding inclusive agricultural insurance and how to promote this approach within the overall framework of inclusive insurance throughout the design, implementation, monitoring and evaluation of cooperation strategies and project interventions. >> here

The Swiss Capacity Building Facility’s 2021 Annual Report is now available here. 

How has SCBF contributed to advancing the inclusive finance agenda?

1.    370,000 unique end-clients benefitted from the innovative and tailored financial products, services or channels fostered thanks to SCBF’s funding interventions in 2021. 

2.    Since inception, SCBF has touched the lives of 2.9 million end-clients, 62% of whom are women.  

3.    SCBF funded 10 innovative projects focusing on digital financial inclusion, climate change finance and insurance in 2021, with a potential to reach at least 600,000 people (including more than 56% women). 

4.    For every CHF 1 of donor funding from the public sector, SCBF has catalysed CHF 1.59 of private sector resources, demonstrating a commitment to and expertise in fostering public-private collaboration for inclusive finance.

This report documents the evaluation of the Nepal Cooperation Strategy 2018-22 from the Swiss Agency for Development and Cooperation (SDC). The evaluation entailed a qualitative inquiry into the development effectiveness of the Cooperation Strategy. Its purpose was to inform the formulation of the new Nepal Cooperation Program 2023-26. The evaluation was conducted by two external evaluators and two SDC staff.

Check ou the findings and recommendations for the bilateral inclusive economic development programmes in Nepal. It's a must read!

 Thursday, June 16th 2022 /  1:00pm-2:30pm CEST (online).

For the almost 300 million migrants worldwide, financial products such as savings, credit, insurance, or pension are seldom easily accessible. This Savings & Credit Forum discusses the incentives of the private sector to ensure migrants' financial inclusion and showcases innovative modalities to reach women and other particularly vulnerable migrant groups.

>> more information 

This Information Package is designed for SDC staff and practitioners involved in inclusive economic development (IED) programmes. It provides an introduction into the IED approaches and ways of systemic thinking through three interlinked economic thematic priorities on system and individual level: Vocational Skills Development (VSD), Private Sector Development (PSD) and Financial Sector Development (FSD), and the modality of private sector engagement (PSE).

Updated version April 2022 - An easy to read introduction for a quick overview of the topic IED

Social protection plays a central role to Leave No One Behind (LNOB) and to reach the Sustainable Development Goals (SDGs) of the 2030 Agenda. 

Social protection is a set of public and private initiatives designed to provide protection for all against social and economic risks across the life-cycle and ensure sustainable livelihoods. Well-designed social protection systems ensure a minimum income and equitable access to essential services for the poor and vulnerable, enable people to cope with shocks and ensure dignity, social cohesion and reduce (gender) inequality.

A dedicated page of the network Poverty & Wellbeing provides an overview of SDC's learning and engagement in social protection and summarises the global debate and evidence in development as well as humanitarian contexts.  

For more information on LNOB and IED - go to page LNOB - Inclusion & Exclusion

Listen to the stories of our colleagues on how they advance Women’s Economic Empowerment (WEE) in their IED projects and programmes, in this ongoing podcast-series. 

Find the podcasts >> here

Ep. 5: Privilege & prjeudice: How to address them for a more just society and women entrepreneurship

Ep. 4: Impact, leadership and business support to women in Colombia

Ep. 3: Using ancestral and scientific knowledge to empower rural women in Peru for sustainable tourism.
Ep. 2: Better boxes for fruit vendors - a solution that is improving women economic empowerment!

Ep. 1: How to ensure gender equality in call for proposal formulation and selection

Did you know that there is a new revision of the popular ‘Managing MSD Projects’ guidance, published by the IED Network? 

The guidance document provides advice for SDC staff on how to manage projects using a market systems approach. Advice is provided for developing the initial project idea and formal entry proposal, the tender process, the inception phase, credit proposal and implementation phase, steering and monitoring, evaluation and preparation of a following phase.

You can find the new version of the guidance on the IED Shareweb in English and French

Watch a short video with explanations and overview of the guidance paper  - in English or in French

Further, there is a brief for decision-makers and a poster that can be printed and displayed in your office to make people aware of the guidance. 

For more information on MSD, please check out this Shareweb page

New projects: Innovating climate adaptation, financial resilience and digitalisation 

Since the last update in September 2021, SCBF has co-funded several exciting new projects: 

1. Improving adaptation to climate change

In Cambodia, the Syngenta Foundation for Sustainable Agriculture will work with FORTE Insurance and AMK Microfinance to launch innovative index-based insurance schemes to protect smallholders against climate risks. 

In Mozambique, Blue Marble Microinsurance and Hollard Moçambique will explore the feasibility of index insurance products to protect vulnerable populations from cyclones and excess wind.

2. Boosting financial resilience: safeguarding what matters

In India, Briisk and Care Health Insurance will focus on increasing the penetration of personal accident insurance in rural areas using technology-driven tools and partnerships. 

In Kenya, Cenfri and Britam General Insurance will scale up micro-health in-patient insurance through behaviourally informed digital distribution efforts. 

In Kenya, AB Consultants and APA Insurance will scale up micro-property insurance to MSMEs using human-centric design approaches.

3. Digital transformation

In Togo, CIF will partner with FUCEC-Togo to scale up a digital system to enable on-site depositing for savings and credit clients, alongside a focus on financial education to enhance up-take of the new solution.

