Countries
Kenya, Rwanda, Tanzania, Uganda, Ethiopia

Local Project Partners
Ethiopia: Abay Bank SC, Enat Bank SC
Kenya: African Confederation of Co-operative Savings and Credit Associations (ACCOSCA), Ministry of Trade and Industry, Association of Microfinance Institutions (AMFI)
Rwanda: Rwanda Institute of Cooperatives, Entrepreneurship and Microfinance (RICEM), Ministry of Finance and Economic Planning (MINECOFIN)
Tanzania: Savings and Credit Cooperative Union of Tanzania
Uganda: Association of Microfinance Institutions Uganda (AMFIU), Uganda Cooperative Savings and Credit Union Limited (UCUSCU)

German Project Partner
Sparkassenverband Baden-Württemberg,
SPK Heidelberg,
KSK Tübingen,
KSK Reutlingen,
SPK Ulm
SPK Schwarzwald-Baar

Donor
German Federal Ministry for Economic Cooperation and Development (BMZ)

Duration
01.10.2024 - 30.09.2027

German Sparkassenstiftung has been working in the East Africa region for more than ten years. Thanks to the project-oriented approach, a relationship of trust has been built up with the partners. The interplay of measures that directly support the end beneficiaries (e.g. financial education, savings mobilization, training of microentrepreneurs), but also directly and indirectly strengthen the institutions/actors in the microfinance sector (e.g. further training measures for MFI and SACCO staff, product and process improvements in the institutions, as well as institutional strengthening of meso-level institutions such as associations and training centers) has increased the financial inclusion of otherwise disadvantaged population groups. Testimonials from MFI clients and employees confirm this effect. The general trend toward greater financial inclusion is also confirmed in FinScope studies.

The aim of the project is to contribute to lasting, inclusive and sustainable economic growth. In particular, rural development in the region is to be promoted by strengthening institutions in the microfinance sector that operate throughout the region. The project work focuses on strengthening existing and establishing new MFIs (microfinance institutions) and SACCOs (savings and credit cooperatives), expanding and digitalizing their service offerings and strengthening umbrella organizations. The professionalization of the partner associations and their service offerings, the development of needs-based financial products and the digitalization of processes and products are intended to improve overall economic sustainability. A parallel regional project in the same countries was integrated in 2023, expanding the focus to include vocational and commercial training. These additional measures, which both directly support the final beneficiaries and strengthen the institutions/stakeholders in the microfinance sector, ultimately increase the financial inclusion of disadvantaged population groups. This efficiently dovetails the educational measures with the structural work in the microfinance sector. Structures, processes and products are thus provided by institutionally stable MFIs/SACCOs, accompanied by targeted training measures for the final beneficiaries (demand side of the microfinance sector) as well as for the employees of the MFIs/SACCOs (supply side of the microfinance sector).

Tasks

• Designing and implementing necessary adaptation and restructuring processes for the associations, as well as for the entire microfinance/SACCO sector
• Establishing new financial institutions (through mergers of existing, smaller entities and the creation of new ones)
• Fundamental optimization of business processes (including IT-supported ones) and the organizational structures of financial institutions
• The introduction or improvement of digital solutions (e.g. core banking systems, interfaces to management information systems, credit bureaus, performance monitoring tools, payment systems, and Mobile Money networks)
• The development of new products for microfinance clients and the expansion into new (digital) channels
• Strengthening ESG activities at partner institutions