Countries
Indonesia, Nepal, Laos, Vietnam, Bangladesh

Local Project Partners
MFIs, Community Based Financial Organizations (CFO), Associations (i.e. LASCU and NEFSCUN), Central Banks, universities and a fintech
from 04/2025 similar organizations in Indonesia, in the course of 2025 similar partners from Mongolia will be added

German Project Partners 
Sparkasse Essen
Sparkasse Lörrach-Rheinfelden
Kreissparkasse Ludwigsburg

Donor
Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ)

Duration
01.11.2022 - 30.04.2027

Access to fair financial services in target countries (especially in rural areas) is one of the biggest challenges in overcoming poverty, unequal living conditions, and the ecological transformation of economies. Agriculture plays an important role in all project countries, employing the majority of the population, especially women. At the same time, agriculture contributes too little to food security and is threatened by climate change. Locally active financial institutions need the necessary institutional and human resources to be able to provide comprehensive basic financial services in rural regions in a cost-effective level.

The main objective of the project is balanced ecological-rural development in the project countries and sustainable economic development by strengthening the financial capacities of the population. This contributes to the promotion of (women-led) small businesses, farms and young people. The specific aim of the project is to strengthen the institutional capacity of formal and informal financial organisations in rural areas. The strengthening will take place with regard to the creation of ecological, sustainable business models, market-driven product offerings for micro-entrepreneurs and farmers, geographical reach, process efficiency (digitalisation), management capacity, risk management and compliance.

The aim is also to enable associations or other institutions to carry out effective control of financial organisations and to provide support for the individual institutions (improving the legal and organisational framework for (micro)finance activities in rural areas and strengthening their supervision). In Vietnam, the project supports the adaptation of university education to the practical challenges of the financial business; potentially, this approach will also be pursued with the Lao Banking Institute. The project was expanded to Nepal in April 2024 and to Bangladesh at the beginning of 2025.

Project Tasks

• Identification and implementation planning for strategic development needs
• Development of sustainable strategies / business models for local partner institutes
• Conception of strengthening measures of internal capacities and for regulation
• Development and implementation of measures regarding green finance / adaption towards climate change
• Development of adapted materials for financial and entrepreneurial education
• Conception and implementation of training measures and trainings (among others at Vietnamese universities and potentially at the Lao Banking Institute)
• Supporting efficient cooperation between rural development stakeholders