                                                               *****

Thematic insights and case studies

Expanding the evidence base on the intersection between housing, finance and resilience: Findings from Indonesia and Egypt 

Innovative finance for small businesses in a (mostly) digital world

Client stories: how remote coaching helped small entrepreneurs revive their businesses during the pandemic 

The AXA Group is a global leader in insurance and asset management, serving 105 million clients in 54 countries. In 2016, AXA Emerging Customerswas launched with the vision of protecting those that have been excluded from traditional insurance due to cost, access, understanding, or trust.

In November 2021, SCBF welcomed AXA as its 27th member. To kickstart this partnership, we interviewed Garance Wattez-Richard, Head of AXA Emerging Customers,  to learn more about their work and how this new partnership can help bridge the protection gap for financial inclusion. 

In 2021, SCBF turned 10! We celebrated successes in improving the financial inclusion of 2.6 million end-clients (of whom 68% are women) by capturing lessons from the more than 159 projects we have co-funded across 47 counties, and bringing together a select group of members, partners and donors to discuss how we can work together to address the pressing challenges in expanding the financial inclusion of those furthest behind. In particular, we discussed ways to address the Pioneer Gap, which hinders the emergence of viable, impactful business models and solutions. 

Have a look at the special report on 10 years of uniting public and private partners to deliver customer-centric financial solutions and

read the blog post summarising concrete solutions on Tackling the Pioneer Gap resulting from the vibrant discussions during SCBF’s 10th anniversary celebration.

The Swiss Capacity Building Facility (SCBF) is looking for a

Project Finance and Fundraising Officer

Reporting to: Chief Executive Officer (CEO)
Work Quota: 50%
Location: Zürich

>> more

Dear colleagues and IED-Aficionad@s

As we are writing this Season’s Greetings E-card, hopes that humankind and our planet would find some calmer waters were unfortunately not fulfilled. The effects of political and social unrest as well as climate change have reversed the developments of recent years in many corners of the world. The ongoing pandemic exposed our world’s vast inequalities, with developing countries bearing the economic brunt of the disease and finding themselves last in line for vaccines.

There are of course some rays of light. Despite difficult circumstances, the teams in the field have moved ahead with confidence and the necessary "feu sacré". You have found context-adapted solutions for project implementation and for the greatest possible benefits for our beneficiaries, and you have launched innovative projects or have developed new cooperation programmes. We would like to express our appreciation and convey our congratulations for these achievements.

With increasing inequality, inclusive economic development and private sector engagement initiatives become even more important. We welcome very much your efforts in this regard and stand ready to support you in your on-going and new endeavors to come.

All the very best for this festive season and the new year ahead. We are looking forward to a great year of working together - Happy 2022 to you and your families!

Wishing you a restful end-of-year break.

Your IED Team

Accounting and Administration Officer (50-80%)

Starting Date: January 2022 or by mutual agreement 

Place: Zürich, Switzerland

>> more 

The updated Financial Sector Development (FSD) guidance was launched on the 24th of November, 2021. This new guidance provides the rationale and strategic orientation of SDC’ s approach to FSD. It offers guidance to SDC’ s programme staff and decision-makers in the cooperation offices and at the head office, executing Swiss, international and national agencies, and to consultants so as to ensure coherent and effective FSD projects. >> here 

Also interested in the presentation of the launch event? >> here

The Innovation for Agribusiness (InovAgro) Project is in its final year of implementation (extended one year due to the COVID-19 pandemic).  Along three phases, spanning 11 years, the Project has facilitated the development of the agriculture markets by innovating, testing, and adapting market systems business models which increase the inclusion of, and benefit to, female and male smallholder farmers (SHF) in 11 districts in the three provinces of Northern Mozambique.

This case study captures the experience of InovAgro’s work in promoting a more efficient and transparent system of agricultural output marketing. InovAgro’s output marketing vision is: to create deep, viable and sustainable output marketing channels that give opportunities for SHFs to sell their produce and increase their household income. 

>> short version (4 pages)   >> Case study (24 pages) 

Listen to your colleagues’ stories on how they advance Women’s Economic Empowerment (WEE) in their IED projects and programmes, in this ongoing podcast-series. 

Find the podcasts >> here

Ep. 1: How to ensure gender equality in call for proposal formulation and selection

Ep. 2: Better boxes for fruit vendors - a solution that is improving women economic empowerment!

Ep. 3: Using ancestral and scientific knowledge to empower rural women in Peru for sustainable tourism.

Ep. 4: Impact, leadership and business support to women in Colombia

In June 2021 SDC’s Inclusive Economic Development expert team and the Global Programme Health jointly organised a Savings and Credit Forum (S&C Forum) on Sustainable health financing through inclusive health insurance – public and private approaches. 

We gained valuable insights from the four specialists and we highly appreciated the lively discussion with all the participants in our very first online S&C Forum. 

You can find the key-takeaways of the event, as well as the presentations and all other resources on the shareweb of Employment and Income (e+i). >> here 

Since the last update in March 2021, SCBF has approved some exciting new projects. We are pleased to highlight the below three projects that aim to utilize digital solutions to increase the financial inclusion of low-income households in Africa. 

