Countries
Bhutan, Laos, Vietnam

Local Project Partners 
MFIs, Community Based Financial Organizations (CFO), Associations, Central Banks, Universities, Fintechs.

German Project Partners 
Sparkasse Essen
Sparkasse Lörrach-Rheinfelden

Donor
Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ)

Duration
01.11.2022 - 30.04.2024

Access to financial services in Bhutan, Laos and Vietnam (especially in rural areas) is one of the biggest challenges in overcoming poverty and unequal living conditions. Agriculture plays an important role in all project countries - the majority of the population and especially women are employed there. 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 personnel capacities to provide basic financial services in rural regions on a cost-covering basis.

 
The overall objective of the project is balanced ecological rural development in the project countries and sustainable economic development by strengthening the financial capabilities of the population. This contributes indirectly and directly to the promotion of (women-owned) small businesses, agribusinesses and youth. 

The project objective is to strengthen the institutional capacity of selected formal and informal financial organizations in rural areas. Strengthening is done with regard to the creation of ecological, sustainable business models, market-oriented product offerings for micro-entrepreneurs and women farmers, geographic reach, process efficiency (digitalization), management capacity, risk management and compliance. In this context, associations or other institutions should also be enabled to carry out effective monitoring of financial organizations and provide support for individual institutions (improving the legal and organizational framework for microfinance activities in rural areas and strengthening their supervision).

In Vietnam, the project supports the adaptation of university education to practical challenges of the financial business. An expansion of the project to Nepal and Cambodia is planned.

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)
• Supporting efficient cooperation between rural development stakeholders