Facilitating secure and quality financial services for clients through digitalization in Togo

Since 2017, Togo has seen a rapid growth in e-money services, as highlighted by the increase in service points and usage rate from 0% in 2010 to over 84% in 2019. With support from SCBF, Assilassimé Solidarité plans to offer secure, quality and local services to its member-base of over 50,000 clients using digitalization and interconnectedness. To top this off, Assilassimé Solidarité will also integrate financial education modules to enhance clients’ understanding and use of digital financial services.  >> more

Leveraging technology to automate client selection for loans in Benin

Alidé means ‘there is a way’ in Fon, a local Beninese dialect. ALIDÉ is also the name of a medium-sized MFI launched in 2006 to improve the living conditions of vulnerable people by improving their financial inclusion. In May 2021, SCBF approved a grant for ALIDÉ to advance its digitalization efforts in streamlining the loan application process. The project aims at addressing challenges that clients face in accessing loans, for instance physical distance from outlets, by automating loan processing for loyal clients to make it more efficient for the institution and end-customers.  >> more 

Delivering housing impact insurance in Kenya

In Kenya, the low-income market is typically unfamiliar with property insurance. With the aim of making insurance solutions client-centric and cost-efficient, a grant from SCBF will enable Britam General Insurance to design and launch innovative property insurance products and bundled services for low-income households to effectively manage property risks. Digitalization of services and solutions offered will be a key component of this project to increase the financial resilience of clients as well as build a foundational approach that can be replicated by other insurers.  >> more

To better understand how financial institutions can help clients cope with the pandemic, the Habitat for Humanity International’s Terwilliger Center for Innovation in Shelter undertook a study in the Philippines, in partnership with two microfinance institutions, to understand how access to adequate housing can facilitate economic recovery. The Terwilliger Center’s Jitendra Balani and SCBF’s Chrissy Martin-Meier highlight the results emerging from the study in this insight piece.

2020 was an eventful and unpredictable year on many fronts. The COVID-19 pandemic tested every aspect of humanity, and the economic downturns and slowdown it brought about has undone years of progress on the Sustainable Development Goals, as well as the financial inclusion of those furthest behind. 

Despite the pandemic, in 2020 SCBF committed the highest number of annual grants (30), with over CHF 17 million invested since inception in 2011 resulting in increased financial inclusion of over 2.6 million low-income clients, a majority of which are women. 

Read the 2020 Annual Report to find out more about how SCBF co-funded innovative projects are revamping financial inclusion activities in emerging and low-income contexts.   

SDC recently published the document "Mobilising savings - Key Issues and Good Practices in Promoting Savings". It provides a deeper insight into new trends and highlights the importance of mobilising savings for low-income households. The new document includes also the perspective of a financial institution and the regulatory authorities’ view. The publication shows the progress of the topic and its growing importance for SDC. >> here

This Information Package is designed for SDC staff and practitioners involved in inclusive economic development programmes. It provides an introduction into the IED approaches and ways of systemic thinking through three interlinked economic thematic priorities on system and individual level: Vocational Skills Development (VSD), Private Sector Development (PSD) and Financial Sector Development (FSD), and the modality of Private Sector Engagement (PSE). >> here

Responding the voiced need for guidance for SDC staff and projects working in fragile contexts, the IED Expert Team, with valuable inputs from network members, experts and other focal points, developed a slide deck and FAQ document aimed at providing support and guidance to e+i and PSE projects. 

These documents will now be presented in two webinars where you can raise your concerns and exchange with peers on good practices and challenges in quest of maximising impact on reducing fragility through IED.

The same webinar will be held twice:

Tuesday,   April  6th at 15:00 CET  >> register

Thursday, April 15th at 10:00 CET >> register

SCBF Supports the First Revenue Accretive Agent Loan Product in Africa

Though Agent networks in Africa have increasingly become the delivery channel of choice for MFIs as they represent a low-cost alternative to brick-and-mortar branches. However, the sustainability and credibility of agents, and digital/non-branch financial services more broadly, faces a critical challenge; maintaining adequate liquidity. In Tanzania alone, studies have shown that up to 20% of transactions are denied due to liquidity issues. Current... >> more 

New Strategic Partnership with Swiss Re Foundation

SCBF is proud to announce a new strategic partnership with Swiss Re Foundation to help realise the Sustainable Development Goals and contribute to build resilient societies.

“Swiss Re has been a member of the SCBF since 2012 and a member of its Board of Directors since 2019. The Swiss Re Foundation will provide grant support to seven of SCBF’s insurance projects related to health, agriculture and recovery from catastrophic events, as well as two insurance-related outcome studies. By targeting... >> more

New Approved projects

Since the last Newsletter in the beginning of December 2020 we have approved new projects. Please find them, including factsheets  >> here

Financial education is an essential part of smallholder empowerment. Education is a door-opener to financial inclusion, an important aspect of agricultural development. The Syngenta Foundation for Sustainable Agriculture, together with Ebdaa Bank, recently examined the financial habits and attitudes of 150 farmers across four states in Sudan. 

Funding for this first-ever such assessment and a related financial education initiative comes from the Arab Gulf Programme for Development and the SCBF. 

One of the main findings of the survey is that most participants understand the need to track their savings but declare not usually knowing how much money they have available for daily spending. When unexpected expenses do arise and participants are unable to cover them, they usually turn to friends or family for support, despite being clients of financial institutions. >> more.

SCBF has awarded grant funding to World Vision and VisionFund International to pilot the provision of insurance services to underserved populations in Ghana and Malawi.

The project will provide informal savings groups with insurance services that cover accidents, healthcare needs and lost income due to hospitalisation for group members and their dependents. When the project is fully rolled out, more than 87’000 Ghanaians and 272’625 Malawians will have access to insurance. >> more

SCBF The COVID-19 pandemic has had a devastating impact on low- and moderate-income populations, micro, small, and medium enterprises, farmers, and CICO agents around the world. With limited savings and assets to fall back on, coupled with a squeeze on access to finance, these segments faced severe disruptions in demand and payment cycles. This led to challenges related to business continuity and survival, and it needs appropriate responses at all levels to support their recovery in the a­ftermath of the crisis.

MSC, with support from the Bill and Melinda Gates Foundation, Metlife Foundation, Mastercard Foundation, and SCBF, conducted a research exercise to assess the impact of the COVID-19 pandemic. MSC examined the needs, attitudes, perceptions, and behaviors of micro and small enterprises, farmers, and CICO agents in several countries including Kenya, Uganda, India, Indonesia, Bangladesh, Senegal, and the Philippines. The research entailed an assessment of the impact of COVID-19 on key segments of the economy in these countries and the response of the governments and the private sector to deal with the pandemic. Further, MSC assessed the key changes in business operations, customer demand, impact on supplies, business expenses, and the coping strategies adopted, among other factors.

MSC and SCBF hosted two webinars to share the interesting insights from the research. 

In 2020, a new Core Group on Inclusive Economic Development (IED) has been established within SDC. Our Core Group members are a diverse group of colleagues who are working in different operational units – in the South, East and Global Cooperation as well as in the Humanitarian Aid. The Core Group provides an invaluable contribution in promoting and further developing important topics related to...

...IED within SDC – and beyond. For example, the slide deck on fragility and how this influences IED could only be developed thanks to the contributions of our Core Group members and their expertise – and also thanks to the fruitful exchanges with other SDC Focal Points.

Two new SCBF Members

SCBF is very excited to announce two new members CelsiusPro and Habitat for Humanity International Association. Please join us in welcoming both new members. We look forward to improving the lives of low-income households together.

CelsiusPro is a global leader as full service provider for risk modelling, underwriting and the administration of index-based risk management products and consultancy in the context of weather risk and natural catastrophes.

Habitat for Humanity International Association is a non-profit housing organization working to empower people in the world’s poorest communities to overcome the chronic lack of decent housing in more than 70 countries and has helped more than 29 million people.

SCBF Joins the Inclusive Fintech 50 (IF50) Investor Circle

The IF50 Investors Circle is a global network of investors that provides members with visibility into promising early-stage inclusive fintechs. The aim is to make early-stage fintechs more visible to investors and others who can help them grow and have a noticeable impact on the more than three billion financially underserved people. The IF50 initiative leverages a competitive process led by an independent judging panel of experts to identify 50 early-stage fintechs driving financial inclusion and resilience.
SCBF is delighted to be a new member of the IF50 Investor Circle and is looking forward to interact with innovative inclusive fintech start-ups.

SCBF Project Highlights

Completed Project: SCBF 2018-07 | Building capacity to strengthen access to housing microfinance in Ecuador – COAC Jardín Azuayo

A Study to Understand the Impact of COVID-19 Pandemic on Needs, Attitudes, Perceptions, and Behaviour of Micro and Small Enterprises in Asia and Africa

MicroSave Consulting and SCBF are co-funding research to understand the impact of COVID-19 pandemic on the needs, attitudes, perceptions, and behaviour of micro and small enterprises in Asia and Africa. SCBF has co-funded the study for Kenya, while research in the other focus countries – India, Bangladesh and Senegal – will be co-funded by MicroSave with Gates Foundation, JP Morgan Chase Foundation, and Mastercard Foundation.

The final comparative country research report, including a webinar, is expected to be published in August / September 2020.

MIX and SCBF partner to support the inclusive Fintech Industry's response to the Covid-19 crisis

The fintech sector holds great promise and potential to move the needle on financial resilience and financial health for underserved populations. However, due to the COVID-19 pandemic, fintechs face unprecedented challenges in continuing to serve their customers, keep their employees safe, and access scarce resources to support ongoing operations.

MIX and the Swiss Capacity Building Facility (SCBF) are working together to provide data and information to investors and other donors focused on inclusive finance in order to help them design appropriate strategies for responding to the crisis. As a global data resource for the industry, MIX will conduct quantitative research to understand how early-stage fintechs are affected by and responding to COVID-19, and what type of assistance may improve or optimize their operations and product delivery. With this rich data, MIX and SCBF will present meaningful analysis to investors and ecosystem supporters on what they can do to help fintechs.  >> more

‘Surokkha’ is a Bengali term, meaning ‘better protection’. It is a pilot initiative of SDC, under a technical collaboration, with Syngenta Foundation for Sustainable Agriculture (SFSA). Using a market development approach, this is first time in Bangladesh that primary insurance companies are offering weather-index based crop insurance products and services. Surokkha started in 2018, creating increased access to financial services of smallholder farmers as a risk management options. Surokkha will support at least 230’000 farmers from adverse weather risks within September 2022.      >> more

Did you know that in each Newsletter colleagues from the field share their personal highlights with us? In this edition you can learn from SDC colleagues in Mozambique and Bangladesh about their insurance projects.

>> those and other news

The popular internal Guidance «Managing MSD projects» has been slightly revised and shines in a new look!

Are you working for SDC and planning or supervising a project with an MSD approach? This is your must-read document that will save you lots of time in trial and error. Are you an implementer or consultant engaged in SDC’s MSD projects? Read this document to really understand what the donor wants and needs.

>> have a look at the document

During the hardships created by the global pandemic, Social Performance Task Force (SPTF) is prouder than ever to work together with SDC and its other Responsible and Inclusive Finance (RIF) Facility funders, whose flexibility has allowed SPTF to deliver timely, substantive, and socially responsible solutions for FSPs and their clients during this challenging time in history. 

When the global pandemic hit, SPTF was driven to help its members and their clients, which are facing challenges including lockdowns, social-distancing requirements, and a widespread economic downturn. How can the philosophy and tools of Social Performance Management help these institutions not only survive, but innovate and adapt under these difficult conditions? One of the first actions SPTF took was to mobilize the RIF Facilities as an engine of crisis response innovation.   SPTF requested adjustments to the policies governing the Facilities to allow applications to be reviewed weekly instead of quarterly, to consider an expanded array of project types, and to increase the percentage of co-financing offered for each project related to crisis response.  >> more

Since 2018, the International Cooperative and Mutual Insurance Federation (ICMIF) and the United Nations Development Programme (UNDP) have explored how the global mutual and cooperative industry can build resilience and deliver inclusive insurance solutions in line with the Sustainable Development Goals (SDGs). This webinar presented how the mutual and cooperative sector has responded to the COVID-19 pandemic in emerging markets, and what is being done to promote development through insurance and risk finance. (recorded in June 2020/ duration 1 hour) >> here

Background

Mozambique is exposed to many natural hazards. Floods, cyclones, drought, and dry spells are all common events of natural occurrence. This makes Mozambique a highly vulnerable country in the face of a changing climate. In fact, the 2019 ND-GAIN index ranks Mozambique 160 out of 181 concerning its coping capacity against climate change. Vulnerability is based largely upon the fact that over 70% of the population relies on rainfed agriculture for their subsistence. This means that changes or variability in the weather and climate have considerable ramifications on the country’s population as well as the economy. >> more

Smallholder farmers (SHF) always have great problems accessing the financial resources needed at planting season to purchase improved seeds and other inputs, as well as pay for labor needed at this peak work period.  There are both supply side, as well as demand side, set of issues.  In Mozambique, it is not easy for financial institutions to lend to SHF.  Financial institutions face many legaFirst Fundo Agricola distribution in Mocuba, November 2015l requirements to lend to SHF (the farmers must have ID booklet, be registered for taxes, etc.).  In addition, they are normally quite risk averse due to historically poor repayment rates by SHF and require significant collateral. The low numbers of qualifying farmers and scattered settlement makes it expensive, unviable to service them, especially in the short-term.  For SHF, the cost of borrowing the money is also quite high - interest rates for agricultural loans are typically over 20% and up to 60% from Micro Finance Institutes, which is not cost effective for agricultural production loans. 

After several years of trying to incentivize financial institutions to lend to commercially oriented SHF with limited success, in 2015 the SDC’s InovAgro project in Northern Mozambique launched a new intervention—the Fundo Agricola (FA)— to expand farmers’ capacity to save for seeds and other agricultural inputs by leveraging Mozambique’s existing network of village savings and loan associations (VSLAs), which has more than 600,000 members. The FA provided a system for farmers to save in advance for the inputs they need to purchase at the beginning of each planting season.  

This network is now growing rapidly on its own through support from co-facilitators and locally incentivized animators.  In 2019, the network of Fundo Agricola members grew by 44% to 17,445 members (55.3% women), who saved $257,800 specifically for purchase of agricultural inputs.  The aggregate savings are becoming more significant and the savings per farmer have increased to nearly $15 (up from $4 in 2015). The groups have created district management committees which coordinate the savings and negotiate better contracts with the seed companies and agro-dealers, including getting extension and logistics support from the private sector seed suppliers.  The savings were used to purchase more than $137,550 of certified seeds from formal seed companies and agro-dealers.  

The Fundo Agricola is still in its infancy, but is growing, adapting, and maturing rapidly. Strong interest from participating communities demonstrates the fund’s value to smallholders.   But InovAgro also sees this as the foundation of new systems for rural finance and building the seed markets in Northern Mozambique.  Without changing the character of the original VSLA groups, InovAgro is facilitating farmer linkages to agro-dealers, and village-based agents to improve the seed purchase process and is exploring agent banking to improve savings management. InovAgro will continue to test various models for long-term sustainability that will evolve with the country’s financial industry and the seed sector in rural northern Mozambique.     

>> read full case study  <<

Ecuador has the 4th largest housing deficit in Latin America. More than 1.7M houses are considered inadequate (unsafe conditions, inadequate construction materials, lack of basic sanitary services, overcrowding, etc.). The government funding programmes for housing do not address access for the low-income population. Ecuador’s financial regulation establishes an interest rate cap for all mortgage housing products at 11%, with requirements and guarantees that exclude the low-income families. Because of the limitations around mortgage products, MFIs, cooperatives and NGOs, who typically serve low-income households, design their housing finance products for incremental construction. 

Housing microfinance (HMF) is of special interest to Banco Solidario (BSE) to support low-income households in improving their housing. More than 30% of their annual loan placements is focused on financial inclusion with financial education as a key component of their services. Despite the constraints of the national regulatory environment, Banco Solidario decided to increase its HMF portfolio and incorporate new innovative tools to support its housing clients.

The Project

SCBF supported BSE in strengthening its HMF loan delivery through development and implementation of a mobile app, which significantly improves facilitation of the loan placements, introduction of a financial literacy training program for clients, and revision of the HMF product delivery process. These activities support scaling-up the product reach, and ultimately increases the number of low-income clients enabled to improve their housing conditions.

Results / Lessons Learnt

The housing microfinance product from BSE is now offered to all clients via the new software. Used by the credit officers in the field (with online and offline versions), the app enables (1) rapid collection and filing of information on-site, (2) provision of basic technical construction assistance, and (3) assistance with an incremental plan for improving the housing conditions. Use of the application has strengthened BSE’s image and trust among clients, who appreciate that BSE has improved the HMF product delivery process and experience delivery with modern technology. The tool has reduced the time required for collection of information and verification at the branch office, resulting in faster disbursement of funds to clients. Additionally, automation within the credit analysis process reduces human error. Very few cases are returned by the credit bureau for second verification. The revision time of calculations derived from manual processing of each loan was reduced by 50%.

As of December 2019, Banco Solidario registered cumulative disbursements of 6’750 HMF loans, exceeding targets by 4’956 HMF loans (Target: 1,794). Capital mobilization of USD 31.06M, (USD 3M from the MicroBuild Fund and USD 27.06M from own funding).

The following lessons learnt were identified (among others):

• A commercial strategy is fundamental to the scale-up of a housing microfinance product. Following adjustment of the commercial strategy in October 2019, growth of the housing microfinance portfolio is expected to be seen one year from now. 
• To succeed in introducing new technological components, the institution must embrace these advancements within their strategy. If the institution is not fully convinced in the early stages of the project, or if this is outside of its strategic plans, it is very difficult to implement those components and it takes even more resources.
• The institution must be willing to invest during the process, if necessary. BSE invested approximately US$30,000 in the purchase of hardware (smart phones) for the loan officers.
• The institution must fully understand that the benefits of a technological tool go beyond loan placement and contribute to client’s retention through subsequent housing loans.
• Introducing an incentive scheme can help reinforce the commitment of the sales force to promotion of the housing product (or the product in focus).

Women’s World Banking and Lead Foundation (Lead) rolled out a microinsurance scheme, Hemayat Lead, which provides life and hospital cash benefits bundled with every loan to all Lead’s 190’000 clients in Egypt. With the tremendous success of the program, Lead aims to expand the insurance offering (e.g. family coverage, savings linked) and build Lead’s capacity in managing high volume transactions. While the insurance operations are running smoothly, Lead’s microinsurance team spends a great deal of time scrutinizing every claim document with equal rigor to eliminate the possibility of fraud. This creates delays in decision making for low value claims and results in a lost opportunity on clients’ satisfaction when they have to follow-up constantly with the branch staff for a relatively small amount of money. 

The Project

The main motivation for this work was based on two observations in January 2018:

• Based on feedback received during the previous SCBF project 2016-07 from Lead’s customers, the level of product satisfaction was high. However, the time taken by Lead to pay claims was a source of stress for women. At the start of the project, 67%of small value claims (claims for up to five nights) were processed in ten days; 
• With the new development of a family policy (under SCBF 2018-03), the overall number of claims was expected to surge due to family members. In order to maintain an efficient process, Lead would have to increase the productivity of their staff and become less and less manual.

The project was designed to reduce the claim turn-over time through the implementation of technology and scaling of the artificial intelligence (AI) fraud model developed and tested in a previous project funded by Visa. The main capacity building opportunity was to improve Lead’s ability to implement the AI fraud model in their system and to systematically track claim turn-around times.

Results / Lessons Learnt

Improvements regarding turn-around time are a true highlight of this project. Not only were the turn-around reduced, but 50% of the claims are paid immediately thanks to branch scans and a revised process. Typically, the client waits in the branch and collects the payment immediately. To overcome the human resistance on the fraud model and improve the process efficiency, the team created and iterated a set of intuitive fraud rules that allow to analyse all claims in a consistent manner. The rules contained principles such as: Has this client already filed a claim? How long has this client been a customer of Lead? Has the client a chronical disease etc. Those criteria are summarized in simple scores to support Lead Foundation with ranking claims and review priorities. The rules were calibrated based on the real fraud detection and are meant to offer an automation and allow to compare with their own suspicion.

The main lessons learnt from this project are:

• Use technology in the right balance in a transforming process: Using technology to speed up the process works where bottlenecks have been identified. Ready to go end-to-end technology solutions are often more difficult to implement due to human factors.
• Intuitive measures like average and count are counter-intuitive for operational efficiency. Using quantiles as the right measuring stick requires continuous training.
• Visualization alone does not work to increase efficiency. The process of developing a visualization and identifying / concentrating on steps that take too much time is equally important.

SCBF is very excited to announce the launch of the newly designed website. The goal with this new website is to provide our visitors an easier way to learn about SCBF’s projects, impact and who we are, and also how to apply for a grant for innovative and interesting financial inclusion projects.

Amongst the new features, SCBF publishes news stories on financial inclusion and its members and you can also sign up for the newsletter. For any questions, suggestions, feedback or comments, please E-mail them at info@scbf.ch

The growing COVID-19 crisis threatens to disproportionately hit developing countries, UNDP states. Income losses are expected to exceed USD 220 billion in these contexts and a devastating social and economic crisis is expected to follow the health crisis over the months and years to come. Furthermore, according to ILO, it is exacerbating already existing inequalities – from catching the virus, to staying alive, to coping with its dramatic economic consequences. This is also reflected in the effects on the labour market: Significant rise in unemployment and underemployment are estimated around the globe. In addition, the ILO warns that the crises with its current limitations on the movement of people and goods may restrict the informal economy, which a lot of vulnerable groups depend on. 

UNCTAD estimates that global foreign direct investments, an important financing source of developing countries, will be down by -30 % to -40 % during 2020-21. The World Trade Organization has monitored a sharp fall in global trade activity. Additionally, as the IMF points out, the global financial system is likely to be disrupted strongly.

Low-income countries do not have the financial means to back the local economy, secure jobs and protect livelihoods. Different actors around the world are addressing this challenge:  The IMF for example is making available USD 50 billion in emergency funding to help poor and middle-income countries with weak health systems response to the epidemic. The African Development Bank at the same time launched a record breaking USD 3 billion “Fight COVID-19” social bond.

Also, within the SDC and in our network in particular, we are committed to contribute to the mitigation of COVID-19 and its harmful impact on employment and income in low income countries. In general, we expect our partners on the ground to run into severe liquidity problems or to be restricted in their movement and business practices. However, implications might differ for each one of our thematic areas.

The backstopping teams of each thematic area are currently developing more detailed response notes with potential ways forward. For further information, as well as for a collection of best practices and the latest developments, please check out the dedicated shareweb landing page and the links to each thematic sub-page:

• Private Sector Development (PSD): The current COVID-19 pandemic has an impact on the global economy. Micro, small and medium-sized enterprises (MSMEs), including self-employed people, are threatened in their existence. MSMEs are the backbone of all economies and generate a majority of jobs, and this is especially true in developing and emerging countries. The current situation is causing widespread disruptions in trade and economic activity due to physical restrictions, international travel bans, closure of businesses (markets, shops, restaurants etc.) banking facilities and educational institutions. While medium to long term impacts on the global economy are still unclear, there is a serious threat of global recession with all major regions affected. This said, businesses in different sectors are affected differently; for instance, while tourism industries are collapsing, there is a growing demand for ICT services.
• Financial Sector Development (FSD): The COVID-19 disease affects all kind of financial institutions: commercial banks, Microfinance Institutions (MFIs), funds, leasing/factoring companies, insurance companies, Village Savings and Loan Associations (VSLA), etc.. They are affected through physical limitations (restricted movement, limited client contact, etc.) and economic challenges (postponed investments, increasing loan default rates, "bank runs", etc.). In practice this means that women can not meet in savings groups anymore, for example. These challenges in turn create problems at the level of final beneficiaries (households, smallholder farmers and MSMEs) in terms of liquidity shortages, bankruptcy, losing savings, insurance claims, etc.
• Vocational Skills Development (VSD): The worldwide COVID-19 crisis has led to the closure of schools and interruption of education and training systems. According to UNESCO’s school closure monitor currently over 188 countries have closed schools country-wide.  Closures of training facilities and apprenticeship workplaces are unprecedented challenges for governments, teachers, civil society and private sector actors, trying to ensure learning continuity and/or business survival: On the one hand, poor and disadvantaged population groups often have limited access to alternative educational opportunities for distance learning. On the other hand, many MSMEs had to shut down and employers are not able to provide in-company vocational training, let alone recruiting young graduates or paying wages, e.g. to parents who often support their youngsters during their education and training pathway. 

The SDC e+i and gender networks launch the learning journey “WEE Learn”. In the next few weeks we would like to deepen our exchanges on WEE. Please join us for the Webinar on the Business Case for WEE

Date: Thursday 12 December 2019 at 14:00-15:00 Swiss time (convert to your time zone).

To the SDC, Women’s Economic Empowerment (WEE) is beyond ticking of a box. Plenty of studies and annual financial reports of gender diverse companies give proof that it is also a business case. Women can be economically empowered as entrepreneurs, as clients, as managers and as employees. Would you like to better understand the business case for strengthening women as entrepreneurs or for improving their working conditions as employees?

Then please join us for this webinar to learn about SDC’s existing guidance on WEE and to hear about concrete experiences showcasing the business case for WEE in Guatemala and Uganda, both benefiting from support by SDC’s Social Entrepreneurship Programme:

Joseph Nkandu, Executive Director of the National Union of Coffee Agribusiness and Farm Enterprises (NUCAFE) in Uganda, will share how women’s empowerment alongside men’s has contributed to increase productivity and income in the Ugandan coffee sector as well as profitability of his company NUCAFE.

Rachel Murphy, Strategy and Innovation Coordinator at ALTERNA, a Social Entrepreneur Accelerator, will provide insight how a targeted programme helped female entrepreneurs in Guatemala overcoming biases when pitching their business idea and thereby ensuring more funding for their enterprises

Nathalie Wyser Vizcarra, Senior Policy Advisor Financial Inclusion at the SDC in Bern, Switzerland, will provide an input on SDC’s perspectives on the business case for WEE and its existing guidance on WEE. 

Selina Häny, Gender Equality Policy Advisor at SDC in Bern, Switzerland, will be the webinar host and facilitate the discussions.

Leave no one behind (LNOB) is the central pledge of the 2030 Agenda, recognizing the need to combat poverty and inequalities. In fact, LNOB is indispensable in order to meet the SDGs. SDC has elaborated a thematical working aid for e+i, additional to the SDC guidance on leaving no one behind, which is a normative document for all SDC staff. The working aid supports e+i projects and programmes to translate this aspect into project design and implementation from the very beginning on. We encourage you to look at the document. Stay tuned, a Webinar on this topic will be announced soon.

Back in November 2017 the e+i and the Gender network decided to capitalize their experience on women’s financial inclusion. Out of this process a guidance sheet has been published- the guidance sheet is actually one of a series written to support SDC staff in ensuring that gender issues are taken into account transversally in different thematic areas. It outlines key issues regarding women’s financial inclusion (WFI) and how these can be integrated in the design, implementation, monitoring and evaluation of cooperation strategies and project interventions. >> read pdf

The market stall session during which several projects presented themselves was a highlight of the F2F 2019. 

Many participants highlighted that the session provided a great opportunity for learning exchange. The learn more about the discussed project, we recomend to visit the dedicated site on our shareweb. >> more

Product up-scaling

Developing a digital financial and service delivery agency platform with International Livestock Research Institute in Kenya

Launch of the first weather index-based agricultural insurance schemes for smallholder farmers in Myanmar

Financial education

Financial education campaign to support the launch of the first weather index-based agricultural insurance schemes for smallholder farmers in Myanmar

With more than 170 participants from more than 40 countries the e+i & EPS F2F event 2019 in Solothurn was a great platform to share experiences and get inspired! The key note speakers addressed the overarching topic "impact@scale" from different angles. A recurring aspect was the engagement with the private sector. The presentations and discussions during the focus sessions showed the passion of the participants for their work. All materials from the F2F and a summary of the event are available on our event page... [more]

Tanzania is striving to achieve its Development Vision 2025 of becoming a middle-income country. But Tanzania’s youth still struggles to get out of poverty with 82.3% in vulnerable employment, which rises to 93.6% when referring to rural youth. Rural youth, in particular young women, concentrate in informal, low-skilled and low value activities. Financial inclusion has a key role to play in empowering people. The programm will be implemented with a gender transformative approach together with financial service providers (microfinance institutions, fintechs, MNO) as well as with the regulator at policy level.

                                                                                                                     >> more

Following an external evaluation review conducted in the summer of 2018, the SCBF is currently undergoing a major reorganization in the following areas: 

1) Improvement of organization, governance and management
2) Sharpening of SCBF´s programmatic and strategic profile in view of the Sustainable Development Goals and the Addis Ababa Action Agenda
3) Refining processes to ensure ownership, transparency and accountability with partner financial institutions
4) Enhancement of the learning and knowledge management function for the members

The changes to the organization of the SCBF include hiring of a Chief Executive Officer, who is expected to move SCBF´s operations to the next level of financial inclusion results and corresponding global reputation. 

From March to June 2019, SCBF member organisations will be meeting in a series of 4-5 meetings and conference calls to develop a program proposal, covering three work streams:
1) programmatic approach
2) learning agenda
3) role and engagement of members in the SCBF.

This proposal will be presented for final discussion and adoption at the General Assembly on June 27th. 

The Swiss Capacity Building Facility (SCBF) is a Public Private Development Partnership to promote financial inclusion in developing and emerging economies. A member-based association founded in 2011, the Facility has funded over 100 projects in 33 countries reaching more than 1.3 million low-income clients with a variety of financial services, including credit, savings, and insurance. To reinforce its Zurich-based Secretariat the SCBF is recruiting 

a Chief Executive Officer (100%).

Application to info@scbf.ch

The SCBF welcomed a new strategic member to the association, the Arab Gulf Program for Development (AGFUND), a Riyadh-based regional development fund founded in 1980 by Prince Talal bin Abdul Aziz Al Saud with the support of GCC leaders. Its primary objective on the international level is to alleviate poverty and enable vulnerable groups to lead a dignified social and economic existence through adopting best practices of microfinance – thereby actively contributing towards achieving the UN’s Sustainable Development Goal. Furthermore, in order to encourage innovation and creativity in the field of sustainable human development, the AGFUND International Prize for Pioneering Human Development Projects was established in 1999. In 2018, the annual prize award was doubled to USD 1 million distributed over four categories comprising projects that are funded, designed and implemented by (1) UN agencies and international/regional NGOs, (2) national NGOs, (3) national government agencies or social business enterprises, and (4) individuals.

His Royal Highness Prince Abdul Aziz bin Talal Al Saud, Olga Speckhardt (Syngenta Foundation), Hans Ramm (SDC), Nasser Alkahtani (AGFUND)

The 7th AGFUND Development Forum took part in Geneva at 15 October 2018, in partnership with SCBF, the Arab Bank for Economic Development in Africa (BADEA), and the Arab Open University (AOU). The Forum hosted a symposium entitled “Achieving SDGs in Western and Central Africa through Financial Inclusion”. The symposium includes five sessions as follows: